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This is a great explanation (greetings from a former founder of Stubtopia - I met some SeatGeek guys at TicketNetwork tradeshows, but can't be sure if it was you).

By my estimation the next big chance for a software company to go after ticketmaster would be in 2015 - a lot of major venues expire, but it would be extremely difficult. You'd have to have an entire ticketing platform already built, which to build one as robust as ticketmaster would be extremely expensive, but then there's no guarantee venues will sign with you.

Venues generally have no incentive to work with anyone other than TicketMaster, especially since the LiveNation merger. Basically all you have to do if you're a venue is plug into the TicketMaster platform and everything else is taken care of - from the ticketing to the promoting and the entire point of sale mess online.

Reality is as a consumer you will keep taking it in the shorts for some time - TicketMaster is a 1000 pound gorilla that will be very difficult to knock off. I've talked with dozens of would-be TicketMaster competitors over the years, and they all end up going after different markets where they can get more bang for their buck. But even in smaller/different markets you have the likes of Paceolan.



which to build one as robust as ticketmaster would be extremely expensive

Could you say more about this? Out of ignorance, I'm doing the classic nerd "how hard could it be" thing:

http://xkcd.com/793/


Ticketing is hard. It's like a lot of business solutions where a custom logic language is essentially baked in to describe price points, discounts, and more.

For example, Tixato (my current favorite free ticketing platform) tries to use "price groups". For each event, you set up a series of price groups that make a base price and discounts based on it. You can then assign specific price groups to each night. So for a $15 show with a $5 or maybe a 20% student discount, you just write it as such. But what if you want to offer a 2-for-1? Make a 50% price point, right? But what stops people from buying just one ticket at that point? Now you need to handle that case. And they just get crazier and crazier.

Plus, ticketing takes a heavy load. The I Heart Radio festival this year sold out in 8 minutes. The room has a capacity of 16,800. The festival is two days long. Let's assume only 28,000 were put on sale (the rest were for giveaways, house seats, artists, and artist comps), that's still 3,500 transactions per minute of $423 each (plus fees). You don't want that to screw up.


Fab. That's helpful. And getting all of that detail right strikes me as the kind of thing that is best approached through incremental growth, so that you can polish cases in collaboration with clients. Which, as you said, this market is not well suited for.


  Plus, ticketing takes a heavy load. The I Heart Radio 
  festival this year sold out in 8 minutes.
Isn't this a textbook application for EC2, Heroku, Google App Engine, Windows Azure etc?


Maybe, but that shit isn't easy.

In this particular case, auto-scaling would be too slow, so you'd have to do something more clever. And ticketing obviously has strong consistency issues, so that removes another set of optimizations.

And of course, you'd still have to do all the load testing to make sure your chosen back end really performed correctly, which is a large fraction of the scaling work.




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