Live Events are Back!

Now that Freedom Day has finally arrived it could finally be the light at the end of the tunnel that we have all been waiting for!

The live event industry has taken a massive hit from the impact of COVID-19 and the enforced government lockdowns. Like many industries it has tried its best to adapt with virtual performances and drive-thru gigs, but ultimately it’s not an industry that can really give its best performance through screens or by socially distancing!

Live events are all about people getting together and having a good time, and now that is needed more than ever.

Many businesses in the hospitality and events industry have had a very raw deal throughout the pandemic with their businesses and livelihoods taking a big hit, it is quite something when overnight you get told that your business and only income, which you have spent years building and developing is all of sudden cut off completely. 

A lot of businesses didn’t get government support and unfortunately when some help was finally available it was too late and sadly, they had to call it a day.

So now it is down to the surviving businesses to help shape the landscape of the hospitality and events sector to make it a safe place for people to return whilst trying to recover their livelihoods.

These businesses have a lot of responsibility on their shoulders it won’t be an easy task to try and bring back this industry after everything it has been through. 

This makes sense if you are a promoter or artist that wants to get the most money from your event, but the reality of this means less freedom for the people buying the tickets.

And when we are looking at businesses to help shape the future of the sector to help make the return of live events as safe as possible, one of the things everyone needs more than ever after Freedom Day is the freedom to do whatever they want with their own event ticket.

If someone gets pinged a few days before an event and they can’t get a refund, we should all have the freedom to give that ticket to a family member, friend or try and get a bit of money back from whatever resale platform we choose.

We all understand that event businesses don’t like to give refunds because it is bad for their business models, but if that is the case then people need to be given more freedom with their tickets so they make the right choices. 

The last thing we want is lots of people ignoring government guidance and turning up to events potentially having COVID-19, because they don’t want to lose out on their hard earned money and end up creating mass spreading events.

The most important part of the much needed return of live event sector is to make sure that it is set up in a way that people are kept as safe as possible and we will be relying on the industry businesses to set that tone, we can only hope that they will make decisions that benefit people rather than looking to protect themselves and their businesses.

The pandemic has given a lot of people time for reflection and evaluate what works and what doesn’t. 

One of the things that doesn’t work in the live events industry is the stronghold that big businesses have on the freedom of what people can and can’t do with the tickets they buy. No refunds allowed. No resale allowed. No transfers allowed. All hidden behind terms and conditions, which no one really notices until something goes wrong and they can’t go to an event! 

If the industry can learn anything from this pandemic is that there is a place for a responsible free ticket resale market and it is needed more than ever.

A Victory for Live Music Fans * Fair Ticketing Alliance supports court ruling to make Viagogo more transparent to fans * Welcoming the news this morning that the Competition and Markets Authority (CMA) has secured a court order to ensure ticket exchange website, Viagogo complies with certain transparency requirements, Fair Ticketing Alliance chairman, Stephen Lee said: “This is a victory for ordinary fans who love live music. “We are delighted that Viagogo has now agreed to meet transparency requirements so fans who purchase tickets from their site will know information about who the seller is, what seat they will be getting, what the face value of the seat is and so on. This is the right thing for them to do. “As responsible ticket re-sellers we have long campaigned, in public and in private, for Viagogo to be more open with ordinary fans. This has been included in our strict code of practice that requires our Members not to trade on sites that do not comply with all CMA requirements. “We look forward to these requirements coming into effect for Viagogo in early 2019, along with other ticket exchange sites. It will be a Happy New Year for entertainment fans who will get a better live music experience in future as well as responsible re-sellers.” — ENDS –   NOTES TO EDITORS   About the Fair Ticketing Alliance The Fair Ticketing Alliance was established to campaign for a fair, trustworthy and flexible ticket market that works for all live entertainment fans. It was set up by a group of responsible UK ticket traders representing a cross section of the industry. The campaign aims to lobby for changes in UK law to give responsible, secondary operators the right to buy and re-sell tickets whilst protecting consumer interests.   For more information about this statement, contact Pete Bowyer on 07740 913886 or press@fairticketing.co.uk   For details of the Fair Ticketing Alliance Code of Practice see https://fairticketing.co.uk/code-of-practice/

Today’s blog is all about ticket restrictions and the impact on consumers.

