O2 News Update: O2 Signs Deal With StubHub
O2 News Update: O2 Signs Deal With StubHub to demonstrate how websites that are reselling tickets are striving to overcome legal challenges from promoters. The problem faced by these websites is keeping the peace between business and consumer – as well as actually making a profit themselves. They are present in the market because tickets for high profile events are sold in an astonishingly short space of time and people miss their chance. The theory proposed that includes giving the benefit of the doubt to those reselling tickets is that they bought the tickets and genuinely misjudged the dates and are now unable to go. The more cynical theory is that these tickets are purchased purely for the purpose of selling them on, for a greater price, simply because the demand is there.
“The deal by StubHub, an Ebay-owned website where fans resell tickets often for more than their face value, is the most high-profile example of a strategy being pursued by the ticket reselling websites.
The partnership will include marketing across the venue and full barcode integration between the O2 and StubHub, vastly reducing the chances of a fan being sold a fake ticket when they buy in the secondary market.
Several of the leading names in the ticket reselling industry been teaming up with venues, festivals, and even acts such as Madonna to help disassociate the industry from individual touts who resell tickets outside venues.
While reselling tickets is legal, it often goes against the terms and conditions of events. Fans can resell tickets for events on websites such as Viagogo and Seatwave – the main UK rivals of StubHub – at any price they see fit, often pushing prices for sold out events well above their initial cost.
Tickets to see Rod Stewart at the O2 in June with a face value of £79.25 were being advertised for more than £500 on StubHub on Friday.
Some sports governing bodies have taken legal action against ticket reselling websites. In May the Rugby Football Union sent out legal letters to a number of Viagogo customers who had used the website to sell on tickets for the Six Nations tournament in 2011 demanding to know who had provided them with the tickets.
Viagogo initially refused to hand over the details of their customers when asked by the RFU. The case ended up in the Supreme Court, which found in the RFU’s favour in November.
The music industry is split over ticket resellers. While some are happy to partner with websites such as Viagogo and StubHub, others are vociferously opposed.
Rebecca Kane, general manager of the O2 said: ‘By partnering with StubHub we are working with a resale marketplace that has a proven pedigree in serving fans and providing an innovative service for our customers.’
Claire O’Neill, general manager at the Association of Independent Festivals, which represents festivals such as Bestival and has campaigned against ticket reselling websites, said: ‘It remains important that there is a fair price for fans of music and entertainment, and we encourage a cap on mark-up on ticket prices to protect genuine fans.’
Brigitte Ricou-Bellan, international general manager at StubHub, said the website had no plans to provide a market for customers to resell tickets only at close to face value. ‘That is not on the road map. Our positioning is that pricing should be driven by the market.’
The deal with the O2 is the latest attempt by StubHub to gain a foothold in the UK since it launched in the country at the end of 2011. Ebay stopped selling tickets on its main website earlier this year, instead sending its customers to StubHub, providing a boost for the business.”
For more information regarding events at the O2 or any services and products provided by the telecommunications company they are contactable on the O2 phone number or via the O2 website.
Original content for this article was found on www.ft.com.
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