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The Case of the Stubbed Hub

Thursday, April 09, 2015   (0 Comments)

Bloomberg (02/19/15) Satariano, Adam

StubHub's inclusion of its fees in the first price a customer sees on its website and a reduction in the ticket reseller's take from each sale has lowered its profit margins, but spokesperson Glenn Lehrman says the company remains committed to this policy because customers appreciate the greater transparency. He also is confident sales will rebound over time. "Right now we're focused on tickets, but our goal is to go beyond that," Lehrman notes. Another source of pressure on StubHub is tightening budget requirements from its parent company, eBay, which is undergoing a tumultuous reorganization that includes extensive job cuts. Although StubHub is still the ticket reselling industry leader, commanding about half the ticket-resale market, Wedbush analyst Gil Luria says its budgetary constraints and pricing change have been advantageous for rivals. Ticketmaster, for example, is gaining market share from StubHub as it concentrates on its resold ticket service, and has seen resale tickets climb about 30 percent from a year earlier and triple for concerts. "We're seeing a convergence between the primary ticket and secondary markets," which should make things harder for strictly secondary market services, says Ticketfly CEO Andrew Dreskin.


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