These are the restrictions that ticket promoters put in their terms and conditions that tell fans what they can and cannot do with the tickets they buy. Sometimes these restrictions are made very clear before the purchase and other times these restrictions are added in later after the purchase. There are many different restrictions used to control the distribution of tickets, from paperless to I.D events. At their core they all have the same ambition, that is to make sure the promoter and artist remain in control of their product. The success of these restrictions varies greatly, it depends on who is enforcing them and the size of the venue where the event is held. Some venues will always struggle with the implementation of the restrictions as they don’t have the resources to enforce them, this is generally the case for larger venues. One of the more popular restrictions at the moment are I.D events, these events require the person who purchased the tickets to attend the event, no resale of the tickets is allowed, no transfer of tickets is allowed (i.e. they cannot be gifted to friends or family), and if multiple tickets are purchased everyone has to enter the venue at the same time as the lead booker. The promoters say they set these restrictions because they do not want the resale of their tickets, they want fans to pay the price the artist has set and no more. Promoters claim that ‘touts’ are ‘ripping off’ fans and this is their way of controlling where the tickets end up.   The main issue with ticket restrictions is what happens if for whatever reason fans chose to not use the ticket they have purchased, with many tickets being purchased up to a year in advance anything could change. If the original purchaser doesn’t use the ticket then it is worthless, just a piece of paper. It is not possible to obtain a refund because ticket companies don’t give refunds. It is also not possible give it to someone, even for free. There are however some options available to consumers, one of the options is the fan to fan resale, these are secondary ticket companies that are made available by the promoter or primary ticket companies. They offer a resale facility that sets a cap of 10% over the Face Value of the ticket, they also charge a fee ranging from 10-20%. The issue with the fan to fan resale websites is they are set up as an afterthought, they are lacking in marketing, which means the chances of the tickets selling are low. The main reason they are set up is to give consumers an option to do something with the unwanted tickets, which is great when it works, unfortunately it’s not competitive enough to give consumers the support they need. The fan to fan 10% capped market has seen an increase in popularity with some of the bigger names in primary ticketing getting involved, these are the ticket companies that already dominate the primary market and now they have set their sights on the secondary market. These restrictions and vertical integrations will keep the tickets in a closed loop, which allows strict control at every stage of the ticket’s life cycle. It could be argued that this creates a monopolistic control of the tickets and events, leaving consumers with limited options when it comes to buying and reselling tickets. The government department Competition & Markets Authority believes consumers should have the right to resell tickets, that is why they incorporated it into their legislation in the Consumers Rights Act 2015. They make it very clear that an event organiser cannot cancel a ticket merely because that ticket has been resold. This is why it creates confusion and a grey area for consumers buying and reselling tickets, on the one side the CMA say resale is allowed and on the other promoters are saying that they don’t allow resale of their tickets, unless it is with a resale partner that they specify. It is also important to point out that primary ticket prices are on the increase, not all fans have the financial freedom to throw away tickets or at the very least make a substantial loss on their original purchase. When circumstances change a fans experience of the ticket industry can change very quickly, they can soon realise they have very few options if any at all to recoup their money. Fans shouldn’t have to take a gamble a year in advance on whether they will be able to attend an event or not, they should be able to purchase a ticket and look forward to that event and if, for whatever reason plans change then they should be within their rights to do whatever they want with their ticket. All of this has been in reference to the resale of tickets but another big sector that will take an impact from restrictions is the gift market, consumers love to give event tickets as gifts to friends and family. This will no longer be an option for consumers as in the desperation to control tickets this area has not been addressed, it is just another freedom that has been taken away from the fans. We think everyone agrees that the ticket industry requires an evolution, something needs to be done to make it workable for all involved, but are ticket restrictions really the answer that fans are looking for?

