The ticket market can generally be divided into two main categories – the primary ticket market and the secondary ticket market. Understanding the key differences between these two markets can help you make informed decisions when purchasing tickets for concerts, sporting events, theater shows, and other live entertainment events.
The Primary Ticket Market
The primary ticket market refers to the first sale of tickets directly from the official source. This includes tickets sold directly by the venue or event organizer through box offices, official websites, fan clubs, and sponsor presales.
Some key characteristics of the primary ticket market include:
- Official source – Tickets are sold directly by the venue, sports team, band, promoter, etc.
- Face value prices – Tickets are almost always sold at face value or list price.
- Limited availability – There is a fixed supply of tickets allocated to the primary market.
- First come, first served – Tickets are usually sold on a first come, first served basis, with high demand events selling out quickly.
- Access codes – Presales may require special codes or memberships to purchase before the general public on-sale.
Purchasing through the primary market typically provides buyers with peace of mind knowing they are getting valid tickets directly from the source. Primary market tickets also avoid speculative markup seen in the secondary market. However, the limited quantity of tickets means high demand events often sell out quickly.
Examples of Primary Ticket Sources
Some of the most common primary market sources include:
- Venue box offices – The venue’s on-site box office often sells tickets in person with no fees or service charges added to face value prices.
- Official websites – Venues, teams, artists, promoters, and other official sources run their own websites to sell tickets online and process orders.
- Ticketmaster – This large ticket sales and distribution company sells primary market tickets through partnerships with many major venues and promoters.
- AXS – Another large ticket vendor selling primary tickets online and at retail outlets for various music, sports, and entertainment events.
- Fan clubs – Musicians, athletes, and artists often allow fan club members early access to buy tickets.
- Sponsor presales – Credit cards, cell phone carriers, and other corporate sponsors may offer presale ticket access as a perk.
Benefits of Buying Primary Market Tickets
There are several benefits associated with purchasing tickets through primary market sources:
- Authentic tickets – Primary tickets are 100% valid and authorized by the official source.
- Face value prices – Primary ticket prices reflect the list price printed on the ticket without speculative markup.
- Peace of mind – Tickets come directly from the venue or authorized seller without risk of fakes or scams.
- Best availability – Primary market tickets have access to all available ticket inventory for an event, before others.
- Support event organizers – Purchasing primary helps promoters, venues, teams, and artists.
Despite some drawbacks like limited quantities and fast sell outs, primary market tickets remain the preferred and most trustworthy option for buyers when available.
The Secondary Ticket Market
The secondary ticket market refers to any subsequent sale of tickets after the initial primary sale. This includes resellers, ticket brokers, secondary marketplaces, and online exchanges.
Characteristics of the secondary ticket market include:
- Relisted tickets – Tickets are resold after the initial primary market sale.
- Variable prices – Tickets are priced according to supply and demand rather than face value.
- Expanded availability – More tickets are accessible, even for sold out events.
- Third-party sellers – Tickets are resold by unofficial resellers and brokers, not the venue or event organizer.
- Speculative markup – Prices may be marked up substantially for very high demand events.
The secondary market provides consumers more opportunity to purchase tickets, even when an event is sold out. However, there is greater risk associated with unauthorized third-party ticket sales.
Examples of the Secondary Ticket Market
Some of the most prominent secondary ticket marketplaces include:
- Online resellers – Large online platforms like StubHub and Vivid Seats operate as secondary markets allowing individual sellers to list tickets.
- Ticket brokers – Agencies and storefront brokers purchase tickets in bulk for popular events then resell at a markup.
- Resale sites – Many teams, venues, and artists have resale partner sites to authorize secondary sales, like the NFL Ticket Exchange.
- Social media – Tickets are frequently resold through Facebook groups, Craigslist, Twitter, and other social platforms.
- Scalpers – Street scalpers may sell extra tickets outside event venues, though laws restrict this in many states.
In addition to dedicated ticket resale marketplaces, secondary tickets are available through many online outlets thanks to the proliferation of digital PDF tickets.
Benefits of Buying on the Secondary Market
There are some advantages to purchasing tickets on the secondary market, such as:
- Expanded availability – Fans can buy tickets even when events are sold out.
- Potential discounts – Less desirable games or shows may be below face value.
- Last minute access – Secondary market supplies tickets up until event time.
- Anonymity – Buyers don’t need to share personal info like with presales.
- Convenience – Large resale sites offer quick online ordering and electronic delivery.
While the selection and flexibilityopens up more possibilities, there are also considerable risks involved with secondary tickets.
Risks of Secondary Market Tickets
Despite the advantages, there are a few notable drawbacks to purchasing tickets from unauthorized resellers on the secondary market:
- Counterfeits – Higher risk of fake or void tickets, especially from unknown sellers.
- Price gouging – Speculative pricing may drive costs up substantially above face value.
- Hidden fees – Extra service fees, shipping, taxes, etc often get tacked on.
- Non-transferable tickets – Some tickets include the original buyer’s name and aren’t valid for resale.
- Scams – Fraudulent sellers may take payment without delivering valid tickets.
These risks are the tradeoff for expanded availability outside authorized primary sellers. Performing due diligence is important when buying secondary market tickets.
Comparing Primary and Secondary Ticket Prices
One of the starkest differences between the two marketplaces is ticket pricing. This table illustrates sample average ticket prices in the primary and secondary market for different types of major events:
Event Type | Primary Market Price | Secondary Market Price |
---|---|---|
NFL Football | $150 | $250 |
NBA Basketball | $100 | $150 |
NHL Hockey | $80 | $120 |
MLB Baseball | $50 | $75 |
Concerts | $125 | $200 |
Theater | $80 | $100 |
On average, secondary market prices are 25-50% higher across most event types. The markup is greatest for rare, high-demand games like playoff matches or concerts featuring popular headliners.
