A secondary ticket market refers to the sale and resale of tickets to events such as concerts, sports games, and theater performances through channels outside of the original source. Rather than purchasing directly from the venue or primary ticket seller, buyers can obtain tickets through secondary marketplaces run by ticket brokers or resellers. The secondary market provides an alternative option for fans looking to buy tickets, especially to sold-out or high-demand events. While the secondary market can offer convenience and access, it also comes with risks related to costs and ticket validity. Understanding how the secondary ticket market works is important for consumers looking to explore ticket purchasing options.
What is the secondary ticket market?
The secondary ticket market encompasses any platform where tickets are resold after initially being sold by the official box office or ticketing website. This includes online resale marketplaces like StubHub and Vivid Seats as well as ticket brokers or resellers that operate offline. Sellers on the secondary market typically acquire tickets in bulk with the intent to resell them at a profit. Buyers can browse available ticket listings and purchase from an individual seller rather than buying directly from the venue or promoter.
Unlike the primary ticket source, prices on the secondary market are driven by supply and demand rather than face value. Prices may be above or below face value depending on factors like event popularity, venue capacity, and reseller inventory. With high demand events, secondary market prices often far exceed the original price. While this grants access for fans who missed out initially, it also generates large profits for brokers and marketplaces.
Key components of the secondary ticket market
- Online resale marketplaces – Platforms like StubHub and Vivid Seats that allow sellers to list tickets and buyers to search listings and purchase tickets.
- Ticket brokers – Companies or individuals who acquire large batches of tickets to resell at a markup through online marketplaces or their own operations.
- Speculators – Those who purchase tickets from the primary source early with the intention of reselling them at a higher secondary market price closer to the event.
- Ticket buyers – Fans who purchase tickets on the secondary market due to tickets being unavailable or more expensive on the primary market.
- Ticket transfers – Some ticket holders resell through ticket transfers facilitated by the primary ticket seller rather than using a secondary platform.
The interactions between these key players help form the multibillion-dollar secondary ticket industry.
Why does a secondary ticket market exist?
A few key economic factors drive the existence of a secondary event ticket market:
- Limited supply – There are only so many seats available for high-demand concerts, games, and shows in smaller venues. Primary sellers often sell out quickly.
- Price differences – Artists and teams sometimes intentionally price tickets below market value, knowing the secondary market will bear higher prices.
- Speculation – Resellers anticipate they can acquire and flip underpriced tickets for a profit closer to the event date.
- Convenience – Secondary marketplaces aggregate ticket listings in one place rather than buyers having to hunt down individual resellers.
These conditions make a secondary market profitable and appealing to buyers unable to obtain or unwilling to pay higher prices for primary tickets. Secondary sellers also argue they provide services like guaranteeing ticket authenticity that benefit consumers. However, the secondary market also faces significant criticism regarding unfair pricing and lack of regulation (see section below).
Examples of secondary ticket marketplaces
Some of the most prominent online secondary ticket marketplaces include:
StubHub
– Founded in 2000 and owned by Viagogo since 2020
– Over 10 million visitors per month
– Sells tickets for sports, concerts, theater, and other live entertainment events
– Also offers fan-to-fan ticket transfers
– Has mobile app and integration with some primary ticket sellers
– Charges fees to both buyers (10-25% of order) and sellers (15%)
Vivid Seats
– Founded in 2001 and based in Chicago
– 5 million+ customers and over 12 million tickets listed annually
– Resells tickets for NFL, NBA, MLB, NHL, NCAA sports, concerts, theater, and more
– Has iOS and Android app
– Buyer fees (~25% of order) and seller fees (10-20%)
– Offers loyalty/rewards program for frequent purchasers
SeatGeek
– Founded in 2009 and headquartered in New York City
– Primary focus is resale of sports and concert tickets
– Users can sort listings using SeatGeek’s interactive maps and Deal Score ranking
– Charges all fees (15-25%) to ticket buyers rather than sellers
– Integrates with other apps like Apple Wallet for digital ticketing
Ticketmaster
– Although primarily a primary ticket seller, Ticketmaster facilitates resales via their Ticket Exchange platform
– Resells Ticketmaster-issued tickets from fan sellers for face value or market price
– No fees for buyers; sellers pay percentage fee (15-20%)
– Integrated directly into Ticketmaster rather than separate resale site
Smaller marketplaces
Dozens of other smaller secondary ticket platforms exist, including TicketNetwork, TickPick, Gametime, TicketCity, and ScoreBig. Some focus on specific event types like Broadway shows or music festivals. Local brokers also resell through their own websites and storefronts.
