International Ticketing Yearbook

40 LEADING LIVE ENTERTAINMENT MARKETS PROFILED

PLUS THE INNOVATORS ACCESS CONTROL ACCREDITATION & CONSUMABLES WHITE LABEL SERVICES

AN ILMC PUBLICATION

CONTENTS 5

Introduction

FEATURES

DEAR READER, Welcome to the inaugural International Ticketing Yearbook. If you have this book in your hands, it’s more than likely that you work in the live entertainment industry, so we hope you find our guide to the ticketing business around the world a useful tool over the coming year.

As you will see from the masthead below, the work behind the Yearbook has involved a significant team of writers and researchers, who have worked tirelessly - with the input of local promoters and ticket company executives - to try to ensure an accurate picture is given for each ticketing territory. Special thanks, however, need to go to ticketing guru, Tim Chambers, whose help has been invaluable in compiling this publication.

With details of how the ticketing business operates in more than 40 countries, what has become very apparent is that no two territories are the same, while even city markets in the same territories can be vastly different from each other in terms of the ticketing business structure.

Another revelation from compiling the Yearbook has been the rapid evolution that is going on in the ticketing sector: barely a day goes by, these days, without some kind of announcement involving ticketing - whether that be the launch of a new app, corporate acquisitions, operations expanding into new territories, or another venue or promoter rolling out an in-house system. So with ticketing being arguably the most dynamic part of the live entertainment value chain, it's our hope that the International Ticketing Yearbook will quickly establish itself as the live music industry's journal of choice when it comes to keeping tabs on the who, what, why and how for ticketing internationally.

Gordon Masson, Editor

8 13 20 24

Accreditation & Consumables The Innovators White Label Services Access Control

COUNTRY PROFILES 28 30 32 33 34 35 36 37 38 39 40 41 42 44 46 46 47 48 49 50 52 53 54 55 57 58 59 59 60 61 62 63 64 65 66 67 68 69 70 74

Argentina Australia & New Zealand Austria The Baltics Belgium Brazil Bulgaria Canada China Czech Republic Denmark Finland France Germany Greece Hong Kong India Ireland Israel Italy Japan Luxembourg Mexico The Netherlands Norway Poland Portugal Romania Russia Singapore Slovakia South Africa Spain Sweden Switzerland Turkey Ukraine United Arab Emirates United Kingdom USA

INTERNATIONAL TICKETING YEARBOOK 2015

PUBLISHER

MARKETING AND ADVERTISING

ILMC and Suspicious Marketing

Terry McNally terry@iq-mag.net Archie Carmichael archie@iq-mag.net

IQ Magazine

Gordon Masson gordon@iq-mag.net

Unit 31 Tileyard Road King's Cross London N7 9AH

EXECUTIVE EDITOR

EDITOR

Tim Chambers chambers.tj@gmail.com

DESIGN Montrose Creative www.montrosecreative.com

SUB EDITOR

CONTRIBUTORS Chris Austin, Remi Bouton, Lars Brandle, Kelly Brennan, Ben Cardew, Caroline Chia, Dan DeMato, Eugenia Durante, Gideon Gottfried, Rhian Jones, Juliana Koranteng, Vladimir Kravchenko, Ian Martin, Tim MacGabhann, Steve McLean, Santtu Reinikainen, Justin Sweeting, Adam Woods

Michael Muldoon michael@iq-mag.net

INTERNATIONAL TICKETING YEARBOOK 2015

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INTERNATIONAL TICKETING YEARBOOK 2015

T

he International Ticketing Yearbook 2015 is the first annual publication of its kind to research and report upon the live entertainment set-up in more than 40 countries around the world.

It’s been a mammoth effort to gather all the data together and, as you’ll see from the list of industry experts that have been involved in researching the information required, we’ve been fortunate enough to count upon some sterling music journalists around the world to help guide the process, as well as tapping into their network of contacts.

While the ticketing business as a whole is dominated by two massive players – Gateway and Best Union, which provide services for theme parks around the world, in addition to other clients – for the purposes of the Yearbook, you’ll read very little about these two giants, as our focus is purely on the live entertainment business.

But there are dozens of other companies featured in the coming 70 pages. The digital age, social media and the ability to use mobile technology to simplify and improve ticketing solutions means that the industry has never been so vibrant – and so competitive – as entrepreneurs around the world devise ever more ingenious ways in which to market, sell and deliver event tickets. And with ingenious organisations such as Dot Tickets toiling tirelessly to make the transaction process for consumers ever more secure, with its .tickets websites kitemark, the future for the business is looking that little bit brighter.

Of course, each country has its own idiosyncrasies and cultural quirks when it comes to live entertainment ticketing. For instance, in Greece, the digitisation of the business is still a pipe dream, as legislation means that tickets have to either be perforated or stamped for tax reasons. Elsewhere, lay away plans are the norm for fans, who are used to paying for access to events by instalment.

And in many developing markets, the whole concept of secondary ticketing remains alien, because sold-out shows are so rare.

Talking of secondary ticketing, the idea that almost led to blows at the ILMC a few short years ago has now been embraced, if somewhat begrudgingly, by the majority of the industry. Many

primary ticketing operators now also have secondary ticketing divisions, while promoters, festivals and artist tours have agreed partnerships with resale outlets. But while a vocal few still publicly slam the resale model, it’s unquestionable that the advent of secondary ticketing platforms prompted promoters and their ticket service providers to review the way they market and sell the best seats in the house. Not everyone, of course, is so amiable with the scalpers, and in the following pages you’ll read about one event organiser who is awaiting trial after being charged with murder over the death of a ticket tout.

What you won’t read about in many trade publications is live music’s dirty little secret. Those involved in the ticketing side of the business have apparently accepted the dubious mantle of being the bad guys in the eyes of the general public. One of the biggest complaints from fans, the world over, is that the face value of a ticket bears little relation to what they actually pay once booking fees, delivery charges, credit card fees and all sorts of other taxes and additionals have been appended by the ticketing companies.

However, what those service providers won’t talk on the record about are the various kickbacks, rebates and goodwill payments that are expected by the likes of venues, promoters and sponsors, not to mention the growing number of artists who publicly insist that their fans have a capped ticket price, but privately demand a guarantee that’s 100%-plus of a ticket’s face value. And ticketing service fees represent the only way of meeting such ultimatums.

Our methodology for collating the information in the International Ticketing Yearbook has been to speak to established promoters in each country to establish the key ticketing players, while also contacting those companies themselves to gain some insight into the workings of their local market. With so many ticketing companies now involved in the international live music industry, it’s inevitable that we cannot mention everyone, but we have a full year ahead of the International Ticketing Yearbook 2016, so there will be plenty of time to track all the various ticketing news, mergers, acquisitions and, in some cases, closures of various operations around the world, both in IQ Magazine and in next year’s Yearbook.

In addition to our country profiles, we also have a number of features to keep you abreast of what’s going on in key sectors affecting the international ticketing business – Accreditation and Consumables; The Innovators; Access Control; and White Label Services. We trust you will find the special articles informative and, hopefully, of some commercial benefit in the year ahead. And should you have any feedback on anything in this year’s International Ticketing Yearbook, or if you have any developments you wish to communicate ahead of the 2016 edition, then please contact the editorial team via ITY@iq-mag.net.

INTERNATIONAL TICKETING YEARBOOK 2015

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ACCREDITATION & CONSUMABLES AS COPYING TECHNOLOGY MAKES THE TASK OF PRODUCING FAKE PASSES MORE AND MORE EASY FOR COUNTERFEITERS, GORDON MASSON TALKS TO THOSE ON THE FRONTLINE OF PROVIDING SECURE ACCREDITATION.

I

t may not be the most glamorous sector in the live entertainment industry, but the small armies of people who work to produce and print the likes of tickets, wristbands, VIP passes, lanyards and consumables for production staff are a massively important link in the chain.

Quite simply, if they did not develop the security-protected passes that everyone – crew, artists and fans – need to get into a venue, then the entire business would grind to a halt.

However, as the hi-tech printing presses and operations are often hidden away in faceless industrial estates around the world, the accreditation and consumables sector is one that rarely receives the recognition it deserves.

Rob Wilmshurst, CEO of See Tickets, which supplies ticketing services for Glastonbury Festival among hundreds of other events, stresses the importance of the companies

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that are providing the live entertainment industry with secure passes. “Glastonbury is unique, but it’s probably the best example of what these companies can do because we have a highly secure ticket for that event,” Wilmshurst says.

The process for buying Glastonbury tickets includes an innovative photo registration element, which ultimately means that a colour photo of the purchaser appears on their paper ticket, allowing festival staff to check that the photo matches the person at the gates. “The reason we came up with that idea is because someone else had approached the festival with the concept of setting up a huge data network and barcoded tickets, so that when a ticket was scanned, their face would appear on a screen. If you’ve ever been to Glastonbury, you’ll know that is not possible, so the photo printed directly on to the ticket was much easier.”

Such moves have meant that Glastonbury’s serious black market issues have simply disappeared. “Touting at the festival was rife. But the fact that Glastonbury goes to the nth degree in advance is a great deterrent and touts are no longer a problem,” Wilmshurst confirms.

» ACCREDITATION AND CONSUMABLES

With dozens of different ticket types, let alone crew and artist passes, secure accredition has never been so crucial

FOILING THE CRIMINALS The increase in price for tickets to festivals and headline shows has made the live music business a multibillion dollar industry, but with financial success there inevitably follows unsavoury elements, such as the fraudsters and counterfeiters who target unsuspecting fans with their dodgy tickets and schemes in an attempt to make off with often large sums of money.

But while the law in most territories does little to prevent such activity – mostly down to the repercussions being ridiculously

ahead of the criminals, Walcott observes, “People come up with ever-more sophisticated ways to counterfeit designer labels, euros, pounds and dollars, so our challenge is to stay one step ahead of the counterfeiters.”

WW&L’s clients include ticketing system companies, promoters, sports teams, cinema chains, theme parks, and more. However, in addition to delivering batches of tickets to commercial operations, the company also sends tickets directly to consumers from its Fort Smith, Arkansas

PEOPLE COME UP WITH EVER-MORE SOPHISTICATED WAYS TO COUNTERFEIT DESIGNER LABELS, EUROS, POUNDS AND DOLLARS, SO OUR CHALLENGE IS TO STAY ONE STEP AHEAD OF THE COUNTERFEITERS. lenient – promoters and ticketing companies have demanded more and more sophisticated security measures involving the actual tickets and passes themselves.

One of the biggest global operations in the supply of tickets is Weldon, Williams & Lick, Inc. (WW&L), which has been in the security printing business since 1898. Although the company produces hundreds of millions, if not billions of tickets per year, secrecy is key, and company president Jim Walcott is tight-lipped about the size of the Arkansas-based business, beyond revealing it has about 300 employees.

“I don’t know about the biggest, but we think we are the best,” Walcott says. “There are a lot of people who can print and there are a lot of people who can put things in the mail, but for us it’s all down to how we merge all the logistics and big data elements together so that, ultimately, the fan goes home from an event feeling good.”

Without divulging the measures his company takes to stay

headquarters. “We feel comfortable knowing that we do everything under one roof, without having to outsource or licence to subcontractors elsewhere,” says Walcott when explaining why the company has just one location, despite its global presence.

GLOBAL DEMANDS While giant operations like WW&L operate on a massive scale, many events and promoters opt for smaller accreditation and consumables firms within their own territories. With so many events and venues now requiring unique forms of accreditation, there are numerous fulfilment companies around the world that now manufacture tickets, lanyards and wristbands. And, like their bigger counterparts, because of the high value of the passes being produced for clients, internal security and knowledge of their production processes is extremely secretive.

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Dutchband design and produce an impressive range of products for thousands of clients and millions of fans

The Dutchband boss says the chief concern for clients is the transferability of a pass – making sure it cannot be taken off and passed to someone else. While admitting vinyl clip shut wristbands are often sufficient, those products often deteriorate quickly. “Fabric wristbands are a much better option for multi-day events, plus we have our seal system which fuses the material together and cuts it to the right length for the user.”

Among the security measures Dutchband employs are watermarks on both vinyl and fabric wristbands, while its wristbands also have a special pattern visible under a UV backlight. Recent developments in technology include the integration of RFID chips into wristbands, which can ensure that a pass is used only once to access an event. “Of course, barcodes on wristbands can achieve the same, but RFIDenabled wristbands are growing in popularity, especially at festivals, because they allow the brands who sponsor those events to engage in greater interaction with the fans,” says Fransen.

Another stalwart specialising in wristbands and accreditation products is UK-based ID&C, which is currently celebrating its 20th anniversary. It claims to be the world’s largest supplier of accreditation to the live event industry, servicing more than 5,000 global events annually. The company has patented a number of products throughout its history and now produces about 50million wristbands and ID products per year.

ID&C launched its North American operation last year and

RFID-ENABLED WRISTBANDS ARE GROWING IN POPULARITY, ESPECIALLY AT FESTIVALS, BECAUSE THEY ALLOW THE BRANDS WHO SPONSOR THOSE EVENTS TO ENGAGE IN GREATER INTERACTION WITH THE FANS.

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One of the more established firms in the sector is Orakel, which has divisions in 17 countries, each offering a broad range of products. The UK operation has been running since the late 90s. “The company started out making wristbands, but the plan was always to be a one-stop-shop for our customers, so that’s why so many other product ranges have been added,” says Orakel head of commercial sales, Ruth Price. “However, we wanted to concentrate on quality and when clients such as festivals started demanding lanyards, VIP passes, etc, we made sure that our products were not cheap imports.”

Orakel’s latest product drive is toward introducing more environmentally friendly products and processes. “Tokens are one of the strongest areas of our business at the moment, so we have introduced an eco token which is made from potato starch, meaning is can completely biodegrade if it is dropped in a field or whatever,” adds Price.

is working on plans to open further offices in Europe and Australasia. “Our expansion is, in part due to our success in the RFID market where we’ve remained ahead of the curve when it comes to quality, security and service," says ID&C’s head of RFID, Steve Daly. The company lists Bonnaroo, Comic Con, EDC and the Ryder Cup amongst its RFID clients. Daly adds: “We’ve spent the past six or seven years working closely with some of the worlds leading promoters to develop what we believe to be the most robust RFID products on the market – a key factor when it comes to cashless”.

Underlining the point that innovation is key to sustained growth in the marketplace, ID&C reveals it is set to launch the world’s first 100% recycled fabric wristband and locking clasp, while also in the developmental stage of producing a new generation of contactless wristbands with multifunctional technologies and connectivity.

I’M WITH THE BAND

SERVICING SMALL EVENTS

Rather than developing products purely to combat fraudsters, Michiel Fransen, managing director of Amsterdam-based Dutchband, explains that developments in the materials made to manufacture wristbands also centred around providing comfort to the people that have to wear them – the fans. The company has about 5,000 customers globally that order up to 20 million wristbands in total every year. “We have one customer this year – the World Expo in Milan – that has ordered three million wristbands just for one event,” notes Fransen.

UK-based Welovewristbands.com began trading in 2009 and now specialises in Tyvek wristbands. The company can turn around orders of up to 100,000 in just 24 hours, but that is not its core business. “We saw that there was a gap in the marketplace to supply product to those little events that cannot afford the budgets for all the new technology RFID wristbands,” explains the company’s Dan Stanwick. “So the bread and butter of our business remains pretty constant – it's the nightclub circuit, as the Tyvek wristbands are ideal for same-day events.”

INTERNATIONAL TICKETING YEARBOOK 2015

» ACCREDITATION AND CONSUMABLES

That low-key approach to business has nonetheless delivered some impressive clients for Welovewristbands. com, which is now launching a new website to allow people to design and create their own wristbands. “You can upload artwork for any wristband that you like and we have a very low entry level point so they can be used for events of all shapes and sizes,” continues Stanwick, adding that the company also produces woven, satin, RFID, vinyl, plastic, rubber, Velcro and slap wristbands.

The company turnover for Welovewristbands.com has grown through word of mouth to the extent that a number of independent festivals have now become clients. “Despite our low entry levels, we realise that there is still a need for quality products and lately we’re finding that lots of bigname sponsors are coming on-board,” says Stanwick.

“Welovewristbands.com has been doing a lot of work with student unions recently and we’re finding that market is also now picking up a lot of sponsors that are interested in branded wristbands.”

INCREASING COMPETITION As technology continues to improve security for the likes of wristbands, ticketing and other accreditation products, at the same time, the decreasing costs of printing and manufacturing has allowed numerous new companies to set-up shop, often ignoring patents in the process. Such questionable practices not only increase competition, they also drive prices ever lower, albeit at the sake of quality.

DESPITE OUR LOW ENTRY LEVELS,WE REALISE THAT THERE IS STILL A NEED FOR QUALITY PRODUCTS AND LATELY WE’RE FINDING THAT LOTS OF BIG-NAME SPONSORS ARE COMING ON-BOARD It’s hardly a surprise that companies in the world’s biggest export nation, China, have targetted the sector. One such manufacturer, Minhou BoYi, declines to go into detail about its anti-counterfeit procedures, but their spokeswoman says, “We have made products for the Olympic Games and the FIFA World Cup.” Of course, established operators in the West are looking toward the likes of China and India for opportunities to grow. But while the potential for those countries to embrace live entertainment remains a pipe dream, existing markets around the world will always require the expertise of those in the accreditation and consumables business to help run their concerts and festivals in the most efficient ways, while making sure that the tickets and passes needed to access those events are easy to use and secure enough to deter the counterfeiters.●

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Looking for the next big thing: fans are quick to test and adopt new live music-related technology and ideas

The Innovators

THE SPEED OF TECHNOLOGICAL PROGRESS IS PROMPTING MORE AND MORE COMPANIES TO LOOK AT THE LUCRATIVE TICKETING BUSINESS. RHIAN JONES TALKS TO SOME OF THE START-UPS AND INVENTORS WHO ARE MAKING WAVES IN THE TICKETING WORLD.

F

orward-thinking start-ups keep any industry fresh and the live business is no exception. Whether it’s 3D visualisation software, a Netflixstyle subscription package for gigs, or ticketing firms that do away with booking fees, there is a wealth of companies achieving impressive growth thanks to innovative ideas and new technology.

Built with the customer in mind, and with big ambitions to compete with already established event and ticketing players, here are ten companies that look set to shape the live music scene of the future.

TICKET FAIRY With investors including Twitch founders Justin Kan and Emmett Shear, FarmVille creator Amitt Mahajan, Reddit CEO Steve Huffman and Y Combinator, event ticketing, marketing and intelligence platform, The Ticket Fairy, has the backing of some of eCommerce’s most successful entrepreneurs.

Ticket Fairy helps event organisers (particularly those running large-scale events) to sell more tickets for less marketing spend. The company was started by brothers Ritesh and Jigar Patel, initially as a solution to power their own events company. Using Amazon’s web-hosting model as a template, Ticket Fairy allows event organisers to pick and choose the services they want according to their needs. “Our suite of tools means that a whole company can come in and log on to the Ticket Fairy platform and use whichever tools work best for them,” explains CEO Ritesh Patel. “We help events reach

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► DICE

► BILLETTO

► AMIANDO

► TICKETEA

www.dice.fm

www.billetto.com

www.amiando.com

www.ticketea.com

TALKING HEADS

PETER BRÜNINGSHANSEN, BILLETTO

RITESH PATEL, THE TICKET FAIRY

BEN SEBBORN, SKIDDLE

breakeven much more quickly and efficiently.”

Ticket Fairy describes itself as an event organiser's marketing and technology partner, with a suite of products that allows them to run the entirety of their operations using one single, integrated platform. "We have a few key goals for promoters," explains COO Jigar Patel. “Alleviating the strain of using multiple systems, putting more money into event organisers' pockets, reducing marketing costs, and removing as much operational burden and financial leakage from their business as possible."

Ticket Fairy’s approach also includes an ingenious incentives scheme, which business development manager, James Reynolds, says has proved a great success. “Events are an inherently social experience and some people need a little push to attend," he says. "For those that become taste-makers, we provide tried and tested incentives to encourage them to bring their friends." Highlighting the benefits of the scheme, Ritesh notes, "Clients typically see a 1525% uplift in sales at a cost of less than 1%, just by switching to us from other platforms."

Hinting at the possibilities, Jigar adds, “We bring clients increased profitability, lower costs, deeper market reach and insights, reduced administration and happier, engaged and more loyal customers. It's a genuine win/win/win.”

BILLETTO A desire to remove the middlemen was the motivation for a group of tech-savvy promoters behind curated event discovery and socialticketing platform, Billetto. Founded in 2010, in Denmark, Billetto offers a free turnkey ticketing, promotion and door management set-up, with

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dedicated event manager software and apps.

Priding itself on low fees, it charges ticket buyers typically 2-4% of every transaction. Features for users include the ability to create a personal event feed based on favourite artists, venues, promoters, location and attendance history.

Says UK MD Peter Brünings-Hansen: “For promoters listing their events on Billetto, they automatically tap into a vibrant event community that enables them to reach and engage existing and new audiences while maintaining full control and data ownership.

Billetto’s local media teams help contextualise and promote the good events, through use of interviews, video, competitions and social media.” Today, Billetto hosts over 50,000 events in seven different countries through 16,000 promoters. It has expanded into independent music, fashion, comedy and sports, and is now entering Eventbrite territory in the technology and conference space. Currently available in Denmark, Sweden and the UK, launching in Germany, Norway and the Netherlands is next on the cards.

AMIANDO Also moving into the Eventbrite arena is event management system, Amiando, part of XING Events. Its software offers online event registration and ticketing for members, who also benefit from the affiliation with XING – the German-language equivalent of LinkedIn. Based on their XING network, participants are shown why a particular visit (to a convention, for example) would make sense for them, using information from their job profile, former colleagues and location.

» THE INNOVATORS

► FESTICKET

► JUKELY

► PACIFA DECISION

► POGOSEAT

www.festicket.com

www.jukely.com

www.pacifa-decision.com

www.pogoseat.com

DICE A frustration with “booking fees, endless social media spending and CAPTCHA codes that left fans in a cycle of page refreshing” is what inspired music manager and former record label boss at Modular Records, Phil Hutcheon, to launch his ticketing app DICE. Teaming up with Mills & Sinx of mobile product studio Ustwo, Hutcheon decided to build something fresh. Launched in 2014, DICE aims to create “ten times” more revenue for promoters, artists and venues thanks to recommendation features, a waiting list for sold-out events and the ability to

and over $5million of investment, Ticketea now offers 360º venue maps, an access control application and personalised mobile app development. Its services can be used worldwide (last year, the platform was used to sell tickets in 21 different countries and to buy tickets in 120 different countries), with offices in London, Berlin and Dublin.

SKIDDLE Starting out in the UK to provide event-goers in Preston and Carlisle with a guide to what’s on, Skiddle fast became popular thanks to a feature that lets promoters submit and

EVENTS ARE AN INHERENTLY SOCIAL EXPERIENCE AND SOME PEOPLE NEED A LITTLE PUSH TO ATTEND. FOR TASTE-MAKERS, WE PROVIDE INCENTIVES TO ENCOURAGE THEM TO BRING THEIR FRIENDS. pass on data to artists and managers about their fanbase that could be used to make smart decisions for future tours. For music fans, it offers a gig guide and ticket-selling platform without booking fees. Tickets stored within the app are scanned on entering venues. Currently available in London, Manchester, Bristol and Glasgow, Hutcheon has plans to expand elsewhere fast, as well as to pioneer more mobilebased business models for artists, promoters and venues.

TICKETEA Ticketea, meanwhile, is the first ticketing company in Spain to launch a free access control app. The firm was founded in Madrid in 2009 by Javier Andrés after spending a year planning fundraising parties and discovering a need for an online marketplace that would allow him to sell the tickets. Inspired by similar offerings in other countries, Andrés launched a DIY platform that allows promoters to create an event and start selling tickets in less than two minutes. After five years,

manage event listings directly. Ticket sales were introduced in 2005 with Creamfields and Manchester club Sankeys on board. Removing “box office clutter” like high fees and slow systems, Skiddle founder Ben Sebborn designed a onepage checkout process, e-tickets and a recently launched RapidScan app. With 64% sales growth year-on-year, and over 50,000 event promoters registered in the UK and Europe, Sebborn is positive that, thanks to his nimble company set-up and respected reputation, numbers will only continue to grow.

“We’re noticing more and more promoters move to us from giants such as Ticketmaster as our offerings are more aligned to the promoter’s needs and we can give more personal one-to-one support and service,” Sebborn explains. “They do tend to innovate, eventually – I gave a talk at the Ticketing Technology Forum a few years back, and the marketing director for Ticketmaster UK was telling me how they would love to offer the social media features we had, but it would take them months, if not years to get approval for the work,

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► SKIDDLE

► TICKETPLAN

► SEATADS

► TICKET FAIRY

www.skiddle.com

www.ticketplangroup.com

www.seatads.biz

www.theticketfairy.com

TALKING HEADS

GRAHAM BERG, TICKETPLAN

VENUE OWNERS AT PRESENT DO NOT DERIVE ANY INCOME FROM THE SEATS, BUT WE WILL PAY THEM A RENTAL PER SEAT FOR CARRYING THE SEATADS. which is just too long in this industry – we often roll out features within a week. We’re keeping a close eye on new technologies that we can offer, there’s a lot of exciting things happening with RFID entry, contactless payments and mobile, and we’ll be amongst the first to provide these features to our promoters.”

FESTICKET

REG ILLINGWORTH, SEATADS

BORA CELIK, JUKELY

Since launching in 2012, Festicket – an independent firm that provides ticket and travel packages – is on course to send well over 100,000 travellers to 500 different festivals around the world this year. Negotiating rates with accommodation and travel providers so customers usually pay less than they would elsewhere, as well as getting a package deal, is its USP. Marketing has always been contentfocused, with festival guides, magazine articles and social channels spreading the word.

Festicket was launched by Zack Sabban and Jonathan Younes to meet the needs of ever more demanding festival-goers, who these days expect better facilities and production than ever before, according to Sabban.

SEATADS SeatAds is a method of attaching advertising to seats, using QR codes or augmented reality.

“We try to add as much fan engagement for

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the people who attend the event,” says CEO Reg Illingworth. “We’ve already got a good business going in the sports market, so the idea is to expand that into the live music business because we think that will end up being our main market."

Once scanned by a consumer’s phone, SeatAds taps into a technology called FanzApp to connect that fan to the talent on stage.

“Fanzapp can be used by the promoter to boost merch sales, or to get people to download the act’s latest single on the night, or to sign up to the band’s fan club – there are lots of potential revenue streams,” says Illingworth. But the benefits don’t end there.

“Venue owners at present do not derive any income from the seats, but we will pay them a rental per seat for carrying the SeatAds," continues Illingworth, who is based in the English city of Bristol, but also has an office in Los Angeles. "Venues can use that income to help upgrade their WiFi and other infrastructure, so it’s a win-win situation.”

SeatAds not only work with venues and promoters directly, but they also target brands who are affiliated with artists. “The brands will often pay for it,” explains Illingworth. “We’re working with an ad agency called Posterscope going forward: we’ll get the seats and they’ll bring in the brands.”

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IF WE ARE ABLE TO OFFER A SWIFT AND EASY REFUND, THAT WILL INEVITABLY PLEASE THE TICKET BUYERS AND WILL REFLECT WELL ON OUR CUSTOMERS JUKELY

As the penetration of smartphone ownership increases, ticketing apps are proving a big hit with concert goers

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Jukely offers a different kind of package deal with its monthly subscription aimed at introducing gig-goers to new music.

Originally a music and concert promotion website, last year its subscription feature launched offering unlimited gig tickets from £25 per month. “Artists who are about to break-out get a chance to increase the size of their fan base by being exposed to curious music lovers who normally wouldn’t know about them. Organisers reduce their risk of booking new talent by finding a new way to fill the shows,” explains co-founder Bora Celik.

