StubHub's Jeff Poirier Not Buying ON Ticket Sales Act
Following Wednesday's passage of the Ontario Ticket Sales Act, Jeff Poirier, GM, Concerts and Theatre – North America at StubHub wrote the following letter to fans of live events in Ontario outlining the company's reaction to the legislation and it's worth a read.
By External Source
The issues impacting ticket access are broader than just bots. It has been reported that large percentages of tickets never actually go on sale to the general public, but instead are reserved for pre-sales and industry insiders. A 2016 study by New York Attorney General Eric Schneiderman found that, for many top shows, an average of 75% of tickets are held back from sale to the general public. That means for these top shows, an average of ONLY 25% of tickets are made available at the general public on-sale. This is one of the reasons why you see popular shows "sell out" so quickly.
The original legislation required ticket sellers to disclose how many tickets were actually being made available for sale, a simple concept that would provide you better insight into the actual availability of tickets. This is the very issue the proposed legislation was trying to solve. Yet, the Government chose to remove this critical provision from the legislation, citing pressure from the live entertainment industry as a prevailing reason over establishing transparency for Ontario fans like you.
At StubHub, we understand transparency is important across the entire ticket industry, not just in the resale market. You should be able to know how many tickets are available for an event, what your seats will look like, and how much you're going to pay for them. Only in that circumstance can you make a purchase that you truly feel good about.
When it comes to price caps, StubHub joins the industry in opposing this measure. This proposal stands to negatively impact Ontario fans like you and Ontario-based businesses like StubHub as ticket resales are driven off platforms that have robust consumer protections.
Ticket resale prices will continue to be driven by supply and demand, not by arbitrarily set price caps. The fact is, if a venue holds 20,000 fans, but 100,000 fans want to attend the performance, ticket prices will reflect that demand. If the established market rate exceeds the 50% cap established by government, those sales won't stop or adapt to reflect the price caps – they'll just occur at their true value through channels the government cannot regulate. It will happen on street corners where the risk of counterfeit and fraud is significant, and no guarantees are in place; or it will happen on ticket resale websites located outside of the jurisdiction of the Ontario government. Either way – you and businesses that have invested in the province will be hurt.
Consumers benefit from a competitive ticket market where transactions occur through secure channels that prioritize fans. At the same time, it is important to incentivize and encourage this e-commerce to remain right here, in Ontario.
We have said from the onset that we believe there is a better way for the industry and for you. It's our mission at StubHub to connect you to incredible live event experiences, and to do so safely and securely by including money back guarantees and fraud prevention measures. This legislation is a disappointment for the ticketing industry, and a disappointment for fans like you.
General Manager, Concerts and Theatre – North America at StubHub