AXS is a global ticketing platform, offering ticketing services in sports, music and entertainment. It was formed in 2021 through the merger of AEG Facilities, AEG Presents, AXS and AEG Global Partnerships. AXS allows users to buy tickets for live events and access venues and events.
Some key questions when evaluating AXS as a company are:
- What services and products does it offer?
- How large is the company and how has it grown?
- What is its business model and revenue sources?
- Who are its key competitors?
- What are its strengths and weaknesses?
- Does it have a good reputation with customers?
Looking at these factors can help determine if AXS is well positioned for future growth and success.
AXS Company Overview
AXS was formed through the merger of four existing companies:
- AEG Facilities – owns, operates or consults with over 300 arenas, stadiums, convention centers and performing arts venues globally
- AEG Presents – one of the largest live music companies in the world, promoting tours, festivals and special events
- AXS – an online ticketing platform and technology provider launched in 2011
- AEG Global Partnerships – focused on worldwide sales and servicing of sponsorships, naming rights and other strategic partnerships
After the merger, AXS became a subsidiary of Anschutz Entertainment Group (AEG), an American sporting and music entertainment conglomerate. AEG owns stakes in over 100 facilities and events globally.
The AXS ticketing platform provides ticketing services for many AEG venues and live events. It also provides ticketing services to third-party venues and promoters outside of AEG.
AXS Company Size
AXS is part of the large AEG conglomerate, which reported revenues of $1.5 billion in 2019 prior to the pandemic. The company does not report financials specifically for AXS.
However, AXS has significant scale and reach in the ticketing industry:
- It provides ticketing for over 300 major arenas, stadiums, convention centers and performing arts venues globally
- In 2019, AXS sold nearly 50 million tickets for 5,000 music, sports and entertainment events
- It has major long-term ticketing deals with large venues like Staples Center in Los Angeles
This makes AXS one of the largest players in the live event ticketing industry along with competitors like Ticketmaster. The merger expanded AXS’ ticketing services and strengthened its position in the industry.
AXS Business Model
AXS generates revenue through:
- Ticket sales – AXS charges fees on tickets sold through its platform. This includes initial purchase fees and additional convenience or processing fees.
- Service fees from venues – AXS charges a fee to venues/promoters for providing ticketing services. This can be a per ticket fee or a percentage of ticket revenue.
- Upselling additional products/services – AXS tries to maximize revenue per fan by upselling items like parking passes, upgrades, hotel packages, etc.
- Advertising and sponsorships – AXS sells ad space on its website and mobile apps. It also has naming rights deals for some venues.
- Data monetization – The large volume of sales data collected by AXS has value for analytics, marketing and ad targeting.
This model generates significant recurring revenue for the company from ticket sales and related fees. The merger expanded the potential customer base and inventory for AXS to sell.
AXS Key Competitors
AXS competes in the global ticketing services industry. The industry generated over $30 billion in revenue in 2019 prior to the pandemic. AXS’ main competitors include:
- Ticketmaster – Owned by Live Nation, this is the largest primary ticket provider globally with 500 million tickets sold in 2019. They have exclusive contracts with many major venues.
- VividSeats – An independent online ticket marketplace focused primarily on resale/secondary market. Allow buyers and sellers to trade tickets.
- SeatGeek – An online ticket resale marketplace that uses data and algorithms to value tickets. Broader focus beyond just sports.
- StubHub – Owned by Viagogo, StubHub is one of the largest online secondary marketplaces with high fees.
Smaller niche competitors also exist across various live entertainment categories. However, Ticketmaster holds the dominant overall market position that AXS is trying to challenge.
Analysis of AXS Strengths and Weaknesses
Strengths
AXS has the following key strengths as a ticketing company:
- Established trusted brand – The AXS brand is well known with a reputation for providing secure, convenient ticketing services.
- Large venue/event portfolio – AXS tickets a high volume of major sports and entertainment events, especially in California and the Western U.S.
- Innovative technology – The AXS platform offers convenient mobile ticketing, seamless entry to venues via RFID, and an easy to use interface.
- Data and analytics – AXS has valuable consumer data to help venues price tickets dynamically and target marketing efforts.
- Strong financial backing – Being part of AEG provides financial stability and resources to improve and market the AXS platform.
These strengths make AXS a leading choice for ticketing major live events and venues. The combination of its brand, venue portfolio, technology and data assets provide a competitive edge.
Weaknesses
Some of AXS’ weaknesses compared to the competition include:
- Smaller sales volume – AXS sells fewer tickets overall vs. Ticketmaster which handles billions annually.
- Less geographic coverage – Heavily focused on western U.S. and Europe vs. Ticketmaster’s global reach.
- Fewer exclusive venue deals – Most major ticketing companies compete to lock in exclusive long-term venue contracts.
- High fees – Similar to competitors, AXS service and convenience fees can add 25-30% to ticket prices angering some fans.
- Security issues – AXS Mobile ID ticketing had some previous security flaws that allowed ticket sharing.
While still a major player, AXS has room for improvement to challenge Ticketmaster’s dominant market position. Its weaknesses represent areas for AXS to focus on improving.
Customer Satisfaction Analysis
Understanding AXS’ reputation and satisfaction among ticket buyers provides insight into the company’s performance. Some data points on customer perceptions:
- The AXS website and mobile apps have over 500,000 user reviews and an average rating of around 4/5 stars. This suggests most customers find them easy to use.
- However, reviews of AXS customer service are more mixed with lower ratings. Long response times and unclear policies are common complaints.
- In fan surveys, AXS finishes middle of the pack vs. competitors on metrics like fees, website ease of use, and purchase experience.
- AXS’ net promoter score, which measures customer loyalty, is lower than competitors like SeatGeek but higher than StubHub. This indicates moderately high satisfaction.
- The volume of complaints against AXS logged by the Better Business Bureau is similar to other large ticketing companies.
This customer feedback suggests AXS delivers a smooth ticketing experience on par with competitors, but could improve in areas like fees and customer service. The company enjoys relatively strong loyalty among fans.
Conclusion
Overall, AXS remains a leading contender in the live entertainment ticketing industry. The 2021 merger strengthened its assets and competitive position.
AXS’ strengths including its brand equity, technology platform and strong venue/event portfolio make it a ticketing power player. Growth opportunities exist through expanding internationally, securing more exclusive deals, and boosting sales volume to better compete with Ticketmaster.
Some weaknesses like high fees and security issues have dinged its reputation, but customer satisfaction remains moderately high. There is room for improvement in customer service.
For venues, promoters and ticket buyers, AXS provides a reputable ticketing service on par with other industry leaders. While not the dominant player Ticketmaster is, AXS remains a good choice for convenient and secure ticketing of major live entertainment events in key markets.
The company is positioned well to capitalize on post-pandemic growth in live events. With AXS’ resources and innovation, it could gain more market share in the future. But it faces very tough competition from Ticketmaster.
Overall AXS seems a reasonably strong company based on its assets, growth, business model and customer perceptions. But there are opportunities to enhance capabilities and reputation. With smart leadership, AXS can continue flourishing as a top player in live entertainment ticketing.