Jukely takes a percentage of subscription revenues and pays the remainder to participating venues and promoters.

After recently arriving in London (and already established in ten US cities), Celik plans to expand the service to include gigs with better-established artists.

PACIFA DECISION While Jukely asks for payment from music fans before they commit to attending a gig, Pacifa Decision has made a business from offering event-goers an inside preview of what the view from their seat would look like, literally, before parting with any cash. The firm’s 3D visualisation software helps customers choose their seats and was inspired by founder Julien Piwowar’s experience of the 3D maps offered by US sports clubs when buying tickets for NFA games.

Piwowar decided to improve on the idea and uses a specific combination of mathematics and graphic design that can provide views from 80,000 seats in less than 24 hours. Working with 80 venues at the moment, Piwowar hopes to grow that to 150 by the end of 2015.

POGOSEAT Upgrades and VIP offers are becoming an important aspect of ticketing tiers and US company Pogoseat was launched to capitalise on the trend, trading in unsold seats that would otherwise remain empty. CEO Evan Owens had the idea after sneaking down to an area at a baseball game where there were empty seats, before getting promptly kicked out, despite offering to pay. Launched in 2012, Pogoseat provides white-labelled upgrade technology that can be embedded directly into websites or mobile apps for its live event partners, giving fans a real-time view of unsold inventory at the venue. It doesn’t include latecomers though – Pogoseat is designed to capture revenue in addition to what’s already been sold. When users upgrade, they pay the difference between the face value of their original ticket and the face value of their new ticket. Pogoseat also offers VIP upgrades like meeting the team, or purchasing limited edition merch, before, during, or after the event. Having established its sports credentials, Owens launched the first concert series this year with Allen Stone in Seattle.

TICKETPLAN The trials and tribulations of festivals have been well documented, so providing reassurance that fans won't be left out of pocket should they not be able to make it to the show is vital. In essence, TicketPlan provides insurance solutions to ticket sellers, protecting ticket buyers against their inability to attend an event. Led by managing director Graham Berg, the company provides insurance cover to ticketing agents, venues and locations across the UK. Says Berg: “We work very much to the principle of alignment of brands. If we are able to offer a swift and easy refund process, that will inevitably please the ticket buyers and will reflect well on our own customers who actually sell the tickets”.

TicketPlan is well established in the UK, and with significant interest from Europe and North America, a number of overseas strategic partnerships are expected to launch during 2015. ●

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The theatre sector provides healthy revenues for service provider Onebox

WHITE LABEL

SERVICES

WHITE LABEL TICKETING SERVICES, A BUSTLING SECTOR WITHIN LIVE ENTERTAINMENT, IS REVOLUTIONISING THE BUSINESS-TO-CONSUMER END OF THE GLOBAL LIVE CONCERT INDUSTRY. JULIANA KORANTENG TALKS TO SOME OF THE PROTAGONISTS LEADING THE SECTOR.

F

rom blockbuster stadium concerts to intimate gigs at the local pub, do-it-yourself e-ticketing is now accessible to all sizes of event organiser. And the number of business-to-business companies serving these business-to-consumer (B2C) enterprises is growing at a lightning pace.

Not all live entertainment ventures want to ride on the back of online ticketing powerhouses like Ticketmaster and Eventim. In the 21st century, when digital technology and social media have empowered people to expect personalised services, event producers want to be able to choose how to market, design and deliver tickets to their end consumers. Moreover, they want to be able to gather and own the informative digital data so that they can tailor what they offer and improve the experience of the fans that attend their events.

In response, the white-label ticketing sector is stepping up its investment in back-end services that provide the solutions. A host of companies such as Music Glue and Toptix, in the UK; Australia’s TicketServ; and German

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INTERNATIONAL TICKETING YEARBOOK 2015

company, white label eCommerce, are adopting the latest technologies in order to stay on top of their game, while even Ticketmaster has its own white label solution, tmPrime (soon to be renamed Ticketmaster Pro).

From enterprises’ cloud computing facilities to music fans having universal access to smartphones and social media, the infrastructure for clients to offer customised ticketing, own the ticketing experience, embark on direct-to-fans (D2F) ventures, and be their own ‘ticket masters’, is now widely available.

D2F e-commerce operator Music Glue boasts more than 15,000 clients, from “baby bands to Mumford & Sons”, and 60,000-plus capacity festivals. Its London-based CEO Mark Meharry is unequivocal about why white labelling works.

“Artists use (online) traffic for ticket sales to upsell other products they make money from.

»WHITE LABEL SERVICES

CRM [customer relationship management] is critical and the email database of customers is quickly becoming one of the biggest assets an artist has. The live industry has made a total mess of secondary ticketing. Artists have had enough and are now taking control.”

TALKING HEADS

DEUTSCHE STOCK Germany’s white label eCommerce currently serves German-speaking European markets, but CEO Arndt Scheffler is confident there is room for international growth. His customers include local promoters, record labels, management, agents, media organisations and 300-plus artists. “We provide our customers with tailor-made solutions while standardising their back-office processes to guarantee [the end consumer] high-quality services,” he says.

“And the good news is that we’re still growing.”

Scheffler attributes the rising demand partly to the slump in recorded music sales at a time when live music is thriving. This has inspired event organisers to be more imaginative when it comes to ticket purchasing and to make it a more pleasant experience.

Dynamic ticketing in white label services is Toptix’ forté, asserts Karl Vosper, managing director of the group’s UK office. Whether you are a concert organiser in China or handling visitor attraction at Buckingham Palace, Toptix’s dynamic ticket service uses intelligent software that permits the user to read and understand the end consumer’s individual purchasing habits.

Clients use that insight to understand their ticket buyers better and personalise the inventory they sell by recommending shows they might like but were not aware of, for example.

SOFTWARE AS A SERVICE For Mike Evenson, vice-president, product and marketing at AudienceView (Canada), the company’s white label SAAS (software-as-aservice) is boosting business. Serving more than 550 venues in 15 countries, including the UK and the US, it recently announced a multi-year extension to its ten-year agreement with the UK’s Football Association and the 90,000-capacity Wembley Stadium in London. Wembley uses the company’s AV Enterprises technology for large-scale football matches.

More recently, the company has also been able to serve organisers of small regular events such as exercise classes, thanks to AV Go, its more economical system for small businesses.

Its launch was helped by private equity funds raised last year. “The control you give your clients is what sets white labels apart,” Evenson says. “You can control the price, when the tickets go on sale, how to market to fans, ensuring that they are engaging with your brand as opposed to another company’s. Every touch point will be through your brand.”

Spain-based Ticketea admits that when it launched five years ago, the country was too small for a white-label service to compete

MARK MEHARRY CEO, MUSIC GLUE

against Ticketmaster and its Live Nationpowered concerts. It evolved about three-anda-half years ago into a standard online ticket seller. But it became so profitable, it decided to expand internationally and discovered a whitelabel infrastructure was the only way to do so.

It now operates offices in London, Berlin, Milan and Dublin.

“With our solutions, someone who doesn’t know anything about ticketing will be able to operate the ticket sales at their own event,” says Andrés San José, Ticketea’s head of international business development. “But you can’t be in the international ticketing business without localising your service.”

WE HAVE THE TECHNOLOGY ARNDT SCHEFFLER CEO, WHITE LABEL ECOMMERCE

KARL VOSPER MD, TOPTIX

MIKE EVENSON VICE-PRESIDENT, AUDIENCEVIEW

ANDRÉS SAN JOSÉ HEAD OF INTERNATIONAL BUSINESS DEVELOPMENT, TICKETEA

BRIAN FELDMAN CLIENT DEVELOPMENT MANAGER,TESSITURA NETWORK

Another development helping white label services are the increasing number of affordable technologies that are becoming available and the lower barriers to entry. That means more players have emerged and the service provider is forced to not only offer ease of use, but also ease of systems integration.

“In a few days, at the most, we can have your website offering bespoke ticketing as well as news, a calendar of events, and artist interviews.

Competition has seen operators reduce their booking fees, so you need unique value-added

ANOTHER DEVELOPMENT HELPING WHITE LABEL SERVICES ARE THE NOW AFFORDABLE TECHNOLOGIES REQUIRED AND THE LOWER BARRIERS TO ENTRY content to generate business,” according to San José.

And adding value is what Eventbrite seeks to do by being to events discovery, via ticketing, what Google is to information discovery, via search engines.

Having processed 200 million-plus tickets in over 180 countries, the San Francisco-originated company continues to fill a gap only white label services can hope to fill. “Event discovery could be massively improved,” observes Limvirak Chea, Eventbrite’s vice-president business development Europe, Middle East and Africa.

“There are countless more or less complete lists of events, most of them very long and not tailored to what you’re looking for.

“We have millions of events on our platform, and by knowing what events our attendees go to, we can personalise recommendations for other events they might like. This, rather than email blasts that are being ignored by millions of recipients, will drive ticket sales in the future,

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TALKING HEADS

LIMVIRAK CHEA VP BUSINESS DEVELOPMENT, EVENTBRITE

OPHIR ZARDOK, CEO/FOUNDER, EVENTO

and we are only just beginning.”

Because of the presence of its logo on all clients’ tickets, Eventbrite prefers to describe itself as a self-service ticketing platform (as opposed to a white label platform). But it seems to be doing the same job, having recently confirmed that it has won the business of four UK festivals (including We are FSTVL) with a combined audience of 100,000-plus.

BESPOKE In Toptix’s book, white label could never be a one-size-fits-all solution, especially in an international business like live music. With about 600 customers served by offices in the UK, Israel, Australia, Italy, and North America, plus representatives in the Benelux region, Norway, South Africa and Turkey, it strives to offer products that can be localised.

“Our system can run in any language supported by Microsoft,” Vosper states.

“Ticketing aimed at Spanish speakers will see pricing in Spanish, the relevant time zones, and currency. It automatically changes for Arabic or Hebrew-speaking customers with ticketing instructions that read right to left.”

Wireless technology has taken white-label services into the very place where a large and growing number of contemporary ticket buyers

like to be – their mobile phones. Media research giant eMarketer predicts global smartphone penetration will exceed 50% for the first time in 2018, when 2.56 billion people will be connected.

“The emergence of mobile as a primary purchasing channel has had a major impact on our business,” states Ophir Zardok, Israelbased CEO/founder of Evento, which is described as a social-ticketing platform. It does business in Germany, Belgium, and the US and plans expansion into the UK. The company’s SitNearMe app gives ticket buyers the option to select seats adjacent to their friends. “The transition from desktop to mobile is driving the demand for our product,” adds Zardok.

Additionally, mobile tech is enhancing business at the Dallas-headquartered Tessitura Network, an events service provider working with 512 arts, cultural and entertainment organisations in eight countries. “The move to mobile transactions has had a major impact, which we handle via Tessitura Network Mobile Plus (TNMP),” explains Brian Feldman, client development manager. “The optional TNMP programme, which includes downloadable apps for iOS and Android and a mobile-optimised website, allows [end consumers] to not only purchase their tickets but also engage with the [event] organisation through their mobile devices via push messaging, photographs, social media and even live streaming of events.”

One question that then crops up is: in the white label arena, who owns the data amassed from the multi-platform transactions between fans

PRODUCT FOCUS: ONEBOX Onebox is a company that develops technology for selling shows and tickets for leisure activities.

Its platform connects event organisers and venue managers to ticket agents via a centralised sales system.

“Onebox allows clients to create their own ticket distribution system, selling wherever they want, however they want and to whoever they want.

We provide them with an innovative inventory management system that enables them to control their seat availability and sales from a centralised point in real time,” says founder Carlos Galí.

Established in 2010, Onebox currently has 65 employees in its Barcelona HQ and offices in Madrid, with international expansion under way through a project in Costa Rica. Last year the company managed more than 1,300 events and sold 3 million tickets worth €70 million.

The company’s customers encompass the sports, music, museum and theatre sectors. In addition to Spain’s national football team, six clubs from the Spanish league (FC Barcelona, Atlético de Madrid, Levante UD, Málaga FC, Sevilla FC and RCD Espanyol) use Onebox technology. Its theatre portfolio is extensive, while in other markets Onebox also manages music festivals, tours, museums and sporting events.

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»WHITE LABEL SERVICES

TALKING HEADS

JASON THOMAS CHIEF COMMERCIAL OFFICER, TICKETSCRIPT

CARLOS GALÍ FOUNDER, ONEBOX

FANS’ INTERACTION WITH CLIENTS’ TWITTER AND FACEBOOK ACCOUNTS ALSO GENERATES DATA, A VALUABLE CURRENCY IN THE DIGITAL AGE. and the venue operator and concert promoter?

“Event owners are realising that protecting their customer data and growing their community is the way to future-proof their business,” says Jason Thomas, chief commercial officer at Ticketscript, which has offices in London, Berlin, Amsterdam, Barcelona and Antwerp. Primavera Sound in Spain, Groezrock in Belgium, and the UK’s Hed Kandi are among its 10,000 live entertainment customers. Thomas adds, “Just handing over an allocation [of their tickets] on the off chance they might get on a marketing email that no one opens, while the ticketing company targets their customer base with rival events, is not a way to grow their business.”

SOCIALISING Fans’ interaction with clients’ Twitter and Facebook accounts also generates data, a valuable currency in the digital age. “The biggest

game changer in white-label marketing is social media,” says Ian English, managing director of TicketServ, which targets markets in Australia, Hong Kong, Malaysia, Singapore, Thailand and Vietnam. “I firmly believe the power play should be in the hands of the venue or the artist’s brands because, for us, it is our customers who own the data collected.”

The future of e-ticketing looks bright enough for white label services. E-ticketing start-ups are raising a lot of money. SeatGeek in New York raised $62million (€56m) recently; China-based Weiying nabbed $105m (€94m); while San Francisco’s Gametime received $13.3m (€12m).

As Ticketscript’s Jason Thomas notes: “I actually think it’s an exciting time in ticketing.

The demise of the physical ticket will continue and as event owners start to modernise operationally, they will align themselves with innovative, independent companies.” ●

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Clients scan their event passes at a Skidata turnstile to gain access to an event

ACCESS CONTROL

GETTING INTO AN EVENT HAS NEVER BEEN EASIER. CHRIS AUSTIN DISCOVERS THE SOPHISTICATED SYSTEMS PROVIDING ORGANISERS WITH NEW WEAPONS IN THEIR ARMOURY.

E

ntering a concert has never been more complex.

For the fan, the experience is more swift and seamless than ever, but behind the scenes cutting-edge technology is at work collating data and providing event owners with unprecedented control and knowledge of attendees.

The increasingly widespread use of contactless technology including radio-frequency identification (RFID), near field communication (NFC) and barcode readers has not only sped up entry, it also means event owners can gain valuable insight into how many people are on site, their exact location, and, perhaps most importantly, who they are.

The industry has come a long way in the last five years, moving from straightforward paper ticket passes to systems that prevent fraud, bottlenecks and speed up the entrance process significantly.

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INTELLIGENT VENUE SOLUTIONS Among the many purveyors of accesscontrol systems is Intelligent Venue Solutions (IVS), which has supplied numerous events including Austria’s Snowbombing and the Isle of Wight Festival in the UK. The company provides contactless access solutions that are fully compatible with any ticketing format or company and support barcode or RFID devices and tickets; e-tickets and mobile tickets; online or offline operation and cloud deployment.

Fixed handheld devices at entry points scan an RFID wristband or barcode linked to a customer ID. Assigned access rights are determined, which can be upgraded or amended by the event organiser at any time. “Whether it is barcodes,

»ACCESS CONTROL

RFID or NFC, the key is communication. As long as entry points are connected to the Internet we can transmit the data to a central point and create a URL the event owner can logon to and see what is going on around the site in real time,” says IVS director Paul Pike. Fans can be picked out for special treatment, with VIP ticket holders easily fast-tracked and identified to the point that they can be greeted by name.

PLAYPASS Playpass was launched three years ago when CEO David de Wever, whose background is in artist management, realised there was a gap in the market for a company to bring together such disciplines as accreditation management, access control and cashless payments, as well as brand activation and social media. He acquired some IP from another company in the access control sector, found some investors and launched Playpass.

“We’ve just had our third year at Rock Werchter doing RFID access control and brand activation,” de Wever reveals. “This year, for the first time, we created a system that allowed fans to have their own festival timeline. We worked with Spotify so fans could be contacted post event with a playlist featuring all the bands they went to see at the festival.”

Unlike some RFID companies, Playpass works with encryption technology to make the system more secure. “We can work offline so that we don’t need an Internet connection to process transactions,” says de Wever. “But we’re also trying to boost our connections with the cloud so that people can top-up their cashless funds through Mastercard or Paypal.”

With a history of working on events in Spain, Germany, Hong Kong, Singapore, France, the UK and, of course, its native Belgium, Playpass estimates it will activate one million RFID wristbands this year.

TALKING HEADS

SKIDATA

PAUL PIKE DIRECTOR, IVS

RICHARD PINNICK HEAD OF GLOBAL BUSINESS DEVELOPMENT, FORTRESSGB

HUGO ROHNER CEO, SKIDATA

MIKE EVENSON VICE-PRESIDENT, AUDIENCEVIEW

Headquartered in Salzburg, Austria, and with 23 offices internationally, SKIDATA operates in 90 countries providing access control solutions to venues. Tickets are read at baffle gates or tripod turnstiles connected to an open interface that allows the integration of tickets from around the world.

REAL-TIME REPORTING ALLOWS FESTIVAL OWNERS TO SEE WHERE AUDIENCE MEMBERS ARE ON-SITE, HOW LONG THEY STAY IN THE CAMPING GROUND AND WHICH STAGES ARE THE MOST POPULAR. SKIDATA’s CEO Hugo Rohner says safety and speed are the core advantages of its readers and turnstile technology. “If there is a sudden rush of visitors, operators can easily expand their access system with mobile SKIDATA ticket control devices,” he explains. “In this way, they can react flexibly and in a targeted manner whatever the circumstances. We offer convenient, hands-free access with various data carriers and integrate ticketing systems from around the world with ease.”

AUDIENCEVIEW

INTELLITIX Since Intellitix launched in 2011, it has activated over 15 million RFID tags, operating at major events including Coachella Festival and the Ryder Cup golf tournament, using RFID wristbands, cards and devices processed at its entrance portals or by handheld readers.

“It seems simple to have a wristband that causes a light to go green or red, but there is so much to it, all the way from the fulfillment process that we provide, getting the wristband to the patrons, the smooth communication to all the ticketing operators and deployment of the access control infrastructure on-site, which we create in-house,” says Eric Janssen, chief revenue officer at Intellitix.

Real-time reporting allows festival owners to see where audience members are on-site, how long they stay in the camping ground and which stages are the most popular. Janssen says that such knowledge is already being used to adjust site layouts, staffing levels and entrances at

festivals. “As people get increasingly used to seeing the data, they are installing additional entrance and exit lanes and considering how to use that info to make the next event better.”

PAUL NEWMAN DIRECTOR OF TICKETING, AXS

Another industry giant is venue solutions provider, AudienceView, which works with 550 venues in 15 countries, providing self-serve e-commerce, ticketing and events management systems. Mike Evenson, AudienceView vicepresident, marketing and product management says access control was integrated from day one in the AudienceView offering and that it is used by 90% of its clients. The system can work with any ticket format including 1D and 2D barcodes, QR codes and RFID. “There is a bunch of different ways to represent what is essentially a unique ticket ID number and our software is compatible with them,” states Evenson. “We provide solutions for venues of all sizes, so if it is a smaller venue that does not have scanners and maybe only a couple of entrances, they can download our app and scan tickets via smartphones.”

AXS AEG-owned ticketing operation AXS supplies access control as part of its full service solution for venues including The O2 arena and Wembley

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A Ticketscript member of staff operates one of the company's mobile box offices

TALKING HEADS

SCOTT WITTERS CEO, GLOWNET

ERIC JANSSEN CHIEF REVENUE OFFICER, INTELLITIX

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Arena in London, plus the Barclaycard British Summer Time event in the capital’s Hyde Park.

“Hyde Park is a massive site where there will be an audience of 65,000. We will be scanning at all entrances there and wireless coverage can be challenging over a site that size,” says Paul Newman, director of ticketing, UK at Axs.com.

AXS personnel use Apple iTouch devices to scan tickets via an app or the built-in camera.

Although the AXS system is compatible with RFID technology and e-tickets, Newman says the majority of tickets are printed. The system is compatible with tickets sold via other agencies and AEG secondary ticketing partner StubHub. “We have their system integrated with our ticketing system and access control, so if someone resells a ticket on StubHub our system validates it and the purchaser is sent a new e-ticket,” says Newman.

GLOWNET With offices in London, Amsterdam and Madrid, RFID operator Glownet was launched three years ago by Scott Witters, former festival director of New Zealand’s Rhythm and Vines Festival. Its gPASS system provides ticketholders with RFIDenabled wristbands loaded with information.

Glownet uses RFID to manage access to event sites and specific areas within them, such as VIP zones and cash counting locations. The system is entirely mobile with staff using commercial grade waterproof smartphones. It is also network independent, so can work offline. The company counts Live Nation Spain among its clients and has just partnered with Barcelona’s Sónar Festival.

Glownet effectively eliminates the use of fake or illegally resold tickets. And should someone lose a wristband, they can be identified and a replacement issued. Witters says it also enables crowd behaviour management, “It will prevent people purchasing alcohol if they are underage and should someone drink too much and be disorderly, we can yellow card them and prevent

INTERNATIONAL TICKETING YEARBOOK 2015

access until they settle down.”

Witters adds, “We look at it as entitlement – whether you can come in each day, go to the after party, the VIP space, get a discount on merchandise or a free sample of drink from a sponsor – it is all stored on the wristband.

In the future there will be the ability to opt in for different arrival times, for early access or, perhaps, a happy hour.”

FORTRESSGB With clients in 16 countries, FortressGB provides access control solutions to 128 venues worldwide, the majority being stadiums. Its readers are compatible with RFID cards; mobile phones with either NFC or a 2D barcode; or regular 1D/2D barcode tickets.

“You don’t build a stadium today without a digital automated access system,” says head of global business development, Richard Pinnick.

“One of the great successes has been the speed and ease with which fans enter stadiums – the average wait time at [Arsenal's] Emirates Stadium during entry is 45 seconds.”

What started as a piece of operational enhancement technology has grown to become a platform for fan engagement and loyalty. “It is all about improving the experience: we have launched a raft of new services to enable venues to reward fans, push offers and encourage social media activity,” says Pinnick.

TICKETSCRIPT Ticketscript offers event and venue owners the ability to manage event entrances by using a smartphone or tablet to scan tickets via its Flow app, which can be synced to a Ticketscript dashboard to enable the collection and analysis of audience data. But for larger events such as the Amsterdam Dance Event and Primavera Sound, Ticketscript provides more complex scanning hardware.

“We have been field-testing new scanning devices in the Netherlands that require no

»ACCESS CONTROL

training on-site,” says chief operations officer, Matt Ephgrave. “We will start to roll that out across all European territories this year. The devices and chargers fit into a small flight case – open it up and you’re good to go.”

YOUCHIP

TALKING HEADS

MOJO BARRIERS Mojo Barriers offers an array of access control solutions including Gatekeeper, a high-tech, heavy-duty turnstile that can operate as a stand-alone system counting fans in and out, or in harmony with an automated ticket scanning system.

“It is a white label, fully automatic accesscontrol solution that can work as a slave to any ticketing operation and informs event owners exactly how many people at any given point are on site,” says Mojo MD Cees Muurling. While the system eliminates human error and saves significant staffing costs, Muurling admits it really only becomes economically viable during multi-day events. “For a single show in a single venue it is not cost effective. But if you want to do a three-day festival that’s open 12-24 hours a day then it will save many hours spent on manual ticketing control and that is where the efficiency comes through,” explains Muurling.

MATT EPHGRAVE CHIEF OPERATIONS OFFICER, TICKETSCRIPT

Another German-based operator enjoying a hot streak is RFID specialist YouChip, which this year expanded into the UK, when it provided cashless payments at Download Festival. Despite some teething problems on the first day, the YouChip system was heralded a huge success and following the technology being showcased across this year’s Eurosonic Noorderslag event in the Netherlands, it’s expected that other outdoor events will set up YouChip networks next year, adding to its existing, expanding portfolio of FKP Scorpio-run festivals.

CHOOSING THE RIGHT TECH

CEES MUURLING MD, MOJO BARRIERS

Technology may be transforming the way access control is handled at events, but not all systems work perfectly all the time. For example, on a sunny day reading QR codes on phones can prove more time consuming than collecting paper tickets.

IVS exec Pike concludes, “Ultimately, we have the ability to add fingerprint or facial recognition, but these do not always perform well in an outdoor environment. It is important not to fall into the trap of using technology for technology’s sake – the first consideration is getting people in quickly and safely.” ●

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ARGENTINA Language: Spanish Population (millions): 43.0 Currency: Argentine Peso (ARS) GDP/Capita (US$): 18,600 Music Revenue/Capita (US$): 1.5 Internet Users (millions): 25.0 Active Smartphones (millions): 19.9 Active Tablets (millions): 2.5

A

rgentina is no stranger to highly successful shows – Roger Waters sold out 400,000 tickets over a record eight nights at El Monumental football stadium in 2012, and the recent arrival of the Lollapalooza event has set a new standard for the nation’s festivals. But equally, there is no easy way to separate the Argentinian live business from its notoriously troubled economy.

The country remains in a slump flowing a disastrous debt default in 2014. It’s not easy to bring in tours when the currency is in ongoing crisis and capital controls prevent significant overseas money transfers.

And even where shows can be brought, the meagre spending power of the man in the street, toiling under double-digit inflation, currently makes promoting a very risky business.

Primary Ticketing

Argentina’s biggest ticket platform is Ticketek, which is a licensed form of Ticketek Australia, though unlike many markets, there is no clear dominant ticketing force in Argentina. Significant Argentinian promoters often operate their own ticketing agencies and use them whenever a venue does not have its own arrangements in place, though prominent venues expect to sell their own, using a third-party service. Luna Park arena, for instance, uses VisionOne’s TicketPortal service. VisionOne was originally a Swiss ticketing solution. As part of its expansion strategy it set up a JV in the USA (VisionOne Inc) and it's this affiliate that licensed the technology in Argentina. Last year, VisionOne Inc was acquired by Accesso, a specialist theme park and visitor attractions ticketer. “When you promote a show in an open place, like a stadium that has no exclusive ticketing rights, you use your own ticketing company,� says

Diego Finkelstein of Lollapalooza’s local partner Fenix Entertainment Group, which operates the TopShow site. “For promoters, ticketing is an important piece of the business. When a venue sells the ticket, they will charge a service fee, but that business has nothing to do with the promoter.�

Distribution of Sales

Increasingly, ticket sales are going online, though not to the extent that other options are no longer available, including call centres and sales points around town. Last year, TopShow sold its first mobile tickets. “You buy the ticket online and you attend with your cellphone,� says Finkelstein. “The experience of attending the show starts when you buy a ticket. The more comfortable and professional it is, the better the experience for your clients.�

|

Value of Market

Live music ticket sales in Argentina are about $19million (â‚Ź17m) a year, according to MICA, a state-sponsored culture agency.

International/Domestic Splits & Genres

With the exception of Lollapalooza and a handful of upcoming classic rock, metal and indie shows, the majority of visiting acts currently come from within Latin America, due to economic circumstances rather than a basic lack of cultural demand.

Kasabian performed at the 2015 edition of Lollapalooza Festival in the HipĂłdromo de San Isidro

Secondary Ticketing

EntradaFan launched in May as the first Argentine peer-topeer ticket marketplace, partnering with Bitcoin firm BitPagos. This deal is particularly controversial because Argentina takes a dim view of Bitcoin and its potential for squirreling money out of the country.

