What is the Total Addressable Market of the ticket resale industry in the U.S.?
Hello! Thanks for your question about the total addressable market of the U.S. ticket resale industry. The short answer is that the addressable market is $5 billion as of 2014. Below you will find a deep dive of my findings and methodology.
In order to answer this request, I looked at articles and research published by Businesswire, Billboard, Technavio, Musically, CNBC and others like LaunchingTicketVentures (LTV) which is the coursework website run by Harvard. Using these resources, I was able to obtain the resale market value of the ticket resale industry in the US.
I have also provided an overview of the ticket sale and resale industries by comparing them in terms of industry size, market players and growth.
TOTAL ADDRESSABLE MARKET FOR TICKET RESALE
The most recent data on the total addressable market of the ticket resale industry in the U.S. is from 2014. According to Northcoast research statistics published in CNBC, Billboard and LTV , the ticket resale market in the USA is estimated to be about $5 billion as of 2014.
THE SALES PROCESS
Tickets are created by the teams/leagues/artists and are sold through primary ticket venues such as Ticketmaster or the stadium of the performance. Individuals then purchase a ticket and sell them through official providers (like Ticketexchange) and unofficial providers (like ebay). The ticket can generally be resold at above face value when the event fast approaches, since original tickets are sold out.
DIFFERENCE BETWEEN THE TICKET INDUSTRY AND THE TICKET RESALE INDUSTRY
The first difference is in the scope of the market. The ticket resale industry is worth $5 billion as of 2014 while the total addressable market for ticket sales is $25 billion as of 2014. A second key difference is in the amount of competition. The ticket sale industry is a near monopoly with Ticketmaster controlling 83% of the market share. In the ticket resale market, the largest control of the market share belongs to StubHub (which makes up 50% of the market). The third difference is who distinguishes the price. In the ticket industry, the ticket price is set by the event provider. In the ticket resale industry, the ticket price is set by the seller who often increases the price due to demand.
The major players in the ticket sale market are Ticketmaster, Cinemark, TickPick, LiveNation and others.
The major players in the ticket resale market are Stubhub, SeatGeek, RazorGator.com,GoTickets.com etc.
PREDICTED GROWTH OF THE TICKET RESALE INDUSTRY
Analysis of the ticket resale industry shows that it's expected to continue growing. According to research firm, Technavio, the global secondary ticket market is expected to grow at a compounded annual growth rate greater than 19%. Also, the report indicates that Americas is likely to lead the growth during the forecast period of 2015-2020.
Sports events ticket sales is going to be a key factor in driving this growth. As of 2020, the market share of sporting events in the secondary ticket resale is estimated to be about 55% globally. This is one the three reasons for the resale industry to be on the rise.
Second, tickets are being resold more and more on mobile devices. The ease of buying on mobile eliminates barriers through ease of access and increases the number of tickets resold.
Third, marketing for events is improving. The behavior and buying habits of individuals are being tracked with big data, which helps them send specialized ticket sale ads. This increases the number of tickets sold, which increases the potential number of tickers resold.
To wrap it up, the total addressable market for the ticket resale industry is $5 billion. The market is expected to continue growing both globally and in the U.S. StubHub is the leader in this industry with a market share of about 50%.
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