COVID-19 kicks down primary and secondary ticketing markets
The specialist set the scene by comparing US supply and demand dynamics in January and February 2020 with the same period a year ago, and outlining the concentration of the largest professional resellers. It was then noted that the resale market has become increasingly attractive to institutional investors because of a power shift among brokers, rights holders and fans.
The Interview, which focused on sports and entertainment, also covered the thorny issue of insurance in terms of potential claims against lost revenues by venues or primary and secondary platforms. The expert said there was a lack of clarity around how certain aspects would be interpreted in a court of law, and where ultimate responsibility will fall.
After the pandemic, there could be “a little bit of a bifurcation” in the industry, he continued, though primary rights holders will still hold the rights. And although the way that sports and entertainment are consumed will most certainly change — at least in the short to medium term — technology could unlock some untapped opportunities as the industry embraces change.
Thinking about recovery scenarios for ticket platforms, venues and other players, the expert warned that certain businesses might not survive because of overwhelming debt or unmanageable operational cost structures. Other topics covered in the Interview included revenue expectations for ticketing platforms given the demand headwinds, which players in the ecosystem are best positioned to exit the pandemic, and potential liquidity issues owing to event cancellations.
To access all the human insights from Third Bridge Forum’s Ticketing Industry – Coronavirus Impact on Ticketing Marketplaces, Sports & Entertainment Venues Interview, click here to view the full transcript.
The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.
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