Cultural Analysis

Argentina’s economic trials and tribulations are accepted as a fact of life by the country’s live music fraternity, and rebounds tend to follow collapses, though the situation has felt more serious since 2001, when the country declared the largest ever debt default of $132billion (₏120bn). The live market has fitfully bounced back since then, and Argentina, along with Chile and Brazil, is widely reckoned to be one of the three key stops on the South American circuit. Indeed, relative to its 41m-strong population (compared to 200m in Brazil), Argentina has been, in very recent memory, rated as the strongest ticket-seller on the continent.

Only a few years ago, promoters were mooting cities such as Córdoba, Rosario, Mendoza and Mar del Plata as supplementary dates to Buenos Aires for international touring acts. Since last year’s fresh default, promoters have been rather more conservative, even if ears are virtually still ringing from visits by Bruce Springsteen, One Direction, Bon Jovi and Black Sabbath in 2013/14.



Taxes and Charges

In 2006, Argentina dropped its 21% VAT on concert tickets, which acted as a catalyst to drive the country’s then depressed live music scene to several years of solid success. �

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INTERNATIONAL TICKETING YEARBOOK 2015

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When it opens in 2018, the new Perth Stadium will add 60,000 seats to the local ticketing market

AUSTRALIA & NEW ZEALAND Language: English Population (millions): 22.5 Currency: Australian Dollar (AUD) GDP/Capita (US$): 43,000 Music Revenue/Capita (US$): 16.7 Internet Users (millions): 19.6 Active Smartphones (millions): 16.8 Active Tablets (millions): 6.4

T

here’s no shortage of live entertainment in the land Down Under, and it’s never been easier to get a ticket to the show. Australasia’s ticketing industry is dominated by Ticketek as market leader and Ticketmaster at number two, with both companies having changed hands in recent years.

There are also a handful of significant independent companies along with scores of small-scale and DIY outfits, perhaps a hundred or more, all competing for a sliver of Australia’s billion dollar-plus live entertainment and sports markets. State government is also the largest ticketer in certain states.

Australia’s economy has remained buoyant throughout the global financial crisis and its 23 million consumers are relatively affluent and tech savvy. Paperless ticketing is here, and it’s here to stay. Though entertainment ticket sales across the board have reached an all time high in recent years, promoters note that the Australian public has a smorgasbord of choice, the cost of a ticket remains high and the unsteady international financial climate has contributed to price sensitivity.

In a quirk of the market, a high proportion of medium- to largesized venues opt for the exclusive ticketing rights model. The ticketing rights for large venues are sold to the highest bidder or, sources say, to the one with the most influential corporate relationships. Not only does that limit ticket buyers’ choice, but promoters and independent ticket agencies argue that a lack of competition doesn’t help motivation when the hard work of shifting tickets is a factor.

Primary Ticketing

The highest bidders are typically the big two – Ticketek and Ticketmaster – which jointly account for an estimated 80 to 90% of Australia’s entertainment ticketing market, promoter sources claim.

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INTERNATIONAL TICKETING YEARBOOK 2015

Language: English Population (millions): 4.4 Currency: New Zealand Dollar (NZD) GDP/Capita (US$): 30,400 Music Revenue/Capita (US$): 11.8 Internet Users (millions): 4.1 Active Smartphones (millions): 2.7 Active Tablets (millions): 1.6

Neither company is listed on the Australian Stock Exchange, and are therefore not obliged to disclose their financial information.

According to Ticketek, it processes 19 million tickets for more than 20,000 events every year. Its venues include Sydney’s ANZ Stadium, Allphones Arena, and the SCG; the MCG and Rod Laver Arena in Melbourne; Suncorp Stadium in Brisbane; and the Adelaide Entertainment Centre. The agency is part of Nine Live, which has just been sold by Nine Entertainment to the private equity firm Affinity for AUD$640million (€456m). Promoters say that it is business as usual, despite the change of ownership. “It would be nice if they and the venues talked to us about it,” says promoter Chugg Entertainment’s managing director, Matthew Lazarus-Hall.

Ticketmaster says it sells tickets for more than 10,000 events every year in Australia. It has the exclusive ticketing rights for Melbourne’s Etihad Stadium, the Sydney Entertainment Centre and Brisbane Cricket Ground.

Mushroom Group chairman Michael Gudinski reportedly “feels uncomfortable” with the two major ticketing agencies being owned by promoters, calling it “a weird system”.

The two ticketing giants are kept a watchful eye on by consumer rights advocates. The Australian Competition and Consumer Commission (ACCC) launched a ‘drip-pricing’ investigation into the big two, the results of which were announced in October 2013, when the authority announced Ticketek and Ticketmaster had “improved their pricing practices in response to concerns raised.” The drip-pricing probe addressed whether the headline price advertised at the beginning of an online purchasing process was undermined by additional fees and charges that were incrementally disclosed. The ACCC said it had identified instances where it considered the companies had failed to state single minimum total prices, though it conceded that the ticketing giants must now include unavoidable fees in their prices earlier in the online booking process. Most companies have now moved

towards an all-in price from the offset.

“We don’t try to ‘tackle’ them or take them on at their own game,” notes Harley Evans, owner and managing director of Moshtix and The Ticket Group. A former Ticketek exec, Evans bought Moshtix from Rupert Murdoch’s News Ltd in 2013. Murdoch’s media giant launched Foxtix in 2010 to sit alongside Moshtix, in a bullish attempt to breakup the “cosy duopoly in ticketing in Australia,” News Limited’s thenchairman and chief executive John Hartigan said at the time. “Our value propositions are dramatically different. They’re primarily volumebased aggregation businesses with a heavy reliance on their brand recognition and database sizes. We provide a much more tailored, very bespoke solution, with a very high service component,” says Evans.

The key smaller companies pursue opportunities in outdoor shows, the arts community, large exhibitions, the sporting market, and in tenders. They generally provide a very similar software solution to each other, just packaged in a different way.

Agencies and promoters in Australia are becoming closer than ever, with Live Nation Entertainment (owner of Ticketmaster) buying Michael Coppel Presents in 2012; and Paul Dainty’s Dainty Group buying into the premium ticket provider Bang Tango in 2014.

Rihanna is among many superstar acts to visit New Zealand's Vector Arena in Auckland

Secondary Ticketing

Australia also has complicated state-by-state laws governing resales. In Queensland, a resold ticket cannot be sold for more than 10% of its face value, whereas, there is currently no such rule in the state of Victoria.

The Australian market has seen a steady arrival of secondary ticketing companies, such as Viagogo, which opened for business in the second half of 2013. There seems to be some confusion about the secondary market and questions have been raised about whether some of the services are authorised and what happens on the night if there is an issue with a ticket sold that has been sold through a secondary agent.

Scalping in Australia is not considered an issue, although the government of New South Wales proposed secondary ticket legislation in late 2013. The Commonwealth Consumer Affairs Advisory Council concluded that touting affects a very small number of events across the live performance industry each year, when it reviewed ticket scalping

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Value of Market

The live entertainment industry reached a record high of AUD$1.5billion (€1bn) in revenue in 2013, up 22.7% from the previous year’s AUD$1.2bn (€855m), according to Live Performance Australia (LPA). This increase in revenue was double the growth experienced in overall attendance, which increased by 10.2%, to 16.1million in 2013 from 14.1m paid tickets in 2012. During the reporting period, 17.9m tickets were issued (including paid, complimentary and sponsor tickets) for LPA member events, up from 16.3m in 2012. The average ticket price was AUD$92.16 (€65.60), up 7.8%. The trade association notes that performances by the small-tomedium sector, and at regional venues, continue to be under-reported

80% OF OUR TICKETS ARE SOLD ONLINE NOW AND MANY USE PRINT-AT-HOME FUNCTIONS WHICH IS FUNNY BECAUSE THE CHARGES ARE HIGHER THAN EVER in 2010. The Live Performance Australia Ticketing Code of Practice discourages all consumers from buying from ticket scalpers, and supports the right of its members to cancel tickets bought from touts, without providing a refund.

Distribution of Sales

Technology is facilitating an increasing number of transactions Down Under, and, as is the experience in many other territories, smartphones and tablets are the dominant platforms for all e-commerce, including ticketing, while traditional retail continues to fade away. “I would say 80% of our tickets are sold through mobile or Internet,” notes Lazarus-Hall, “and now many use print-at-home functions – which is funny because the charges are higher than ever, yet there is less manual work in selling a ticket.”

According to Moshtix CEO, Harley Evans, around 93% are online presales, with an equal percentage of purchases via smartphone and computer, and the remainder of sales taking place via telephone (5%), retail stores (1%), and box office (1%).

“As the cost of development and technology continues to fall, more and more players are entering the ticket market,” explains Brian Chladil, CEO of OzTix, which claims to be the third biggest ticketing company in Australia.

in its survey. In Australia, pubs that host live music can have capacities as high as 1,000 and these venues are often ticketed by the big players.

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Taxes and Charges

Despite their bulk, the majors have an enduring image problem. In December 2011, the Federal Court imposed a penalty of AUD$2.5m (€1.78m) on Ticketek, finding that on four separate occasions the agency had engaged in conduct with the anti-competitive purpose of deterring or preventing Sydney-based Last Tix from supplying its services. The following year, consumer rights watchdog, Choice, handed down a so-called Shonky Award for overcharging to both Ticketek and Ticketmaster for their additional service, transaction, delivery and credit card fees.

Choice’s study found additional fees can include a AUD$9.50 (€6.70) handling fee or AUD$5.20 (€3.70) for the joy of receiving an email ticket to print yourself at home; AUD$7.60 (€5.40) for the option of collecting a ticket from a venue; AUD$5.60 (€4) to have a ticket sent via SMS; AUD$11.10 (€7.90) to have a ticket sent via registered post, or AUD$7.60 (€5.40) for the delivery of a ticket by regular mail. There is often a 1-3% credit card surcharge on top of that.

The high consumer fees are part driven by the bidding wars that the large arenas favour. ●

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Nova Music's Nova Rock Festival in Burgenland celebrated its tenth anniversary in June 2015

AUSTRIA Language: German Population (millions): 8.2 Currency: Euro (EUR) GDP/Capita (US$): 42,600 Music Revenue/Capita (US$): 14.0 Internet Users (millions): 7.0 Active Smartphones (millions): 4.7 Active Tablets (millions): 1.5

A

lthough many promoters rely on A-list international stars to visit, Austria's music scene is becoming ever more confident as local bands, such as Bilderbuch, grow in popularity. “Tickets for Austrian acts are far cheaper than tickets for international acts,” notes Hannes Tschuertz, CEO of ink music.

Primary Ticketing

The clear market leaders in Austria are Eventim-owned Oeticket and Wien Tickets (run by the Wiener Stadthalle venue), while Ticketmaster set up shop in 2012. Besides this trio of big shots, a handful of start-ups have managed to make a splash, most notably Ntry, Eventjet and Ticketgarden. The emergence of these newbies indicates the future lies in online and mobile ticketing. Surprisingly, most live ents tickets in Austria are sold at banks. Classical and sports tickets are mainly sold by venues and clubs.

Secondary Ticketing

The market for secondary ticketing is virtually non-existent in Austria. “There are always individuals who try to make a few extra euros by scalping, but it is really a minor issue – no market for the Seatwaves and StubHubs of the world,” reports Oeticket’s Andreas Egger.

Distribution of Sales

"In Austria, 45% of all tickets are sold at 4,000 or so points of sale, mainly banks but also travel agents, tobacconists, electronic/media

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dealers,” explains Egger. 40% of Oetickets inventory is sold online, while 10% is corporate sales and 5% through call centres. “The Internet sales rate is lower in rural areas and decreases from eastern to western Austria, where almost 40% of all Internet tickets are already print-athome or mobile tickets," says Egger.

At Skalarmusic/Nova Music, 55% of all tickets are purchased online and via call centres while 45% are stationary sales, according to CEO Franz Erhardt. “In Vienna, stationary sales still play a major role, but online is growing rapidly. Whether tickets are sold at the box office depends on the kind of event,” adds ink music's Tschuertz.

International/Domestic Splits & Genres

According to Tschuertz, the question of where tickets are sold very much depends on the genre. Classical music, opera and theatre attract most visitors. But for Oeticket, entertainment tickets constitute the most important revenue stream. “Rock and pop are [our biggest sellers], followed by musical and family entertainment and finally, popular classic and sports,” say Egger. Tschuertz says Austria hosts a few huge pop concerts each year but most shows are rock/alternative and family entertainment.

While shows involving international artists generate most sales, local talent is important, with folk music and Schlager close to the top in every statistic. According to Egger, the three best selling shows so far in 2015 are AC/DC (105,000 at the Red Bull Ring in Spielberg), Helene Fischer (two sold-out stadium shows in Vienna with a total of 100,000 visitors) and the Eurovision Song Contest in Vienna with a total of 95,000 tickets for nine shows at the Stadthalle. ●

BALTICS Languages: Estonian, Latvian, Lithuanian Currency: Euro (EUR) Population (millions): 2.3 (EE) 2.0 (LV) 2.8 (LT) GDP/Capita (US$): 26,600 (EE) 23,900 (LV) 26,700 (LT) Internet Users (millions): 1.0 (EE) 1.5 (LV) 1.2 (LT)

T

he main promoters in the Baltic countries have vested interests in ticketing. The biggest operator across the three countries is Baltic Ticketing Holdings (BTH), which is owned by Russian company Kassir. It controls the largest ticketers in Estonia (Piletilevi) and Latvia (Bilesu Serviss), as well as Bilietu pasaulis, which is the third placed company in Lithuania.

Live Nation is present through its majority stake in BDG, which is particularly active in Estonia and Lithuania. BDG licences the Ticketpro system.

Another regional promoter is Makroconcerts which also has its own ticketing division. Both BDG and Makroconcert are in competition with BTH, but as the largest ticketing business in the region, both companies also allocate tickets to it. According to estimates by Makroconcert’s Giedrius Klimasauskas, the market for commercial live events in Lithuania is worth €25-30million. Latvia is worth around €20m, with Estonia not far behind.

Lithuania In Lithuania, three main ticketing companies share the market: Bilietai, Tiketa and Bilietu pasaulis. Tiketa claims to lead the market with a share of 40%, followed by Bilietai (35%) and Bilietu (25%).

The ratio between box office and online sales varies. Whereas it is 30/70 for Bilietu pasaulis, it is around 50/50 for Ticketa. According to Klimasauskas, “The majority of online sales are print-at-home tickets.

Mobile (QR) is not very common, only Tiketa uses it.”

Music events make up about 30% of all the tickets sold in Lithuania, the majority being pop concerts. While a couple of years ago international acts had a 70% share of sales, domestic acts have made-up ground. Today the split is around 50/50.

Bilietu pasaulis’s Deividas Afarjanc describes the market for secondary tickets as non-existent, as shows rarely sell-out. Still, the largest players participate, with Tiketa president Andrius Ziauberis acknowledging his company’s resale website Pramogaukit.lt.

In other sectors, the market for RFID is very small in Lithuania, “We do not have too many massive festivals”, reports Afarjanc.

As far as taxes and fees are concerned, there’s 21% VAT as well as a 6% rate for the authors’ society in Lithuania. Administration fees the ticketing companies charge amount to roughly 10%.

resales do not exist.

VAT of 20% is charged on every ticket sold as well as a fee of 5% that goes to the Estonian authors’ society. Booking and admin fees amount to about 10%, says Beilmann. And there’s an additional fee paid for tickets bought at the box office, which is €0.60 per ticket.

Eensalu names Kaepaelad.ee and Nordicwristbands.com/et as main suppliers for RFID and wristband technology.

Latvia Latvia’s main ticketing companies are Bilesu Serviss (60%) and Bilesu Paradize with a share of 40%. The split between online and box office sales is 60/40. BDG Concerts’ Brigita Rozenbrika says there’s no data available on sales methods or the split of national vs. international content. "National entertainment has the majority,” she estimates. As in the other Baltic countries, secondary ticketing is virtually nonexistent. Two main suppliers of wristbands and RFID technology are Dicsomania.lv and Realaudio.eu. ●

Completed in 2006, Arena Riga has been pivotal to the development of a tour circuit through the Baltic region

Estonia In Estonia, Piletilevi controls around 90% of the market, followed by national theatre specialist Piletimaailm. The split between online and box office sales is around 70/30 whereas 60% of online sales are printat-home tickets and around 5-10% are sold on mobile devices.

Based on Piletilevi’s own estimates, the sales split is: theatre (50%), contemporary music (30%), sport (10%) and others (10%). According to Mart Eensalu of Live Nation Estonia, “National entertainment has the clear majority,” although he admits there is no data to support that claim. By contrast, Jaanus Beilmann, CEO of Kassir.ru, thinks international acts have the majority. Concerning secondary ticketing, both are on the same page: with very few sold-out shows in Estonia,

INTERNATIONAL TICKETING YEARBOOK 2015

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Photo credit: Jason Asare

Live Nation's TW Classic Festival 2015 was headlined by Robbie Williams.

BELGIUM Language: French, German, Flemish Population (millions): 10.4 Currency: Euro (EUR) GDP/Capita (US$): 37,800 Music Revenue/Capita (US$): 10.7 Internet Users (millions): 8.9 Active Smartphones (millions): 7.1 Active Tablets (millions): 1.9

I

n Belgium it is not the promoters who make the ticketing decisions, but the venues that make deals with the ticketing operators. The country is effectively split in two: the Flemish speaking Flanders region and the French language Wallonia, with only the capital, Brussels, regularly attracting audiences from both. “The tastes of the audiences are getting more and more different,� states promoter Michel Perl of Gracia Live. “Something that is big in Flanders might be completely anonymous 40 kilometres away in Wallonia.�

Primary Ticketing

Belgium’s major ticketing companies are Tele Ticket Service (TTS), which with exclusivity contracts at the likes of the Sportpaleis and the Lotto Arena is the market leader; and Ticketmaster subsidiary Ticketnet, which purchased Sherpa tickets last year and has exclusivity at the Forrest National Arena and the P12 Arena. Venue Ancienne Belgique is probably the third biggest retailer through its in-house system, while French retailer Fnac also has a presence.

Interestingly, Live Nation Belgium has a deal with mobile phone division Proximus Go For Music, which uses a TTS platform.

Meanwhile, TTS has a relationship with Oxynade, which runs TTS’s TeleTicketEasy subsidiary for smaller promoters, events and venues.

Oxynade also runs white label services for many event organisers.

Paylogic, which is a white label service that specialises in dance events and is 75% owned by SFX, is a growing business capitalising on the international popularity of the genre. Indeed, there are rumours that Paylogic is working on the launch of a retail operation on the back of its expanding client base.

TicketScript is another white label B2B provider active in Belgium and is interesting from a technological perspective as it works hard to be an early adopter on such platforms as the Apple watch.

Another growing force is Ticketmatic, founded in 2006 by a group of experts from the ticketing and software industries. It has built its business by concentrating on contracts with performing arts venues throughout Belgium and the Netherlands, to the extent it claims to process “many millions of tickets.�

Live Nation chief Herman Schueremans reports that the sale of tickets to his company’s events were dominated by TTS (56%).

Ticketmaster accounted for 22% of LN’s inventory, Sherpa was 16%,

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INTERNATIONAL TICKETING YEARBOOK 2015

AB had 4% and Fnac sold 2%. Schueremans expects Ticketmaster and TTS will have similar market shares in 2015.

By contrast, Ticketnet MD Didier Decaestecker believes his company is already the leader, estimating it will sell 1.7million tickets in 2015, compared to TeleTicket’s 1.4m and Ticketmatic’s 1m.

While Belgium’s ticketing market is led by venue exclusivity deals, music festivals are free from such restrictions. For ticketing, Tomorrowland, of course, has a deal with Paylogic, Rock Werchter works with Ticketmaster, while Pukkelpop has its own in-house system.

Secondary Ticketing

Secondary ticketing is regulated by law in Belgium, but Schueremans observes, “Foreign players can work around this. Viagogo, eBay and Seatwave are the most active players.�

Distribution of Sales

Decaestecker says online accounts for 90-95% of Ticketnet’s sales, with the vast majority of fans (85%) choosing to print at home.

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Value of Market

There are no official calculations, but Schueremans reveals that Live Nation alone sold more than 871,000 tickets in 2014.

Decaestecker estimates that Belgians buy about 10million tickets per year, with contemporary music accounting for about 85% of Ticketnet’s turnover.

International/Domestic Splits & Genres

The majority of artists touring Belgium are from other countries, estimated to be 75% versus 25% home-grown talent. Perl observes that French and Dutch acts have a strong fan-base, but even Italian artists enjoy significant popularity. Decaestecker notes demand for international acts is stronger in the north of Belgium, whereas local acts enjoy better support in the south.

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Taxes and Charges

Booking and admin fees are typically between 5-10%. Tickets are also subject to 6% VAT and fans also have to swallow credit card charges. Schueremans says service charges vary from â‚Ź4-10 for regular tickets, but for VIP or premium tickets can increase to â‚Ź20. “We limit it to â‚Ź4 or â‚Ź4.50 in general, as our aim is to sell as many tickets as possible,â€? he adds. â—?

BRAZIL Language: Portugese Population (millions): 107.9 Currency: Brazilian Real (BRL) GDP/Capita (US$): 12,100 Music Revenue/Capita (US$): 1.2 Internet Users (millions): 107.9 Active Smartphones (millions): 62.4 Active Tablets (millions): 18.4

B

razil is more like a continent than a country, encompassing a vast sweep of musical and social culture, not to mention a legislative framework that varies from state to state. The touring circuit for international acts has grown hugely in recent years, bringing into circulation cities such as Porto Alegre and Curitiba in the south and Recife and Fortaleza in the north-east.

Political and economic ructions have somewhat disrupted the international live business lately, but Brazil is far from reliant on imports, in terms of talent or live business infrastructure. Promoters, meanwhile, have plenty of ticketing options, from old, established names to social start-ups, and the global US and European players are only just beginning to penetrate.

South America is regarded as the next continent where ticketing technology can improve the live entertainment sector, and while observers believe Brazil will lead this evolution, many think local businesses will be encouraged to develop and grow into potential acquistion targets, rather than multinationals building operations from scratch.

Primary Ticketing

Major players in the market include Time4Fun’s Tickets4Fun, Livepass, Ingresso RĂĄpido, Ingresse and Ticket360. CTS Eventim plans to launch in Brazil next year, using the Rio Olympics. After the Olympics took place in Greece (2004) and China (2008) the preferred ticketing vendor did not remain in the market too long after the closing ceremonies. So while Eventim claims it will use the Games as a bridge into Latin America, some parties are sceptical as to whether it will remain. “Brazil is a big market,â€? CTS Eventim CEO Klaus-Peter Schulenberg told the Financial Times earlier this year. “Household incomes are rising, and the Latin American market has a very highly developed musical culture.â€?

While ticketing in Brazil is largely controlled by established local firms and still depends heavily on box offices, innovators such as social ticketing start-up Ingresse, and demand-driven, Kickstarter-style platform Queremos, are doing their bit to drive the uptake of technology. “We are fighting against the big guys with a lot of capital who want to keep things the way they are,� says Gabriel Bennaros, founder of Ingresse, which can process sales through Facebook, allowing gig-goers to first see which of their friends are going to events - an increasingly popular way for events to boost ticket sales. “I have noticed that the incumbents have made an effort to improve the delivery system, for instance building mobile apps,� adds Bennaros. “Unfortunately, I believe this effort is a competitive response, as opposed to a change in the spirit in which the most traditional companies are run.�

Secondary Ticketing

Viagogo has a presence in Brazil – it provides ticketing to Queremos and offers some third-party tickets. Ebay’s StubHub has sold sporting tickets, although its site was forced to close after a massive cyber-attack before the Brazilian World Cup in 2014 and was dormant as of August 2015.

Distribution of Sales

Though the contribution of technology to Brazilian ticketing is growing, high rates of credit card fraud have hampered growth because of the mistrust they engender among fans. “I estimate that only 18% of Brazilians buy tickets online,� says Bennaros. “Most of them buy at ticket booths, from promoters or points of sale. Only at larger, very high-demand events does this percentage significantly change.�

With strong links to Portugal, among the retailers with a presence in Brazil is Fnac, the French retail outfit, which also has bricks-andmortar operations in Iberia.

When it comes to buying habits, much depends on the nature of the audience – university students and younger consumers, for example, are more likely to go online. “When the event is popular, people still buy a lot in retail outlets,â€? says FĂĄbio SalvĂĄ at Ticket360. “They would rather come out with the ticket in hand and do not want to pay fees for buying online.â€?

Sales by phone today stand close to zero, and while call centres still exist, the volume of calls that they deal with mainly involve dispensing information, rather than selling tickets.

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Value of Market

Live music, most of it homegrown, thrives in Brazil – local music accounts for 70% of the market –and the turnover of the live industry has been estimated at some US$5.5billion (₏5bn).

International/Domestic Splits & Genres

Economic difficulties and problems with the country’s exchange rate have lately played against international touring in Brazil, with reports of enormously disappointing sales on bigname shows. But Brazil has a rich culture of live music with strong regional differences, from axÊ in Salvador to baile funk in Rio, and an enormously vibrant culture of carnivals and clubs.

Cultural Analysis

A variety of cultural issues weigh on the ticketing market and the live music business in general. One of these is the governmentsanctioned half-price ticket provision for students, which can mean that a show popular among that group can generate half its optimum revenue.

Meanwhile, a fear of fraud has led to highly bureaucratic ticket delivery systems, which result in long queues on show day as gig-goers elect to pick up their tickets. Foreigners, meanwhile, are unable to buy tickets directly for events, as all transactions require an identification number, known as the Cadastro de Pessoas FĂ­sicas (CPF). As a result, ticket sales to international visitors can involve a healthy premium.

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Taxes and Charges

Online convenience fees charged by ticketing companies are gradually decreasing, though most people agree they had ample room to fall. In Rio, a law passed in 2012 states that events with more than 1,000 people can bear a maximum 10% convenience fee, but the rules vary from state to state, and fees elsewhere have been known to be as high as 30%. â—?

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BULGARIA Language: Bulgarian Population (millions): 6.9 Currency: Bulgarian Lev (BGN) GDP/Capita (US$): 14,400 Music Revenue/Capita (US$): 0.5 Internet Users (millions): 4.2 Active Smartphones (millions): 5.8 Active Tablets (millions): N/A

A

lthough it is hard to come across solid numbers, Eventim emerges as the clear market leader in Bulgaria. Other players, according to Boyan Boiadjiev of Sofia Music Enterprises, include local outfits Ticketpro.bg, Ticketlogic.bg, Ticketportal.bg and Ticketsbg.com.

In Bulgaria, a huge number of tickets are still sold offline, although estimates vary. Coco Agency's Dan-Nicolae Firoiu puts the share of tickets sold at the box office at 90%, while Oeticket/Eventim’s Andreas Egger says, “We have reached an Internet share of over 30% this year and counting. 700 Eventim partners sell the remaining tickets in their POS.” Boiadjiev states that “print at home and paperless are in the initial stages of development.” To his knowledge no sales are completed via mobile devices: “Neither Eventim nor Ticketpro have developed

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INTERNATIONAL TICKETING YEARBOOK 2015

ticketing apps for Bulgaria,” he reports.

Pop and Rock are the most loved musical genres, Egger explains, adding, “Approximately 20% of all tickets are sold for national artists.”

Those numbers make sense to Boiadjiev, but he notes, “It depends on venue size and crowd numbers. We work almost exclusively with international artists. At the level of night clubs it’s mostly local acts, for anything bigger than 500 people – with very few exceptions – it’s international acts.”

So what role does the secondary ticketing market play in Bulgaria?

Egger’s answer is short: “none”, and Boiadjiev agrees: “There are no really ‘hot’ gigs”.

