Thursday, October 28, 2010

The Ticketing Issue

Several years ago the NFL decided that - rather than allowing scalpers to charge enormous markups for their tickets - they'd like to get into the secondary market of ticket selling (in addition to the primary market, where the teams sell tickets directly to fans) themselves. By doing this, in addition to directly securing these additional profits, the NFL also gained access to important information on consumer demand (e.g. the relative demand for tickets based on seat location, team opposition, weather, etc...). They initiated this action via a website called NFL Ticket Exchange, which is operated by TicketMaster.

Nevertheless, I believe two issues still remain. Firstly, there is a glaring lack of contact between buyers and sellers in this market - as all transactions are mediated by Ticketmaster. Although this ensures there aren't really any trust issues (since Ticketmaster guarantees the authenticity of the tickets), I do think the market would be aided by allowing buyers to somehow contact or gain information about sellers. Buyers can learn how well they can see the action from where the seats are located, the types of fans that are usually situated around them, high-quality eateries that may be located nearby, etc... Secondly, many fans complain about the fact that this system encourages easy access to tickets from anyone who wants them and this disrupts the dynamic of the stadium (as many fans from the visiting teams can easily purchase tickets through secondary markets - this had previously been a lot harder to do when fans bought tickets from their own teams, as priority was assigned to to those who had a more extensive buying history). It's much more fun to go to a game when most of the fans belong to the home crowd - rather than dealing with "fair-weather" fans or those from the opposing team.

Therefore, I believe the NFL Ticket Exchange is only part of the solution, the next step is to adopt an approach similar to what is being offered by Twck.it, a social “music-ticketing” network.  Through this site, fans selling tickets can post their listings to Twck.it for free (no registration required). These sellers must then use their existing Facebook or Twitter accounts to enter the ticket information, and their listing will appear through the Twck.it network (and their price/seat information will be compiled for purchasers to easily navigate). In this way, buyers have some medium in which they can converse with sellers and gain more information about the tickets they’re buying. Furthermore, in response to fans complaining that secondary markets allow into stadiums a certain type of fan that detracts from the game experience, this initiative will encourage more group unity among fans attending the game (since they will probably restrict purchases to those with like-minded interests). Lastly, Twck.it offers a free ticket marketing service to sellers, including detailed reports with extensive “activity summaries” for each of their listings (which is similar to what Ticketmaster offers – but here, in addition to being able to assess buyer tendencies, you can track buyer profiles through their publicly-provided information. 

Ultimately, this really can be something potentially beneficial for both the league and its fans. Again, I’m cautiously hopeful that real change will be enacted.

References
Kastelein R. Twck.it Launches first Social Ticketing Technology for Concerts. EU Ticket News. Oct 17, 2010. Retrieved from http://www.euticketnews.com/20101017939/twckitr-launches-first-social-ticketing-technology-for-concerts.html

Press Release. NFL Ticket Exchange by Ticketmaster Kicks off 2010 Season as the Official League-Approved Ticket Marketplace. PR Newswire. Aug 9, 2010. Retrieved from http://www.prnewswire.com/news-releases/nfl-ticket-exchange-by-ticketmaster-kicks-off-2010-season-as-the-official-league-approved-ticket-marketplace-100274019.html

Fennelly J. How Technology has Changed the NFL Experience. Bleacher Report. Sep 10, 2009. Retrieved from http://bleacherreport.com/articles/251693-how-technology-has-changed-the-nfl-experience

Gregory H. NFL Looking to Profit from Secondary Ticket Market. Fox DC. Aug 20, 2010. Retrieved from http://www.myfoxdc.com/dpp/money/nfl-looking-to-profit-from-secondary-ticket-market-082010

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