How does pricing work on the secondary market?
Unlike primary sellers that generally price tickets at set face values, secondary market prices are determined by supply, demand, and competition between brokers and resellers. Common pricing factors include:
- Initial ticket supply and sales – Lower supply + higher demand = higher secondary prices
- Current inventory – Secondary prices tend to decline closer to the event as reseller inventory expands.
- Listing activity – More sellers competing creates downward price pressure.
- Buyer urgency – Last-minute buyers tend to pay higher prices.
- Event hype – Secondary prices for the hottest events can reach extreme multiples of face value.
Season factors also come into play – playoff games and summer concert tours drive peak secondary demand and pricing. Sellers can adjust prices dynamically based on market conditions.
Examples of premium secondary market pricing
- Super Bowl tickets with a $500 face value selling for over $4,000 on secondary markets
- $100 concert tickets resold for $500+ during a tour’s opening week
- Hamilton Broadway musical tickets originally $149 but over $800 on StubHub
While major events like these draw headlines for extreme secondary markups, more routine events also see modest boosts over face value during peak demand periods.
Pros and cons of the secondary ticket market
Potential advantages
- Gain access to sold-out events
- Wider selection of ticket options centralized in one place
- Ability to shop for deals across multiple resellers
- Provides a sales outlet for fans who cannot attend events
- Some consumer protections against invalid tickets
Potential disadvantages
- Higher prices driven by reseller profits rather than face value
- Excessive fees charged by secondary marketplaces
- Scalpers artificially limiting availability by buying up inventory
- Lack of regulation around fairness, transparency, and pricing
- Counterfeit ticket risks from disreputable sellers
The benefits accessed often depend on a buyer’s budget, while disadvantages frequently impact broader consumers.
Are there regulations on the secondary ticket market?
The secondary ticket market has faced growing calls for regulation amid practices like:
- Resellers using bots to buy up primary inventory
- Lack of fee and pricing transparency
- Misleading marketing tactics suggesting affiliation with primary sellers
- Majority of tickets being diverted to secondary market by partners
However, efforts to regulate the secondary market face obstacles:
- Complex patchwork of policies across states and jurisdictions
- Secondary sellers exploiting loopholes like claiming to be resale “platforms”
- Weak enforcement of existing bans on scalper bots
- Resistance from high-revenue secondary platforms
Some measures in place or under consideration include:
- Price caps on secondary ticket markups
- Required disclosure of breakdown of fees and final costs
- Lotteries and waitlists for initial sale to general public
- Bans on speculative ticket purchasing and professional scalping
However, extensive lobbying and arguments around free market principles have limited regulatory impact thus far in most areas.
Are there ways to avoid the secondary market?
For high-demand events, obtaining tickets below secondary market prices requires effort, planning, and flexibility. Fans can minimize reliance on secondary sellers through tactics like:
- Registering in advance for ticket presales and waitlists
- Coordinating group purchases during primary sales
- Using primary seller loyalty clubs and rewards programs
- Purchasing season ticket packages in advance
- Following fan clubs, venues, and artists closely for special offers
- Planning trips and arranging logistics around available primary tickets
While snagging competitive-priced primary tickets still poses challenges, fans willing to invest time and effort can reduce the need to turn to possibly predatory secondary markets.
Conclusion
The secondary ticket market continues to be a major force and source of controversy within the live events industry. While these alternative marketplaces can grant more access, they also drive up costs well beyond reasonable levels through speculative reselling. Increased transparency and fairer pricing policies could help legitimize secondary sellers. However, fans paying exorbitant markups will likely continue pushing back on practices seen as exploiting demand. The growth of the secondary market has made attending top events even more competitive for non-wealthy consumers. This rising tension between access and affordability will require greater responsibility and ethics on the part of ticket platforms and resellers.
