the US$1.1 trillion event ticketing industry It’s in crisis mode.
Far from connecting fans to the shows they want to watch, Web2 has allowed an entire industry to profit from the popularity of big events at the expense of fans and the live event community.
Before the digital revolution, ticket scalping was limited to a handful of bad actors, offering out-of-venue tickets at inflated prices to fans who had missed the box office. When the world went digital with Web2, it gave scalping a platform on which it could thrive. The convenience of digital distribution, coupled with the inability to control the resale of electronic tickets, created a global market for resellers seeking to capitalize on fans’ desire to attend shows.
Since the adoption of digital ticketing, event ticketing and reselling issues have gone from a mild inconvenience to a full-blown crisis, as evidenced by the recent Taylor Swift concert ticket sales fiasco. Scalping has become so prevalent that fans have begun to accept that they will have a hard time getting tickets to big events. Anti-scalping measures such as dynamic price they affect fans and scalpers alike, which means that if you’re lucky enough to get a ticket to a great show, you won’t know the ticket price until checkout. Even then, it’s likely to cost much more than it should.
Essentially, fans have been left paying prices designed to deter scalpers or buying from the same scalpers at an even higher price.
Scalping is also partly to blame for ticket fraud, which in the UK alone costs fans around £1 million (US$1.2 million) each year. It is estimated that a huge 12% of all event ticket purchases are fraudulent.
Fans who miss out on major ticket sales are turning to social media and scalping platforms for tickets to their favorite shows. Unfortunately, they are waiting for the scalpers responsible for the crisis and the scammers who are capitalizing on the desperation of the fans to rip them off.
Current event ticketing solutions provide no additional utility and barely meet their goal of giving fans access to legitimate event tickets. The situation is so bad that social networks are flooded with complaints against the biggest names in the industry.
As well as the successful adoption of Web3 As industries like supply chain management and the art world continue to grow, it is about time the live events industry looked at blockchain technology and NFTs ticket sales as a solution to current problems facing fans.
Taylor Swift’s Ticketmaster Problems
The event ticketing industry’s myriad woes were recently highlighted by the fiasco that unfolded when Taylor Swift’s Eras Tour tickets went on sale. Despite Ticketmaster claiming that its verified fan program is designed to ensure that tickets find their way into the hands of real fans and not scalpers, many fans were left confused, frustrated and disappointed when the pre-sale went live.
Ticketmaster invited verified fans to join a virtual waiting room using a unique code before the presale went live. The procedure was supposed to help the website handle the increased volume of traffic and prevent scalping from buying lots of tickets.
Needless to say, it didn’t work.
Overall, more than 2,000,000 tickets were sold during pre-sale, the most ever sold by one artist in a single day. So many more than anticipated that Ticketmaster has now canceled the general sale, citing “extraordinarily high demands on ticketing systems and insufficient remaining ticket inventory to meet that demand.” Ticketmaster also admitted that “a staggering number of bot attacks, as well as fans not having invite codes, drove unprecedented traffic to the site,” essentially breaking it.
Within minutes, users were reporting problems with the Ticketmaster website, and later that day, it became clear that the sale had been a total disaster. Despite Ticketmaster’s best efforts to distribute tickets fairly, many verified fans were left empty-handed, and ticket scalpers once again walked away with a significant number of tickets for sale. Some Taylor Swift tickets were later seen on secondary markets like StubHub for up to US$22,000!
The result of this debacle was lost concert revenue, as well as legions of disappointed fans, something NFT-enabled ticketing could have prevented.
A transparent and fraud resistant platform
block chain and non-fungible token technology They are a natural choice for event ticketing. Blockchain provides a transparent platform on which tickets can be issued as NFTs. Also, proof of authenticity of NFTs could mean the end of ticket fraud.
However, the real magic of NFT ticketing comes with smart contracts. These self-executing pieces of code enable a completely reimagined ticketing secondary market that benefits fans, event organizers, and artists/performers. Secondary market smart contracts can exclude resellers and allow fans to pay less and event organizers and performers to earn more profit.
Smart contracts allow event organizers to set maximum prices, which means that there is a maximum resale price enforceable for an NFT ticket. So if a fan needs to sell a ticket because their plans have changed, the price caps allow for a healthy secondary market that gives fans the freedom to do so and prohibits scalpers from charging high prices and profiting from scalping.
Price caps provide flexibility for fans, but for artists and event organizers, NFT tickets with smart contracts also represent a great opportunity for a healthy secondary market that generates additional revenue.
Using smart contracts, event organizers can also determine royalty division, directing a fixed percentage of the proceeds from any secondary sale to a wallet address of your choice. A smart contract will apply this rule every time the NFT ticket is sold, meaning that instead of scalpers profiting from ticket reselling, the revenue goes to the people whose hard work makes live events possible. .
Price caps and royalty splits allow flexibility for fans and provide artists and event creators with a potential additional revenue stream while completely disrupting resellers’ ability to profit.
So, with NFT tickets eliminating fraud and reducing scalping, the fairer access and peace of mind fans enjoy since adoption will transform their ticketing experience.
But NFT ticketing platforms can also offer the entire live event community a number of additional benefits in a way that could elevate them beyond just access control. Through airdrops, NFT tickets can become the gateway to an immersive and connected live event experience.
Advantages of Web3 over Web2
Web3 can offer much more utility than Web2 in the way event organizers use their ticketing platform.
Using the blockchain that NFT tickets are hosted on, event organizers can see the wallet address of fans attending the event and launch them into fully-functioning NFTs before, during, or after the show.
The flexibility of when NFT assets are airdropped to ticket holders can provide a more immersive and extended show experience. These airdrops also provide fans with a tangible reward for their loyalty that Web2 platforms cannot offer.
Airdrops can be anything from rare videos, audio clips or images from the event, VIP passes, early access to future events, or discount coupons for food, drink, or merchandise.
The possibilities are nearly limitless in terms of how creative event planners can use airdrops to reward fan loyalty and enhance the live show experience.
It’s also worth noting that airdropped NFTs can be governed by the same smart contract functionality provided to NFT tickets, with price caps or royalty splits.
This way, event organizers and artists are incentivized to offer high-quality perks and rewards and allow fans to trade them in. Any resale of the airdropped NFT on a secondary market can generate revenue through a royalty split, potentially creating a perpetual revenue cycle for artists and event organizers.
Web3 is still an emerging area, but the technology is evolving. We are constantly seeing new ways that blockchain improves on current technology or innovates in a whole new area.
Of “attendance test” NFT a fan passes Bringing dynamism to fan clubs, Web3 enables fans to connect with each other and the artists they love more than ever. So while the live event community continues to suffer and Web2 ticket providers seem reluctant or unable to really address the problem of scalping, there is a growing realization that event ticketing could be so much more.
The initial hype around NFTs and cryptocurrencies has subsided, and the much-vaunted the metaverse still seems a long way away. But the utopian vision of a transparent secondary ticketing market, free of scalpers and fraud, with benefits for fans and versatility for organizers, is now more than just an idea. NFT ticketing is now a genuinely actionable solution, and the only thing left is to increase adoption by onboarding artists and fans.