Viagogo Commits to UK Expansion Amid Ticket Resale Crackdown
The secondary ticket platform Viagogo has announced plans to "double-down" on its operations in the United Kingdom, introducing an innovative "open distribution" ticketing model. This strategic move comes as the company prepares to navigate a proposed legislative ban on reselling tickets for profit, which is expected to be confirmed in the upcoming King's Speech.
Disrupting the Market with Airline-Style Ticketing
Viagogo, which operates under the StubHub brand in the United States, is expanding its airline-style ticketing approach into the UK market. This model allows sports and live entertainment tickets to be sold through multiple firms rather than being restricted to a single primary seller like Ticketmaster. Raj Beri, chief business officer of StubHub North America and Viagogo, described this initiative as a "major growth driver" for both the UK and European markets.
"We are looking to double-down and really expand in the UK, and that's going to be a huge focus for us, especially on the open distribution side," Mr. Beri told the Press Association. "We believe resale is very important. It plays a huge role in allowing fans to get tickets when they want, have access when they want."
How Open Distribution Works
The open distribution system functions similarly to the travel industry, where airlines sell tickets directly on their websites while also distributing them through global networks such as Expedia and Kayak. In the ticketing context, this means event organisers, sports teams, and venues can list tickets through Viagogo alongside other sellers, potentially reaching broader audiences and marketing unsold inventory more effectively.
"They keep 100% of the ticket revenue, and we just keep the buyer fee, and that's actually what's resonating in the market here in the UK right now," explained Mr. Beri. He added that this approach should lead to more competitive pricing for consumers, as event organisers maintain control over pricing structures.
Regulatory Challenges and Market Response
Viagogo's expansion plans coincide with significant regulatory changes in the UK ticketing landscape. The proposed legislation would make it illegal to resell tickets above face value plus unavoidable fees, aiming to curb large-scale touting that has frustrated millions of fans. Similar price cap proposals are being considered in New York and several US states.
Despite these regulatory pressures, Mr. Beri insists the company's open distribution strategy was not developed in direct response to the new laws. "We didn't wait around for the legislation to tell us to go forward there," he stated. "This has, for the last 18 months, been part of our strategy."
Current UK Partnerships and Future Prospects
In the UK, Viagogo has already established direct partnerships with prominent football teams like Manchester City and various Formula 1 teams. The company reports growing interest from other sports teams, large music festivals, and entertainment venues seeking alternatives to exclusive arrangements with dominant players like Ticketmaster.
"We're starting to see that take hold in the UK now too, where more and more teams, large music festivals, other players, are very interested in saying, 'you know what, we don't want to just work with Ticketmaster, we don't believe that 100% of our inventory needs to be held captive by one player', so they're pushing back," Mr. Beri observed.
Consumer Protection Concerns
Consumer advocates have raised concerns about Viagogo's expansion plans in light of the company's regulatory history. Lisa Webb, consumer law expert at Which?, commented: "It seems Viagogo is pivoting after years of enabling ticket touts to ruthlessly exploit fans. It has faced a series of investigations and legal action from regulators over the years for breaching consumer protection laws, and it will have to clean up its act if it wants to continue operating in the UK."
Mr. Beri responded to regulatory concerns by emphasizing the company's global reach and resilience: "While I understand that the price caps are a hot issue, we're a global company, we sell tickets in 200 countries, there's no one market that will really impact our business in a way that will be a shock to our system overall."
Market Context and Financial Performance
Viagogo's push into open distribution follows StubHub's recent stock market debut in the United States, which has seen shares decline more than 50% since their September listing. Market analysts have attributed this challenging start to regulatory pressures across multiple jurisdictions, though Mr. Beri maintains these changes do not represent a significant threat to the company's overall operations.
The open distribution model has already gained traction in the United States, where Viagogo currently sells tickets for nine of the thirty-two Major League Baseball teams. The company now aims to replicate this success in the UK market, positioning itself as a disruptive force in an industry traditionally dominated by a few key players.
