Revenue / 08.21.18
Online Ticketing to Reach $68 Billion by 2025, Primarily Due to Mobile Growth
Earlier this summer, Grand View Research, Inc., issued a report forecasting that the global online event ticketing market could top $67.99 billion by 2025. The report shows that the ticketing industry has witnessed "a paradigm shift" from the traditional booking of tickets at event venue counters to buying tickets in advance from the comfort of one's home, which is precipitating this increase in not only online ticket buying but also the larger ticketing market.
Although online growth is generally common knowledge for industry ticket professionals (few event attendees purchase tickets in person today), it is noteworthy to look at just how quickly that shift has taken place and why.
In recent years, the buying of tickets via smartphones and tablets has gained popularity, due largely to the increasingly user-friendly mobile interfaces as well as an increase in Wi-Fi and device connectivity. In turn, major ticketing vendors have been placing greater emphasis on providing mobile applications and making their websites as customer-friendly as possible in order to facilitate quick and easy ticket purchases. At minimum, ticket buyers expect these applications to include information on the event itself, ticket prices and seating layouts in a quick minimum click sales process. What we’re seeing is a huge projected increase in mobile (which includes tablet) ticket purchasing over time, while desktop purchases are likely to plateau.
According to the report, mobile applications are expected to surpass desktop purchases by 2019, which is less than six months away.
Today, service providers are jockeying to secure long-term contracts with sports authorities, theaters and local event organizers as a means of ensuring sustainability. The promotion of concerts, sports tournaments, stand-up comedy shows and other events now forms a substantial portion of their revenue.
Of course, the prevalence of mobile devices isn’t the only thing that is adding to the market growth projection. Concert organizers and venue owners worldwide are selling VIP packages online, which is expected to increase the market size in coming years. These packages can include everything from preferred seats and backstage access to premium food and beverages and preferred restroom access. Packing isn’t a new concept in this space, given the success of Citi Private Pass, Amex and Prime Sports, but new players continue to enter the field with new technologies and package options.
The actual artists are also getting into the act. Among them is Lady Gaga, who has teamed up with Ticketmaster to sell VIP packages online to her upcoming Vegas residency at the end of the year, reports E! Online. Her packages include a VIP table for up to eight guests, a VIP Seat check-in service that allows you and your party to bypass the line, a dedicated cocktail server and service throughout the performance, and more. These higher-priced tickets and ticket packages, which can easily be sold online, will all contribute to a growing ticketing market.
Online ticketing is also being utilized in non-event scenarios and settings. For example, Blooloop.com reports that 365 Tickets recently announced a partnership with Manhattan by Sail, which has been taking people on sailing excursions around New York City for more than three decades. The global online ticketing platform is focused on offering a streamlined, web-based ticketing experience that makes it easy for families and others to arrange a whole trip's activities or "on the fly" as part of their larger travel plans.
The U.S. division of 365 Tickets currently offers online tickets to more than 2,000 attractions around the world. Among them are: the Empire State Building, Universal Studios Hollywood, LEGOLAND California and Florida, Disneyland Paris, and many more.
Online ticketing may even solve the problem of sports fans looking to buy tickets to watch their favorite teams should they compete in the post-season (and not get gouged in the process). AlleyWatch recently profiled ShooWin, a patented online sports ticket marketplace that sells reservations for highly anticipated, contingent playoff and championship games. Fans choose all aspects of their tickets, paying a reservation fee to guarantee their self-picked seats.
ShooWin collects the reservation fee, and if the team makes the chosen game, the fan receives the tickets at cost. If the team chosen does not make the game, or is eliminated from playoff contention, ShooWin keeps the reservation cost. The company purchases tickets from rights holders and sells reservations on those tickets to sports fans. ShooWin shares the reservation revenue, creating a completely new revenue stream and fan data source for its partner teams, leagues and conferences. There are other services like ShooWin, and more are sure to come between now and 2025.
This one-stop-shop ticket purchasing experience is representative of the power of online ticketing, providing insight into why the global online event ticketing market could reach nearly $68 billion in just seven years.
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Tags: Sports , Paperless , Music , Ticketmaster , Mobile , Digital Marketing