Equally non-existent are suppliers that sell wristbands, RFID and event passes in Bulgaria. Says Boiadjiev: “If you can recommend a company, we’d be happy to follow up with them.” Firoiu adds, “We don’t use such systems here. You get in and once you’re out you cannot come inside anymore.” ●

Photo credit: Renaud Philippe

Boston played at the Plains of Abraham venue during the Festival d'été de Québec 2015

CANADA Language: English/French Population (millions): 34.8 Currency: Canadian Dollar (CAD) GDP/Capita (US$): 43,100 Music Revenue/Capita (US$): 9.8 Internet Users (millions): 31.1 Active Smartphones (millions): 20.6 Active Tablets (millions): 14.1

C

anada has long been one of the world’s most robust live music markets, as it has continued to thrive despite global economic downturns, a shrinking recording industry, and increased entertainment alternatives.

The majority of Canadian concert promoters are local and primarily serve their immediate area, though foreign companies have made inroads in partnership with Canadian companies, particularly with the growing number of large outdoor festivals. The most recent example is AC Entertainment (founder of the Bonnaroo Festival in the US), presenting the WayHome Music & Arts Festival in collaboration with homegrown company Republic Live ( July 2015). And, of course, the world's biggest promoter, Live Nation, has its roots in Canada.

Primary Ticketing

While ticketing companies won’t release market shares, it’s acknowledged that Ticketmaster is by far the biggest player. But smaller companies have come on the scene in recent years – including Ticketpro, Ticketfly, TicketBreak, TicketSwell and Eventbrite – to try and chip away at Ticketmaster’s dominance.

“You have companies that excel at high volume and have the most sophisticated technologies and you also have niche companies that service specific needs with custom-tailored solutions,” says Jesse Kumagai, the board chair of Music Canada Live, an association of promoters, agents and ticketing agencies that was formed last year. He adds, “The good news is the ticketing world in Canada – which ranges from sports to concerts to theatre and beyond – is performing strongly and there is a lot of choice available to venues and promoters.”

Although not a ticketing company, per se, Montreal-based Intellitix has broken internationally as a provider of RFID access control and cashless payment systems for live events. It provided RFID tags for more than 40 events worldwide last year and expects to triple that total in 2015. Since the company was launched in 2011, it has provided more than 15 million RFID tags.

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Value of Market

Theatres, stadiums, performing arts promoters, festivals and sports promoters, etc, saw operating revenues increase from CAD$2.3billion (€1.6bn) in 2011 to CAD$2.4bn (€1.7bn) in 2012, the last year for which figures are available from Statistics Canada. 75% of Canadians attended a performing arts event by a professional artist in 2011, according to the Canadian Arts Presenting Association, and the consensus is that these figures have increased.

Secondary Ticketing

The secondary ticketing market is in transition, as rarely enforced laws governing resale are changing, and consumer protection is increasing, in an effort to stop fraudulent activity and enable companies to sell tickets above face value. "It won’t stop the fraudsters, but it will ensure buyers have choices that include money-back guarantees from reputable companies and authenticated tickets verified by the official seller,” says Kumagai. The secondary market value is difficult to accurately gauge because so much trading happens off the books. "It appears early estimates massively underestimated the size of the business,” admits Kumagai. The so-called grey market of crossborder transactions with the USA also complicates the collation of accurate numbers.

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Taxes and Charges

Jeff Cohen, owner of promoter Collective Concerts and Toronto venues The Horseshoe Tavern and Lee’s Palace, says his service charges are 20-25%, capped at CAD$7.50 (€5.22). Mailing charges are CAD$2.50-3, while credit card fees range from 2.5-3%.

“After using Ticketmaster for over two decades, we switched to Ticketfly,” says Cohen. “We found Ticketfly’s system works better at the level of shows we do. However, we also promote a lot of shows at venues that prefer we use Ticketmaster and we’re happy to use them, or other ticketing companies, if there’s an existing contract in place. No venue or promoter can be truly financially viable or successful without a good ticketing deal in place.” ●

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CHINA(PRC) Language: Cantonese, Mandarin Population (millions): 1,335.7 Currency: Chinese Yuan (CNY) GDP/Capita (US$): 9,800 Music Revenue/Capita (US$): 0.1 Internet Users (millions): 627.0 Active Smartphones (millions): 878.1 Active Tablets (millions): 98.0

I

n 2014, China’s music market had a user base of 650 million people and was growing quickly with respect to digital services. The market increased by 5.6%, compared to the previous year, largely due to an increase in streaming revenues, according to the International Federation of the Phonographic Industry (IFPI).

Live music grew by 20% for outdoor music festivals and concerts and the number of performance venues continues to increase. The country has more than 1,700 concert halls and stadiums that can hold mid- to large-scale performances, while smaller live venues have reportedly grown by 34%.

However, for all of the healthy market statistics, a significant barrier for international companies wishing to expand into the vast country, including ticketing operations, is the need to have a government sponsor in order to establish business in China.

Primary Ticketing

All venues sell tickets to their own events at their own box offices. Blocks of tickets are also taken out to be distributed via many online ticketing agencies. With a large population, there are hundreds of online choices, some operating within just their own city. Some of the more popular online ticketing websites include: Damai.cn, 228.com.cn, Piaobuy.com, Piao88.com, Piao.com, Tickets365.com and Mypiao.com.

Paper tickets are still the most commonly used medium, but with piracy and counterfeit tickets surfacing at some of the bigger events, security measures are starting to be introduced, such as holographic seals and barcodes. The bigger events scan tickets to allow entry. The use of electronic tickets is only popular with theatres and newer venues, while wristbands are mostly used by exhibitions, festivals and other multi-day events.

Secondary Ticketing

Ticket scalping is a time-honoured tradition that has existed in China through the ages. Scalpers with good tickets can be found for any event that requires a ticket. Touts used to sell movie tickets so it's standard practice to buy tickets from scalpers for convenience or better seats. Many touts also have some kind of online presence where, for a fee, they will deliver tickets to homes/offices. The scalpers usually work with venues to buy up blocks of tickets and sit on them till show day when they sell them outside the venue.

Distribution of Sales

With China being the most populated country in the world, the major events are generally held in the most densely populated cities. Six cities boast populations of more than 10million (Beijing, Shanghai, Chongqing, Tianjin, Chengdu and Guangzhou) and another 12 cities have a population of over 6 million. The larger cities tend to get the majority of the international shows; in most cases western artists will usually just play Beijing and Shanghai.

Smaller venues and events generally rely on their own box office sales, especially if the ticket prices do not exceed ÂĽ300 (â‚Ź44). With the heavy handling charges attached to the big online sales agencies, it

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makes it impossible for more affordable events to be put online with those agencies. In some instances, the venue will work with a local website that will charge a fixed minor surcharge to help the venue deliver the tickets to the customer.

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Value of Market

While there is no official data regarding the total value of ticketing, it is safe to assume that ticket sales reflect musical tastes. In this case, music sales consist of approximately 80% Chinese artists, 10% J-Pop or K-Pop artists, and 10% international acts. The overall live music market is estimated at ÂĽ3.9billion (â‚Ź58million) according to the 2015 China Live Music Report. Add to this sporting events, festivals, visual arts and other outdoor events and you can see the value of the market increasing exponentially.

International/Domestic Splits & Genres

Live music events are on the increase due to the large number of venues being built. However, there is also an increasing number of large sporting and other cultural events such as festivals for film and visual arts. Dance, theatre and classical music events are also on the rise.

A distinct middle class is now emerging in China with an increasing purchasing power and a craving for international cultural events.

Cultural Analysis

China’s one-child policy means that there are potentially six adults raising just one child (with the parents and grandparents on both sides of the family), meaning the average teenager could, in theory, have the means to purchase whatever they want, within reason.

With music being the number one driver for most teens, as far as entertainment choices are concerned, the vast majority of them will spend their disposable income on music-related or entertainment activities.

One major difference between China and western countries, is that large blocks of tickets will be taken out of the pool for ‘official’ use. In most cases, these are some of the best seats in the house. These tickets are usually given to officials who had a hand in helping with the event.

The result is that large chunks of prime tickets disappear before tickets even go on sale to the general public. This is a normal and standard practice for most events.

Tickets for a large international event (such as Justin Bieber) often sell out in a matter of hours. But come show day, the venue won’t look 100% full because so many blocks of tickets have been taken out of circulation, given away and kept out of the hands of the paying public.

It is not uncommon to see blocks of empty seats at so-called sold-out concerts.

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Taxes and Charges

The big ticketing companies can charge 20-30% as a normal commission for ticket sales. Smaller ones tend to charge 5-20%. VAT is 17% while an entertainment tax is also added in the range of 5-20%, depending on the type of event. The entertainment tax also depends on the price of the ticket and the gross revenue the promoter expects from ticket sales. Withholding tax is 20%. â—?

Live Nation promoted KISS at the O2 Arena in Prague in June, 2015

CZECH REPUBLIC Language: Czech Population (millions): 10.6 Currency: Czech Koruna (CZK) GDP/Capita (US$): 26,300 Music Revenue/Capita (US$): 2.0 Internet Users (millions): 8.2 Active Smartphones (millions): 7.6 Active Tablets (millions): 1.1

S

ince the fall of the Iron Curtain, the Czech Republic has arguably been the greatest beneficiary of capitalism, and the nation’s ability to attract the biggest international acts was significantly boosted by the construction of the Sazka Arena (now the 02 Arena) which opened for business in 2004.

Primary Ticketing

Traditionally, the biggest ticketing company in the country was Ticketpro, but when Ticketportal, from neighbouring Slovakia, secured an exclusive deal with the O2 Arena, it became the natural heir and is now the nation’s biggest player. Other ticketing operations include Ticketstream, which has a strong business in the sports sector but is also involved in festivals, and Ticketart, which concentrates on theatre, musicals and family shows. Eventim is also making efforts to crack the market. “The gateway to the business is the O2 Arena and that’s why we do a lot of business with Ticketportal,� says Robert Porkert, CEO of Live Nation’s local office. He adds that Ticketmaster has not entered the market, yet. But sources hint that Ticketmaster is likely to bid for the O2 Arena contract next time it is due for renewal and, if successful, that would signal its launch of services in the Czech Republic. For his part, Porkert predicts Ticketmaster will make its debut in the next two to three years.

Distribution of Sales

The nation’s buying habits still revolve for the most part around the box office, but the digital revolution is fast taking over, with Porkert reporting that online sales now account for between 30-40% of his events. “Czech people love to play with new toys, so they are adopting electronic technology much more than some other countries,� he observes.

Nonetheless, paper tickets still rule with fans. “People like to have

something in their hands,� notes Porkert. Mobile ticketing is new, but growing in popularity, as is the print-at-home option, while Eventim’s development of the souvenir ticket has caught the imagination of many fans.

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Value of Market

Official figures are not available, but Live Nation MD Porkert estimates the Czech industry to be worth about â‚Ź40million per year.

Secondary Ticketing

“There is no secondary market here,� says Porkert. “Live music is not the glamour business that it is elsewhere, so sold-out shows are not too common. Viagogo has tried to break into the market, but it simply isn’t big enough to sustain resales yet.�

International/Domestic Splits & Genres

International artists dominate the Czech live music scene, with between 65-70% of tickets being sold for visiting artists.

Cultural Analysis

Although the Czech Republic used to be like other neighbouring territories with last minute ticket sales being the norm, now only 3-5% of ticket sales happen in the last week. “Over the last 20 years, when international acts started to regularly come here, confidence has grown and so has audience demand,� says Porkert. “Now we also attract fans from across the borders – from Poland, Slovakia and sometimes Germany, but the Polish are the biggest visitors.�

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Taxes and Charges

10% service charges by ticketing companies are typical, while the government imposes a 15% VAT charge on cultural events. There is also a 5% culture tax payable for events held in Prague, but this a unique charge and is not applicable anywhere else in the country. â—?

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39

DENMARK Language: Danish Population (millions): 5.6 Currency: Danish Krone (DKK) GDP/Capita (US$): 37,800 Music Revenue/Capita (US$): 17.5 Internet Users (millions): 5.1 Active Smartphones (millions): 5.9 Active Tablets (millions): 1.3

L

ike its Nordic neighbours, the Danish live music business is buoyant and punches above its weight in terms of the number of international acts that visit the country. The new 15,000-capacity Copenhagen Arena is under construction and when it opens in the autumn of 2016, it is expected to attract even more tours.

Live Nation won the contract to operate the new arena – the first time it has beaten AEG in an arena bid for many years – and, as a result, it’s likely that Ticketmaster affiliate Billetnet will run the venue’s ticketing.

Primary Ticketing

Two major ticketing operators compete for space in Denmark (and they are not just involved in music): Billetnet, which is owned

by Ticketmaster; and Billetlugen which uses the Venuepoint system, owned by Nordisk Film (Venuepoint also operates Biljettforum.se and Billettportalen.no in neighbouring Sweden and Norway).

“Denmark is dominated by those two major players,” says Kim Worsøe of ICO Concerts, adding, “We use Billetlugen.dk, part of Venuepoint. [We’ve] been with them for five years.”

Venuepoint’s Martin Gammeltoft estimates that Billetnet and Venuepoint each has a 35% share of the Danish market, followed

by Billetten (20%) and other players (10%). However, other sources disagree, suggesting that Billetlugen probably edges the major market share over TM’s Billetnet. Both companies offer and handle all services related to the distribution of tickets; develop and operate a ticketing system; sell tickets for organisers, theatres and music venues; have a

customer service department; sell tickets for events with international artists; and develop and manage access control for organisers, stadiums and festivals. “We went with [Billetlugen], simply because we have a better business [relationship with them],” Worsøe explains.

Observers note that the 2010 merger of Ticketmaster and Live Nation changed attitudes in Denmark, with independent promoters uncomfortable about working with a ticketing company run by their biggest rivals. As a result, most non Live Nation promoters decided to opt for Billetlugen, rather than the Ticketmaster affiliate.

“At DR Koncerthuset, we are currently using the Venuepoint system delivered by Billetlugen,” explains the venue’s Kasper Lund. “Before that, until 2011, we were using Billetnet.”

Distribution of Sales

According to Gammeltoft, 85% of tickets are sold online, 10% at the box office and the remainder via social media and other outlets. Roskilde Festival’s Ditte Havelund agrees: “The biggest part is sold online: print-at-home or mobile tickets. At Roskilde Festival, we recommend that people print their tickets. It makes the entrance [process] much faster than showing the ticket on their mobile.”

“Fans buy almost all tickets online. But mobile is being used more and more,” Worsøe agrees.

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The city of Odense bore witness to the inaugural edition of the Tinderbox Festival in 2015

Secondary Ticketing

Worsøe says, "ICO Concerts has no problem with secondary ticketing. It is not an issue in Denmark.” Gammeltoft agrees that there is “hardly any” market for secondary ticketing.

Value of Market

According to the yearly report by Danish collective rights management society, Koda, live music in Denmark generated DKK3.9billion in 2014, which equates to around €520million. Of that, DKK1.6bn (€214m) was generated through ticket sales. Ticket sales, in turn, can be divided up into events at venues (DKK1.1bn/€147m), festivals (DKK273m/€37m) and other events with live music (DKK330m/€44m).

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Taxes and Charges

Roskilde – Denmark’s biggest festival – works with Ticketmaster/Billetnet, which charges a fee of DKK25 (€3.35) for each ticket sold. The festival’s organisers, according to their own estimates, sell 80,000 four-day tickets and an additional 5,000 one-day tickets for each of the four days, for every edition of the event. Figures for the overall Danish ticketing market are not available.

Gammeltoft puts the average ticket price in Denmark at DKK230 (€31). According to Worsøe, “There’s an understanding that ticket prices should be kept at a reasonable level. The Danish economy is strong and prices will not go ballistic as artists are aware of their audience and [the importance of ] keeping tickets affordable.”

Tax wise, for two tickets to see Rasmus Nøhr at the Koncertsalen, the price was DKK400 (€53.60) plus shipping costs of DKK20, a service charge of DKK20 per ticket and a credit card fee of DKK1.91.

The total paid was DKK461.91 (€62), inclusive of 25% VAT. ●

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INTERNATIONAL TICKETING YEARBOOK 2015

Photo credit: Jani Kormu

RL Entertainment stages the Weekend Festival in the capital city, Helsinki.

FINLAND Language: Finnish Population (millions): 5.3 Currency: Euro (EUR) GDP/Capita (US$): 35,900 Music Revenue/Capita (US$): 12.2 Internet Users (millions): 5.0 Active Smartphones (millions): 5.7 Active Tablets (millions): 1.4

S

ituated at the most northerly point of Europe's tour circuit, Finland often missed out on A-list tours in the past. Such hardships disappeared when a credible route was established around the Nordic and Baltic states. However, recent political developments in Russia are again taking their toll on regional touring.

Primary Ticketing

The Finnish ticketing market is currently controlled by three companies: Lippupiste, Lippupalvelu and Tiketti. According to the latest available figures from the Finnish Trade Register, Lippupiste held a market share of 56% in 2013, while Lippupalvelu’s share amounted to a healthy 29% and Tiketti’s totalled 10%. Lippupalvelu disputes these numbers, claiming both it and Lippupiste sell 5 million tickets annually.

Lippupiste is part of Germany’s CTS Eventim. Its alleged leadership in the market owes much to its exclusive deal at the 13,000-capacity Hartwall Arena, the country's premiere venue for international tours.

Ticketmaster-owned Lippupalvelu "Enables Finnish audiences greater access to international events, while also making Finnish events more easily accessible to foreign fans," says MD, Ari Kuokkanen.

Tiketti is the largest Finnish-owned company in the field, with the owner's father being a popular national promoter. A number of other ticketing businesses have very small market shares. However, the Finnish ice hockey league is beginning to self ticket and, if further developed, this could represent opporunities in the live music market.

Secondary Ticketing

Apart from some mom-and-pop operations, Finland has no real home-grown secondary ticketing sector. However, international players, chief among them Viagogo, are increasing their activity.

Traditionally, Finland has not had issues with touts. The advent of online auction sites such as Huuto has brought some enterprising hopefuls to the market, but their impact remains inconsequential.

Distribution of Sales

Telesales make up only a small percentage of the ticketing market, whilst e-commerce’s share has skyrocketed. “In the case of really hot artists, our online store and mobile app account for more than 90%, although this figure is usually closer to 60% [for other artists],” says Petri Karjalainen, marketing director at Lippupiste Ltd.

Box office sales make up 25-30% of the Finnish market.

For his part, Kuokkanen adds, “Most of our tickets are already digital and the use of mobile tickets will increase considerably into the future.

We offer the largest and most versatile possibilities for ticket sales in all distribution channels, including social media channels."

Cultural Analysis

Finland has a thriving live music scene featuring several internationally renowned festivals that take place during the summer.

In the past, Finns used to wearily joke about every major international star overlooking the country due to its location on the edge of Europe.

This is no longer true, despite the slight downturn in the influx of international talent reported above. Acts like Katy Perry, Lady Gaga, Bruce Springsteen and One Direction regularly schedule shows in Helsinki, many of which sell out in advance.

International/Domestic Splits & Genres

Although exact figures are not available, domestic artists make up an increasingly large portion of the ticketing pie in Finland. This is mostly caused by Russia’s flagging reputation, which has meant that many international artists are electing to skip Finland due to an unwillingness to play in nearby Russia’s St. Petersburg.

In terms of genres, 45% of Lippupiste’s net sales come from cultural events, while 30% are attributed to live entertainment and 25% from sport, which also provides an idea of the overall market.

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Value of Market

An estimated 10m tickets are pre-sold each year, with another 10m sold on the door, according to Petri Karjalainen. Last year, tickets to the value of €600m were sold.

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Taxes and Charges

In Finland, ticket sales are subject to 10% VAT, while ticket distribution is taxed to the tune of 24% and meals included in tickets are taxed at 14%.

Ranging between €1.50 and €4.50, service fees are determined in accordance with ticket prices. On top of that, consumers typically pay a cost-based delivery fee and 1% credit card fees, where applicable.

Delivery fees can range from zero for PDF tickets to €40 for physical tickets delivered to international addresses by mail. Event organisers employ their own fees, typically ranging between €1-3. ●

INTERNATIONAL TICKETING YEARBOOK 2015

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Capitalising on their huge fan base, Muse sold out tickets to a number of outdoor shows in France during 2015

FRANCE Language: French Population (millions): 66.3 Currency: Euro (EUR) GDP/Capita (US$): 35,700 Music Revenue/Capita (US$): 12.7 Internet Users (millions): 51.1 Active Smartphones (millions): 50.4 Active Tablets (millions): 16.4

T

he live entertainment sector has been growing in France for more than ten years, thanks to the success of big tours and the multiplication of events in the wake of the downsizing of the recorded music market. Ticket sales increased 74% from 2005 to 2013. Between 2008 and 2012, the yearly progression average was +8% according to Centre national de la chanson, des variétés et du jazz (CNV). The agency has the most precise figures on the market because promoters have to declare turnover after each event.

Meanwhile, in 2014, the figures according to authors’ rights society Sacem, suggest a drop in shows and concerts (-1%), following the closure of the Palais Omnisports de Paris Bercy venue for renovation and a reduction in concerts produced by tour promoters. Moreover, most companies are in a precarious situation. According to a report carried out by the CNV, more than 50% of the study's respondents have seen their operating income decrease in recent years.

Ticketmaster France managing director François Thominet, comments, “Professional ticketing activities began in France in the 1970s as the concert business really started to take off. Ticketmaster France, previously Ticketnet, is one of the major players in the market, [while] France is the fifth biggest ticketing market [globally], with strong local artists and productions, and a large amount of venues and

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INTERNATIONAL TICKETING YEARBOOK 2015

festivals.”

Most venues are owned by the state (national or local). Public subsidies are decreasing in the cultural sectors, however, and many festivals and events are scrambling to find sponsorship.

In fact, France is in a phase of consolidation. Big companies are doing well, expanding their business vertically and horizontally, while smaller ones are experiencing difficulties. The market is very concentrated. In 2013, the ten biggest events claimed 25% of the total turnover and 13% of the overall attendance.

According to Sacem and CNV, there are 1,615 festivals in France, representing 27% of the total live music attendance, 22% of the market and 19% of the authors’ rights paid to live events. The scene is very active in France, especially during the summer.

Of the recent big moves in the music industry, many have been acquisitions in the ticketing business. Digitick was acquired by Universal Music’s owner, Vivendi, in 2011. Founded in 2004, Digitick is growing quickly under the Vivendi Village brand, beside British sister company See Tickets and prestigious Parisian venue, the Olympia.

Another smaller ticketing start-up recently acquired by a larger group is Weezevent, which claims it will double its €42million revenue in 2015. The company works with big festivals such as Eurockéennes.

Weezevent’s new owner is Vente Privée, a company that specialises in selling overstocked brands online to its database of 24 million members

across eight countries in Europe. With annual revenues of â‚Ź1.7billion, Vente PrivĂŠe has bought two theatres in Paris and last year launched a festival in association with Le Rat des Villes promoter, Alain Lahana.

Recently, Weezevent bought Nemopay in order to launch its first cashless solution with embedded ticketing.

CNV figures show that among the 3,619 concert organisers, only 19% are commercial companies, but they account for 52% of the events and 79% of the ticketing revenues. Association and public operators represent the biggest number of event organisers that contribute to France's cultural diversity, but these players are suffering due to the reduction of public subsidies and the corporatisation of the business.

Primary Ticketing

Historically, the biggest player is France Billet, a subsidiary of Fnac, with around 40% of the market thanks to its network of 1,200 physical points of sale and partnership with 7,500 websites.

Ticketmaster’s local Ticketnet affiliate, with a consistent physical point

THE COMPETITIVE MARKET MEANS WE MUST ALWAYS ADD VALUE WHEREVER POSSIBLE; WE DIFFERENTIATE OURSELVES BY PROVIDING INNOVATIVE SERVICES of sale, takes second place, with Digitick coming in third.

Ticketmaster MD Thominet, says, “We have an allocation market in France, similar to that of the UK, therefore it is good to have a strong API capacity, with real-time interfaces, which we do. The competitive market means we must always add value wherever possible; we differentiate ourselves by providing innovative services like our interactive seat map or our CollectorTicket service – where fans have their tickets printed onto a souvenir plastic card.� Ticketmaster reports that it sold more than 100,000 CollectorTickets in the first year it was launched (2013).

The last public official market share figures, published in 2009, on the live music sector shows Fnac with 41%, Ticketnet 13% and Digitick with 4% market share. Since then, the figures have moved in favour of Digitick, which has more than tripled its revenues since 2009.

Other interesting figures come from MyOpenTickets, which is a cluster of ticketing companies that cooperate in order to embrace constantly changing digital technology. It claims that in 2013, Digitick sold 4m tickets (double the figure it sold in 2009); Ticketmaster sold 7.7m tickets (500,000 less than 2009); and Fnac sold 12.5m tickets (1.5m less than 2009). Ticketmaster refutes this, stating that it only sold 6.1m tickets in 2009 and has therefore enjoyed significant growth.

Besides these three companies there are plenty of smaller entities including Weezevent, Billetnet, Myticket, 1er Rang, AvosBillets, and Moxity. France has a very active start-up economy, particularly when it comes to innovations in music, ticketing, cashless, yield management and 3D imaging, which allows people to virtually visit the venue before buying their ticket. “When a system works in France, it works everywhere because France has a lot of specificities� says MyOpenTickets’ CEO Eddie Aubin.

The fastest growing company with huge resources is Fimalac. The company recently sold its majority stake in financial rating agency, Fitch, in order to invest in French live entertainment and web media services. It has acquired a 40% stake in promoter, Gilbert Coullier Productions, which produces around 800 shows a year for established French-speaking singers and comedians. It then bought Vega, the country’s leading operator of concert halls that operates around 20 facilities, including some ZÊnith venues and a number of multipurpose complexes.

Fimalac owns Auguri Productions, TsProd, and a 40% stake in Groupe Lucien Barrière, whose Barrière and Fouquet’s brands enjoy high awareness in the luxury hospitality and gaming markets.

Recently the company announced a deal with Fnac for the acquisition of Kyro, a subsidiary of France Billet that offers ticketing solutions for entertainment professionals, venue operators and promoters. By integrating all elements of the entertainment value chain it has become a leader in France’s entertainment industry.

Secondary Ticketing

The concept of secondary ticketing doesn’t exist in France as the law prohibits the resale of tickets to any event by third parties not duly authorised by the organiser of the event. The promoter has the sole right to grant ticket distribution to any third party he may choose, even if you resell the ticket at its face value.

In 2013, several promoters took action against Viagogo for concerts they advertised on their site, although Viagogo.fr is still selling tickets.

According to the French organisers’ and promoters’ body, Prodiss, the illegal market is estimated to be as big as ₏100m.

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Value of Market

According to CNV’s 2013 figures, the live music industry in France (including contemporary and popular music, stand-up comedy and musicals) reports revenues of between ₏1.3 and ₏1.9bn. The average ticket price is ₏34 with over 51,000 events and 23.3 million tickets sold.

However, the market is still pretty opaque in France and there are no box office or ticketing company figures.

International/Domestic Splits & Genres

According to different sources, international artists could represent between 30-40% of ticketing revenues.

Among the festival members of trade association Prodiss there is a 50/50 split, but France has an increasing market for French musicals and a big roster of French platinum-selling acts such as veteran Johnny Hallyday (who has now retired), or newcomer Stromae (who is Belgian, but considered French). According to Sacem, in 2013, the tours in big venues represented just 4% of events, but generated 42% of the rights collected.

