Profit margins declined as concertgoers searched for discounts or low-end seats during the recession.
Los Angeles, CA (PRWEB) January 30, 2012
The Online Event Ticket Sales industry has reacted to the ebb and flow of the US economy. Consumer sentiment and per capita disposable income levels have determined consumers' ability and willingness to attend events. When consumer confidence crashed in 2008, industry revenue declined 9.4%. Similarly, when personal disposable incomes fell in 2009 (for the first time since 1991), industry sales dropped 8.9%. According to IBISWorld industry analyst Nikoleta Panteva, "these substantial drops have caused industry revenue to decline at an average annual rate of 2.5% over the five years to 2012. Nevertheless, the number of internet transactions has underpinned online ticket sales growth over the long term and will continue to drive the industry".
The growing popularity of the internet has boded well for the size and profitability of the Online Event Ticket Sales industry. Over the five years to 2012, IBISWorld estimates that 22 new ticketing websites entered the market, totaling 265 currently. “While many of the existing participants are expanding their product and service offerings and extending their reach, new entrants are catering to niche audiences and clients” says Panteva. Although the number of small websites that sell event tickets has been growing steadily, larger companies in the industry have continued to consolidate, a trend that has boosted market share concentration over the past five years. For example, in 2010, Live Nation merged with Ticketmaster, which previously held a substantial share of online event ticket sales. Ebay’s Stubhub.com also represents a significant player in this industry.
As the economy slowly rebounds and consumers start to loosen their purse strings over the five years to 2017, demand for event tickets purchased online will return as well. Spending power is expected to drive industry revenue and industry players are anticipated to increasingly add customization and personalization to their products and services, targeting fans' specific tastes and locations. IBISWorld forecasts that sales per website will increase as a result of these efforts.
For more information visit IBISWorld’s Online Event Ticket Sales in the US industry page
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IBISWorld industry Report Key Topics
This industry includes e-tailers that sell tickets to live events. Ticketed events include concerts, sporting events, live theater, fairs and festivals. This industry also includes online ticket resellers; however, it does not include sales of tickets at brick-and-mortar outlets.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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