Secondary ticketing companies, sometimes referred to as ticket resale companies, are businesses that enable the resale of event tickets through online marketplaces. They provide a platform for ticket holders to resell tickets they can no longer use to other interested buyers. Some of the major secondary ticketing companies include StubHub, Vivid Seats, SeatGeek, and Ticketmaster’s TicketExchange platform.
How do secondary ticketing companies work?
Secondary ticketing companies typically operate online marketplaces that bring together ticket buyers and resellers. Sellers can list tickets for upcoming events that they want to resell. Buyers can browse available listings and purchase tickets. The secondary ticketing company facilitates the transaction, providing a secure platform for payments, ticket delivery, buyer guarantees, and other services.
Many secondary ticketing sites allow sellers to set their own ticket prices, similar to an auction. Others allow sellers to set a fixed resale price. In either case, the sites charge fees to both the buyer and seller to facilitate the ticket resale. The company generates revenue by collecting a commission on each ticket sold through their marketplace.
Secondary ticketing platforms offer buyers more options to purchase tickets, especially for high-demand events that may be sold-out through the primary ticket seller. For sellers, it provides an avenue to resell tickets they can no longer use and recoup some of the cost.
What are some major secondary ticketing companies?
Here are some details on a few of the largest and most well-known secondary ticket marketplaces:
StubHub
StubHub was founded in 2000 and is one of the largest secondary ticketing platforms. It offers resale ticket inventory for a wide variety of sports, concert, theater, and other live entertainment events worldwide. StubHub guarantees ticket authenticity and offers electronic delivery as well as UPS shipping options. The site requires sellers to disclose ticket location details like section, row, and seat numbers.
Vivid Seats
Launched in 2001, Vivid Seats is another large secondary marketplace. They offer a loyalty rewards program called Vivid Rewards that provides perks like 5% credit on future orders for frequent buyers. Vivid Seats also has a unique buynow/bid hybrid model, allowing buyers to either purchase tickets immediately or place bids on comparable listings if preferred ticket quantities are unavailable.
SeatGeek
SeatGeek entered the space in 2009, positioning itself as a tech-focused ticket search engine. Buyers can easily browse interactive color-coded maps to compare ticket prices and listing values. SeatGeek focuses on technology to optimize the user experience, including proprietary Deal Score rankings to rate ticket listings.
Ticketmaster TicketExchange
As the dominant primary ticketing seller, Ticketmaster also operates its own resale exchange marketplace for ticket resales. Sellers must list the original ticket purchase price, which provides market price context to buyers. Ticketmaster guarantees ticket validity and provides the delivery options buyers expect from the leading primary ticketing site.
What are some key differences between primary and secondary ticketing?
There are a few key differences between the primary and secondary ticket markets:
Primary Ticketing | Secondary Ticketing |
---|---|
Original ticket source, from the event organizer | Resale marketplace for ticket holders to resell unused tickets |
Ticket prices set by event organizers | Ticket prices driven by supply and demand |
Lower fees, only charged once per ticket | Higher fees since charged on both original and resale transactions |
The key distinction is that primary ticketing platforms sell tickets directly on behalf of a sports team, concert promoter, theater, or other event organizer. Secondary ticketing companies simply facilitate ticket resale between buyers and sellers through marketplaces.
What are some pros and cons of using secondary ticketing platforms?
There are both advantages and disadvantages to buying tickets on the secondary market:
Potential advantages
- Get tickets to sold out events
- More selection and availability for high-demand events
- Gain access to premium or resale-restricted tickets
- No need to rush for tickets right when they go on sale
- Can still shop for tickets even very close to event date
Potential disadvantages
- Higher ticket prices due to demand markup
- Higher fees compared to primary ticketing
- Counterfeit ticket risks from disreputable sellers
- No control over actual seat location quality
For buyers, secondary platforms provide more selection and acquisition options for sold out events. But buyers also sacrifice ticket price control and take on some additional risk of bad seats or fake tickets. Sellers get added liquidity to resell unused tickets, but lose potential profit from higher resale fees.
Does ticket resale on secondary sites violate terms and conditions?
It depends. Many event organizers prohibit ticket resale through terms and conditions only allowing the original ticket purchaser to use the tickets. However, these resale restrictions don’t always hold up legally. The applicability depends on the specific event, jurisdiction, and resale laws in place.
In many cases, resale restrictions are unenforceable once the original ticket sale is completed. US federal law and many state laws prohibit unreasonable restrictions on ticket transfers. Courts have often ruled in favor of permitting ticket resale under certain conditions. However, tickets resold above market value in violation of anti-scalping laws may still be prohibited in some states.
Buyers and sellers should research the applicable laws for each event. Reputable secondary ticketing companies will comply with resale rules and prohibitions. But when in doubt, reviewing the original ticket terms and conditions is always recommended.
Are secondary ticketing companies ethical?
The ethics of the secondary ticketing industry are controversial. Critics argue:
- Resale sites increase prices, making events less affordable.
- Speculative ticket sellers hoard tickets only to resell them at a profit.
- Artists and teams lose control over ticket pricing and distribution.
- False scarcity is created through bot purchases and immediate resale.
Supporters counter that secondary markets:
- Provide an open exchange for buyers and sellers.
- Allow fair market price discovery based on supply and demand.
- Give fans more choice to buy tickets even when events are sold out.
- Enable transfer of tickets that would otherwise go unused.
There are merits on both sides of the argument. Secondary ticketing clearly enables greater liquidity and choice. However, uncontrolled scalping and speculative resales can drive up prices and restrict affordability. Ultimately there’s a balance, with room for regulation and oversight to protect consumers and event partners.
How can buyers avoid scams on secondary sites?
Here are some tips for buyers to avoid scams and fake tickets on secondary ticketing marketplaces:
- Only buy from reputable, established secondary ticketing platforms like StubHub or Ticketmaster TicketExchange.
- Check seller reviews and ratings before purchasing.
- Confirm a buyer guarantee is offered in case tickets are invalid.
- Understand the ticket delivery method and timeline to ensure timely receipt.
- Review ticket details carefully for accurate event info, seat locations, barcodes.
- Avoid sellers advertising tickets well below market price – too good to be true.
- Pay with a credit card to enable chargeback dispute ability if necessary.
As long as buyers use caution, the major secondary players provide safe, secure ways to access event tickets. But buyers should always be wary of potential scams from sellers on less reputable platforms or classifieds sites.
Conclusion
Secondary ticketing companies have become a significant presence in the live event industry. Platforms like StubHub and Vivid Seats provide an online resale marketplace for ticket holders to resell extra tickets and give buyers more options to purchase tickets. While secondary ticketing faces ethical criticisms, it appears the business model is here to stay, though likely needing increased regulation and transparency. Savvy buyers can safely access even sold out events, but should use caution to avoid potential scams or invalid tickets on secondary marketplaces.