Online ticket sales still growing


ticket, ticketsThe online event ticket sales industry in Australia has benefited from a rapid shift towards the internet as a mainstream source of goods and services.

According to IbisWorld, over the five years through 2013-14, revenue is estimated to increase at a compound annual rate of 7.8 per cent. In 2013-14, revenue is expected to increase 8.8 per cent to reach $163.2 million.

IbisWorld industry analyst, Craig Shulman,said the convenience of purchasing goods and services online has not been lost on ticket agencies, which have shifted operations heavily towards the online space over the past five years.

Due to this technological shift, variations in consumer interest in live entertainment and events has not affected online ticket sales as much as it has affected more traditional forms of ticket sales.

Attendance rates have fluctuated over the past five years in response to unsteady consumer sentiment and the resulting interest in event attendance.

“Over the past five years, rising ticket prices have also reduced the incentive for consumers to attend events, suppressing growth even in the online space,” says Shulman.

Competition in the online event ticket sales industry has been increasing over the past five years. Lower technology costs have enabled several venues to vertically integrate their operations with online ticket sales platforms.

A number of these venues have chosen to expand their online ticket platforms to further service other venues, however, major players Nine Entertainment and Ticketmaster still hold significant market power within the highly concentrated industry, as they have secured long term contracts with major sporting venues and other entertainment companies, which has made it difficult for smaller firms to make significant inroads into the industry.

Most of these factors are not expected to change significantly over the next five years, but as the online space becomes increasingly saturated, the impact of consumers switching to online ticket purchasing will diminish significantly, leading to consumer sentiment holding a stronger sway over the success of the industry.

For more information, visit IbisWorld’s Online Event Ticket Sales industry page.

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