Yesterday was the first day of the Culture, Media and Sport enquiry into ‘Live Music’. Here at the FTA we were looking forward to this enquiry as it is a great chance to get to the bottom of the issues that consumers face every time they log onto their computers to try and get a ticket on Fridays at 9am. We believe there are many reasons for the lack of availability, which lead to so many frustrations for consumers. We were hoping for a balanced argument that considers all of the factors to account for the issues consumers are facing, this is why we were disappointed to see the following headline from DCMS. How is it possible to have a balanced argument and create solutions when the people running the enquiry are already displaying a pre-conceived agenda? It is important to have a balanced argument and to go into the enquiry with an open mind if the objective is to find a solution. Otherwise the danger is that the enquiry will end up getting caught in the same old cycle of asking the same people, the same old questions and then wonder why they get the same answers and no solutions.   First up in the hot seat were the primary players, they were Stuart Galbraith from Kilimanjaro, Andrew Parsons from TM UK, Adam Webb from FanFair Alliance and Lucinda Brown from Islington Assembly Hall. They all shared their views on the current state and the future of ticketing, pretty much all agreeing that technology was the solution but it wasn’t quite there yet. It can possibly work well for smaller venues like Islington Assembly Hall, but it would be more difficult for larger venues to take it on at the moment. The FTA has always been an advocate of technology being used to make the buying experience easier and safer for consumers, the only issue we would have is the free transferability of tickets with no restrictions. Technology could be of great benefit if it is used in the best interest of consumers and not just a means to control tickets. There was also mention of the need for the CMA to step up its enforcement of the Consumer Rights Act. To put further pressure on resale sites to make sure that people listing on their sites are compliant, for example listing seat details, face value, business details etc. We are completely in agreement with that and we have been pushing for it from the very start, we know that in order for consumers to have the best buying experience they need to have all the necessary information. However, we do believe that all resale sites need to adhere to this not just the big four. There has been a lot of talk of non-compliant secondary sites and that is something that the CMA needs to address, there are also a lot of fan to fan resale businesses operating today that are also not CMA compliant, these businesses are just as much of a concern for consumers as any other resale sites. In order for resale to work properly they all have to play by the same rules. The FTA and its members are bound by our code to conduct business in a responsible way, putting fans at the forefront of the decisions we make, without them no part of this industry has a future. This is an important point to remember, which is why we always strive to fight for fans rights. We only work with compliant resale sites because we believe consumers need to be protected by the U.K laws when making ticket purchases. We recognise that there are traders and secondary sites that don’t adhere to the laws, and it is our mission to make sure the secondary market is cleaned up so that doesn’t continue to happen. The issue of selling tickets for restricted events was also mentioned, and it was repeatedly said that if a ticket was listed correctly in accordance to CMA guidelines with seat details, then it would make it easier to cancel tickets so that the issue of resale could be dealt with. This approach is very concerning, as consumers have the right to resell tickets in accordance to the CMA CRA 2015 guidelines. The CMA made it very clear that primary ticket sellers can’t take away a consumer right to resell a ticket. Promoters/artists/primary ticket agents would be in breach of CRA 2015 if they cancel consumers tickets just because they have been listed for resale. No one in the committee addressed this point and the FTA feel they let consumers rights down here, they were too quick to try and protect promoter/artist rights that they forgot about the consumers rights. The issue of bots also got brought up and there was a lot of talk of how best to deal with the issue, it was mentioned that bots are a global issue, which makes it hard to control and police. The FTA has always been against the use of bots, we welcomed the recent legislation which made the use of them illegal in the UK. We have also said that because the internet is global unfortunately the bot law will do little to combat anything that happens overseas. It was disappointing that there were few questions about Ticketmaster’s Platinum, as the way they have conducted it recently with their drip feeding of tickets and high prices we feel it isn’t very consumer friendly. It was good to see that Damian Collins saw through the so called altruistic reason why TM announced the closure of GetMeIn and Seatwave. He said that the main reason to close them down was financial rather than in the best interest for fans. GetMeIn and Seatwave were loss making businesses. Damian Collins also highlighted the fact that TM are only shutting down their resale in the UK and Europe, so it can’t be for a moral reason if they are happy to keep it going in the U.S. Overall the enquiry into the primary side of the music industry was pretty much the same as it has always been, there were still the same questions of how to stop ‘touts’, bots and the ‘rip off’ prices. And unfortunately, less questions about what primary can do to make sure fans know what chances they have to get a ticket, transparency on where all the ticket allocations are going, what is being done to keep business competition within the sector to help keep prices competitive for consumers and what is the benefit of TM Platinum to consumers? We just feel that this was a real chance to get at the heart of the issues that consumers face, for too long all eyes have been focused on the secondary market and no one has stopped to think, why is it there in the first place? Our answer to that is the primary market doesn’t cater for all consumers needs, it assumes that all fans are the same but this is far from what everyone who has a role in the secondary market has seen over the years. The secondary market underpins all of the shortfalls of the primary and that is why it is so vital to so many consumers.

