StubHub is an online marketplace owned by Viagogo for buyers and sellers of tickets for sports, concerts, theater and other live entertainment events. It allows fans to buy and sell tickets to various events. StubHub was founded in 2000 and is headquartered in San Francisco, California. It operates in over 40 countries and employs around 1,000 people. StubHub became a subsidiary of eBay in 2007 before being acquired by Viagogo in 2020.
StubHub’s Business Model
StubHub operates as an online marketplace connecting ticket buyers and sellers. It does not own any inventory of tickets itself. StubHub allows sellers to list tickets for sale on its platform and charges a commission fee when those tickets are sold. Buyers can search for and purchase tickets on StubHub without any listing fees.
StubHub makes money by charging fees to both the buyer and seller for each transaction. StubHub charges a commission fee to sellers on the total ticket price. This fee varies but is typically around 15%. For buyers, StubHub charges a service fee and/or delivery fee on all ticket purchases. The service fee is usually 10-25% of the ticket price.
This marketplace model allows StubHub to generate significant revenue without having to take on the risk and costs of holding ticket inventory. StubHub simply facilitates transactions between buyers and sellers and collects fees in the process.
StubHub’s Revenue Sources
As an online ticket marketplace, StubHub has two main revenue sources:
1. Seller commissions – StubHub charges sellers a percentage commission fee on every ticket sold through its platform. This commission is StubHub’s fee for providing the marketplace and transaction platform.
2. Buyer fees – StubHub also charges service and delivery fees to ticket buyers on each purchase. The service fee covers the costs of running the online platform. Delivery fees apply for mobile or print-at-home ticket delivery.
In addition to these main fees, StubHub generates a small amount of revenue from other services:
– Premium services – StubHub offers premium services like ticket guarantees and last-minute eTicketing for additional fees.
– Advertising – StubHub runs ads on its website and mobile apps, providing a secondary revenue stream.
– Data services – StubHub licenses ticket data to partners for analytics and research purposes.
But seller commissions and buyer fees make up the bulk of StubHub’s annual revenue.
StubHub’s Annual Revenue
As a private subsidiary of Viagogo, StubHub does not disclose its detailed financial results publicly. However, some estimates of StubHub’s annual revenue are available:
– In 2016, StubHub’s gross transaction value (the total sales through its platform before fees) was estimated at around $5 billion. With commissions and fees of 10-25% of ticket prices, StubHub’s revenue is likely 15-20% of gross transaction value. This would put 2016 revenue at approximately $750 million – $1 billion.
– Research firm IBISWorld estimated that StubHub generated revenue of $862 million in 2018 in the US alone.
– According to media reports, StubHub’s global revenue in 2019 exceeded $1 billion for the first time.
– Viagogo paid $4.05 billion to acquire StubHub in 2020. Companies typically pay 3-5x revenue for an acquisition, suggesting StubHub’s annual revenue at the time was around $800 million – $1.35 billion.
Based on these estimates, we can conclude that StubHub’s global annual revenue is likely between $1 billion and $1.5 billion as of 2022. Much of this comes from commissions and fees in its core US and European markets.
Factors Affecting StubHub’s Revenue
Several key factors impact the revenue earned by StubHub each year:
– Number of events/inventory – More events and available ticket inventory allows more transactions. Big sports leagues, large music tours, and expanded seasons driveStubHub revenue.
– Ticket prices – The dollar value of tickets sold drives seller commission and buyer fee revenue. More expensive tickets increase StubHub’s revenue potential.
– Buyer demand – More ticket buyers on StubHub allows more transactions and commissions to be collected. Marketing and promotions help drive buyer traffic.
– Seller supply – A large supply of ticket inventory brings in more sellers and listings. Seller tools and support help drive supply.
– Fees charged – The actual fee rates charged to buyers and sellers directly impact StubHub revenue. Raising or lowering fees changes revenue.
– Market share – StubHub competes with other secondary markets like Vivid Seats and SeatGeek. Gaining market share boosts StubHub’s transactions and revenue.
– Operating costs – StubHub’s revenue does not equal profit. Operating expenses like technology, payroll, marketing etc. must be covered.
– Acquisitions – StubHub has acquired complementary companies to accelerate growth. This impacts financials and revenue.
– Foreign expansion – Expanding globally increases StubHub’s addressable market and revenue potential. Currency changes can also affect international revenue.
StubHub Revenue Growth
Although exact revenue figures are not available, StubHub’s revenue has likely been growing at a double-digit rate in recent years based on estimates:
– From 2016 to 2018, estimated revenue grew from $750 million – $1 billion to $862 million (US only), suggesting yearly growth of 15-20%.
– Industry experts estimated StubHub’s revenue growth from 2018 to 2020 was around 20% per year.
– If revenue was $1 billion in 2019, 20% growth would equate to $1.2 billion in 2020.
– Viagogo’s large $4 billion acquisition offer also implies continued strong revenue growth.
StubHub has several advantages fueling this revenue growth:
– Increasing popularity of ticket resale platforms over box offices
– Leveraging data and technology to improve convenience and selection
– Expanding globally especially into Europe
– Marketing partnerships with sports leagues, teams, and events
– High buyer and seller loyalty once on the platform
– Offering a wider selection of tickets than competitors
If current trends continue, we can expect StubHub’s annual revenue to continue increasing at a 15-25% annual clip in the coming years.
StubHub Financial Summary
In summary, key facts about StubHub’s revenue and finances include:
– Annual revenue is estimated between $1 – $1.5 billion globally.
– Revenue comes primarily from seller commissions (around 15% fee) and service/delivery fees for buyers (10-25% fees).
– Revenue has been growing at around 15-20% annually in recent years.
– Key drivers are ticket prices, event inventory, buyer demand, seller supply, and fees charged.
– As a subsidiary of Viagogo, StubHub does not report detailed public financial results.
– StubHub was purchased by Viagogo for approximately $4 billion in 2020.
– The large acquisition price and competing offers indicate StubHub’s strong financial performance.
– StubHub is estimated to hold 50-55% market share of the US secondary ticket market.
While concrete earning stats are not available, experts agree StubHub is one of the largest and most profitable players in online ticket resale. Its continued growth demonstrates the strength of its marketplace model and opportunities within the global ticket industry. We can expect StubHub’s revenue to continue expanding at double-digit rates annually as it cements itself as a leader in secondary ticketing.
Conclusion
StubHub is a major player in the online secondary ticket market, with estimated annual revenue in the range of $1 – $1.5 billion. It generates income by charging fees to ticket buyers and sellers on its marketplace platform. StubHub’s revenue comes primarily from commissions on seller sales and service/delivery fees for buyers, which make up 10-25% of ticket prices.
While StubHub does not disclose its financials publicly, industry estimates suggest its revenue has been growing at 15-25% annually in recent years. The company’s 2020 acquisition for over $4 billion also indicates strong financial performance. StubHub’s growth is driven by factors like rising online ticket sales, loyal users, data analytics, and global expansion. Going forward, StubHub is well-positioned to see continued double-digit revenue growth in the next few years as it cements itself as leader in the secondary ticketing industry.