Cultural Analysis

France is very proud of its cultural diversity and all genres have their audience. Pop rock is the main genre when it comes to big venues and France's demand for international acts. In 2014, the biggest venue, Le Stade de France (cap 80,000) put on eight events – Justin Timberlake, the Rolling Stones, One Direction (2 days), Indochine (2 days), and BeyoncÊ & Jay Z (2 days). In 2013, the stadium hosted Rihanna, Depeche Mode, Bruce Springsteen, Eminem, Roger Waters and Muse.

Paris is central to the French touring region, of course, representing 38% of all tickets sold in France and close to half (45%) of the nation's ticketing income.

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Taxes and Charges

Ticketing company booking charges are typically 10% for live music, whereas self ticketing services on the Internet charge around 2.5%. Tickets are also subject to 5.5% VAT and 3.5% public tax collected by CNV. With the big subsidy days in France confined to history, social charge and venue fees are high compared to other countries. One promoter reports, “For the same date in a 6,000-capacity venue, the difference can be â‚Ź100,000, and sometimes we see artists cancelling one date in France to make it in a more profitable country.â€?

Sacem, the nation’s local performing rights collection society takes 8.34% of ticketing revenues (TVA excluded) to pay songwriters and composers. �

INTERNATIONAL TICKETING YEARBOOK 2015

43

Photo credit: Klaus Zakowski

Wizard Promotions staged four record-breaking shows with Böhse Onkelz at the Hockenheimring in 2015

GERMANY Language: German Population (millions): 81 Currency: Euro (EUR) GDP/Capita (US$): 39,500 Music Revenue/Capita (US$): 17.3 Internet Users (millions): 69 Active Smartphones (millions): 58.6 Active Tablets (millions): 20.9

A

s the biggest live entertainment market in Europe, both in terms of volume and revenues, the importance of Germany for ticketing companies is massive. But the relationships between companies can be complex, with CTS Eventim having stakes in a number of promoters, while DEAG was a Ticketmaster Germany shareholder up until 2014.

Live music ticketing is dominated by Eventim, which sources say has close to a 90% market share. However, at press time (August 2015), the formation of Live Nation Concerts Germany, led by German concert promoter Marek Lieberberg was announced. That deal could mean that starting in January, 2016, Lieberberg's 700 annual shows will funnel through Live Nation’s German platform, adding more than 2 million ticket sales to its local Ticketmaster operation. “Accessing Ticketmaster’s leading technology will enable us to reach more fans and provide them with a unique service,” says Lieberberg.

You’ll hardly find an industry like the live entertainment industry, "where numbers tell you so little about the general state of the business,” observed Prof. Jens Michow, president of the German promoters’ trade association BDV, last summer. Michow probably wanted to curb any euphoria in the wake of the trade body’s biennial study on the German live entertainment market, which stated that all signs point towards growth.

Primary Ticketing

Promoter DEAG, which has only recently entered the ticketing game via Myticket.de, focussed exclusively on online and mobile ticketing from the get-go. According to the company's Kai Ricke,

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INTERNATIONAL TICKETING YEARBOOK 2015

online sales are set to outstrip traditional pre-sales at the booking office. He is confident Myticket.de will be one of the leading ticketers in German speaking markets within three years.

The main competitors in Germany are Eventim, ADticket/Reservix and Ticketmaster. Eventim is the clear market leader although it is hard to determine exact market shares. Eventim boosted its ticketing turnover in 2014 to “more than 100 million” worldwide, generating revenues of €319.2m, an increase of 18.4% compared to 2013.

According to the company’s financial report, 30.7m tickets were sold online, marking a 28.9% increase. Germany was one of the key markets in driving growth, alongside the UK, Italy and Austria.

With Ticketmaster now set to take a significant chunk out of Eventim's German sales, it will be interesting to monitor whether there will be a price war between the rivals.

According to Contour Music’s Sandra Borchardt, the local dealers – in this case Cologne-based Köln Ticket – are very important too. Melt!

Booking’s Stefan Lehmkuhl agrees that local dealers like München Ticket carry a significant importance in Germany.

Secondary Ticketing

While Ticketmaster (Ticketsnow) and Eventim (Fansale) have embraced the secondary ticketing market, promoters generally are against it, at least if it happens on a commercial basis. No one wants to prevent concertgoers who fall sick at the last minute from reselling their ticket. But third-party companies like Viagogo who make a business out of reselling tickets, sometimes at an extortionate price, are looked upon as defeating the purpose. And even if the secondary ticketing market in Germany isn’t as big as those in the US or UK, it has reached a significant scale according to Karsten Jahnke. The veteran

promoter says it is up to the fans to stop paying any sum for tickets.

Starwatch head of ticketing Kai Fisher appeals to the fans too: “We expect fairness between our customers and other fans. This is where the line separating the black market is drawn.”

Distribution of Sales

Karsten Jahnke sells 70% of its tickets via online or mobile.

25% are sold at (pre-sale) booking offices and 5% at the box office.

The ratio between tickets sold for international artists compared to local acts is around 70/30, though that varies a lot. Lieberberg's MLK (which will revert to an Eventim affiliate when its founder joins Live Nation next year) sells between 70-80% of its tickets online, the majority of which are for gigs by international acts. Starwatch, the music entertainment arm of German media giant ProSiebenSat.1, generally sells the majority of tickets online, reporting that 60% are sold via mobile devices and 40% via desktop PCs. Starwatch doesn’t record any significant differences between tickets sold for national vs international artists, explains Fischer.

The most popular genre in Germany according to ticket sales is rock/ pop, or as Lehmkuhl puts it, “the mainstream, unfortunately.” German artists are catching up with their peers from overseas. According to BDV data 12% of all ticket sales are for gigs by German-speaking rock/pop acts, while 13% are for international rock/pop.

Cultural Analysis

Despite the sophisticated nature of the country, there is a deep-seated mistrust of credit cards among the German population, who like to have anonymised transactions through cash or debit cards.

A historic system, whereby fans can reserve tickets before paying for them, still exists. Ticket shops often have multiple terminals allowing consumers to price compare before they buy, even though most operate on the Eventim platform.

Online sales are being adopted quickly, even though ticketers typically charge more for online tickets than for physical tickets purchased at a box office.

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Value of Market

Music events in 2013 made up 70.7% of the entire market, excluding sports events, generating revenues of €2.7billion. This represented a 17% rise in revenues compared to 2012. The growth was fuelled by an increasing number of event-goers whose tally increased by 13% to 24.3 million. The entire amount of tickets sold for music events increased by 12% to 74.4 million, which means each visitor attended 3.1 music events on average. A ticket for a musical event was sold for an average of €36.35 in 2013, marking a 4% increase compared to the year before.

One of the most astonishing findings of the BDV study is that stationary pre-sales and sales at the booking office increased, while online sales lost a few percentage points. A reason for this may be that online tickets are often even more expensive than tickets sold at the booking office. “No other industry charges more for online sales than it does for stationary (box office) sales,” observes DEAG's COO Kai Ricke. “In our trade though, all sorts of additional fees, like online and ticketing fees or delivery charges add up. So, as a customer, why should I buy online?”

Klaus-Peter Schulenberg, CEO of market leader CTS Eventim, said in a recent interview with trade magazine Musikmarkt that, “The changes are marginal; all in all, online and booking office balance each other out. The online share depends on genre, target audience and the event itself. Especially amongst the young ones, we in some cases measured an online share of 80% or more.”

Photo credit: Malte Schmidt

The Newcomers

“Live entertainment in general and live entertainment ticketing in particular is run by a fairly small, obscure circle of long-established

FKP Scorpio hosts the Hurricane Festival at the Eichenring in Scheeßel

NO OTHER INDUSTRY CHARGES MORE FOR ONLINE SALES THAN IT DOES FOR STATIONARY SALES. SO, AS A CUSTOMER, WHY SHOULD I BUY ONLINE? players in the German-speaking market: really tough to penetrate, plus, it acts contra innovation for the most part”, says Gleb Tritus, exCEO of Todaytickets, a start-up focused on last-minute sales, recently bought by Spanish platform Ticketea.

Last-minute ticket sales may be a service that is presently lacking providers in Germany, which is why DEAG’s Myticket.de is also looking into it. According to Kai Ricke, “The full potential at the point of entrance hasn’t been tapped yet.”

Then there’s the need for the ticket buyers’ data, which is the reason why the above-mentioned Reservix was unable to break down its ticket sales, because the data is only accessible to the promoters the company works with. Data mining and processing it for clients is also one of the key selling points for white label services that operate behind the scenes, the most successful in Germany being Deinetickets.de, which works with between 30-40 promoters; and White Label eCommerce, which powers DEAG’s Myticket.de and Starwatch’s Tickethall. ●

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GREECE Language: Greek Population (millions): 10.7 Currency: Euro (EUR) GDP/Capita (US$): 23,600 Music Revenue/Capita (US$): 2.1 Internet Users (millions): 6.9 Active Smartphones (millions): 7.0 Active Tablets (millions): 0.6

U

nsurprisingly, given the recent economical and political turmoil in Greece, it is difficult to obtain meaningful data on the Greek live entertainment market. “Everything has come to a complete standstill in Greece and all events have been cancelled until a solution is found. If a solution is found,” Mary Telemachou of Half Note Productions reports.

Primary Ticketing

According to Giannis Paltoglou of Detox Events (the organisers of Ejekt Festival, one of Greece’s biggest summer festivals), the ticketing market, “Is very divided; there is no big player like Ticketmaster in Greece. Viva.gr and Tickethour.gr are probably the biggest.” He adds that there is no way of estimating the overall value of ticket sales, “as there are lots of small promoters around and no central ticketing union or anything comparable." He estimates, "It must be in the tens of millions of euros.”

Secondary Ticketing

“There is no secondary ticketing activity in Greece,” states Paltoglou. The main suppliers of wristbands, RFID and event passes, he says, is Freshlime.gr.

HONG KONG

U

sed by many operations as a gateway into China, Hong Kong has a vibrant live music scene, despite its relatively small size. A decent club circuit has been bolstered by a growing festival scene, attracting a growing number of international acts.

Primary Ticketing

Hong Kong’s ticketing landscape continues to be dominated by HK Ticketing, Urbtix and Cityline. This trio occupies the list of 'approved vendors' for many of the city’s larger or government-operated venue spaces.

The major disruption in the market is coming from Ticketflap, a relatively new digital platform focused on small- to medium-sized events and providing modern ticketing platform functionality. Other new platforms are arriving with regularity including ArtMate (theatre) and HK Clubbing (electronic) whilst Western brands, such as Eventbrite, also have a presence.

Secondary Ticketing

Viagogo recently worked with the Hong Kong Rugby Football Union on the annual Rugby Sevens tournament with reported success.

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Cultural Analysis

There is a deep mistrust over taxes in Greece and the computerisation of ticketing has caused the government problems because it does not have confidence in digital systems reporting accurate figures. It is thought that was a prime reason for Ticketmaster’s withdrawal from the country following the 2004 Olympic Games. Unfortunately, the situation has not changed and tickets still need to be stamped or perforated by the local tax authority, unless a government licence can be obtained. Such restrictions are not helping Greek promoters to develop the market.

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Taxes and Charges

There is 13% VAT, 5% city tax, 7% for the authors’ society and, depending on the ticketing company, 2-3% administration fees are applied on ticket sales. ●

MOST PEOPLE - AROUND 80% LISTEN TO GREEK MUSIC. THE SAME NUMBER APPLIES TO THE LIVE SHOWS BUSINESS

Moreover, with several Western secondary ticketing brands evaluating the market, the expectation is it will become a more competitive space soon.

Language: Cantonese, English Population (millions): 7.1 Currency: Hong Kong Dollar (HKD) GDP/Capita (US$): 52,700 Music Revenue/Capita (US$): 5.1 Internet Users (millions): 5.3 Active Smartphones (millions): 13.2 Active Tablets (millions): 3.9

Distribution of Sales

Around 70% of tickets are sold online, with the rest selling at the door. 90% of all tickets sold are for contemporary music by both Greek and international acts, and the domestic share is huge. “Most people – around 80% – listen to Greek music. The same number applies to the live shows business,” Paltoglou explains.

Distribution of Sales

Tickets traditionally sell late, with a ‘last-minute’ mentality very much in force. But this is changing. Ticketflap CEO Martin Haigh says, “More and more of our promoters register lower door sales than in years past. What traditionally used to be upwards of 20% walk up, is now less than 5% for larger events on the platform.”

The standard methods of sales are online, physical outlets and phone sales. “Fewer customers are using physical delivery methods these days as they have to pay surcharges and online delivery is so easy,” observes Meg Cheung from the venue group KITEC.

International/Domestic Splits & Genres

More international shows are being promoted, but, “It is still domestic acts that sell the majority of tickets in Hong Kong,” says Alan Ridgeway, president of international and emerging markets for Live Nation. Pop remains the highest grossing genre.

Cultural Analysis

Festival ticket pricing remains relatively low compared to standalone headline tickets for international acts. For example, Clockenflap Festival day tickets are typically less than the cost of an international show at a venue like the Asia World Expo Centre.

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Taxes and Charges

Ticketing agents typically charge a per-ticket fee, along with payment processing and service fees to the consumer. Tariffs range from HK$11 (€1.30) per ticket to overall 8% charges to organisers. ●

INDIA Language: Hindi Population (millions): 1,236.3 Currency: Indian Rupee (INR) GDP/Capita (US$): 4,900 Music Revenue/Capita (US$): 0.1 Internet Users (millions): 222.2 Active Smartphones (millions): 109.4 Active Tablets (millions): 10.6

I

ndia may be a vast market, but it is still developing its roots as far as live music is concerned, at least from a non-Bollywood perspective. The market has three or four credible promoters, an ever-shifting cast of entrepreneurs who dabble and disappear, and a small but vibrant live music scene at club-level, spearheaded by venues such as Mumbai’s Blue Frog.

According to Ajay Nair, CFO of Only Much Louder (OML), the organisation behind the highly successful Bacardi NH7 Weekender festival and the Insider ticketing platform, roughly 100 international acts of various sizes and types are now coming to India each year, up from barely 15 to 20 less than five years ago.

“Basically, a lot more acts see India as part of the global touring circuit and there’s a lot more small venues opening up,” says Nair.

PRIMARY TICKETING

Ticketed events are well established, thanks to the fanatical popularity of cricket, but the relatively new demand for other forms of live entertainment means established operators are now jostling with scores of start-ups for market share.

BookMyShow is the country’s largest entertainment ticketer, having pioneered the online market, initially focussing on cinema and sporting events. After launching in 2007, it sold 100m tickets in its first seven years, but reckons it will sell the same number in a single year from 2017.

Explara has made a name for itself by making tickets available for events in remote areas. A specialist in sports, earlier this year it acquired IndianStage, one of the country’s leading music ticketers.

While OML’s Insider counts itself among the elite, another major player is TicketGenie, which has managed ticketing for the likes of Shakira, Beyoncé, Bryan Adams and the Rolling Stones.

India boasts many ticketing platforms that concentrate on specific sectors, but BookMyEvent sells passes across genres – movies, concerts, theatre, musicals, family shows, educational events and sports.

Other popular platforms include: MeraEvents, which is strong in Bangalore, Mumbai, Chennai, Pune, Hyderabad and Delhi; and Kyazoonga, another sports specialist that’s expanded into live music, but is particularly strong in cricket as it recently won a deal to ticket matches in the Caribbean.

The nation’s biggest ticketer, however, is the national railway network, which occasionally white labels its system for events.

at Insider, compared to 50% five years ago.

BookMyShow also puts mobile ticket sales at more than 50%, and reports that the willingness to embrace technology increasingly extends throughout the nation, where at least 46 cities have more than a million inhabitants.

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VALUE OF MARKET

India’s live entertainment sector (music, comedy and sport) is worth around INR6billion (€86million), according to OML's Nair.

INTERNATIONAL/DOMESTIC SPLITS & GENRES

Bollywood music is by far the major force in India.

International acts including Roger Waters, Beyoncé and Shakira have visited in recent memory, along with a wave of superstar DJs. Indeed, EDM has leapfrogged the musical competition in India, as leading international stars have taken advantage of a new circuit. Local talent has stepped up in response, creating a grass-roots electronic scene.

CULTURAL ANALYSIS

A glaring absence of large-scale venues has greatly hampered the touring circuit, with most visiting stars playing outdoor sites assembled from scratch. Relatively low wages can make tickets hard to sell, and no concert by an international act in India has exceeded 20,000 spectators. As well as the developing scourge of fly-by-night promoters, cultural protestors at international shows are not unknown – though a growing band of well-respected players has done much to modernise the market in recent years.

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TAXES AND CHARGES

India’s entertainment tax on tickets varies from 10 to 25%, depending on the state. Beginning this year, an additional service tax of around 14% has been added, setting the tax burden on tickets at between 24-39%. Service charges to promoters are 4-8%, with a further 2% charge to the consumer. ●

OML's NH7 Bacard Weekender ended its nationwide tour in Delhi in 2014

SECONDARY TICKETING

Secondary ticketing is not a feature of the Indian market. Nair comments, “I don’t think more than a show or two sells out every year, which means there are always tickets available for any concert at the primary site.”

DISTRIBUTION OF SALES

Mobile commerce has surged in India in recent years and Insider sells over half of its tickets via mobile, up from around 10% two years ago. Online, across the board, accounts for about 80-90% of sales

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The 3Arena in Dublin helps attract the industry's A-list touring acts to the country

IRELAND Language: English, Gaelic Population (millions): 4.8 Currency: Euro (EUR) GDP/Capita (US$): 41,300 Music Revenue/Capita (US$): 8.5 Internet Users (millions): 3.8 Active Smartphones (millions): 3.0 Active Tablets (millions): 0.8

T

he most significant change to the Irish ticketing market in recent years came in 1997 when Ticketmaster entered the market, through the purchase of Ticketline, and unified business for the whole of Ireland – allowing euro transactions through Ticketmaster.ie while Ticketmaster.co.uk offered residents of Ireland the opportunity to pay in sterling. “At that time there was a deficit of quality venues in the market and a lot of major acts could only play outdoor events taking place in the summer, comments Ticketmaster’s local managing director Keith English. “Since then, the Odyssey Arena in Belfast was built and the old Point Theatre in Dublin has been completely modernised into the 3Arena of today. The Waterfront Hall came on stream in Belfast in the mid-90s and more recently the Bord Gais Energy Theatre opened its doors in Dublin.�

Primary Ticketing

The market leader in the live music game is Ticketmaster, but Ticketsolve, a white-label service, has a significant market share of the theatre, festival, sports, tourism, and comedy clubs sector. Meanwhile, Entertainment.ie, Ireland’s largest entertainment website is also a player, as is Ticket ABC and Eventbrite, which has a growing presence in Dublin.

Ticketmaster’s market share in music is enviable, however, as it handles Live Nation’s business, as well as ticketing for Ireland’s biggest promoters like MCD, Pod Concerts and Aiken Promotions.

Secondary Ticketing

Secondary ticketing is a “tiny problem� in Ireland. There is no real market for it and no major players engage in it, although “Viagogo are there, of course.� Secondary ticketing only becomes relevant “if there are hot tickets,� says Ticketsolve managing director Paul Fadden.

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INTERNATIONAL TICKETING YEARBOOK 2015

Distribution of Sales

According to Fadden, one trend in Ireland is the shift towards purchasing online, especially where festivals are concerned. “It also depends on the type of show,� he adds. “For hot shows the majority of tickets will be purchased online.�

Ticketsolve sells most of its tickets for theatres and festivals, but an exact breakdown is difficult, as the company serves more than 180 clients across the market. However, TM's English notes, “There is still a strong cash buying element to the business in Ireland and, as such, we maintain a significant outlet network to service this.�

International/Domestic Splits & Genres

Focussing on music, the most popular genre according to ticket sales is, unsurprisingly, pop, and as far as the split between sales for international and national acts is concerned, “I would think international is still dominant because they sell-out the large arenas.

Smaller venues would be dominated by indigenous acts,� Fadden says.

Cultural Analysis

Highlighting Ireland’s infrastructure impediments, English says, “One of our biggest challenges, and opportunities, is to increase fan engagement to sell more of the tickets that go unsold on behalf of our clients.� And one sea change that is due to come into place in late 2015 is the allocation of 'Eircodes' to 2.2 million homes and businesses across the country. English says, “The introduction of postcodes in the Republic will enable us to use our data analytics products to a much greater extent, something that will benefit us and our clients hugely.�

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Taxes and Charges

Depending on the type of event, a tax of 9-23% is applied to each ticket. As a white label service, Ticketsolve charges a flat fee. The client then decides how to pass that on to the customer, for example, through a booking fee. â—?

ISRAEL Language: Hebrew Population (millions): 8.0 Currency: Israel New Shekel (ILS) GDP/Capita (US$): 33,400 Music Revenue/Capita (US$): N/A Internet Users (millions): 4.5 Active Smartphones (millions): N/A Active Tablets (millions): N/A

T

he most developed and prosperous live music market in the Middle East, Israel is nonetheless a controversial spot, haunted by sectarian conflict and fitfully dogged by conscientious and informal boycotts. That situation can lead to entire years falling victim to postponements, cancellations and no-shows.

Historic venues, such as King Solomon's Mines, can be used to stage concerts in Israel. Promoter Shuki Weiss used the setting for its Fazamorgana Festival

2015 has been a notably quiet year in the wake of 2014’s bloody Gaza war, though there remains a high demand for live music. The three years leading up to the conflict were perhaps the busiest Israel has ever seen, and even in 2015, Bon Jovi, Robbie Williams and plenty of smaller international acts will perform there.

Primary Ticketing

The key primary player is Germany’s CTS Eventim, which launched in Israel in 2011 and is credited by promoters as having greatly modernised the market. It is not the only show in town, but it is by far the dominant force in live music ticketing. “It’s been amazing to be able to offer the audience here that level of service that the rest of the world takes for granted,� says Oren Arnon, promoter at Shuki Weiss. “It’s been a big asset.�

Israel attracts an increasing amount of music tourism, with up to 10% of audiences for big international shows travelling in from elsewhere, driven by Eventim’s ability to sell tickets for Israeli events across Europe and the wider world. The live entertainment community's use of historic venues to host concerts and festivals further bolsters that appeal. “When Madonna [came in 2012] we had almost 4,000 people coming from all over the world to Israel – people from Thailand, people from the United States, people from the UK,� Eventim Israel managing director Ami Feinstein told Israeli television last year. “Depeche Mode, more than 1,500 came, most of them from Europe; Barbra Streisand, same phenomenon. We see it again and again.�

Besides Eventim, Israel has various box offices and local operators such as the paperless MisterTicket, which processes orders online, by phone and via retail and fulfils them on the night.

Secondary Ticketing

Ticket scalping has been illegal in Israel since 2002, though the law applies only to ‘unlicensed persons’ and hasn’t prevented Viagogo from becoming the first of the leading secondary ticketing exchanges to launch an Israeli presence. Also active are Israeli-based ticket brokers such as Ticketingo and LiveTickets.

Distribution of Sales

Tickets are mostly sold online and either printed at home, fulfilled through Will Call at venues or collected from post offices – the local postal service itself is renowned for its lack of reliability. 80% of live music events take place in Tel Aviv, which is well known for the enthusiasm of its audiences, in spite of tickets that can cost up to twice as much as in European markets.

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Value of Market The value of the live music market in Israel is not recorded.

International/Domestic Splits & Genres

Israel’s status as an international hub accounts for its substantial success in attracting international shows, when geopolitical circumstances permit. International acts are the major crowd-pullers, though not the only ones: Hebrew-language home-grown acts on the scale of Mashina and Fortisakharof can play 5,000 to 15,000-capacity shows around the country. In terms of its cultural appetites, it is effectively a southern outpost of Europe, with the musical taste that that implies. International pop, US indie-rock, jazz and other specialist genres all do well.

Cultural Analysis

Israel routes fairly well with Greece, Turkey and Europe in general, although it is not an easy market to reach. The demand for entertainment is not an issue, at least in Tel Aviv, but a vociferous, social media-driven chorus of voices continues to call for a cultural boycott in response to Israel’s actions towards Palestine. Thurston Moore and Lauryn Hill are among those who have recently thought better of making the trip.

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Taxes and Charges

The face value ticket price in Israeli is inclusive of ticket surcharges and VAT by law. VAT stands at 18%, while other charges are typically around 12-15%. â—?

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49

Wherever AC/DC visited in 2015, tickets sold out. And Imola in Italy was no exception

ITALY Language: Italian Population (millions): 61.7 Currency: Euro (EUR) GDP/Capita (US$): 29,600 Music Revenue/Capita (US$): 3.8 Internet Users (millions): 37.7 Active Smartphones (millions): 50.6 Active Tablets (millions): 6.2

U

ntil the late 90s, the Italian ticketing market was divided into regional companies, each dealing solely with its own geographical area. In 2003, however, the Italian government introduced a law requiring the approval of any ticketing system by the Revenue Agency and placed all sales under the control of collections society SIAE. Many small companies couldn’t afford the technology required to adhere to the law, and therefore disappeared.

The last decade has seen an increase in the number of live shows in Italy and ticketing companies have had to invent new solutions to engage a public that has grown more demanding and increasingly interested in special ticket types and exclusive content.

Primary Ticketing

Currently, Italy is dominated by CTS Eventim-owned TicketOne, and Vivaticket, which specialises in the performing arts sector and recently announced a joint venture with promoter Barley Arts for consumer exhibitions. Other companies with a substantial share of the market include Box Office Toscana and Bookingshow.

These firms generally enjoy a healthy business, as confirmed by TicketOne’s deputy general manager, Andrea Grancini: “We jumped from 200,000 registered users in 2004 to 4 million in 2014. We have invested in new technology and in the last year, TicketOne sold more than 8 million tickets (50% via the Internet).�

TicketOne is the leader in both live music and the football sector, selling tickets for 15 of the 18 teams in the Serie A league, whilst Vivaticket, which is owned by theme park ticketer Best Union, focuses on exhibitions and theatre shows. However, Live Nation’s deal with TicketOne expires in 2016 and rumours are rife that Ticketmaster is looking to launch in Italy. Sources say TicketOne is aware of the impending increase in competition, but officially nobody will say anything about the speculation and Live Nation declines to comment.

Secondary Ticketing

Although secondary ticketing is illegal in Italy, it remains a huge issue. According to Mirco Bezzi from Attractive.it, the Italian

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INTERNATIONAL TICKETING YEARBOOK 2015

government has been unable to stop this phenomenon, and fails to protect consumers from fraud. “There is no balance between the complex laws regulating ticketing operators and those who should prevent people from selling second-hand tickets. People often don’t even realise they are resorting to the secondary market,� he claims.

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Value of Market

Despite not reporting actual revenue figures, SIAE claims that the Italian live entertainment sector registered an increase in 2014, showing a general recovery from the global recession, but some regions suffered a slight decrease in ticket sales – especially in the north-west and south of the country. With the World Exhibition taking place in Milan in 2015, however, numbers in this region are more than likely to improve. Average live music ticket prices, according to SIAE, for the first quarter of 2015 were ₏32.93, up 6.5% on the year before. Overall revenues for concerts were up 8.5% in 2014, but, again, the collection society does not reveal numbers.

International/Domestic Splits & Genres

When it comes to musical genres, there are few differences between domestic and international acts playing in arenas, in terms of ticket sales. TicketOne’s Grancini says, “The biggest Italian artists usually plan more than 30 dates per tour, while international artists generally sell out more as they plan fewer dates, sometimes even just one.�

According to official figures, the leading genres are pop and rock, with no particular distinction between Italian and international acts.

DJ sets and dance shows have increased in popularity in the last few years.

