Seeking higher revenues, online ticketing companies have been diversifying into non-movie categories and pushing sales of sports and entertainment events. However, movies still continue to dominate the segment. The online ticketing space is also being dominated by top two large players. The $330 million online ticketing industry is dominated by movie ticket purchases at 55 per cent. Entertainment events have 25 per cent and sports events 20 per cent share.
Revenues come from handling fee, which is typically 10-12 per cent of the ticket value. Movies have an average ticket value of $3.5, while sports events have a higher value of $23 per ticket and that of entertainment events are $15. In order to increase their revenues, online ticketing companies have been incentivising and pushing sales of sports and entertainment events.
“Players are offering cash back and discounts on the use of certain debit/credit cards. They are also focusing on bringing exclusive events and sports on their platform,” said Ujjwal Chaudhry, engagement manager of RedSeer Consulting.
The movie share has not changed much in the past one year. New movie releases keep happening and the buyers are more keen to buy for less costly movie tickets.
“On an annual basis, movies continue to hold 55 per cent share of the online ticketing business,” he said.
The online ticketing business is expected to grow at a CAGR of 20 per cent and touch $580 million by 2020. “The growth of the overall industry and the rising internet penetration will drive growth. The growing popularity of non-movie and international events is another driver. Finally, intense competition among players is encouraging them to start new initiatives, tie-ups and improve service quality. Customers are getting more offers and discounts on tickets and complimentary food,” said Chaudhry.