The StubHub Exposé: A Canary in the Coal Mine for Online Ticketing

Recent investigations into StubHub, touted as a “marketplace for fans,” have uncovered a disturbing truth. Eric Baker, StubHub’s CEO, runs a side business that resells millions of dollars worth of tickets on his own platform. This revelation not only exposes StubHub’s leadership but also highlights a broader issue plaguing the online ticketing industry.

The notion that fans are buying and selling tickets in a fair and transparent manner is a myth. In reality, a small number of corporations – including mass scalpers – control an estimated 70 to 80 percent of all tickets on global resale sites. This concentration of power drives up prices for everyday fans, who often have no choice but to purchase overpriced tickets from these corporate entities.

The relationship between StubHub and its mass scalper clients is particularly insidious. By providing short-term financing for these resellers, StubHub enables them to buy and post large quantities of tickets on the platform, further inflating prices and perpetuating a cycle of exploitation. This arrangement raises questions about the true nature of StubHub’s business model: is it merely a facilitator of transactions or an active participant in the scalping game?

The consequences of this opaque system are far-reaching. Fans who purchase tickets from mass scalpers often face significant price hikes, while artists and venues bear the brunt of lost revenue. The artist-audience relationship is strained as fans feel taken advantage of by platforms meant to connect them with their favorite performers.

Ticketmaster, the world’s largest primary box office company, also allows professional scalpers and fans to post tickets for resale on its website. This practice contributes to a broader problem: the erosion of trust between artists, venues, and their audiences.

The recent cancellation of thousands of World Cup tickets by StubHub has added to the growing sense of disillusionment among fans. As one ticket buyer noted, “StubHub’s told the public they’re a marketplace… What they leave out is that their CEO is a large ticket seller.”

In light of these revelations, it is imperative for regulators and industry stakeholders to scrutinize online ticketing platforms like StubHub more closely. Greater transparency and accountability are needed to protect fans from exploitation and ensure that the relationship between artists and their audiences remains fair and authentic.

The StubHub exposé serves as a warning about the dangers of unchecked corporate power and opaque business practices in online ticketing. As we move forward, it is essential that we prioritize the needs of fans, artists, and venues – rather than allowing mass scalpers to dictate the market.

If left unaddressed, this systemic issue will continue to harm fans, drive up prices, and strain relationships between artists and their audiences. It is time for online ticketing platforms to be held accountable for their actions – and for regulators to take concrete steps towards creating a fairer, more transparent market for all parties involved. The future of online ticketing depends on it.