Cultural Analysis

One of Italy’s most notable idiosyncrasies is the role of SIAE, which has far more control over ticketing than any other European collecting society. Another challenge is the high management costs faced by Italian venues, which consequently often refuse to invest in new technology. To address this issue, TicketOne is planning to run its own venue in Milan, which Grancini says will be able to offer more than 13,000 seats, making it Italy's biggest indoor venue. �

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JAPAN Language: Japanese Population (millions): 127.1 Currency: Japanese Yen (JPY) GDP/Capita (US$): 37,100 Music Revenue/Capita (US$): 20.7 Internet Users (millions): 101.9 Active Smartphones (millions): 122.4 Active Tablets (millions): 19.5

T

he live entertainment market in Japan covers a broad range of venues, from small bars with capacities in low double figures to stadiums and arenas. It has, over the past decade, seen strong growth in both the number of events and revenue taken.

The Kanto area – which is home to the country’s two largest cities, Tokyo and Yokohama – accounts for around 40% of all performances. However, for any foreign entity looking to expand into Japan, it remains next to impossible to operate there without having a strong local partner.

Primary Ticketing

The ticketing market retains a close association with the nation’s vast networks of convenience stores, which provide ticket agencies’ most visible presence, even as customers increasingly move to online and mobile-based platforms.

The market is primarily divided between three companies: Ticket Pia, Lawson Ticket, and e+. According to industry insiders, the government encourages these rival companies to regularly sit down to discuss business.

Of the trio, Pia is the oldest and largest, operating deals with convenience store chains 7-Eleven and Circle K/Sunkus. Currently 50% owned by Sony Music Entertainment Japan, e+ entered an exclusive partnership with the FamilyMart convenience store chain in 2009. The deal incorporated online ticket sales and ‘FamiPort’ in-store multimedia portals. Owned by the Lawson convenience store chain, Lawson Ticket for a long time had a lucrative contract as ticket vendor for J-League football, before losing it to Pia in 2004. A 2011 merger gave Lawson ownership of the HMV brand, with the ticketing business rolled into the new Lawson HMV Entertainment umbrella company.

One interesting start-up company to watch is Peatix, which is aiming to become the Japanese equivalent of Eventbrite.

Secondary Ticketing

There are a number of secondary ticketing outlets, with the most established including TicketStreet, Ticket Ryutsu Center and Ticket Camp. Internet auction sites such as Yahoo Auction and Rakuten Auction have also established themselves as popular secondary markets.

Distribution of Sales

The smaller venues that comprise the majority of the grassroots live music scene tend to sell tickets on the door or on an informal reservation system, with the use of ticket agencies increasing generally in accordance with the profile and marketing of the event.

While growth of the live entertainment market has been distributed relatively evenly across genres, non-musical events such as sports, art and talk events, as well as meet-and-greet events, have run ahead of the average. Outdoor events, such as summer festivals, have also increased at a faster-than-average rate.

Rock and pop occupies by far the largest proportion of the total, accounting for about 70% of performances and 75% of audience attendance.

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The White Stage at Japan's iconic Fuji Rocks Festival

INTERNATIONAL TICKETING YEARBOOK 2015

Cultural Analysis

Many cultural observers have noted a ‘Galapagos syndrome’ effect in Japan, characterised by insularity and growing disconnection from external influences, and this is often used to explain the decline in popularity of foreign music. However, other factors, such as the economic difficulty of combining Japanese tours with other Asian dates, also contribute.

In the live music market, preparations for the 2020 Tokyo Olympics mean that many large venues are beginning to undergo refurbishment, which will leave some parts of the country unable to host big events and cause some regional distortions in the market in years to come.

Despite Japan’s reputation as a technological hotspot, many consumers pay for their tickets at convenience stores, where they receive a thermal paper receipt that can be used to access events.

International/Domestic Splits & Genres

The live entertainment market in Japan is dominated by domestic acts, with overseas acts declining in both market share and raw attendances. The leading source of overseas artists remains South Korean pop (K-Pop) which retains a strong, yet shrinking, position in the Japanese market, with acts from the United States and Europe some way behind.

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Value of Market

Live entertainment continues to grow, even as the recorded music industry remains in a prolonged slump. Over the period 2010 to 2014, live music ticket sales more than doubled, rising from ÂĽ128billion (â‚Ź940million) to ÂĽ275bn (â‚Ź2bn).

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Taxes and Charges

Convenience store ticket machines include a selling commission of ÂĽ216, a system fee of ÂĽ210 and a ticketing fee of ÂĽ105 per ticket including VAT (totalling ÂĽ525 or â‚Ź3.87). A typical breakdown of administration fees includes an agency commission of 8%, plus a paper cost of ÂĽ10.5 (â‚Ź0.08) per ticket.â—?

LUXEMBOURG Language: French, German, Luxembourgish Population (millions): 0.6 Currency: Euro (EUR) GDP/Capita (US$): 92,400 Music Revenue/Capita (US$): N/A Internet Users (millions): 0.4 Active Smartphones (millions): N/A Active Tablets (millions): N/A

M

ore a cleverly-placed European hub than a selfcontained market, Luxembourg has one big hall, Esch-sur-Alzette’s 6,500-capacity Rockhal, and a couple of clubs – den Atelier in Luxembourg City and the 1,100-capacity Rockhal Box. But between them they punch well above their weight, drawing up to 500 shows a year and welcoming hordes of Germans, Belgians and French to complement Luxembourg’s own 562,000-strong population.

Primary Ticketing

Rockhal and den Atelier each operate their own ticket platforms, though inevitably, given their multinational catchment area, they also sell through ticketing agents in France, Germany and Belgium.

Secondary Ticketing

Luxembourg has no secondary ticketing sites of its own, and its market remains more or less untouched by the phenomenon.

Distribution of Sales

With a reputation that extends way beyond Luxembourg's borders, Rockhal sells around 60% of its tickets through its own Etix-

driven system, and of those, some 80% are sold online. In turn, the venue's management reports that roughly half of those transactions are now mobile.

Cultural Analysis

Even with a prosperous local population, Luxembourg draws many of its gig-goers from Germany, France and even the UK, via quick train links and cheap flights. “Paris is one-and-a-half hours by train, and we are targeting up to Cologne, Frankfurt and Brussels,� says Rockhal’s Thomas Roscheck.

International/Domestic Splits & Genres

Luxembourg’s domestic talent, it is safe to say, accounts for only a tiny proportion of its shows. Incoming German, French and English-language acts account for almost all of Luxembourg’s musical entertainment – A-ha, The Prodigy, Supertramp, Michael Schenker and Die Toten Hosen were all coming to Rockhal at press time (August 2015), and den Atelier was readying itself for Foals, John Grant, UB40 and Editors, among others.

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Taxes and Charges

Luxembourg is all the more visitable on account of its favourable rate of withholding tax. â—?

Lionel Richie played at Rockhal in March 2015

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MEXICO Language: Spanish Population (millions): 120.3 Currency: Mexican Peso (MXN) GDP/Capita (US$): 15,600 Music Revenue/Capita (US$): 1.1 Internet Users (millions): 49.4 Active Smartphones (millions): 33.4 Active Tablets (millions): 8.6

A

lthough Mexico’s economy has grown more slowly than other Latin American countries lifted by a consumer goods boom, entertainment and live music are among the few sectors experiencing growth. Insecurity continues to cost Mexico’s economy dearly – an estimated US$17billion (₏15bn) per year. However, the entertainment industry is growing apace and 2014 was a record year for many promoters.

Primary Ticketing

Mexico’s ticket market has effectively operated as a monopoly since 1991, when Comisión Interamericana de Entretemiento (CIE) merged with Ticketmaster, to form Ocesa. Unlike in other markets, Ticketmaster is very much the minority stakeholder in that joint venture and the actual ticketing system used by Ocesa is not the same as is used by other TM affiliates. Despite its historic position of strength, a number of companies are now attacking Ocesa’s dominance head-on, as are smaller independent promoters.

CUMBIA DOMINATES SOUTHERN TASTES WHILE IN THE NORTH, BANDA ARTISTS ESPINOZA PAZ AND JULION ALVAREZ ENJOY SUPERSTAR STATUS In 2014, Ocesa’s ticket sales fell 15% as Mexican gig-goers reacted to new promoters, a sluggish economy and venues run by other companies hosting shows. “Although last year was difficult, competition is ultimately good,â€? says a Zignia Live spokesman. “It forces us to improve.â€? As Ocesa’s main rival, Zignia operates ticketing for the US$300million (â‚Ź274m) Arena Ciudad de Mexico, widely regarded as the only large venue with the sound quality and facilities to compete with established buildings such as the CIE-owned Foro Sol and Palacio de los Deportes.

Moreover, Zignia has moved quickly to other urban hubs, selling 781,000 tickets in the Arena de Monterrey, lifting the venue to seventh in Pollstar's 2014 list of high-grossing international venues.

Medium-sized providers such as SuperbĂłletos have adapted an efficient system from a version of the Ticketmaster platform to record significant uplift. Meanwhile, small providers such as Sicario and 8106 are partnering to run big shows and festivals such as Ceremonia, the Auditorio BlackBerry, and the Pepsi Center. “The monopolies can’t act the way they used to,â€? says one ticketing insider. “Ocesa could buy venues and cancel shows if they felt threatened by new promoters. That’s impossible now.â€?

Secondary Ticketing

Secondary ticketing agencies have found it hard to gain a foothold as the black market is extremely well established. Unlike in other territories, where scalpers are largely condemned, in Mexico, famous touts such as El Oso de Guerrero (Bear Warrior) operate with impunity, using Twitter accounts to shift tickets. “We actually help

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INTERNATIONAL TICKETING YEARBOOK 2015

the venues,� claims one tout. “Major venues can’t drop their prices once they’ve been set, so if a show sells badly we provide tickets at reasonable prices, and more people spend money in the venue.�

Distribution of Sales

With Internet connectivity in Mexico yet to reach 25%, and with smartphone penetration high only in major urban centres, box offices still account for the lion’s share of sales.

According to CNN ExpansiĂłn, 80% piracy rates dominate the consumption of recorded music. Exact figures are not available for the black market on ticket sales, but the amount is significant.

Outdoor events such as major festivals shift high numbers of tickets online, while walk-up sales make a huge contribution to the coffers of small indoor venues such as El Plaza Condesa.

Cultural Analysis

Mexico City has experienced a gig boom in recent years, with major acts, new festivals and high-quality venues becoming part of the city’s music scene. “Mexican fans are very switched on," says Jorge Villanueva, of Casete Records. “We're the number one for users of Spotify in Latin America, and second in using YouTube.� But it is becoming harder to translate that musical savvy into actual ticket sales, as young concert-goers cut back on disposable income.

Major gains are still to be made in the country’s second and third cities, Guadalajara and Monterrey. “Kids in other markets are not as used to concert culture as here,� Villanueva explains. “Venues are smaller, between 600 and 1,000 people.� Regional and classical music venues are heavily subsidised.

International/Domestic Splits & Genres

International acts dominate the Mexican charts but regional music, such as banda, has a prominent cultural place. Domestic star LuĂ­s Miguel opened the Arena Ciudad de MĂŠxico in 2012, while Juan Gabriel, CafĂŠ Tacuba, Alejandro FernĂĄndez and Los Ă ngeles Azules frequently sell-out the 10,000-seater Auditorio Nacional.

Mexico’s size sees strong regional variations in taste, with cumbia dominating southern tastes while in the north, banda artists Espinoza Paz and Julión Alvarez enjoy superstar status. Festivals continue to proliferate, with headliners mostly drawn from the rock circuit. They face stiff competition from palenque regional music festivals, which cut across demographics to draw in huge local crowds.

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Value of Market

Mexico is the eighth largest music industry in the world, garnering around US$2.6bn (â‚Ź2.4bn) annually, with concert sales contributing an average US$250m (â‚Ź228m) in recent years, according to analysts at financial newspaper El Financiero.

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Taxes and Charges

Ticket fees are subject to 16% VAT. Booking fees vary drastically: in general these fall to around 12%, but for special events they can increase to 20%. Withholding tax stands at 21% on gross fees, with an additional 10% VAT charge. â—?

Beyoncé gets up close and personal with fans during a show at the Ziggo Dome in Amsterdam

THE NETHERLANDS Language: Dutch Population (millions): 16.9 Currency: Euro (EUR) GDP/Capita (US$): 43,300 Music Revenue/Capita (US$): 12.1 Internet Users (millions): 15.5 Active Smartphones (millions): 15.4 Active Tablets (millions): 3.9

W

ith a population of close to 17million, the Netherlands has long been a mainstay on the European tour circuit, while the nation also has a very strong homegrown pool of talent to fill its clubs, theatres and arenas. Indeed, the country’s importance to the greater live music business is underlined by its hosting of two of the world’s most renowned showcase and conference events – Eurosonic Noorderslag and the Amsterdam Dance Event.

Primary Ticketing

The main ticketing companies operating in the Netherlands are Eventim, Ticketmaster, Paylogic (now majority owned by dance promoter SFX) and white label operator, Ticketscript. Other licensed vendors that are active in the Dutch performing arts market are ActiveTickets, B2B platform Audience View, Aura, Get-a-ticket, Itix, LVP/TRS, PVM/PVX, Recreatex, SRO (which tickets the Dutch football league), Ticketmatic and Z-Tickets.

Arjan de Mooij of Agents After All indicates that Ticketmaster has the biggest market share, although others argue Eventim is number one. In terms of volume, Eventim possibly has the crown through its purchase of See Tickets from Stage Entertainment, although, in terms of live music, Ticketmaster is the leader.

Secondary Ticketing

The secondary ticketing market in the Netherlands is “harmful to our market," de Mooij declares, adding, “We’ve heard a rumour that 250,000 tickets have been sold on the secondary market platform Marktplaats. Other platforms include Onlineticketshop, Topticketshop, Viagogo, Ticketswap and Seatwave.”

Distribution of Sales

The vast majority of tickets are sold online. In the case of Agents After All, online tickets amount to 95%. According to Michel Behre of Crossingborder.nl, 90% of tickets are sold online and 10% at the box office.

Broken down into ticket types, around 90% are e-tickets, 5% are sold as paper tickets and the remaining 5% are mobile. For performing arts, theatres and classical music halls, 49% of tickets are sold via the Internet, 46% at the box office and 5% through other outlets.

“When Ticketmaster (then Ticketservice) started 20 years ago it was all about selling tickets at post offices,” says Aukina Buining, MD of Ticketmaster Netherlands. “We’re now in a very different place, bringing the very best tickets to live event fans across the country via our website, telephone centre and some outlets.” However, rather than concentrating 100% on the digital market, the company remains alert to the desires of the audience to have physical tickets.

Buining highlights one such initiative successfully introduced to the Netherlands by Ticketmaster during 2014. “The Collector Ticket – a credit card-sized ticket for the real fan that also serves as a souvenir of the show.”

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Value of Market

Those working in the Netherlands say there is no research to provide an accurate value of the ticketing business in the country, despite an array of trade bodies, including the Dutch Association for Music Events and Festivals (Vereniging Nederlandse Poppodia en – Festivals), and The Association of Event Makers (Vereniging Van EvenementenMakers).

However, Eline Kleingeld, policy officer at the Dutch Body for Theatres and Concert Halls (Vereniging van Schouwburg– en Concertgebouwdirecties), was able to provide figures for the body's members. That specific segment of the Dutch live entertainment market generates around €150million worth of ticket sales per year. The breakdown of sales for the theatres and classical music halls segment is 16% comedy, 15% theatre, 14% musical, 14% pop music, 13% classical music, 10% amateur performances, 5% dance (modern and classical), 4% opera and 9% other.

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Taxes and Charges

While 6% VAT is applied on tickets, there’s a further €3-4 or 8-10% administration fee charged by ticketing companies. ●

INTERNATIONAL TICKETING YEARBOOK 2015

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INTERNATIONAL TICKETING YEARBOOK 2015

NORWAY Language: Norwegian Population (millions): 5.1 Currency: Norwegian Kroner (NOK) GDP/Capita (US$): 55,400 Music Revenue/Capita (US$): 23.5 Internet Users (millions): 4.7 Active Smartphones (millions): 4.2 Active Tablets (millions): 0.8

O

il-rich and sparsely populated, with a population of 5 million, Norway boasts by far the highest GDP per capita of any Nordic nation, and markets like Oslo, and even the far smaller second city of Bergen, do very healthy live business.

The Norwegian government decided to postpone school exams, such was the reaction to Justin Bieber's visit to Oslo

Primary Ticketing

Norway is Ticketmaster territory, the global giant having bought Billettservice in 2001, when it had already led the market for 30 years. Second-placed Billettportalen, operated by Danish group Venuepoint, is its key competition. As in other Scandinavian markets, venues, not promoters, traditionally choose their ticketing contractor, though festivals are not similarly restricted.

Billettservice has the lion’s share of the contracts, including for key arena Oslo Spektrum, though Billettportalen has a number of festivals and has latterly been selling comedy shows at the Spektrum on behalf of promoter Atomic Soul. “It’s an interesting development,â€? says Venuepoint commercial director Einar SĂŚvarsson. “It seems like it’s going to continue, and that’s a shift in the dynamics of the marketplace.â€?

Secondary Ticketing

Selling tickets at above face value is an offence under Norwegian law – a move that was supposed to nip secondary ticketing in the bud. In practice, however, tickets for Norwegian events are often listed on secondary sites registered in other countries, such as Sweden.

Distribution of Sales

Billettservice’s former nationwide distribution through post offices (Norwegian Post was a former shareholder) has largely given way to a standard modern model, driven by online sales, though Billettservice customers can still pick up tickets from post offices, Narvesen convenience stores and 7-Elevens.

Claes Olsen, chief booker at Ă˜yafestivalen, which uses Billettservice, reports online sales of above 90%. Elsewhere, the Norwegian Opera, which uses Billettportalen, has seen online transaction rates rise from 40-80% in a couple of years, though traditional channels maintain a certain heritage in some areas. “Historically, the whole theatre industry and sport segment have done a lot of box office [sales], while the music industry has done more online sales,â€? says SĂŚvarsson, who reports enthusiasm for mobile ticketing in Norway – greater, in fact, than in Venuepoint’s Danish and Swedish markets.

Billettservice managing director Kristian Seljeset, however, indicates that its own mobile split remains relatively low. “Even though we see an increasing amount of mobile traffic, the percentage that chooses mobile tickets – on shows where mobile tickets are offered – is still below 20%,� says Seljeset. “We believe that mobile evolution will continue to grow, but at the same time customers want the freedom to choose the type of ticket that suits them best.�

International/Domestic Splits & Genres Norway has given us A-ha and nothing remotely as big since,

though there’s been plenty of talent in the form of RÜyksÜpp, Lene Marlin, Kings of Convenience, Todd Terje, Susanne Sundfør and Lindstrøm. There is no shortage of local shows, though there is a cosmopolitan fondness for UK and American acts as well.

Cultural Analysis

Norway has a disproportionately high number of festivals for a country of its population, and in common with Denmark and Sweden, it is also known among agents as a good payer. Local promoters respond to perceptions of high ticket prices by pointing out that Norwegian tickets are actually rather cheap relative to local disposable income.

Fans have historically used a reservation system to secure tickets, before paying for them often days later at the bank or post office, which used to oversee the country’s ticketing business. To cope with that, ticketers now charge a small fee for reserved tickets, while those paying for tickets straight away are not subject to the reservation fee.

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Value of Market

Norway’s live music business was worth NOK1.84billion (₏204million) in 2013, according to this year’s Music In Numbers report, published by Norway’s Ministry of Culture and Arts Council Norway. The live music business accounts for around half of the country’s overall music revenues.

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Taxes and Charges

In Norway there is no live music tax, and ticketing service charges are at a fairly standard level. �

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POLAND Language: Polish Population (millions): 38.4 Currency: Polish Zloty (PLN) GDP/Capita (US$): 21,100 Music Revenue/Capita (US$): 2.1 Internet Users (millions): 25.6 Active Smartphones (millions): 24.2 Active Tablets (millions): 4.5

T

icketmaster’s recent launch into Poland is shaking the local market up. The company has relieved Ticketpro of Live Nation as a client, while marketing staff are beginning to knock on the doors of other promoters as Ticketmaster Poland develops its retail business.

Primary Ticketing

The Polish market includes major operators such as Eventim, eBilet, Ticketmaster and Ticketpro, with Eventim being the market leader. However, eBilet disputes this: “We are in a very good position as we are Polish and the market here is ruled by Polish promoters.

We understand the market. We use our own system and we’re able to adapt,” says eBilet’s Marcin Matuszewski, who claims, the market shares of both Ticketpro and Eventim are diminishing.

Progresja, which operates one of Poland’s most important venues of the same name in Warsaw, has an exclusive deal with Eventim, but

only for certain concerts because it offers “many services”, according to booking manager Radek Chudzio. “They have a team on-site that knows the market and speaks the language.”

Mariola Dziubińska of Metal Mind, a promoter that has been active in Poland for 27 years, comments, “There are a dozen-odd active ticketing companies. We’ve cooperated with all of them depending on our experience with a given company. At the moment, in our opinion, three of them – Ticketpro, Eventim, and eBilet – are the leading ones, so we cooperate with them.”

Secondary Ticketing

In Poland, the law prohibits reselling tickets. But some people in the industry are looking to develop exchange systems for fans. “We are going to offer a legal way for our customers to trade their tickets in case they cannot attend the concert,” reveals eBilet’s Karolina Miazga.

According to Metal Mind’s Dziubińska, “Ticket [exchange] sites are definitely needed, because they make life easier for fans that are not able to attend a show. The best solution would be to put restrictions on the price of resold tickets, but it still would not eliminate the black market for exceptional musical events.”

Distribution of Sales

Most tickets in Poland are sold online. Major player eBilet reports that it is currently selling 80%-plus of its inventory via the Internet. Bricks-and-mortar sales constitute less than 20%, according to Matuszewski.

The same seems to be true elsewhere. “Online is definitely the main way,” Dziubińska concurs. “I’d say it makes up about 80% of our overall sales.”

International/Domestic Splits & Genres

With a share of around 35-40% of all tickets sold, music is the healthiest sector, although sport (25-30%) is gaining fast. “We just started selling the 2016 European [handball] Championships.

Probably in one year we’ll have an equal split between the two segments,” says Matuszewski.

Homegrown talent rules in terms of sales, and according to eBilet’s Miazga, if you look at the music segment, “70% of tickets are sold for shows by Polish acts, the other 30% for shows by international acts.”

Genre apparently plays a big part, with ticket sales at Metal Mind higher for international hard rock artists than for local acts, and this trend continues “for both clubs and arena shows,” says Dziubińska. Progresja’s current programme consists almost exclusively of international acts. Both promoters specialise in various forms of rock – the most popular genre in Poland, according to ticket sales.

“We had very good sales of pop star concerts such as Beyoncé and Justin Timberlake in recent years, whereas sales for the second Madonna concert didn’t meet expectations,” states Miazga. She explains that over the last few years, festivals in Poland have started to book acts outside the guitar music realm to make their events more attractive for pop, electro, indie or even classical music fans. ●

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PORTUGAL Language: Portugese Population (millions): 10.8 Currency: Euro (EUR) GDP/Capita (US$): 26,300 Music Revenue/Capita (US$): N/A Internet Users (millions): 5.1 Active Smartphones (millions): N/A Active Tablets (millions): N/A

D

espite often being the first or last stop on European tours, Portugal is a very depressed market in terms of disposable income and ticketing companies use lay-away plans to allow fans to pay for tickets by instalment. Like Greece, Portugal has been going through tough times economically, making live music events – and their tickets – something of a luxury.

Primary Ticketing

The major ticketing companies in Portugal are Ticketline and Blueticket. Ticketline was launched by a local promoter to introduce professional ticketing to the market and, as a result, it has a reputation for low service fees. Blueticket grew out of the box office of the MEO Arena in Lisbon, before it started offering services to other promoters, events and venues.

Secondary Ticketing

“The secondary market is not official. There are a few companies active in Portugal, such as TicketBis, that are based in other countries,” says Felipa Terenas, MEO Arena’s head of marketing.

ROMANIA Language: Romanian Population (millions): 21.6 Currency: Romanian Leu (RON) GDP/Capita (US$): 19,400 Music Revenue/Capita (US$): N/A Internet Users (millions): 7.8 Active Smartphones (millions): N/A Active Tablets (millions): N/A

H

istorically recognised as a third world country by even those working in the country, that perception is changing as Romanians find out about the vast sums of money that have been lost to corruption.

Rather than depress the nation, such revelations appear to be generating a sense of confidence and promoters are optimistic about growth prospects for live music.

Primary Ticketing

Eventim, MyTicket, Bilete.ro, IaBilet.ro and Tomtix.ro, "share all the events taking place in Romania,” according to Diana Aurica of ARTmania Festival. Cristian Stan, new business executive for Sublime Romania, adds, “As we are a third world country, we don’t have official market shares. But at a glance, Eventim has more than 50%. They sell most of the events.” According to Emagic’s Dragos Chiscoci, MyTicket.ro and Eventim.ro together hold “about 80%”.

Secondary Ticketing

Romania has few sold-out shows, so secondary ticketing is negligible. “There are no companies involved in secondary ticketing, it’s individual scalpers mostly,” explains Chiscoci.

Distribution of Sales

“Internet sales represent 30%. The other 70% are made through the venue box offices and outlets like Fnac, Worten, El Corte Inglés and post offices,” reports Terenas. Around 55% of ticket sales in Portugal are processed via box offices, 10% over mobile devices and 5% through social media.

60% of all tickets sold are paper tickets, 25% are print at home and 15% are mobile tickets.

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Value of Market

The average ticket for an arena show costs €35-40. The overall value of ticket sales amounts to around €200million a year.

TICKETLINE WAS LAUNCHED BY A LOCAL PROMOTER AND, AS A RESULT, IT HAS A REPUTATION FOR LOW SERVICE FEES

International/Domestic Splits & Genres

Of all the tickets sold, 45% are for concerts, with shows by international acts dominating two thirds of that market; 20% of the tickets are for theatres; 15% for theme parks; another 15% for sports; and 5% for other events.

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Taxes and Charges

13% VAT is applied to tickets for shows and 23% for theme parks or sports events. Ticketing companies take a commission fee of 6% for sales on the Internet, as well as €1 per ticket if purchased on the door. ●

Distribution of Sales

As far as point of sale is concerned, “There is a huge difference between Bucharest and the rest of the country,” explains Stan. In the capital, online sales are reaching approximately 45%. But elsewhere in the country, online sales are still below 10%. He adds, “There is an atypical situation here: Eventim sells through the mobile telecommunication

IN BUCHAREST, ONLINE SALES ARE 45%. ELSEWHERE IN THE COUNTRY, THEY ARE STILL BELOW 10% shops. This is what we call the ‘box office’. IaBilet sells, besides online, through automatic payment machines. We don’t have a genuine box office.” Other sources note that key outlets need to be connected by computers and retail systems linked, but that can be problematic and power outages can mean sales need manual processing and counting.

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Taxes and Charges

A couple of taxes and charges are applied to tickets in Romania: 9% VAT, 5% local state tax, another 5% tax for development of culture – the so-called musical stamp – and 1.5% for the Red Cross.

7% plus VAT goes to the Romanian collecting society and sometimes 2% is added if the venue is a national monument.

According to Aurica, also included in the ticket price is a ticketing commission of 5.25% plus €0.20 per ticket issued. The booking and administration fees charged by the ticketing companies are “around 6% of the ticket price,” she explains. Booking fees can go up to 10% depending on the value of the ticket.●

INTERNATIONAL TICKETING YEARBOOK 2015

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RUSSIA Language: Russian, Dolgang Population (millions): 142.5 Currency: Russian Rouble (RUB) GDP/Capita (US$): 18,100 Music Revenue/Capita (US$): 0.5 Internet Users (millions): 79.9 Active Smartphones (millions): 81.1 Active Tablets (millions): 10.1

T

he Russian ticketing market consists of the following market participants: ticket agencies; independent promoters who sell tickets on their websites; concert halls that independently sell tickets; resale websites such as Fan2fan; and speculators and ticket cloud services such as Ticketscloud.org and InTickets.ru.

