Memorandum submitted by Tickex.com
TickEx is a search engine for tickets to live
events—concert, theatre and sports. In one simple search,
TickEx gives people seeking tickets free access to the largest
selection of tickets in the UK, from all the major primary and
secondary brokers. This means consumers can see availability and
pricing for events they want to go to in one easy to use website.
(1)
At TickEx we really aim to provide the consumer
with the tools to get the best deal possible on a ticket, no matter
when they decide to buy in the sales cycle. Our search engine
keeps a close eye on changing availability from the main primary
sellers (TicketMaster, See Tickets etc), so consumers can be sure
they are not missing out on lower cost tickets when they decide
to buy. (2)
We set up Tickex so that fans can get access
to all the information they need to get the best possible deal
on a ticket, whenever they decide to buy. We also only try to
include sites in our listing that are legitimate enterprises,
with at least a minimum standard of T's&C's. (3)
(1) THE UNDERLYING
CAUSES OF
TICKET TOUTING,
AND ITS
IMPACT ON
PERFORMERS, PROMOTERS
AND THE
PUBLIC
— It is important to identify there
is a clear difference between outright deception/fraud practiced
by individuals selling fake tickets, and the re-sale for profit
of genuine tickets. (4)
— We believe the underlying causes
of ticket prices rising above face value are:
— Poor information for consumers.
Our research indicates that some 20% of tickets purchased in the
secondary market were still available to be purchased at face
value in the primary market. This is because primary channels
provide poor information for consumers, leading to assumption
on the availability of tickets. This was a key factor that brought
to attention the public need for a ticket search engine.(5)
— Natural market forces of supply/demand.
Tickets are often put on sale at one time, at a flat price. The
promoters do this as they are in a business with cash flow challenges
e.g. they need to start paying for the venue, advertising etc
several months before cash for tickets flow in. This will inevitably
lead to an after-market for tickets. This should be contrasted
to the more sophisticated demand based pricing models used by
airlines.(6)
— Consumer experience. The consumer
experience (particularly internet) of buying tickets through primary
channels is so poor that individuals with less spare time/higher
income are willing to pay a price to avoid this. They would, in
essence, prefer not spending time on jammed websites and phone
lines but rather pay the premium to purchase at leisure on the
secondary market.(7)
— There appears to be no significant
negative impact on artists or promoters of the secondary market.
The fraud/deception is clearly a problem for the consumer (public).(8)
(2) WHETHER OR
NOT RESALE
OF A
TICKET, AT
FACE VALUE
OR AT
A HIGHER
VALUE, SHOULD
BE PERMITTED
IN PRINCIPLE;
AND WHETHER
THE ACCEPTABILITY
OR OTHERWISE
OF RESALE
DEPENDS ON
THE CIRCUMSTANCES
IN WHICH
TICKETS ARE
OFFERED FOR
RESALE
— We believe this is really a consumer
issue, and our research indicates that consumers overwhelmingly
want the rights to transfer ownership of tickets that they buy.
We do not see a good reason for the government to stand in the
way of the transfer of private property between individuals, unless
there is a serious health or criminal issue associated with the
property. It would seem heavy handed to say the least to make
selling a ticket "illegal" unless it is done through
one of the current large primary agencies. (9)
The ticket market is fundamentally no different to
that for other consumer purchases, and therefore conditions should
be allowed where tickets can be transacted at their fair market
value. Whether this is above (or below—something that happens
frequently but does not receive much attention) face value should
be a matter for market forces. (9a)
Banning the transfer or onward sale of tickets appears
to us to be a significant step toward a "planned" economy.
We would be interested to see how this might extend to (say) the
housing and car markets. We believe that the market should be
allowed to find a cure for this problem by providing a solution
to consumers that is so good that they no longer need to access
traditional "touting" channels. (10)
— We also believe any intervention
in this area will only support anti-competitive practices by current
major incumbent ticketing companies. It is clear that certain
primary sellers are attempting to control the secondary market
for their own gain by government lobby on this subject.(11)
(3) THE IMPACT
OF THE
INTERNET UPON
TRADE IN
TICKETS
— We believe the internet can serve
as a great leveller, for both the consumer (pricing) and the venues/artists
(reduces power of entrenched ticketing companies). At the moment
this is not working as well as it could.(12)
— The internet has also, however, allowed
dubious traders to set up quickly, and offshore. This is a new
channel for fraud in this category (13)
— We believe new services, like our
search engine for tickets, will help solve the current problems
with market information for consumers, thereby helping them get
the best price possible, whenever they decide to buy. (14)
(4) WHETHER OR
NOT TICKETS'
TERMS AND
CONDITIONS BANNING
TRANSFER AND
ONWARD SALE
ARE FAIR
OR ENFORCEABLE
— The T's & C's for banning transfer
and onward sale appear neither fair nor enforceable. We reference
our point in paragraph (11), that this would only support anti-competitive
behaviour. (15)
(5) THE MERITS
OF NEW
APPROACHES BY
TICKET AGENTS
ATTEMPTING TO
PREVENT TRANSFER
OF TICKETS,
INCLUDING WIDER
USE OF
PERSONAL ID; AND
(6) WHETHER OR
NOT THE
EXISTING OFFENCES
OF SALE
BY AN
UNAUTHORISED PERSON
IN A
PUBLIC PLACE
OF A
TICKET FOR
A DESIGNATED
FOOTBALL MATCH,
OR FOR
EVENTS AT
THE LONDON
2012 GAMES, SHOULD
BE EXTENDED
TO COVER
OTHER SPORTING
OR CULTURAL
EVENTS
June 2007
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