Next up was the chance for the resale sites to share their views. It was meant to be a representative from Viagogo and StubHub. Unfortunately Cristopher Miller, Head of Business Development from Viagogo did not show up. Viagogo sent a letter to the committee on the evening before the enquiry stating they would not be showing up because of their recent legal action against Kilimanjaro and the CMA. The FTA found this very disappointing, for there to be a balanced investigation it is vital that all the key players turn up and answer questions so that there can be a better understanding of how the industry works. Wayne Grierson Managing Director of StubHub took on the task of defending the importance of resale sites himself. There was a mention of the fan guard guarantee that protects consumers purchases, there was also mention of all the safety checks they conduct on business sellers to make sure there is no criminal links or activity. He also said that StubHub are in the process of making their business fully CMA compliant in line with the deadline of January 2019. The FTA welcomes the measures implemented by StubHub because they are crucial to making sure consumers get the safest buying experience. We are all about making sure responsible operators are providing tickets to consumers. The issue of the price also came up, there was a concern that prices are too high on secondary sites and the fees that StubHub charge also add to this. Mr Grierson explained that the very high prices that are often quoted don’t actual sell on their website, in fact 51% of tickets sell below face value. The highlighting of a few very highly priced tickets is nothing new. The media have always attacked this side of resale claiming it supports ‘rip off’ prices, so it was interesting to hear that at StubHub 51% of their tickets sell below face value and the tickets that are priced high don’t sell. There was also mention of a price cap so that these prices could be kept in check, and be seen as fair. It was said if the reason StubHub gets so much bad press is because of the high prices then why not implement a price cap. This seems like an odd statement to make, specially seeing as there was no mention of price caps for the primary market. Recently we have seen some events being sold on Ticketmaster through their Platinum range that could be seen as unfair and a ‘rip off’. The FTA believes that it should be the market that decides the price of a ticket not a price cap. Fans will decide how much a ticket is worth by choosing to buy the ticket or not. The evidence from StubHub seems to suggest that fans aren’t silly they won’t pay the high prices, instead they will wait for the prices to come down, which is probably why 51% of tickets sell below face value. At the FTA we agree that the fees that resale sites set are high and they do bump up the price, specially seeing they charge both the seller and the buyer. This is definitely an area that the secondary sites could look into being more conscious of consumer fairness. It is also an area that the primary market could look into as the fees they charge consumers are also a big reason why prices are so high. We have no problem with businesses charging a fee for a service but if price is an issue then its only fair to look at all the different reasons why ticket prices are at the level they are. The question around business sellers also came up in the enquiry in particular what preferential treatment they get. Mr Grierson explained that some business sellers do get paid when tickets are delivered, so before the event unlike consumers who will only get paid after the event. He explained this is because business sellers have a very low drop rate i.e. the chances of having any issues with the ticket they supplied is very low, 0.01% to be exact. It is always great to see statistics like that and good to know that the businesses selling tickets on StubHub are reputable and a safe way for consumers to buy their tickets. We have always said there should be a place for responsible traders in this industry, get rid of the bad apples with a proper enforcement and legislation and let responsible business do what it does best, which is to provide choice for consumers. Mr Grierson was also asked about StubHub’s relationship with Google and how much it paid to come top of the searches. Also, he was asked if he thought it was fair for the consumer if StubHub comes top in the search if an event has not sold out yet. Mr Grierson explained that StubHub don’t monitor the primary stock so don’t know when an event is sold out, they are just offering an option for consumers to buy or resell tickets. He went onto to explain that sometimes better seats are available on resale than on primary, so it offers consumers a choice. There has been a lot of talk about the role of Google with how businesses use it to their benefit. It is important to remember that all businesses have the opportunity to use Google if they want to. As long as resale sites like StubHub are compliant with the laws then there shouldn’t be an issue, they have a product to sell just like any other business. The FTA believes in consumer choice and resale websites offer the greatest amount of choice 24/7, that is something the primary market cannot offer. Overall the enquiry into the secondary market was good, it brought up some good questions about the high fees that consumers face when buying tickets, it gave a chance for StubHub to explain their relationship with business sellers and how they monitor them to make sure there is no criminal activity. One thing that was a bit disappointing was that we feel a bit more could have been done to defend the consumers right to resell. There were a few times that Damian Collins mentioned that StubHub shouldn’t be selling tickets that are marked as not for resale, and that made them non CMA compliant. However, the law does state that consumers do have a right to resell and this should have been made clear in the enquiry. Promoters/venues/artists/primary agents can’t just do as they please with cancelling tickets as consumers have rights. We now look forward to when our President Stephen Lee and board advisor Pete Bowyer get their chance to share their views in front of the committee, it will be a great opportunity to address some of these issues. We feel this is the benefit of having the FTA campaign, we can be a voice for consumers and give a more in depth view of everything that is going on in the ticketing eco system.