Despite being such a vast country, with many significant-sized cities, the most developed, dynamic and competitive market is in Moscow, with St. Petersburg being the only other city that most international touring artists tend to include in their routing. Generally, each ticket agency and concert hall (depending on size) has its own proprietary platform.

The total ticketing market in Russia and the Commonwealth of Independent States is estimated to be worth around €3billion, with two-thirds of the market in Russia itself and the remaining €1bn shared between Belarus, Ukraine and Kazakhstan.

Secondary Ticketing

The secondary market in Russia is known as ‘теневой’ (the shadowed one). Speculators are presently trying to take their operations online. As a rule, secondary ticketing only really applies to special concerts. They also, traditionally, resell tickets in the concert halls on event day, especially tickets for the Bolshoi Theatre, which itself does a roaring trade selling tickets to concierges for tourists. There are two great international players in the market – Viagogo and Ticketbis, but their activity is not as significant as in the West.

Moscow Major market players are Ticketland.ru (ex-state-owned Moscow Directorate of theatre, concerts, sport and entertainment ticket offices) with an estimated 20%; Kassir.ru (which is affiliated to promoters, PMI Group) with 15%; Ponominalu.ru with 13%; Concert.ru with 8%; STS Eventim RU (Parter.ru/Kontramarka.ru) with 4%; and the remaining 40% from other sources (concert halls, promoters, speculators and smaller agents etc).

St. Petersburg The major players in St. Petersburg are: Theaters Offices Management Company (formerly state-owned) with 38%, promoter PMI Group's ticketing division Kassir.ru with 35%, Muzbilet with 10%, Ponominalu. ru with 5%, Biletsofit with 4% and Concert.ru with 3% . The likes of concert hall sales, promoters, speculators and smaller agents make up the remaining 5% of the market.

Distribution of Sales

Tickets are sold in Russia via box offices, websites, social media apps (such as Viber), mobile applications, and private distributors.

The e-ticket in Russia is not entirely legal as the process of issuing a ticket generally requires hard copies of official documentation that must be archived for a minimum of three years. Only Ticketland.ru is legally permitted to issue e-tickets.

Courier delivery of tickets is still common, with purchasers typically paying the courier by credit card at the door.

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Value of Market

The value of the ticket market in Russia can only be estimated at present. In 2013, research on the entertainment market in Moscow and St. Petersburg by communications company InterMedia gathered data from more than 40 experts in, and related to, the ticketing industry.

The estimated sales volume in Moscow was 33million tickets, with an average price of €15, giving the capital city a market value of about €495million.

For St. Petersburg, ticket sales were put at about 14m with an average price of €13, giving an estimated value of €182m for the city.

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INTERNATIONAL TICKETING YEARBOOK 2015

THERE IS A TENDENCY IN RUSSIA FOR THE MAJORITY OF TICKET SALES TO HAPPEN IN THE LAST FEW DAYS PRIOR TO THE EVENT. IT CAN BE ON SALE FOR A HALF A YEAR, BUT 70-80% OF THE TICKETS WILL BE SOLD A WEEK BEFORE THE EVENT TAKES PLACE

Cultural Analysis

There is a tendency in Russia for the majority of ticket sales to happen in the last few days prior to the event. It can be on sale for a half a year, but 70-80% of the tickets will be sold a week before the event takes place. It is a distinguishing feature of Russia and perhaps a consequence of the frequent cancellation, substitution, and postponement of events. Demand rarely outstrips supply, so consumers know they can buy a ticket at the last minute.

In addition, due to an unstable economy, people are more focussed on buying the necessities that they need on a day-to-day basis, rather than buying tickets for gigs taking place in the future.

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Taxes and Charges

According to the Tax Code of the Russian Federation, tickets and season tickets for entertainment and recreational activities are free from VAT. The standard mark-up for tickets is 10%. This is considered a service charge and is taxable. Which tickets should be sold with or without the mark-up is the decision of the ticketing company or seller. For example, all STS Eventim’s tickets are sold with mark-up.

However, Ponominalu.ru and Concert.ru sell tickets without the mark-up (except when distributed through Euroset and Online). The ticketing agency’s commission is 5-10%. ● This report was prepared by Vladimir Kravchenko, general director of Coliseum Music Conference, using research conducted by communications company, Intermedia.

Midas Promotions took Christina Perri to the Coliseum, Hard Rock Hotel in Singapore in February 2015

SINGAPORE Language: English, Malay, Mandarin, Tamil Population (millions): 5.6 Currency: Singapore Dollar (SGD) GDP/Capita (US$): 62,400 Music Revenue/Capita (US$): 2.4 Internet Users (millions): 4.1 Active Smartphones (millions): 6.8 Active Tablets (millions): N/A

T

he city-state of Singapore covers just 718 square kilometres, but is the fourth-largest financial centre worldwide and a major regional urban hub, with 5.6million residents. Strict, safe and ultra-modern, it has a highly developed live business, though its ticketing arrangements aren’t the world’s most competitive.

Primary Ticketing

Having launched in 1991 out of the Singapore Indoor Stadium, SISTIC is the biggest ticketing company, with a market share of at least 60-70%, and a stated 90% coverage of Singaporean events, including concerts, theatre productions, family attractions and sporting events. Owned jointly by the Singapore Sports Council and waterfront venue The Esplanade, it sells tickets through its website, hotline and mobile app, and also licenses STiX, a web-based and customeroriented ticketing solution, outside Singapore. Rivals include Japaneseowned platform PeaTix and APACTik (formerly Sports Hub Tix), the in-house ticketing service of the Singapore Sports Hub venue.

Secondary Ticketing

Scalping is technically illegal in Singapore, although it isn’t hard to find tickets for resale through eBay and similar marketplaces.

That said, the practice has not become commercialised.

Distribution of Sales

Singapore is an enthusiastic adopter of e-commerce and ranks highest in the world for smartphone penetration, with nine out of ten people having access to such a device. Nonetheless, only 38% of Singaporeans make online purchases with their devices – lower than their South-East Asian counterparts, giving mobile transactions plenty

of room for growth [source: Deloitte]. SISTIC sells online – its site receives 4m visits a month – and also via mobile and through 47 local, authorised, point-of-sale agents.

International/Domestic Splits & Genres

Concerts tripled in Singapore between 2003 and 2013, according to the National Arts Council of Singapore. Western music is popular – Elton John recently announced a pair of shows in December, while Maroon 5, Muse, Robbie Williams and Taylor Swift are all expected between September and November 2015. Chinese, Malay and Indian music also find a substantial market, along with homegrown stars such as Stefanie Sun and JJ Lin. There is also a small but significant metal scene and an enthusiastic dance crowd, though EDM gathering Future Music Festival Asia was denied a public entertainment licence in March due to official disapproval at potential drug abuse, following six deaths last year at the festival’s Malaysian edition.

Cultural Analysis

Singapore Sports Hub’s exclusive ticketing contract, beginning at the end of last year, has caused a degree of controversy amid suggestions of monopolistic practices. SISTIC itself has been on the other end of similar complaints in the past, and was hit by a SGD$989,000 (€658,000) fine in 2010 for squeezing out smaller players such as Tickets.com, Gatecrash and Global Ticket Network by striking exclusive contracts with a majority of venue operators.

Its appeal was denied in 2012, though its fine was reduced to SGD$769,000 (€511,000).

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Taxes and Charges

SISTIC collects a booking fee of between SGD$1 per ticket (€0.67) and SGD$4 (€2.63) per ticket, depending on the ticket price.●

INTERNATIONAL TICKETING YEARBOOK 2015

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Slovakia's most popular large scale event, Ba�zant Pohoda Festival.

SLOVAKIA Language: Slovak Population (millions): 5.4 Currency: Euro (EUR) GDP/Capita (US$): 24,700 Music Revenue/Capita (US$): 1.5 Internet Users (millions): 4.5 Active Smartphones (millions): 3.3 Active Tablets (millions): 0.6

W

hile Ticketpro, based in the neighbouring Czech Republic, was once a real force in Slovakia, its presence is now negligible as home-grown operation Ticketportal has risen to prominence. Headed by Eduard Janosik, Ticketportal has 1,800 points of sale, including state-owned post offices.

The company is also a growing ticketing services provider in the Czech Republic, Hungary and Poland and is actively expanding into Austria, Belarus and Romania. (It is not the same Ticketportal that operates in Switzerland.)

Primary Ticketing

The Ticketportal.sk platform is one of Slovakia’s most popular discovery sites for live music, cultural and sporting events. The company’s sales systems are installed in theatres, sports halls, cinemas and museums throughout the country.

Other players include Predpredaj.sk, a ticketing company founded

by Slovak Internet search engine Zoznam, which is owned by T-Mobile. In addition to using Zoznam’s power as a media partner to run successful sales campaigns, Predpredaj also sells tickets in T-Mobile stores.

Among the smaller ticketing operations with a presence in Slovakia are Interticket (from Hungary), TicketStream, and Tixi, which is operated by Tibor Holoda, whose portfolio of events includes the Wilsonic Festival. “Tixi is sometimes used by other companies for small conferences. But having our own ticketing company allows us to re-target our online campaigns and monitor sales in real time,” says Holoda. Self ticketing also allows promoters to have more control of

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their cash flow, rather than having to wait for revenues from third party ticketing operators.

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Taxes and Charges

Bažant Pohoda Festival promoter Michal Kaščák has an exclusive deal with Ticketportal, which he applauds for “supporting local and smaller bands around Slovakia.” He reveals, “Eventim have been trying to break into the market by offering promoters deals with favourable conditions, such as 4% commission fees.” More typically, booking fees in Slovakia are between 6-10%.

Secondary Ticketing

There is no secondary market because of the existing culture among fans. “There’s a classical eastern European model in Slovakia where people only buy tickets shortly before an event,” says Kaščák.

“Big name acts can sell-out quickly. But people are not used to sold-out shows, so they know they can get tickets at the last minute.”

Distribution of Sales

Holoda observes that ticket sales in Slovakia are “mostly online now, as the younger generation become more used to going to concerts.” But he reports that there are still bricks-and-mortar stores, with Ticketportal in particular having a network of physical outlets.

Kaščák agrees that while some fans are very traditional in the way they want their tickets, others are switching on to the idea of modern convenience. “Pohoda sells what it calls ‘old-fashioned tickets’ through book shops and record shops. These tickets are posted out to buyers.

But a lot of people are now opting to print tickets at home,” he says. ●

REPUBLIC OF SOUTH AFRICA Language: English, Afrikaans Population (millions): 48.4 Currency: South African Rand (ZAR) GDP/Capita (US$): 11,500 Music Revenue/Capita (US$): 1.4 Internet Users (millions): 21.7 Active Smartphones (millions): 73.3 Active Tablets (millions): 26.3

D

espite the Republic of South Africa’s notorious history, its live music business is now thriving and the knock-on effect is a ticketing industry experiencing commensurate growth.

Consequently, the sector is marked with both the buzz of success and the turmoil of aggressive competition that accompanies any industry going through such a transition.

In South Africa, that transition is seeing paper ticketing giving way to digital formats. The country’s development, however, is being marred by alleged anti-competitive practices, ticketing fraud and an uncertain secondary ticketing business.

There is no postal delivery for tickets in South Africa. Therefore, tickets are delivered by courier or collected at the box office. However, those circumstances have created opportunities and, as a result, print at home and mobile ticketing delivery methods have been embraced by fans.

Primary Ticketing

The market leader in the primary ticketing business is Computicket, a subsidiary of fast food and retail conglomerate Shoprite Holdings. Computicket boasts a market share said to be between 76-80%. Ironically, its slogan is ‘the ticket you can trust’, despite having been hauled before the Competition Tribunal for alleged anti-competitive practices in 2010. The country’s Competition Commission announced plans to prosecute the company for abusing its dominant position following complaints from competitors.

From 2008 to 2009, Computicket allegedly cornered 90% of the market by locking more than 1,100 venue and events clients into long-term deals. But new technology has enabled smaller rivals to make inroads, hence the gradual decrease in its market share over the past five years. Hannah Muskett at Webtickets estimates that online ticketing has given her company a 10% share, followed by TicketPros (5%), Nutickets (a white-label service provider with 3%) and Quicket, another e-ticketing distributor with 2%. Increasingly, the in-demand dance music promoters are taking control of their ticketing needs by using white-label services instead of the traditional ticket agencies.

Secondary Ticketing

The secondary ticketing sector is booming, and, as in most music markets, it is blamed for encouraging fraud or other ticketing abuse activities.

Secondary ticketing made the news recently when ticket tout Toufiq Joseph was shot and killed at a Cape Town garage. The accused is David Forbes, concert promoter consultant for Ultra South Africa festival and founder of the Boksburg-headquartered H2O outdoor dance music parties. The deceased is thought to have belonged to a gang that used stolen credit cards to buy tickets and resell them for a profit. Forbes, who claims he acted in self defence, is awaiting trial in September.

On the legitimate side of secondary ticketing, industry pioneer Viagogo is South Africa’s market leader. Also, tickets are regularly resold by individuals on websites but the lack of any regulation is said to be creating confusion about the ticketing business’s real value.

Distribution of Sales

Paper tickets still account for just over 50% of total sales, although 70% of the physical and digital ticketing purchases are made online. Of digital purchases, about 35% are made via mobile apps. Of the total paper ticket sales, between 40-50% of transactions are print at home. Sales via box offices are falling, with the most optimistic calculation concluding that box offices represent about 10% of the total market.

In 2011, local company Tixsa licensed technology from US-based TicketBiscuit to offer one of the first direct-to-fans, e-commerce platforms in South Africa. TicketPros, part of the Blue Label Telecoms group, plans to install a near field communication system for ticketless services in The Dome stadium in Johannesburg. This follows TicketPros’ seven-year name sponsorship deal with the venue, starting this year.

Secbands and ID&C are the two leading suppliers of concert wristbands.

International/Domestic Splits & Genres

The vast majority of live concert acts, more than 70%, are domestic, but the demand for international artists is not insignificant either. Twitter reportedly suffered a meltdown in South Africa when Pharrell Williams’ 2015 shows were announced. Promoted by Big Concerts, Williams’ gigs triggered a euphoria that confirms South Africans’ hunger for international live acts.

US rapper Chris Brown also visited Jo’burg and Cape Town this year to promote his sixth studio album on RCA, but was attacked in the press for charging an average ZAR1,166 (₏84) per ticket, compared to ZAR690 (₏50) when he performed there in 2012.

Among the domestic acts drawing in the crowds at festivals are Bongeziwe Mabandla, Bed on Bricks, Al Bairre, and Majozi.

Rock and pop concerts in their many forms, especially electronic dance music, command an estimated 80% of the live entertainment ticket sales, excluding sports and stage theatre. Family entertainment and tourist attractions account for another significant chunk.

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Value of Market

According to PricewaterhouseCoopers (PwC), the accountancy giant, South African live music ticket sales are now bringing in more revenue than recorded music. Based on PwC data, consumer spend on live ticketing will jump 8.7% to ZAR1.45billion (â‚Ź110million) by 2018 from ZAR998m (â‚Ź74m) in 2013. Lauren Cunningham at leading promoter Big Concerts believes PwC has underestimated the growth speed of the sector. She says about 16 million tickets are sold each year, delivering ZAR4-5bn (â‚Ź290-360m) in revenues.

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Taxes and Charges

Officially, there is a 14% VAT levied on all ticket sales, while booking and admin fees can take between 8-15% of the cover price. Although not typical, some charges are convoluted and high.

According to a terms and conditions notice for Rocking the Daisies Festival in October: “Prices exclude booking fees, which include charges for IT services, credit card/bank related charges, fraud prevention, security control and other administrative fees related to the advanced festival ticketing management system.� �

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SPAIN Language: Spanish Population (millions): 47.7 Currency: Euro (EUR) GDP/Capita (US$): 30,100 Music Revenue/Capita (US$): 3.8 Internet Users (millions): 35.7 Active Smartphones (millions): 33.7 Active Tablets (millions): 5.0

S

pain may be home to two of Europe’s most successful festivals in Primavera Sound and Sónar, but the country’s live music market remains troubled, due to the combination of 50% youth unemployment, the country’s ongoing economic difficulties, and 21% VAT on cultural goods, raised from 8% in September 2012 in the middle of the economic crisis.

In the year following the VAT hike, live music revenue fell 29% to â‚Ź148million and, while numbers have since recovered, promoters remain stridently opposed to the tax, organising ‘a day without music’ in May in protest. The good news for the Spanish market is that economic growth is now accelerating, albeit from a very deep hole.

Primary Ticketing

Primary ticketing is dominated by Ticketmaster, which works with the majority of promoters and has an estimated 50% market share, generating a large amount of traffic on the Ticketmaster.es portal. In May 2015, local live promoter association La AsociaciĂłn de Promotores Musicales (APM) launched its own white label ticketing website via Ticketmaster, promoting the launch with an exclusive presale on tickets for a September concert by Alejandro Sanz and Pablo AlborĂĄn.

Entradas.com (bought by Eventim in 2014) is second in the market, with a 25% market share according to local promoters. It has strong roots in cinema and sport (including exclusive ticket sales to the 2014 Basketball World Cup, held in Spain), but has recently made moves to sell more live music tickets. Both Ticketmaster and Entradas.com also have thriving businesses in the B2B sector for cinema ticketing.

Ticketea, a Spanish ticketing start-up, has been growing strongly, consolidating its third place. In 2013, Ticketea raised $4m (â‚Ź3.6m) in funding, and in 2014, it managed to double its volume of ticket sales.

The company’s growth was helped by the acquisition of Tele Entradas, a system owned by the Spanish banks, which historically ran the majority of ticketing activity in the country.

El Corte InglÊs, Spain’s biggest department store group, also sells a significant amount of tickets, estimated at more than 5% of the total market.

Onebox, a platform that allows promoters to sell tickets directly from their websites, is increasingly important, with clients including the BIME festival, BARTS concert hall in Barcelona and the Vida festival, as well as several football clubs. In 2014, it oversaw three million ticket sales for its clients, with a value of â‚Ź70m.

There is also a plethora of other Spanish ticketing companies that have strong market shares in local regions, the Balearic island of Ibiza being a prime example.

Secondary Ticketing

Secondary ticketing remains as divisive among promoters – and popular among consumers – in Spain, as it is in other parts of the world. The largest operators in Spain are Viagogo and market leader Ticketbis, which launched in Spain in 2010 and has since built a substantial international business. In 2014, Ticketbis brought in

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revenues of â‚Ź60m, half of which came from outside of Spain.

Promoters may grumble but with no government legislation in place or, it seems, on the horizon, the only option is to take matters into their own hands, following the example of the Bilbao BBK Live festival, which last year released a small number of extra tickets after selling out, to combat rocketing secondary prices.

Distribution of Sales

Local promoters estimate that 70% of ticket sales are online, with as little as 5% walk-up (the rest are split between mobile, social media and ‘other’). Online sales are constantly growing: Onebox marketing manager Ana Asuero says that last year, among her company’s clients, 84% of ticket sales were online versus 16% at the box office, up from 69% online/31% box office in 2013.

For the moment, paperless and mobile ticketing remain niche concerns, accounting for around 2% each of total sales, according to local promoters. “Our research showed that for our clients the print-at-home option was the preferred one. 50% of the buyers choose this option,� Asuero says. “Collecting at the venue is something people are rarely doing nowadays.� However, Asuero says that mobile ticketing is on the rise.

Cultural Analysis

As mentioned above, Spain’s economic woes have led to festival promoters increasingly targeting foreign customers, particularly from France and the UK. At Primavera Sound 2015, 46% of attendees came from other countries, up from 44% in 2014.

The same economic troubles – as well as collapsing record sales – mean that Spain is a difficult country for international touring acts, most of whom will limit themselves to dates in Barcelona and Madrid, if that.

International/Domestic Splits & Genres

International acts tend to generate most ticket sales in Spain – estimated at 60% of the total by promoters – although the picture is muddied by the big Spanish festivals wooing foreign customers with big international acts. Genre-wise, indie rock and dance rule.

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Value of Market

After the alarming drop in revenue in 2013, the Spanish live music sector rebounded in 2014, with revenue up 9.8% year-on-year to â‚Ź173.5m according to APM, a level not seen since 2009. Pascual Egea, president of APM, says that the result was thanks to successful stadium dates from One Direction and the Rolling Stones, as well as a slight improvement in the Spanish economy.

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Taxes and Charges

Local collecting society SGAE takes 10% of revenues – although this is currently under review. As mentioned above, there is a 21% VAT rate on “cultural goods� including tickets, one of the highest in Europe.

Booking and administration fees are typically 5-7%, although for superstar acts they can be as high as 10% of the ticket’s face value. �

SWEDEN Language: Swedish Population (millions): 9.7 Currency: Swedish Krona (SEK) GDP/Capita (US$): 40,900 Music Revenue/Capita (US$): 19.5 Internet Users (millions): 9.1 Active Smartphones (millions): 9.1 Active Tablets (millions): 2.0

W

ell-managed and steadily prosperous, Sweden is a healthy live market with a particularly flourishing domestic scene, big-name international visitors and some fine festivals. Its ticketing arrangements are predictably cutting-edge, with minimal physical ticketing and maximum e-ticketing.

Primary Ticketing

Some of the world’s leading live conglomerates have homes in Sweden, where Ticketmaster’s Ticnet is the runaway market leader and players such as AEG’s AXS, local company Tickster and operations like Billetto and Biljettforum (owned by Denmark’s Nordisk Film ticketing division, which uses the Venuepoint system) have small market shares.

Eventim has had a presence in Sweden for a number of years, but in practice the company is involved in very little, if anything at all.

But with Germany-based promoter FKP Scorpio – which is partowned by Eventim – now investing heavily in its Swedish expansion, the company could potentially shake up the market with its ticketing decisions. Music festivals, where FKP excels, can self ticket in Sweden and often allocate tickets to a local partner.

Whether promoters like it or not, the traditional structure of the market is such that venues manage the ticketing function, striking exclusive deals with the agent of their choice. Ticnet, whose venue partners include the new national football stadium Friends Arena and Gothenburg’s Ullevi Stadium, sells around 12m tickets a year over 25,000 events. AEG operates the Tele2 Arena and the neighbouring Ericsson Globe Arena and naturally uses AXS for its ticketing. Indeed, the Swedish business was the first non-English language platform expansion for AXS. A lot of Ticnet’s business comes through clients who self ticket, but license the Ticketmaster system, meaning that Ticnet leads both the B2C and B2B sectors in Sweden.

Secondary Ticketing

Distribution of Sales

In a cash-free country where four out of five purchases are made electronically, it’s no surprise that physical tickets have all but vanished, replaced by printable and mobile e-tickets. Indeed, going one step further, Friends Arena recently declared its plan to go entirely cashless next year, using a cloud-based payment system.

Cultural Analysis

Venue operators’ control over the ticketing contract is a longterm niggle amongst Swedish promoters. “The system is good and bad,â€? says Live Nation Sweden head promoter Anna SjĂślund. “We are marketing the tickets and taking the risk, and I think most promoters want to be able to sell tickets in the way they choose to – and a lot of artists want to sell tickets through their preferred channel too. And at the same time, the ticketing companies are very used to working in the venues. And obviously, these are established companies, so there are no complaints [about their systems].â€?

Though the arrangement is frequently discussed, it is unlikely to meet with legal opposition. In 2007, the Konkurrensverket, Sweden’s competition authority, dropped an investigation into exclusive contracts entered into with venues by Ticnet, ruling that contracts of one to four years did not amount to an abuse of dominance.

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Value of Market

Domestic revenues from concerts and festivals in Sweden amounted to more than SEK3.5billion (â‚Ź370m) in 2013, according to Musiksverige. Factoring in live music exports worth SEK307m (â‚Ź32.7m), Swedish live revenues account for half the value of the entire Swedish music business.

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Taxes and Charges

Concerts fall into Sweden’s lowest tax band at 6%. Ticketing agents’ service fees go up to about 8%, though may be lower. Ticnet includes (and advertises) them as part of its ticket price. �

Axwell & Ingrosso closed down this year's BrĂĽvalla Festival in NorrkĂśping

International/Domestic Splits & Genres

Sweden is the world’s most successful exporter of chart music in relation to GDP, and the country is more than capable of filling its own charts, as well as its own venues. Swedish House Mafia, Avicii, Robyn, Icona Pop, Tove Lo are all domestic acts with major

INTERNATIONAL TICKETING YEARBOOK 2015

Photo credit: Annika Berglund

Viagogo is present in Sweden, and primary outlet Tickster allows customers to sell on unwanted tickets with its Tickster Resale feature. On a more informal level, local marketplaces such as Blocket.se and Allaannonser.se allow reselling.

international profile, to add to local legends such as ABBA, Roxette, Europe and The Hives. There is a deep-rooted pop and dance tradition, as well as a thriving culture of rock, metal and indie.

Festivals demonstrate the breadth of Swedish tastes, and the diversity of local talent. Summerburst mixes global and local stars of the EDM world, Way Out West festival in Gothenburg does likewise for credible indie and electronic music, BrĂĽvalla in NorrkĂśping deals in mainstream pop and rock, while rock festival Getaway this year hosts everything from Status Quo to homegrown dark metal.

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David Guetta played the biggest Swiss summer event in 2015 – Paléo Festival Nyon

SWITZERLAND Language: German, French, Italian, Romansh Population (millions): 8.1 Currency: Swiss Franc (CHF) GDP/Capita (US$): 55,200 Music Revenue/Capita (US$): N/A Internet Users (millions): 6.2 Active Smartphones (millions): N/A Active Tablets (millions): N/A

T

icket prices go down, the framework conditions are getting more complicated and the pressure from competition is rising. Those are the conclusions that the Swiss Music Promoters Association (SMPA) draws in its annual Index report for 2014. CEO Stefan Breitenmoser adds that these conditions make it increasingly difficult for promoters to make a profit.

The Index encapsulates the 2014 results of all 34 SMPA members. These members generate around 80% of all ticket sales. SMPA members sold more than 3.2million tickets, so all in all around 4m tickets were sold, generating revenues of CHF320million (€310m), up from CHF310m (€300m) in 2013. Every year, 1,600 events are realised, attracting between 500 and 250,000 visitors. In 2014, more than 4.9m people went to a concert, show or festival. This represents a 1.7% increase from 2013.

All in all, 1,639 events were held, which is a 17.3% rise.

SMPA notes the rise in revenues is likely the result of four new members joining in 2014. Average ticket prices fell from CHF84.25 (€79.41) in 2013 to CHF79.42 (€74.86) in 2014. According to Breitenmoser, promoters want to keep their audiences happy, hence the 5.7% ticket price decrease. “Potential profits fall,” he adds.

Breitenmoser also says there are a lot more promoters besides the SMPA members. “The density of events in Switzerland is too high, which made the average utilisation decrease, another reason why individual promoters are having trouble earning a profit.”

Primary Ticketing

The ticketing leaders in Switzerland differ according to whether one looks at the B2C or the B2B markets. For B2C events the dominant force is Ticketcorner, a subsidiary of Eventim, followed by Starticket.ch. In the B2B sphere, Ticketportal (not to be confused with the Slovakian group of the same name) claims market leadership while Tixtec, the company of former Ticketcorner CEO George Egloff, says it plays an important part as well, although it’s a bit part player in the live music sector.

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Eventim's acquisition of Ticketcorner in 2010 was part funded by media conglomerate Ringier, which remains a minority stakeholder. In 2013, rival media group Tamedia bought 75% of Starticket, meaning ticketing is seen as content to those media partners and ticket offers are often part of the morning newspaper business.

Secondary Ticketing

According to many promoters, there is virtually no market for secondary ticketing in Switzerland. Still, efforts are being made to impose sanctions and the SMPA plans to exert pressure on the government to clamp down on ticket resales.

