Primary Market - box of ce Estimates of the total value of...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Primary Market Tickets are . rst sold in primary markets. To give an idea of the parties involved in the primary market, consider the organization of a typical entertainment event, like a concert, as illustrated in Figure 1. A promoter hires an act, rents a venue and the three agree on a revenue sharing rule. The promoter, sometimes together with the act, chooses the price of tickets and when to start advertising and selling tickets. The venue sells tickets through the box of. ce where the event will be held and the promoter (or the venue) also contracts with a ticketing agency. Tickets issued at the box of. ce or by the ticketing agent have a “face price” printed on them. Although the ticketing agency charges a processing fee on top of the face price, it typically sells a majority of the tickets because it can reach a much wider audience than the
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: box of. ce. Estimates of the total value of tickets sold each year vary greatly. Considering the concert business alone, Amusement Business estimates in 2000 that 44.3 million concert tickets had been sold for a total value of $1.6 billion worldwide. The world’s largest ticketing company, Ticketmaster, sold 86.7 million tickets in 2001 valued at more than $3.6 billion. According to Forrester Research, the market for event ticketing in the United States totalled $15.5 billion in 1999. Other estimates of the total market for tickets vary in the range of $7 billion to $60 billion, with the range depending on the set of events that are taken into account (Happel and Jennings, 2002)....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern