Primary market penetration
eBay’s (EBAY) StubHub is the largest ticket marketplace in the United States. It’s a platform where buyers and sellers meet and trade thousands of tickets for live events such as sports, concerts, and the performing arts.
In February 2016, StubHub announced that it would launch a new ticketing platform for rights holders. Until now, StubHub was serving the marketplace that connects buyers and sellers to ongoing events in the secondary market.
However, with this launch, StubHub can provide end-to-end ticketing solutions in the primary market by partnering with the Philadelphia 76ers, which will provide fans with a single source for all tickets.
StubHub’s market share
During the recent quarter, StubHub generated $3.6 billion in GMV (gross merchandising volume), a rise of 30% YoY. Its revenues were $725 million out of eBay’s total revenues of $8.6 billion. StubHub’s performance was primarily driven by its product development, including pricing display changes and mobile app updates, which were followed by strong demand for sports and concerts.
According to Bloomberg, StubHub has more than 50% of ticket-resale market share, followed by Live Nation Entertainment’s (LYV) Ticketmaster, which has 11% market share. StubHub provides a feature that Ticketmaster doesn’t: It allows the user to see the actual view from the chosen seat before buying a ticket.
Apart from this, it also provides “best value offering” and “instant relisting” options to streamline the process of ticket buying and reselling. Buyers or sellers can get the best offer listing based on their search parameters. They also have the option to resell the same ticket immediately after buying. In fact, users can recycle the process of buying and selling tickets multiple times, as the company benefits from each transaction by charging a booking fee.