Distribution of Sales

Swiss promoters like Takk Productions’ Sebastien Vuignier, Opus One’s Vincent Sager and Pascal Roethell, who runs the Bierhübeli in Bern, all state that most ticket sales are made online.

Sales at the box office tend to be very low, although that changes when parties at clubs like the Bierhübeli are taken into account. For these kinds of events, up to 50% of visitors will purchase their ticket at the venue. The SMPA determines that 75% of tickets are sold online with mobile making up a tiny part of that. While 22% are presales at the booking office, around 3% are sold through call centres.

International/Domestic Splits & Genres

Switzerland is divided into four parts according to the language that is spoken in each region: German, French, Italian or Romansh. “Tickets are sold for international acts mostly. Local acts are quite small, especially in the French part where we operate mainly,” explains Sager. Eventim’s Ticketcorner dominates the German speaking part of the country, where Starticket is also strong.

The French speaking part of the country is a bit more fragmented in its ticketing set-up.

Numbers from the SMPA confirm that 1,756 international acts were booked last year, a dip of 8.8% compared to 2013. The number of Swiss acts booked increased by about 37% from 623 to 984. ●

TURKEY Language: Turkish Population (millions): 81.6 Currency: Turkish Lira (TRY) GDP/Capita (US$): 15,300 Music Revenue/Capita (US$): 0.6 Internet Users (millions): 36.9 Active Smartphones (millions): 21.4 Active Tablets (millions): 5.4

T

icketmaster’s local affiliate, Biletix, is the main player in Turkey and enjoys a near monopoly when it comes to concerts by international artists. Sport, especially football, is the main event in Turkey.

There are a number of smaller companies and sports events, which dominate the country’s ticketing business, but these tend to be processed by clubs’ own ticketing systems. “Biletix was founded in 2000 and is Turkey's leading ticketing company for live entertainment,� says MD Kemal Erdine. “We service events throughout Turkey via our award-winning website, call centre, retail outlets, mobile platforms, ATMs and kiosks.�

Local promoters underline the market power enjoyed by Biletix. “There are six or seven other ticketing companies in Turkey, but none of them represent any serious competition to Biletix, so they are hardly worth mentioning,â€? observes BarÄąĹ&#x; BaĹ&#x;aran of Pozitif Live. “There used to be a reasonably sized company called TicketTurk, but they do not exist any more.â€?

Home-grown Turkish acts represent about 90% of the market, both in terms of ticket sales and revenues, but the majority of these tickets are sold directly through venues or smaller ticketing entities.

IF I KNOW AN ACT IS CAPABLE OF SELLING 1,000 TICKETS, I WILL PUT THEM IN A 600-CAP VENUE TO MAKE SURE THEY CAN PLAY A 1,500-CAP VENUE NEXT VISIT

Primary Ticketing

With a population of 78million people, Turkey is a huge market and local promoters say it would make sense from everyone’s point of view for another significant ticketing business to enter the market. “If I was Eventim, I would target Turkey as a market for growth,� says Nick Hobbs of Istanbul-based Charmenko. “Certainly it would be good to have another big ticketing operator in the market from a promoter’s point of view. The opportunity to build a business in Turkey must be tempting too.�

Despite its dominance, Biletix doesn’t have things all its own way.

Ankara-based MyBilet has a small market share and recently TixBox, owned by The Alchemy Project in Dubai, bought local company Sosyotix. “It’s too early to say whether TixBox will make the necessary investment to properly compete with Biletix,� says Hobbs. One knockon effect the TixBox acquisition of Sosyotix has had, reportedly, is that Biletix has reduced commission rates.

Secondary Ticketing

Resales are not something that concern promoters in Turkey, according to BaĹ&#x;aran, who nonetheless observes that for the international superstar acts that visit the country, some tickets will occasionally find their way onto resale sites. Charmenko’s Hobbs

agrees. “There are very few gigs that sell-out, so the last thing a promoter worries about is secondary ticketing. It’s a very ad hoc market when it comes to touts and resellers.�

Distribution of Sales

BaĹ&#x;aran says around 80% of tickets are sold online, while the remaining 20% are purchased at venue box offices. However, with no print-at-home services, fans either receive their tickets through the post, or collect them from the ticketing company’s box office at the venue on the night. “Biletix will often have facilities to literally print tickets onsite at the venue because it’s common for a large percentage of walk-up business on show day,â€? says BaĹ&#x;aran.

Cultural Analysis

Due to this propensity to wait until show day before deciding whether or not to attend a show or event, promoting live music and other forms of entertainment in Turkey can be a nerve-wracking exercise. “With our greatest success story, we did not even know if we would break even until 24 hours before the event,â€? reveals BaĹ&#x;aran. “The fact that we don’t sell too many tickets in advance makes everything a lot more unpredictable in our territory.â€? To combat this, BaĹ&#x;aran explains, “Many promoters deliberately book smaller venues on an artist’s first visit, as a strategy. So, for instance, if I know an act is capable of selling 1,000 tickets, I will put them in a 600-capacity venue so that I can leverage that demand to make sure they can play a 1,500-capacity venue on the next visit.â€?

In other ways, Turkey is typical of many of the Eastern European markets, according to BaĹ&#x;aran. “A lot of tickets are sold on the day of a show – it’s not surprising if 50% of the ticket inventory is unsold before the show date.â€?

Most tickets are not scanned by venues, but are rather torn at the access points to venues and events. However, companies like Biletix are trying hard to provide more ways for consumers to get hold of their tickets. “Currently we are working on integrated solutions with mobile service providers to simplify ticket buying and delivery processes,�

Erdine reveals.

The Biletix chief adds that ‘lay-away’ facilities that many fans use to buy tickets can complicate matters. “In Turkey, credit-card instalment payments are very popular and important in retail. We are able to offer three to six instalments to leading bank credit-cards, which covers nearly 90% of all cards,� Erdine says.

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Taxes and Charges

Turkish promoters state that service fees charged by ticketing companies in the country typically run at approximately 10%, while fans pay set fees per ticket. BaĹ&#x;aran says booking fees are roughly 5%, while credit card fees will add another 4% on top for fans.

One major challenge to the business is tax – tickets are subject to 18% VAT and 10% entertainment tax. “We believe lowering and spreading a more meaningful tax rate would increase the number of events,� Erdine states. “One of the biggest opportunities is Turkey's multiple bids to big sports events like the Olympics and the big events happening in neighbouring countries.� �

INTERNATIONAL TICKETING YEARBOOK 2015

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One Direction broke ticketing records when Done Events promoted the band's April 2015 show at The Sevens Stadium

UAE Language: Arabic, English Population (millions): 9.3 Currency: British Pound (GBP) GDP/Capita (US$): 37,300 Music Revenue/Capita (US$): 21.0 Internet Users (millions): 55.9 Active Smartphones (millions): 58.1 Active Tablets (millions): 25.5

P

owered by western expats, the United Arab Emirates has an estimated million-strong audience of gig-goers among its 9.3m population. Since 2013, the wider ticketing system in Dubai, the UAE's busiest entertainment market, has been operated directly by the Department of Tourism and Commerce Marketing, allowing hotels, airlines, tour operators, travel agents and ticketing agencies to plug into the system. In Abu Dhabi, by contrast, the ticketing business has no state involvement.

Primary Ticketing

At the time of writing, Time Out Tickets had suspended operations in Dubai due to a dispute with the government over data ownership, although it remains active in Abu Dhabi, Qatar and Oman.

Ticketmaster has a UAE presence, along with local player Platinum List and bricks-and-mortar retailer, Virgin Megastore.

Secondary Ticketing

Secondary ticketing hasn’t made it to the United Arab Emirates in its corporate form, and scalping is technically illegal, though resale tickets can be found through classified ads. Big shows still employ certain measures to head the scalpers off, such as requirements for proof of ID and receipt at the point of collection.

Distribution of Sales

Ticketing companies in the UAE sell online, over the phone and in shops. “There are still parts of our audience that prefer to shop over the counter,� says Thomas Ovesen, COO at local promoter Done Events, though he reports 90% of sales are now online. Tickets can be printed at home, collected from a venue or a partner shop, or sent by courier, though there is no ordinary postal service.

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Tickets, even for ultimately popular shows, typically sell slowly. “Unless it’s a massive act, very rarely do concerts sell-out well in advance,� says Greg Dufton of promoter Think Events. “You can often sell up to 35% of your tickets in the last week.�

International/Domestic Splits & Genres

The UAE’s live music business focusses on western acts and DJs, catering mostly to the western contingent of the emirate’s large expat community. One Direction in April and Justin Bieber in 2013 were the biggest shows Dubai has seen.

Cultural Analysis

With limited delivery options and relatively undeveloped database marketing operations, the ticketing options are fairly basic, according to Ovesen, who ultimately plans to develop his own ticketing agency. “Ticketing here is not sophisticated or developed at all, to be honest,� he says. Unlike other territories, there is a keen interface between ticketing and travel, tying in concert attendance with hotel and airline packages.

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Value of Market

The value of the live music market in the UAE is not yet recorded. Concerts in the country typically involve heavy grace-andfavour tickets for local dignitaries and their entourages, meaning that the number of ticket sales is not a true reflection of the value of an event.

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Taxes and Charges

The Dubai government imposes a 10% gross tax on every ticket sold. There is no equivalent in Abu Dhabi. Ticketing providers charge standard rates in both markets. â—?

UKRAINE Language: Ukrainian Population (millions): 44.4 Currency: Ukrainian Hryvnia (UAH) GDP/Capita (US$): 8,200 Music Revenue/Capita (US$): N/A Internet Users (millions): 7.7 Active Smartphones (millions): N/A Active Tablets (millions): N/A

T

he Ukrainian ticketing market consists of several established ticketing agencies, independent promoters who sell tickets on their websites, self ticketing concert halls, Direct2Fan (via the local branch of Ticketforevent.com), and aggregator systems like Front Manager and FlashBox, which are gateways for a multitude of small operators.

The most developed, dynamic and competitive market is in Kiev.

Generally, each ticketing agency and concert hall (depending on their size) has their own platform for ticket sales.

In Kiev, the major players are Parter.ua with 35% (although they don’t have offices in the region), Karabas.com (part of Russian operator Kassir.ru) with 15%, Concert.ua with 10%, Kasa.in.ua with 5% (concerts only) and Ticketforevent.com with 2%. The remaining ticket sales are shared between concert halls, services, promoters, speculators and small agents such as Kassir24.com.ua, Internet-bilet.ua and Ukrticket.com.ua.

Across the rest of the country, no definitive market data is available.

However, Karabas.com covers all regions with other companies such as Internet-bilet.ua, Kassir24.com.ua, Ukrticket.com.ua and Gastroli.ua among Ukraine's other ticketing providers.

Distribution of Sales

Sales channels in Ukraine consist of transactions through company offices, the offices of their partners and concert halls (offline).

Meanwhile, electronic ticket sales through websites, sales via social media apps and mobile applications such as Gastroli.ua are growing.

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Value of Market

Due to the ongoing political unrest, the value of the ticket market in Ukraine can only be estimated. However, in 2013, research was conducted by communications company, InterMedia, which gathered data from more than 40 experts in, and related to, the ticketing industry. That allowed them to value the ticketing industry at around €76million, with Kiev alone accounting for about €48m of that (made up of 6m ticket sales at an average price of €8 each).

Since the conflict in Ukraine began, those working in the country say the market has been decimated and, anecdotally, they report that only about a quarter of the level of business is now taking place, putting the current market value for Ukraine at about €19m now that Russian artists and international tours have stopped visiting completely. ● This report was prepared by Vladimir Kravchenko, general director of Coliseum Music Conference, using research conducted by communications company, Intermedia.

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Millions of people apply each year for tickets to Glastonbury Festival, which sells out months before any of its hundreds of acts are announced

UNITED KINGDOM Language: English Population (millions): 63.7 Currency: British Pound (GBP) GDP/Capita (US$): 37,300 Music Revenue/Capita (US$): 21.0 Internet Users (millions): 55.9 Active Smartphones (millions): 58.1 Active Tablets (millions): 25.5

T

he British blockbuster live music market was never severely damaged by the grim economic weather stemming from the 2008 crash. And now with the country’s economy generally solid and with spending power creeping back up across England, Northern Ireland, Scotland and Wales, this powerful market rolls on. Moreover, with the UK being a world leader in the ticketing business, it's not surprising that game-changing operations such as Dot Tickets have emerged from the minds of British ticketing boffins.

For a number of years, the nation’s biggest promoter, Live Nation, has been linked with major promoters MCD, SJM Concerts and Metropolis Music in the ownership of the Academy Music Group venue chain, while LN also has a major stake in Festival Republic.

Live Nation’s dominance also helps Ticketmaster maintain its market leading position. At press time (August 2015) the Live Nation/Gaiety Holdings JV acquired Mama Group, giving it – and Ticketmaster –

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further reach into the venues, concerts and festivals sectors.

Ticketmaster UK managing director Andrew Parsons highlights the company’s strength. “Across its website, mobile apps, social presence and a customer database of over 13.5 million live entertainment bookers, Ticketmaster continues to offer its clients an unrivalled level of reach and distribution.”

But even the smaller end of the market reports strong growth. “We have never sold more tickets than we are selling right now,” says Mark Gasson of Nottingham-based primary ticketing company Gigantic.

“There’s more and more tickets to be sold year-on-year, and it’s just making sure you are equipped to attract business from promoters and festivals, to sell those tickets and to fulfill those sales.”

Primary Ticketing

The most competitive ticketing market in Europe, the UK plays host to plenty of global ticketing players, as well as a wide variety of challengers and start-ups. In 2009, the Office of Fair Trading estimated Ticketmaster held a UK market share of 40-50%, although

entertainment, theatre and sports), and it remains an enormously thorny subject.

Steps are being taken, however, to inhibit the market. In March 2015, legislation was introduced, obliging the four leading ticket resellers, GetMeIn!, Seatwave, StubHub and market-leader Viagogo, to provide details including the face value of the ticket, the seat number and any applicable restrictions. However, operators have sidestepped the rules by shifting responsibility for uploading those details to the fans that use their platforms to exchange their tickets.

Nonetheless, many promoters and festivals have agreed deals with resale partners, while Ticketmaster has its own operations through GetMeIn! and Seatwave, and AXS has a deal with StubHub.

Distribution of Sales

In a market that conducts the vast majority of its business online, the main story in UK ticketing distribution is the fast growth of mobile, which for most operators now accounts for at least 30% of

MOBILE IS KEY - THE ABILITY TO DISCOVER, PURCHASE AND HAVE YOUR TICKET ON AN APP IN YOUR POCKET

that was based only on arena shows. That figure fell a little, in the face of increased competition, although Ticketmaster’s contracts with the SSE Hydro Arena in Scotland, and a strengthened hand with SMG’s venues, has undoubtedly clawed back some market share.

See Tickets claims the second-place spot behind Ticketmaster, “but I don’t think [we] are that far ahead,� comments CEO Rob Wilmshurst, who puts the company’s share at around 25% of the primary market.

Also in evidence are AEG’s AXS platform and German operator Eventim, as well as a host of primary sellers including Gigantic, The Ticket Factory, Ticketline and Skiddle, most of which also offer white-label services to venues and artists on a variety of terms.

Oxford-based WeGotTickets also carves out a sizeable niche for itself, allowing thousands of small events to self ticket, while also scaling up operations to ticket a number of music festivals. Meanwhile, the merger of Crowdsurge and Songkick could create a significant rival to the existing players.

UK operations such as the anti-touting, fee-less Una Tickets are launching on the basis of their transparency, while Manchester’s Fatsoma uses social media to turn customers into commission-earning sales reps. The curated, app-based DICE service has been touted as an Uber-style ticketing disruptor, and ShowMango, which offers £25-a-month (₏35.26) admission to selected concerts and club nights in London, aims to apply a Netflix/Spotify-style subscription model.

MusicGlue is another minnow growing its business in the lucrative British market, while the UK is also one of the strongest countries for ever-present international player Eventbrite.

Secondary Ticketing

The secondary sector, with its soaring, demand-driven prices, is reckoned to be worth more than ÂŁ1bn, or â‚Ź1.4bn (covering live

sales. “Within two years, mobile will be bigger than desktop for sure,� says Wilmshurst, who reveals that See transacts 35% of its business via mobile.

Large ticketing operators still maintain phone lines for those who would rather buy tickets the old-fashioned way – though contact centres mostly deal with customer service queries, rather than sales. But a mobile-driven strategy is the real must-have, both for browsing and buying. “It’s got to the point where if you are not mobile first, you are starting to get into trouble,� says Rob Williams, director of technology and innovation at the NEC Group’s Ticket Factory, which licenses the Audienceview platform.

With smartphone tickets increasingly common, the paper ticket, and even the printed e-ticket, could fade away. “Mobile is key – the ability to discover, purchase and have your ticket on an app in your pocket,� says Daniel Brown, vice-president marketing and digital services at AXS. At a back-end level, the UK presents a relatively sophisticated technological challenge for ticketing companies, on several fronts.

Many festivals offer increasingly numerous and complex ticket options, all of which require rapid and accurate back-end tweaks if they are to be presented online. For everyday shows, features such as waiting rooms (which allow fans to fill in their payment details before tickets are released for sale), and options for buyers to hold adjacent seats for friends without buying them, have become commonplace.

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Value of Market

The live music market generated £789million (₏1.1bn) of economic GVA (gross value added) in 2013 [source: UK Music’s Measuring Music report]. In terms of ticketing, using the 3% of gross receipts that PRS For Music received from concerts and festivals, in 2011, the UK sales of tickets to live performances were estimated at £1.6bn (₏2.3bn).

International/Domestic Splits & Genres

London’s status as one of the world’s most international cities ensures there is a healthy expat market for prominent acts from virtually any corner of the world, though mainstream appetites are largely for UK and US pop, hip hop, rock and dance music.

The average age of festival-goers has risen to 30-plus in recent years,

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Scotland's SSE Hydro was second in Pollstar's top 100 worldwide venues in 2014. Take That played two sell-out shows at the arena in 2015

WE KNOW WHO IS GOING TO A GIG, FROM MAYBE A YEAR BEFORE - WE KNOW WHAT FANS LIKE AND WHAT THEY BUY owing to rising prices [source: MSN], but that generally means the crowds are more affluent than in other countries. At the same time, well-off, older gig-goers ensure that touring has become a healthy retirement plan for credible comeback acts and pop artists on nostalgia jaunts.

Cultural Analysis

The UK’s live music market, at the top end, is one of the healthiest in the world. Sold-out tours are common, credit card use is high and ticketing websites are trusted to the point that scams take place for festival tickets every year.

But for the industry, the UK live music market harbours all the conventional long-term worries: a shortage of headline acts coming through, a possible softening in the festival market, and the particular challenges of a corporate world. Ticketing companies aren’t immune and most have their own strategies for addressing such issues.

See Tickets, for instance, is focussing on areas where Ticketmaster UK is less deeply embedded, such as in events by smaller promoters.

“Our business is as much about the long tail as it is about 60,000 people in a field,” says Wilmshurst. “It’s about providing a distribution

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network of millions and millions of consumers to the guy that is putting on a gig at The Dog & Duck.”

But ticketing also has deeper concerns. There is a realistic awareness that the market could be disrupted if it doesn’t use its assets, particularly its data and its first-hand contact with the consumer, to offer real value to fans, artists and promoters.

“The concept of ticketing is disappearing because tickets are disappearing,” says Williams at The Ticket Factory. “But at the same time, we are the only people who know who is going to a gig, from maybe a year before – we know what fans like and what they buy. So we need to get more involved, because if not, then direct-to-fan and crowdsourcing sites will.”

For his part, Ticketmaster MD Parsons says, “We have had a focus recently on supporting new talent by creating a scheme called Ticketmaster Rising, a platform on our website to showcase videos of up-and-coming artists across all genres. We have also sponsored the Greater London Authority’s ‘Busk in London’ scheme.”

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Taxes and Charges

VAT at 20% is payable on concert tickets in the UK. Booking or service charges are less standardised but come in at an average of 11% of the face value of a ticket, with additional charges for delivery, collection and home printing. Secondary ticketing companies typically charge a fee of 10-15% to the buyer and a similar amount to the seller.

Discussions with the Advertising Standards Authority, alongside a campaign by consumer charity Which?, resulted in a number of ticket companies last year displaying all added costs upfront alongside the face-value price. ●

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The two weekends at Coachella Festival in California involve a huge range of ticketing options and upgrades

UNITED STATES Language: English Population (millions): 318.9 Currency: US Dollar (USD) GDP/Capita (US$): 52,800 Music Revenue/Capita (US$): 15.4 Internet Users (millions): 260.2 Active Smartphones (millions): 270.1 Active Tablets (millions): 125.3

T

he biggest live music market in the world is, unsurprisingly, also the biggest market for live entertainment, meaning that even relatively small players in the United States can have fairly substantial businesses. But venue exclusivity deals means that the dominant companies dwarf the opposition.

Primary Ticketing

There are currently in excess of 40 ticketing system competitors in the US. Many of these vendors tend to specialise in specific ticketing sectors. Some of the major players include Ticketmaster, Paciolan (Spectra), Tickets.com, Tessitura, Audienceview, Etix, AXS and Gateway.

According to a survey conducted in 2014 by the International Ticketing Association (INTIX), a widely recognised non-profit membership organisation for the entertainment ticketing industry, venues and organisations within the US market continue to “utilise a wide variety of ticketing platforms” with the most widely used

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being “Ticketmaster Archtics (15%) and Ticketmaster Classic (14%), followed by Tessitura (12%) and Paciolan (10%).” Archtics is TM’s B2B solution, while Classic is their B2C platform that fans tap into to purchase tickets.

Aside from direct ticketing software providers, there are a number of distributors that are powered by third-party ticketing technology.

In some cases, these distributors are geographically based, while others participate throughout the US. Furthermore, some form consortiums serving multiple organisations within a locale using one ticketing system licence. Examples of these are TicketsWest, Ticket Alternative, and Ticketstar.

The functionalities that each platform offers range from simple self-op, easy-to-use apps to robust ticketing platforms that incorporate CRM, subscription sales, and fundraising tools.

Technology is ever-evolving in this space and both venues and consumers are demanding with regards to innovations and the latest functionality. Social media, loyalty programmes, dynamic pricing and mobile “everything” are the current industry hot topics. To be

successful, there is a strong need for platforms to have robust CRM and analytical tools and offerings.

Venues are collecting a wealth of rich data about customers through a multitude of touch points and data sources. Ensuring that data is compiled cleanly in one central location (data warehouse) helps drive more accurate actionable information. However, some of the major players still use antiquated system infrastructures and/or technologies.

By and large, ticketing is a reactive industry space in terms of innovation.

There are several organisations/conferences held regularly that are considered a significant way to gain product and best practice awareness. These include: the International Ticketing Association (INTIX), which has an annual conference in major cities; vendor user groups – ticketing platforms host annual user meeting for their clients; regional ticketing associations – regionally organised ticketing groups throughout the US that meet periodically to advance ticketing as a whole; FutureTix Ticketing Symposium – held annually in varying cities; the National Association of Ticket Brokers – annual conference for secondary market; along with a number of other conferences with a ticketing presence – IAVM, SEAT, NACDA/CABMA, ALSD and ARTS.

Secondary Ticketing

Secondary sales (consumer or broker resale) of tickets play a major role in the market. There are a number of secondary market organisations throughout the US, consisting of both bricks and mortar, and online web-based solutions. The laws, statutes and regulations regarding the resale of tickets vary from state to state and even down to the local municipality level. Some estimates say that over $8billion (â‚Ź7.3bn) worth of tickets are resold each year, although this is across the board and sports fans account for a significant chunk of those resales.

The lines between secondary and primary are becoming blurred as many primary sale organisations now participate in the secondary market, including system integrations.

Contrary to popular belief a large percentage of tickets are sold under face value as a means for season subscribers to recoup some value for unwanted events. Because of this, the US is now on the threshold of entering into an environment where the primary seller will resell tickets through consign back concepts and/or sell ‘no show’ inventory.

Distribution of Sales

According to the US Live Event Attendance Study, conducted

by LiveAnalytics in June 2014, Americans purchasing tickets to live events (sports, concerts, arts/theatre and family shows) do so via online (44%), box office (20%), season ticket or plans (4%), ticket outlet centres/retail (3%), phone (3%), and other, including mobile apps (26%).

Trends indicate that purchases via mobile devices continue to increase. An additional study conducted by LiveAnalytics in May of 2014 showed that “84% of live event attendees have a smartphone, in comparison to 75% last year,� and that “16% of smartphone owners regularly purchase live event tickets on their smartphone, up from 12% last year.�

There are many relationships/integrations that are required to flourish in this space. These vary from niche software providers (Pogoseat) to secondary market (StubHub) to daily deal providers (Groupon, Goldstar, ScoreBig, Living Social, etc). According to the 2014 Annual INTIX Member Survey, respondents used “Goldstar (19%), Travelzoo (15%), Groupon (14%) and TicketExchange – operated by TicketMaster (13%).�

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Value of Market

The marketplace boasts over $22bn (â‚Ź20.2bn) in primary ticket sales and is actually growing in terms of number of tickets processed.

People have begun ticketing events that have never been ticketed before, including fairs, festivals, exhibitions, college graduations, high school sporting events, and local fundraisers. The live music market accounts for a sizeable chunk of the overall primary sales, with Pollstar reporting the 2014 market value at $6.2bn (â‚Ź5.7bn).

For the most part, venues and organisations reside within a feebased environment (per ticket fees, order fees, etc). In many cases, it is these fees that drive the revenue that can be shared with the ticketing software provider. However, some venues are moving away from traditional fee arrangements and are looking at charging fees more as a consumer behavioral control in order to create efficiencies. There is also

CONSUMERS DEMAND CHOICES AND IF ORGANISATIONS DON'T PROVDE THEM, THEY COULD SEE A LOSS IN POTENTIAL REVENUE. a growing undercurrent toward all-in pricing where face value is the total the consumer pays for a ticket.

Ticketing platform vendors provide their services in a number of ways from a financial perspective including arrangements that vary from retaining all or part of the consumer fee to a straight licensing fee or combinations thereof. Additional items incorporated in a deal may include signing bonuses, cash advances, sponsorships, marketing allowances, premium seat purchases, onsite support, hardware, thirdparty software, guaranteed technology deliverables, ticket stock, and more.

International/Domestic Splits & Genres

The US primary ticketing marketplace is comprised of 13 distinct sectors that have varying technological requirements as well as different business requirements and models. These are: major professional sport, minor league sport, top-tier arena, mid-tier arena, university/college – division 1, university/college – other, performing arts (commercial-for-profit), performing arts (non-profit), concert/ promoter, fair/festival, restaurant/club, attraction/museum/casino/other, and self op.

Cultural Analysis

Live entertainment ticketing is an affinity-based industry, and for many years venues and organisations could dictate policies (eg best available seating, no returns or exchanges, strict pricing and fees) and fans had no choice but to follow. Today, however, after just emerging from an economic recession with limited discretionary dollars, consumers demand choices and if organisations don’t provide them, they could see a loss in potential revenue. Because of this, ticketing providers have begun to allow for many different methods of distribution, price points and terms.

That being said, according to the study by LiveAnalytics, the overall number of Americans attending live events in 2014 (50%) is relatively consistent with 2013 (51%). Furthermore, the average number of events attended in 2014 (5.3) has seen a slight decrease since 2013 (5.5) but remains steady.

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Taxes and Charges

Taxation on tickets in the United States is governed on a state and local municipality level and varies greatly from no taxes or regulatory fees to areas that have several types of surcharges added to the ticket face value. â—?

Prepared by Dan DeMato & Kelly Brennan, FutureTix, Inc. in conjunction with INTIX resources.

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