New Zealand ticketing and event listing business Eventfinda has sold to Ticketek.
Eventfinda chief executive James McGlinn said the deal would bring Ticketek and Eventfinda together and allow the Ticketek group to service a “really important segment of the live event ecosystem with Eventfinda’s agile self-service ticketing platform”.
He said Eventfinda had been providing that to venues and organisers for the better part of 20 years.
“With ticketing flexibility and white label functionality that has really resonated with that part of the market.
“Ticketek has a world-class system that operates at the part of the market where they are providing incredible ticketing services to larger venues.
“Eventfinda started as an events guide and then we built a self-service ticketing system which operates at a lower part of the market.
“We work for everything from school fairs and fundraisers, right up to mid-size and that capability, we think, is unique.”
He said people buying tickets should find it easier to find events.
McGlinn would not say how much the deal was worth.
“We’re not disclosing the deal terms, but I think having both of these brands, let’s say, under one roof is going to be really incredibly beneficial. “
There would be no changes for Eventfinda staff.
“Our team continues as they have been. I will continue to lead the Eventfinda team and the Eventfinda brand will remain in New Zealand.
“What it will let us do is take Eventfinda and what we’ve built here and what’s really performed exceptionally well in the New Zealand market to the world.”
Massey University marketing expert Bodo Lang held concerns about the deal.
“Compared to event organisers, online ticket sellers add little value but command a surprisingly large fee for their services. Consumer NZ has called out ticketing platforms for their hefty fees.”
Providers were effectively “clipping the ticket” for events organised by others, he said.
An amalgamation of the two large ticketing and event discovery platforms “could lead to a reduction in competition”, he said.
How much competition was reduced would depend on how much overlap there was between Ticketek and Eventfinda, Lang said.
“In other words, if both ticketing providers competed directly on many events, this would likely have reduced the service fees charged because, all else being equal, competition generally lowers prices for consumers.”
The two platforms currently used different pricing models, he said.
“Whether Ticketek will continue to use that pricing model remains to be seen, but reduced competition tends to be bad news for pricing.
“Without an independent Eventfinda pushing lower fees, the overall market, and thus consumers, might have to tolerate higher add-on charges.”
On the plus side, events may become more visible if they were listed on both platforms, he said.
It appeared that Ticketek would continue to operate the two brands, he said.
“That is sensible because there is much value in the Eventfinda brand. Operating both brands also provides the illusion of more competition than there actually is. I do not think that is necessarily Ticketek’s aim, but it is a positive for them.
“However, even prior to the purchase of Eventfinda, some events or locations already had exclusivity arrangements with one ticketing agency, so for some events or locations there was actually no competition in terms of ticketing,” Lang said.
“So the news for consumers is unclear. One thing is clear: Competition watchdogs will keep a close eye on whether the purchase results in price increases or other negative consequences for New Zealand consumers.”
The deal still needed to be approved by the Commerce Commission.
rnz.co.nz