With the growth in use of smart phones, the online event ticket sales industry is booming. Now, the use of physical tickets is a thing of past, while we rapidly move towards using fully digitized mobile ticketing experience.
With the growth in use of smart phones, the online event ticket sales industry is booming. Now, the use of physical tickets is a thing of past, while we rapidly move towards using fully digitized mobile ticketing experience. According to data from International Ticketing Yearbook, 2016 saw a total revenue of USD$ 30 billion in the primary market while the secondary market touched USD$ 8.9 billion. As the economy is anticipated to continue its expansion and consumer disposable incomes are expected to rise, the online ticket sales industry is set for growth figures of 20 % yearly. While USA and Great Britain are the biggest markets for online ticket sales, China is growing at astronomical rates as more and more people are starting to use web based applications.
Before we discuss the challenges faced by the online event ticket sales industry, its important to know that there are two market segments within this business, Primary Market & Secondary Market.
Primary Market: is where event organisers control the ticket price, revenue splits, and methods of ticket sale distribution such as select groups via third parties, promoters, or through online portals. In this segment, organisers price tickets in a variety of ways including at a fixed value, in an open auction, or using dynamic pricing per seat based on demand.
Secondary Market: where tickets purchased on the primary market are resold at usually higher prices by speculators and would-be attendees. The speculators engage automatic bots (software programmes) in the first minutes of the sale to gobble up substantial quantities of tickets.
In the existing system, both the attendees and organisers stand to lose due to isolation of operations on the part of all parties concerned.
Cracks Within the Existing System
In order to maximise fan attendance and earn more revenue via in event sales, event organisers generally are inclined to under-price the tickets. This creates an opportunity for speculators to acquire such cheap tickets and resell them at higher prices in the secondary markets.
The primary market platforms earn a certain percentage of each ticket sale, and thus are interested in maximising the number of tickets sold. Hence, they are dis-incentivised from stopping bulk buying of tickets by automatic bots.
Once the resellers manage to acquire bulk quantities from primary markets, they place these tickets on various secondary market platforms at much higher prices. This obviously leads to a negative client experience even before the event has started and lots of fans who cannot afford such high prices end up giving it a pass. And since the secondary market platforms also earn a certain percentage of the ticket resale price, these platforms are dis-incentivised to stop such exorbitant pricing.
The resellers usually list the bulk tickets on multiple secondary platforms. Incase, the tickets are sold out on one platform, the same tickets are now being sold as counterfeit on other platforms. Unfortunately, the secondary market platforms don’t have much incentive to prevent such transactions.
In Comes The Saviour, crypto.tickets
The crypto.ticket is the next phase of the evolution of the ticket, transforming it into a secure digital asset using blockchain and organizer controlled smart contracts. Tick- ets are held, redeemed, and managed by the consumer within a digital ticket wallet, just like any other crypto coin, with the same degree of embedded transparency and control crypto-currency markets have come to expect.
The blockchain enables decentralization whilst its ledger ensures ticket validity. Smart contracts enable organizer control over ticket sale, resale and exchange, whilst regulating payments, fees, and commissions throughout the ticket lifecycle: from initial release to redemption at event entry. Not only do organizers and consumers win, but the secondary market can also thrive as it is now provided with a secure platform in which to operate, uniting all players on one common platform.
The Solution – Smart Contracts and TKT Tokens
Since the Ethereum platform is plagued by congestion problems, the crypto.tickets project is being built on EON platform which will have the following advantages:
- Fexibility and efficiency through lowering of the load
- Consensus by Delegated Proof of Stake principal
- security with a new algorithm of the electronic signature Ed25519
The platform will have smart contracts and TKT tokens will support transactions inside the crypto.tickets decentralized system. Each time there is a purchase order for a ticket, the system will place an order for the purchase of tokens. The crypto.tickets platform automates this conversion in real-time, so the typical end user will simply purchase their event tickets in fiat currency and will see the ticket appear in their ticket wallet app on their electronic device.
Will TKT Token’s Value Appreciate?
TKT token is the native currency of the crypto.tickets non-centralized system and is used to set-up smart contracts and to support all transactions. The tickets will be pur- chased directly for TKT or any other supported fiat or crypto currency. Each time there is a purchase request for a ticket in another currency, the system places in automatic purchase order for TKT token(s) via an automated and transparent algorithm.
As the number of users and the volume of transactions grow, the demand for TKT will also grow. At the same time, the number of available tokens will be limited by the ICO, causing the value of TKT to increase relative to other currencies. TKT token will start trading on the exchanges four weeks after the end of the ICO. The launch of the Crypto.Tickets platform is scheduled for June 2018. The first ticketing system connected to the platform will be Tickets Cloud, with the current monthly turn- over of 2 million USD (as of September 2017) and a monthly growth rate of 15%, guaranteeing an immediate transaction volume for the TKT token.
The crypto.tickets ICO is currently ongoing and is scheduled to get over on the 5th November 2017. Maximum target figures for raising funds during the ICO is an amount equivalent to $23 million. The tokens can be purchased with Bitcoin (BTC), BitcoinCash (BCC), Lite- coin (LTC), Ethereum (ETH).
EON Platform: https://eontechnology.org
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