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

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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
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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)....
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This note was uploaded on 02/24/2010 for the course ECO 126 taught by Professor J during the Spring '06 term at The School of the Art Institute of Chicago.

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