Ticketmaster, the largest primary ticket marketplace in the world, has been exploring blockchain technology to improve the ticket buying experience. In 2018, Ticketmaster acquired Upgraded, a company that leverages blockchain to provide more secure ticket sales and transfers. This acquisition signaled Ticketmaster’s interest in blockchain-based ticketing solutions.
Why is Ticketmaster interested in blockchain technology?
There are a few key reasons why Ticketmaster is interested in blockchain technology for ticketing:
- Improve security – Blockchain can help prevent ticket fraud and counterfeits by recording ticket ownership and transfers on an immutable distributed ledger.
- Increase efficiency – Blockchain can help automate ticket resales, transfers, and redemption, reducing manual processes.
- Enhance fan experience – Fans could have more control over ticket resales and transfers on a blockchain-based system.
- Unlock new capabilities – Blockchain enables programmable tickets that could have dynamic pricing, rewards, etc. built in.
By harnessing blockchain, Ticketmaster aims to improve trust and transparency in the secondary ticket market while also creating a more seamless experience for fans.
What blockchain solutions is Ticketmaster exploring?
Ticketmaster is exploring a few different blockchain platforms and solutions:
Upgraded’s Ethereum-Based Ticketing System
Upgraded built an Ethereum-based ticketing system that uses smart contracts to enable secure ticket sales and transfers. Key features include:
- Tickets are minted as NFTs (non-fungible tokens) on the blockchain.
- Smart contracts execute ticket transfers, preventing duplication or fraud.
- Fans can securely resell tickets through smart contract transactions.
- Tickets can be linked to fans’ digital wallets and IDs.
Ticketmaster is likely integrating Upgraded’s technology into their ticketing flows. They have already run successful pilot tests together.
Flow Blockchain
In 2019, Ticketmaster invested in Flow, a new blockchain protocol designed for consumer applications like ticketing. Key capabilities include:
- High throughput capable of supporting large ticket volumes.
- Tools and APIs to build user-friendly applications.
- Support for programmable tickets with dynamic capabilities.
Ticketmaster plans to experiment with event ticketing use cases on Flow. They want to take advantage of Flow’s consumer-focused approach.
GET Protocol
GET Protocol offers an open-source blockchain ticketing infrastructure. In 2020, Ticketmaster partnered with GET Protocol on blockchain ticketing trials. Key features include:
- Primary ticket issuance recorded on blockchain.
- Controlled secondary market ticket trading.
- Identity management connected to tickets.
GET Protocol focuses on primary ticket issuance and validation. Ticketmaster likely sees them as a blockchain partner for the initial ticketing process.
What are the benefits of Ticketmaster using blockchain?
Here are some of the key benefits that blockchain could bring to Ticketmaster’s ticketing business:
- Prevent Fraud: Blockchain’s immutable ledger makes it practically impossible to duplicate or counterfeit tickets.
- Control Secondary Market: Ticket resales can be restricted to approved marketplaces, with set price ranges, via smart contracts.
- Decrease Fees: Blockchain cuts out intermediaries, allowing lower fees compared to traditional payment processors.
- New Revenue: Programmable tickets enable innovative experiences, bundled offerings, and dynamic pricing on secondary sales.
- Better Data: Ticket life cycle data can give venues, artists, and promoters better insights into tour performance.
By addressing counterfeit tickets, enabling more controlled secondary sales, and opening up new business models, blockchain could be a strategic advantage for Ticketmaster in the ticketing landscape.
What challenges could Ticketmaster face in adopting blockchain?
While blockchain offers many benefits, there are also some potential hurdles Ticketmaster will need to overcome:
- Scalability: Can blockchain systems process the high transaction volume of major ticket sales without delays?
- Usability: Moving ticket purchasing and transfers to blockchain apps may pose usability challenges for casual fans.
- Adoption: All event stakeholders, including venues, artists, and fans, will need to adopt ticketing blockchain systems.
- Regulations: New legal frameworks may be needed to govern blockchain ticketing activities and secondary markets.
- Costs: Developing and migrating to new blockchain ticketing infrastructure requires significant capital investment.
Ticketmaster is likely running trials to determine if blockchain-based ticketing can scale to meet their operational needs. User experience and driving mainstream adoption also appear to be top priorities in their blockchain approach.
How soon could Ticketmaster’s blockchain ticketing system launch?
Based on Ticketmaster’s ongoing blockchain pilots and partnerships, experts estimate a commercial launch could happen within 2-3 years. However, an incremental rollout is most likely, with certain events, venues, or markets adopting blockchain ticketing first. This gives Ticketmaster a chance to fine-tune the technology and business processes.
Some key milestones that could indicate an impending mainstream launch include:
- Launching multi-venue trials of blockchain ticketing flows at scale.
- Announcing formal partnerships with major sports leagues or music acts.
- Integrating blockchain ticketing with Ticketmaster’s primary sales platforms.
- Rolling out broad consumer marketing and education around blockchain ticketing.
- Establishing a network of approved secondary ticket marketplaces supporting ticket NFT transfers.
Widespread adoption is still years away. But by incrementally scaling pilots into production-ready systems, Ticketmaster could have blockchain ticketing in market by 2025.
Conclusion
Ticketmaster is actively exploring major blockchain platforms like Ethereum, Flow, and GET Protocol to improve security, unlock better fan experiences, and enable ticket innovation. While adoption challenges remain, blockchain could help transform event ticketing by creating more trusted primary and secondary marketplaces. With careful scaling of technology and operations, Ticketmaster’s blockchain ticketing system could go live within the next 2-3 years.