Verified Fan (TicketMaster/AXS App) Taking Tips from Nike SNKRS App

Verified Fan (TicketMaster/AXS App) Taking Tips from Nike SNKRS App

Has TicketMaster taken notes from Nike the past few years?  Recently, ticket prices have risen enormously.  There has been considerably less supply reaching the resale markets for the sold out / hot tours and teams.

Why is this happening all of a sudden?  Here we'll review the comparisons of how Nike helped eliminate fraud and reach their consumers directly and how TicketMaster/AXS and other ticket primary websites are doing the same.

In 2015, Nike launched the SNKRS app.  Alongside this, they began closing long term wholesale relationships (like FootLocker).  The SNKRS app allowed them to strongly collect consumer data across the globe, tracking interest/habits of Nike customers everywhere. 

The sneaker market, just like the live event ticket market, has many of the same issues.  Websites having trouble from too much activity, the frustration of people using bots (which are illegal!), and more.

Since 2015, Nike has increased anti-bot efforts.  They are still facing the same issue as TicketMaster though, the demand is too high for the available supply.

Recently, Nike stated that they are receiving 3.8 million sign ups for the one of the latest Travis Scott releases.  As time passes and their investment into anti-bot practices increase, they will be able to sort through accounts quicker and quicker, diminishing ability for people to take advantage of the system. 

The hard part is, we're in a capitalist society, and if there is a system that can be scaled, like signing up 10s or 100s of times to increase your odds ---you can be sure people will be doing it.

Luckily for Nike, they have to ship units out, so if they are working to 'fairly' distribute accross the world, they can do that.  If they want to reward accounts that post the most on social media / showing appreciation for the brand, they can do that too!

TicketMaster seems to be following quickly in their footsteps, in very similar ways.

In 2008, TicketMaster purchased TicketsNow - a large resale company for $265 million dollars.  It took awhile, but over the next 10 years, they began adding resale tickets directly onto their primary ticket exchange website.  Most if not all other ticket primary websites have similar procedures in place, effectively making them a one stop shop to buy any tickets, whether they are sold out, or not.

This allowed them to not only understand what prices people are willing to pay better, but build their own book of customers as well that simply have been missing the opportunity to purchase tickets originally as they went on sale.

Fast forward to 2022, and the troubles with Taylor Swift's tour not being anywhere close to reaching demand.  Fans were in uproar, outraged that they were unable to buy tickets.  Prices immediately doubled on the secondary market, and over time they went on to double a few times again by the time shows began happening.

This only happens when original buyers simply will not give their tickets up.  We can assume that TicketMaster / Taylor Swift did somewhat of a good job getting tickets the hands of fans the best they could.  TicketMaster also DID NOT allow resale for these events on their website, giving up MILLIONS in revenue that they usually collect on most tours.  We can assume that this rule was put in place by Taylor Swift's team.  Zach Bryan, The Cure, and many other artists that have tough times with sky-high prices have put in similar practices to try to block resale.

Artists now have much better reach to their fanbases than ever.  Similar to the SNKRS app.  These large companies (TicketMaster, Nike, major record labels) have now built up the proper following, marketing campaigns, etc. to reach their fanbases that want to purchase tickets, and they can as well allow them to have the best pricing.

We can assume that the fans willing to take the time to sign up, are following the bands social media, and will be rewarded with a unique code for them allowing preferred access to an event on their tour.

TicketMaster as well has recently announced they will be holding token-gated on sales using NFTs to limit purchasers. (https://business.ticketmaster.com/business-solutions/nft-token-gated-sales/)

Similar to the SNKRS app, TicketMaster is facing a troublesome supply/demand issue, and applying more and more steps to help filter out ticket touts year over year.

We believe that this is good for the end consumer, as the initial site releasing tickets, is also working with the artist.  If all fans are pointed directly to this site, and are purchasing here, we can be sure that all tickets are authentic, and the artist is involved in the resale market. 

Although controversial, the resale market is here to stay in both sneakers and tickets.

To conclude on a positive note, we believe over time the fans that 'deserve' these items will be rewarded over time in various ways.  It is proper brand building strategy for any artist, sports team, or design team to reward their fans/buyers that are promoting their brand the most.  With social media and streaming platforms all having the potential to integrate together, filtering through the 'fake accounts' used to purchase in bulk will be easier and easier.

Example:

If Nike SNKRS app can see you posting sneakers in your social media accounts, it can allow them to know that you are not a reseller, and are actually wearing the shoes.  This is great for Nike to know, because they know if they send you the shoe, they will have added promotional value.

The same goes for TicketMaster, if they can plug into your streaming services or social media platforms, they can monitor your engagement with the headlining performer or sports team.

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