How Primary and Secondary Market Ticketing Works
Understanding how tickets are distributed between markets also explains pricing differences. Here is an overview of the ticketing workflow:
- The venue or event organizer calculates total event capacity and sets aside a certain ticket allotment for the primary market across all sale channels.
- During the primary on-sale, tickets are quickly purchased by fans through box offices, websites, presales, etc. Popular shows often sell out completely.
- Once the primary inventory sells out, the secondary market kicks into gear. Brokers, resellers, and individual fans relist spare tickets for amounts based on supply/demand.
- As the event date approaches, primary market tickets remain sold at face value prices. Secondary market prices may fluctuate up or down depending on market conditions.
- Leading up the event, last minute secondary tickets tend to increase in price as availability decreases.
- After the event concludes, any unsold secondary inventory expires worthless.
Primary market prices remain steady, while secondary prices float according to basic economics. Unique factors like opponent matchup or tour opener location also impact price fluctuations in the resale market leading up to an event date.
How Ticket Resale Sites Work
Large secondary ticketing platforms like StubHub and Vivid Seats use a portal model to connect individual buyers and sellers:
- Fans legally resell event tickets they can no longer use via the website.
- Sellers list their tickets along with a desired asking price and delivery method such as email or mail.
- Buyers browse game and show listings on the site filtered by factors like location and price.
- When a buyer purchases a listed ticket, the site facilitates payment and delivery from seller to buyer.
- The secondary site collects a commission on each ticket sale as revenue. Fees are charged to both the buyer and seller.
This online portal model provides a standardized marketplace for individual ticket holders to conveniently liquidate extra tickets. The large resale sites handle all aspects of the transaction in exchange for fees.
How Ticket Brokers Work
Ticket brokers operate differently by speculating on ticket inventory:
- Brokers purchase large blocks of tickets from primary markets then mark up prices on resale.
- They predict which events will be in high demand and acquire inventory before street date.
- By cornering a supply of hot tickets, brokers can leverage supply/demand imbalances to charge substantial markups.
- Broker tickets are sold on the company’s own resale sites or platforms like StubHub.
- Speculative purchasing ties up ticket supply. Brokers take on financial risk but profit from scarcity value.
Ticket brokers have faced public criticism and tighter regulations for speculative scalping practices. But they continue thriving by exploiting supply and demand imbalances around major events.
Factors Impacting Ticket Resale Value
Several key factors account for the large pricing difference between primary and secondary market tickets.
1. Event Popularity
The most famous performers and teams naturally garner higher ticket demand. Sellers can charge large markups for concerts featuring artists like Taylor Swift or Beyoncé. Playoff games and rivalries also command premium pricing.
2. Venue Size
Scarcity drives up secondary market rates. Smaller, more intimate venues create exclusivity. Larger stadiums and arenas have more supply making tickets less scarce.
3. Market Size
Events in major metropolitan markets like Los Angeles and New York have more potential customer demand and higher resale values.
4. Event Significance
Special games and shows like championships, tour openers, holiday events, and reunions make tickets more valuable collectibles.
5. Timing
As the event date nears, secondary market tickets become scarcer and tend to reach peak prices. Last minute buyers will pay a premium.
Understanding these dynamics helps explain why pricing varies so greatly between primary and secondary event tickets.
Is Buying Secondary Market Tickets Worth It?
No definitive answer determines if the secondary market is “worth” the higher prices. Here are some key factors to consider when deciding:
- Event importance – How once-in-a-lifetime is the experience? Is it important enough to justify a high markup?
- Financial situation – Can you comfortably afford the higher resale price? Don’t overextend finances.
- Peace of mind – Are fraud protections and purchase guarantees provided?
- Alternatives – Are other dates, locations, or seat selections available for less?
- Expected savings – How much money do you realistically save by waiting?
Set a firm budget and maximum price you are willing and able to pay. Weigh the value gained from attending against the extra cost. Stay diligent to avoid fraud. With realistic expectations and flexibility, scoring secondary market tickets can provide access to sold out events and memories that outweigh added costs.
Tips for Buying Secondary Market Tickets
Here are some top tips for finding the best resale ticket values:
- Compare prices across multiple resale sites.
- Factor in all additional fees to determine real cost.
- Buy together with friends to get better group rates.
- Join fan clubs and mailing lists for special offers.
- Track price trends to identify best time to buy.
- Avoid very short-term purchases right before events.
- Read seller ratings and purchase guarantees carefully.
- Save by choosing less popular games/shows.
Just like in the stock market, secondary ticket prices fluctuate according to supply and demand. Leverage these dynamics to gain the best ticket value within your budget.
Conclusion
The primary and secondary ticket markets offer different benefits and tradeoffs for fans. The primary market sells tickets at face value direct from the source but has very limited quantity. The secondary market provides expanded ticket access through resale even for sold out events, though pricing is inflated and carries greater risk.
Knowing how both ticket markets work allows consumers to make an informed purchasing decision. Weigh the importance of the event, cost factors, risks, and alternatives to decide if paying a speculative premium provides enough value and is worth the expense. Use caution to avoid fraud and overpaying. When used properly, though, the secondary market opens up access to memorable entertainment experiences that could not be obtained otherwise.