The secondary market for concert tickets refers to any platform where tickets are resold after initially being sold by the primary ticket seller. This includes online resale marketplaces like StubHub and Vivid Seats as well as offline channels like ticket brokers or scalpers outside the venue. The secondary market provides an avenue for fans to buy and sell tickets, often at prices above or below face value depending on supply and demand.
What are the major secondary market platforms?
There are several major online secondary market platforms that have become popular places for buyers and sellers to transact concert tickets:
- StubHub – Founded in 2000, StubHub is one of the largest online ticket marketplaces. It provides a platform for users to buy and sell a wide variety of tickets for sports, concerts, theater, and other live entertainment events. StubHub charges fees to both the buyer and seller for each transaction.
- Vivid Seats – Established in 2001, Vivid Seats is StubHub’s major competitor in the online secondary event ticket market. Like StubHub, it allows users to buy and sell tickets for live entertainment events in a marketplace setting. Vivid Seats tends to focus more on the resale of sports and concert tickets.
- SeatGeek – Launched in 2009, SeatGeek is a search engine for event tickets that scans multiple resale sites and primary ticket sellers to aggregate ticket listings in one place. Users can purchase tickets directly on SeatGeek or click through to the original ticket source.
- Ticketmaster – Although primarily a primary ticket seller, Ticketmaster also facilitates resales between users on its platform through Ticketmaster Resale (formerly Ticket Exchange). Sellers list their tickets for sale andTicketmaster charges fees to both the buyer and seller.
- AXS – This ticketing platform owned by AEG also operates a secondary ticket marketplace called AXS Official Resale. It allows fans to resell tickets initially purchased on AXS within a secure, controlled marketplace for other AXS users to purchase.
There are also many other smaller online ticket resale marketplaces, as well as offline options like local ticket brokers.
How does pricing work on the secondary market?
Unlike primary ticket sellers where prices are fixed, prices on the secondary market fluctuate based on supply and demand. Sellers can list tickets for sale at any price point they want, but the actual sale prices depend on what buyers are willing to pay. Some key factors that influence secondary market ticket prices include:
- Initial ticket demand – If a concert was very popular and immediately sold out from the primary seller, scarce supply on the secondary market will drive up resale prices.
- Current supply and demand – As the event date approaches, prices tend to increase if demand is high and ticket supply is shrinking.
- Seat location – Tickets for seats closer to the stage or in prime locations tend to command higher prices.
- Artist popularity – Resale prices are typically higher for mega-popular artists compared to lesser known acts.
- Venue size – Smaller, more intimate venues lead to fewer available tickets and higher secondary market prices.
- Event uniqueness – One-off or rare events like festival headlining sets often have inflated resale prices.
Sellers attempt to price tickets based on these factors, but only prices at which buyers are willing to transact become the actual sale prices. Many sites like StubHub also provide historical price data to show buyers and sellers the trending price range for specific events.
Why do people use the secondary ticket market?
There are several key reasons why both buyers and sellers utilize the secondary concert ticket market:
- Gain access to sold-out events – Fans who missed out on buying tickets from the primary seller can still get tickets on the secondary market, often at higher prices.
- Resell unused tickets – Season ticket holders or people who can no longer attend events can recoup some of their costs by reselling tickets.
- Profit from high-demand tickets – Some buyers purposefully purchase high-demand tickets with the intent to resell at a profit.
- Get better seats – Fans can sometimes get better seat locations by buying resale tickets than what they could get from primary sellers.
- Purchase at below face value – When supply exceeds demand, resale tickets can sometimes be found below original face value prices.
- Avoid service fees – In some cases, all-in prices on the secondary market can be lower than face value + fees from primary sellers.
The secondary market essentially provides an avenue for ticket buyers and sellers to adjust pricing according to real-time supply and demand for events.
Are there risks to buying tickets on the secondary market?
There are some risks buyers should be aware of when purchasing tickets on the secondary market:
- Counterfeit tickets – There is a risk of fraudulently duplicated fake tickets being sold, rendering the tickets invalid for event entry.
- Inflated prices – Buyers may end up paying exorbitant premiums for high-demand events beyond what they feel is reasonable.
- Hidden fees – Some resale sites add substantial processing fees on top of posted ticket prices during checkout.
- No ticket guarantees – Unlike primary sellers, third-party resellers typically do not guarantee a new ticket will be provided if an issue arises.
- Lack of price controls – Sellers can raise prices arbitrarily based on demand with no price caps in place.
Despite these risks, the overwhelming majority of transactions on reputable secondary marketplaces like StubHub are legitimate ticket sales between real buyers and sellers. But buyers should be cautious of deals that seem too good to be true.
Are there any ticket buying regulations or restrictions?
There are some regulations in place around the secondary ticketing market, although they vary by jurisdiction:
- Price caps – Some states like New York have enacted price caps that limit how much resellers can mark up ticket prices on the secondary market.
- Ticket cancelation/transfer – Many primary ticket sellers like Ticketmaster now regulate ticket transfers to try to ensure the initial ticket purchaser is attending the event.
- Anti-scalping laws – A few states prohibit the resale of tickets above face value without permission from the venue or organizer.
- Bot prohibitions – The use of ticket buying bots to sweep up ticket inventory is banned under the federal BOTS Act.
However, the secondary ticketing market remains lightly regulated overall compared to other industries. Most resellers are still able to operate and set prices fairly freely within the bounds of state laws.
What options do artists or teams have to combat high secondary prices?
Performers, teams, and event organizers do have some leverage to try to make event access more affordable and prevent extreme secondary market price inflation:
- Dynamic pricing – By using demand-based pricing tactics, primary sellers can charge closer to true market value to disincentivize speculative resale profits.
- Paperless tickets – Requiring ID or credit card entry eliminates physical tickets that can be resold.
- Higher initial ticket releases – Flooding the secondary market with more supply can exert downward price pressure.
- Partnerships with secondary platforms – Some teams partner with specific resale sites for officially sanctioned resales.
- Lawsuits against resellers – Class action suits have been filed against brokers accused of anticompetitive practices.
However, completely eliminating the secondary market is likely impossible given fans’ desire for transferability. The most effective strategy is often regulated resale through official secondary markets.
What does the future hold for the secondary ticketing market?
Some possible changes that could shape the future of the secondary event ticketing market include:
- More consolidation – Already StubHub, Vivid Seats, and Ticketmaster control a large share of the online resale market which may continue.
- Mobile ticketing – Digital tickets rather than paper tickets will reduce fraud and ease transfers between buyers.
- Use of blockchain – Blockchain-powered tickets directly linked to buyer identities could be traded securely without intermediaries.
- Subscription models – All-access ticket subscription plans from teams are altering season ticket and resale dynamics.
- VR/metaverse events – Virtual events could create new secondary markets for digital collectible tickets and in-world items.
- Tighter regulations – Stricter price caps, bot prohibitions, and cancelation policies may be enacted.
The secondary ticketing industry has already undergone massive change since the advent of online resale marketplaces. This disruption of the traditional ticketing model is likely to continue as technology and buyer behaviors evolve.
Conclusion
The secondary market for concert and event tickets has become a massive industry, especially with the rise of online resale platforms. It provides an avenue for fans to access in-demand tickets and for other ticketholders to recoup costs by reselling unwanted tickets. Buyers benefit from more selection and sellers from market-driven prices, but inflated costs and lack of controls are downsides. Artists, teams, and regulators continue to grapple with managing this decentralized resale ecosystem while still fulfilling fan demand. Despite some lingering challenges around fairness and affordability, the secondary ticket market fills an important role that is unlikely to disappear anytime soon.