Our President Steve Lee spoke with BBC Wales Radio yesterday to discuss the welcomed decision by Viagogo to become ASA compliant.   Listen to it here:

Hi everyone, Welcome to the first instalment of the Fair Ticketing Alliance blog. We have decided to start a blog for the FTA because we feel it is a great way of sharing with everyone the progress we are making through the highs and lows and everything in between. What the FTA is taking on in the secondary market is a massive task, one that hasn’t been achieved before in the UK. For it to be successful it is going to need the cooperation from everyone involved in the ticketing eco system and ultimately the government too. We are very realistic and know this isn’t something that will have a conclusion overnight, it will be a process. The ticket industry has lots of different elements to it so in order for our campaign to be successful we have to work with everyone involved. The secondary market has gained a reputation over the years, one that will take some time to shake off. We believe in order to do this people need to be educated in the role of the secondary market and in particular what traders can provide. We believe that there is a place for everyone in the ticketing world and its quite damaging to the industry as a whole to try and exclude the different areas of business for whatever reason. As long as everyone is acting responsibly and in the interest of the industry and the consumer then there shouldn’t be an issue. In this blog our aim is to tackle the many different areas of the ticketing eco system and share with you our progress. Within the FTA our board members will each share their own views on the blog individually in the areas they will be working on, including regulatory developments, future technology, new ventures, partnerships and relationships as well as general progress and how changes in ticketing are impacting consumers. There are some big developments coming up in the ticketing world. In particular the Digital, Culture, Media and Sport Committee will be holding an enquiry into the music industry titled ‘Live Music’. The first session will start on Wednesday the 5th of September. The FTA has submitted a paper as evidence stating our thoughts on the industry, we are also going to be called up to one of the sessions so our president Stephen Lee and our board advisor Pete Bowyer can share their views and hopefully help answer any questions on any misunderstandings about the secondary market and how ticketing is currently delivered to the consumer. It will be a great opportunity for the committee to hear first hand from a trader about how the secondary market works, and also the great things the FTA are doing and looking to do to make the secondary market better for everyone. We will be keeping you up to date with everything from the enquiry, and sharing our views about it all. As I have said before there is a big task ahead of us, nonetheless we feel that if we go about it in a way that shows our integrity to the industry, we can achieve something that is workable for everyone involved. I think its fair to say that as a whole the ticket eco system isn’t very workable at the moment and unfortunately the only people that lose out are the people that matter the most, and that is the fans.