Amazon Closes Event Ticketing Operation, May Relaunch with New Platform in 2019
Amazon (AMZN) has announced it will be closing its U.K. event ticketing operation (Amazon Tickets), less than 3 months after abandoning plans to launch in the United States; though, the company may be planning to relaunch in 2019 with new technology. Amazon’s open distribution model had some initial success in Europe (signed a partnership with AEG, launched a concert series), but the company’s inability to work out a partnership with Ticketmaster (in the U.S.) was its downfall. Speculation exists that AMZN is working on a new platform that would sync with both Echo and Firestick devices and use AI-powered Alexa to locate tickets.
Howie Long-Short: If you’re looking for “underdogs” that could potentially take on Ticketmaster (LYV), look at Alibaba subsidiaries Tao Piao Piao and Damai.cn. Tao Piao Piao, an online ticketer, was formed out of a partnership between Alibaba (BABA) and Damai.cn in May 2016; BABA has since increased its stake in Tao Piao Piao to 96.7%. In March 2017, Jack Ma’s e-commerce giant acquired the ticketing agency Damai.cn for an undisclosed sum (BABA a minority investor since ‘14). The Alibaba Pictures Group (the entertainment sector of BABA) reported in September, that H1 ‘17 revenue increased 313% YOY (to $165 million); attributing the growth to increased contributions from Tao Piao Piao.
Fan Marino: Here’s to hoping AMZN re-enters the ticketing space; they intended on cutting the service and processing fees for Prime members, a change that would have resulted in a savings of +/- $15 for every $100 ticket purchased.
Interested in Sports? Sports Business? Sports Finance? Sign-up for our free daily email newsletter list, here!