LOS ANGELES, July 26, 2018 /PRNewswire/ -- The event ticketing industry is rampant with fraud, hidden fees, scalping and sky-high secondary market resale prices. To examine this issue in depth, Aventus, an open-source blockchain-based ticketing platform, commissioned a survey and found consumers are frustrated with the current event ticketing process.
The results of the study suggest the process of purchasing event tickets is flawed. In fact, 11% of millennials said they had fallen victim to ticket fraud. As digital natives, millennials tend to feel more comfortable providing information and purchasing items online, which can lead to an increased likelihood of being scammed.
"It's time for the ticketing industry to embrace new technology to give organizers, venues and artists the tools to safeguard against scalping and unfair pricing," said Annika Monari, Co-founder of Aventus. "By using an entirely fair and secure blockchain-based system such as Aventus, buying and selling tickets can be made easier for fans. Plus, organizers can take full control of their inventory, which builds greater trust with their customer base."
Extra fees, which are often added to already inflated ticket prices, represent another important pain point for consumers. Unsurprisingly, roughly 89% of those surveyed find hidden fees during the checkout process frustrating, and 81% do not believe additional service fees are justified. It's fitting, then, that ticket buyers are expecting ticketing platforms (57% of respondents) to protect them from excessive prices, followed by event venues (14%) and the government (11%).
These flaws in the system have driven event goers to pursue other methods of purchasing tickets. Over 31% of respondents have purchased an event ticket from a scalper. If nearly a third of event goers have turned to a potentially illegal and dangerous method of purchasing tickets—with no guarantee of ticket authenticity—the existing structure clearly has major issues.
Advances in technology have led to an increase of computer programs called "bots," which can perform any number of actions online. These bots have hijacked the ticketing industry, purchasing around 60% of major event tickets (according to Ticketmaster) then listing them at a significant markup on secondary market sites. This process has become standard, but over 85% of U.S. consumers who have purchased tickets online feel it's unethical.
"Our goal at Aventus is to bring a more fair and secure means of ticketing to the live entertainment industry," added Alan Vey, Co-founder of Aventus. "Consumers will benefit from fairer pricing strategies and increased confidence in ticket legitimacy while organizers, venues and artists gain more control over inventory throughout the ticketing supply-chain."
Other interesting facts include:
- 60% of respondents have used the secondary market site Stubhub, where bots commonly list marked-up tickets
- More millennials (over half) have paid above face value for tickets than any other generation
- Respondents who had purchased tickets from a scalper were four times as likely to fall victim to ticket fraud than those who had not
Aventus is a blockchain-based protocol that delivers increased trust, security and control for the live-event ticketing industry, practically eliminating counterfeit tickets and unfair scalping. Organizers can create, manage and promote their events and associated tickets, dramatically reduce platform costs and significantly influence secondary markets.
*Aventus surveyed over 1,000 consumers who have purchased an event ticket online in the United States.