If there is any one industry that needs a change it’s ticketing. I’m not talking about parking tickets, but event ticketing. The event ticketing industry is a multi-billion dollar industry that is growing every year, and as a result, growing in costs as well. Once hailed as a sanctuary for die-hard fans to easily purchase tickets for their favorite shows without having to travel to the box office, Ticketmaster, and the online ticket industry, has become nothing more than a maximum cash grab through ridiculous fees, and more recently, ticket resales.
Purchasing a pair of $46 tickets on Ticketmaster right now will cost you about another additional $37 in fees. To put this into perspective, this is about 40% in fees. Yes, you are paying 40% extra for the convenience of buying online.
There was a point in time when Ticketmaster was actually charging you to print your own tickets.
Ticket re-sellers, perhaps better known as scalpers, have existed since the dawn of ticketing. It was not unlikely to be standing outside of a venue in 1999 and hear the continuous rhythmic chants of “two tickets here! I got two tickets here, front row!” As time progressed, many venues prohibited scalpers from selling tickets in the immediate vicinity of the box office, but it certainly did not stop scalpers.
It wasn’t until StubHub was created in 2000 that ticket resales took the spotlight. The now eBay owned company recently boasted record sales of 279 million in just quarter 4 of 2016 alone. As a result of StubHub’s success, Ticketmaster designed its own all-in-one in-house ticket selling and reselling solution. You can now buy a ticket on Ticketmaster and immediately go ahead and put it up for sale, all in the same browser tab! If this isn’t the biggest %!@$ you to consumers, I don’t know what is.
Blockchain Event Tickets
Ticket sales are one of the most demonstrably appropriate industries for blockchain to get involved with. The purpose of blockchain projects is to give power back to the consumers, to avoid unnecessary intermediaries, and to keep immutable and verifiable history. Blockchain tickets should be a music lovers dream come true. A blockchain backed ticket would be fool proof. For starters, there would be no opportunity to sell counterfeit tickets. Since tickets are immutable and tracked throughout the blockchain it would not be possible to resell a fake. Additionally, many of these ticket programs seek to eliminate or reduce price gouging ticket re-sellers.
While many of the blockchain ticket solutions will still support ticket resales to other users, the simple act of being able to re-sell is not the cause for inflated ticket prices. A study done by the BitTicket team found that many primary ticket sellers were actually giving tickets to the secondary re-seller market so they could sell them at inflated prices. Through the use of blockchain and KYC verification, these projects seek to be able to track tickets and identify repeat ticket re-sellers.
There are already several blockchain event ticket projects in existence now and some that already have working and actively used systems. Some of these projects are Aventus, Crypto.Tickets, Blocktix, EventChain, BitTicket, and GUTS Tickets. In the future we hope to provide our own reviews of these projects.
The use of blockchain for event ticketing ideally will be able to cut down on the bloat that is currently part of the system. It will keep ticket sales transparent and keep the ticket sellers honest, which will actually be the event organizers themselves rather than an intermediary. Simply by utilizing blockchain technology we can expect fees to be reduced and counterfeit tickets become eradicated.
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-The BlockMinute Team