StubHub and Ticketmaster are two of the largest ticket resale marketplaces in the world. Both companies provide a platform for buyers and sellers to exchange tickets for live events like concerts, sports games, and theater shows. However, while StubHub and Ticketmaster operate in the same general space, they have some key differences in their business models and target markets.
What is StubHub?
StubHub was founded in 2000 as an online marketplace for ticket resales. The company allows sellers to list event tickets they can no longer use and buyers to purchase those tickets. StubHub makes money by charging fees to both the buyer and seller on each transaction. StubHub was acquired by eBay in 2007 but operates as an independent subsidiary.
Some key things to know about StubHub:
- Inventory comes primarily from individual ticket sellers, not official event sources
- Has a large focus on secondary market ticket sales
- Charges 10-15% fees to sellers and 10-20% fees to buyers
- StubsHub gets its ticket inventory from season ticket holders, brokers, and fans who cannot attend events
- Enables variable and dynamic pricing driven by supply and demand
What is Ticketmaster?
Ticketmaster is a much older company, founded in 1976 as a means for venues to sell tickets to events directly. In 2010, Ticketmaster merged with Live Nation to become Live Nation Entertainment, though it still operates as Ticketmaster.
Some key things to know about Ticketmaster:
- Primary ticket source for many major concerts, sports leagues, and other live entertainment events
- Has exclusive partnerships with many venues and promoters for initial ticket sales
- Charges service fees to ticket buyers but not sellers
- Gets its ticket inventory directly from venues and event organizers in advance
- Tickets are generally sold at set face-value prices
How do StubHub and Ticketmaster Differ?
While StubHub and Ticketmaster are both large players in event ticketing, they actually have some notable differences:
StubHub | Ticketmaster |
---|---|
Secondary ticket marketplace – inventory comes from resellers | Primary ticket source – inventory comes directly from venues/events |
No exclusive partnerships | Has exclusive deals with many major venues/leagues/promoters |
Charges fees to both buyers and sellers | Only charges fees directly to buyers |
Prices driven by supply and demand | Most tickets sold at set face-value prices |
In essence, StubHub is focused on providing a secondary resale marketplace while Ticketmaster serves as the primary source for initial event ticketing. StubHub gets its inventory after initial sales while Ticketmaster often gets an exclusive window for the first sale of tickets.
Does StubHub Compete with Ticketmaster?
Based on their different business models and inventory sources, StubHub and Ticketmaster do not compete directly across their entire business operations. However, there are some areas of overlap in competition:
- They compete indirectly for buyer customers in the ticket sales market
- They compete for seller inventory in some limited cases
- Their resale markets sometimes converge for identical ticket inventory
- They both aim to provide convenience and choice to event ticketing customers
StubHub and Ticketmaster have taken different approaches to serving the live entertainment ticketing market, but they ultimately both want to attract ticket buyers. Some buyers may comparison shop between StubHub and Ticketmaster when looking for tickets. Sellers with extra tickets also have a choice of using either platform to resell them.
Competing for Buyers
Although StubHub focuses on resales, for many popular events it does compete with Ticketmaster for buyer customers. If an event is sold out or hard to get tickets for, buyers may check both Ticketmaster and StubHub for available seats. Even season ticket holders sometimes list their extra tickets on StubHub instead of Ticketmaster’s fan resale marketplaces.
StubHub tries to differentiate from Ticketmaster by offering more choice, flexible delivery options, and sometimes lower prices for sold out events. But Ticketmaster still has the advantage of being the official first source and having larger primary inventory during initial sales. Overall, Ticketmaster likely draws more buyer traffic upfront, but StubHub competes for those buyers later on who couldn’t get or missed out on primary tickets.
Competing for Sellers
Ticketmaster and StubHub also compete to some extent for ticket seller inventory, although StubHub has an overall advantage here. Individual ticket holders are more likely to use StubHub over Ticketmaster to resell extra tickets due to StubHub’s easier listing process, larger buyer base, and features like price suggestions.
However, Ticketmaster has tried to compete more for seller inventory recently. They have platforms like Ticketmaster Plus and the NFL Ticket Exchange that provide season ticket holders ways to resell tickets. And major partners like the NFL sometimes prohibit reselling anywhere except Ticketmaster. So in some limited cases, the two companies do battle for the same pool of ticket inventory.
Converging Resale Markets
The divide between primary and secondary ticket sales has also narrowed over the past decade. Ticketmaster has expanded into resales through acquisitions and partnerships. And StubHub has tried moving earlier into ticket lifecycles with features like Waitlist to reserve inventory before general sales open.
As a result, the same pool of tickets sometimes gets listed on both StubHub and Ticketmaster’s resale platforms. This happens more frequently with high demand events where suppliers list their tickets across as many marketplaces as possible.
Providing Fan Choice
Perhaps most importantly, StubHub and Ticketmaster aim to give ticket buyers more options and convenience. Fans can now use Ticketmaster for primary sales from venues or StubHub for resales from other fans. This choice and competition ultimately benefits ticket buyers and drives innovation.
StubHub’s influence has pushed Ticketmaster to expand into secondary sales. And Ticketmaster’s dominant position forces StubHub to offer a better resale experience. The rivalry between these ticketing giants has improved the market, even if their core businesses remain distinct.
Conclusion
In summary, StubHub and Ticketmaster have fundamentally different business models and do not compete head-to-head across the board. StubHub is a secondary ticket marketplace while Ticketmaster serves as the primary ticketing source. Their inventory and partnerships take shape accordingly.
However, StubHub and Ticketmaster do compete indirectly for ticket buyers, discretely for seller inventory, and through their expanding resale market convergence. This competition ultimately drives consumer choice and innovation which improves the live event ticketing experience.