These numbers are crazy!!!
Via a MusicAlly piece by Eamonn Forde: Mark Meharry, CEO of Music Glue, has been speaking to UK artist managers for the past six months about what he is terming the “ticketing paradox” and why artists need to pool resources and power to address it and drive positive change.
He adds that the money “lost” to secondary each year is bigger than the total size of the subscription streaming market – an area that invokes the ire of artists and produces substantially more column inches than secondary. Here, he argues, is the real “value gap” and is something the industry needs to tackle head on.
“Considering the amount of money being left on the table because of secondary ticketing, why is this model now in place?” he asks. “And do we need to do something about that?”
He has gone through the publically available company numbers for Ticketmaster (owners of Get Me In! and Seatwave) and eBay (owners of StubHub) to try to place a monetary value on the issue.
“Live Nation’s secondary ticketing revenue, as far as I can see, in 2013 was $400m; in 2014 it was $900m; and in 2015 it was $1.2bn.Good Lord! StubHub in 2015 made $1.06bn. The IFPI reports that the total trade revenue from music subscriptions last year was only $1.6bn,” he says.
“So for two companies, Live Nation and StubHub, the combined revenues from secondary ticketing last year were $2.6bn while subscription was only $1.6bn – and yet all we ever talk about in the trade press is, ‘Spotify this, YouTube that and how it’s not fair we are not getting enough money from these various services.’ Yet there are two companies operating away and earning a bloody fortune – and we are sitting by and watching it happen.”
Read the full piece: