Viagogo Pledges UK Expansion Amid Regulatory Crackdown on Ticket Resale
Secondary ticket platform Viagogo has announced plans to "double-down" on its operations in the United Kingdom, even as the government prepares to introduce a ban on reselling tickets for profit. The company, which operates under the StubHub brand in the United States, is rolling out an innovative "open distribution" model that it believes will revolutionise the ticketing industry.
Open Distribution Model to Challenge Market Leaders
Viagogo's open distribution system functions similarly to airline ticketing, where tickets are sold through multiple channels rather than a single primary seller. This approach allows sports teams, music festivals, and other event organisers to list tickets directly on Viagogo's platform, breaking away from the traditional dominance of firms like Ticketmaster.
Raj Beri, chief business officer of StubHub North America and Viagogo, emphasised the strategic importance of this move. "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," he stated in an interview with the Press Association.
Benefits for Fans and Event Organisers
The company argues that its model offers significant advantages:
- Event organisers retain 100% of ticket revenue, with Viagogo only charging a buyer fee.
- Increased market reach for unsold inventory, helping events attract larger audiences.
- Greater control over pricing for venues and artists, potentially leading to more competitive ticket costs for consumers.
Beri explained, "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. It allows rights holders to sell inventory that would not get sold otherwise."
Regulatory Challenges and Strategic Timing
This expansion comes as secondary ticket sites face increasing regulatory pressure in Britain. A proposed new law, expected to be confirmed in the upcoming King's Speech, will make it illegal to resell tickets above face value plus unavoidable fees. Similar measures are being considered in New York and other US states.
However, Viagogo insists its open distribution plans are not a direct response to these regulatory changes. "We didn't wait around for the legislation to tell us to go forward there. This has, for the last 18 months, been part of our strategy," Beri clarified.
Current UK Partnerships and Market Impact
In the UK, Viagogo has already established direct partnerships with prominent sports organisations, including Manchester City football club and various Formula 1 teams. The company reports growing interest from other teams and music festivals seeking alternatives to exclusive deals with primary ticketing sellers.
"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," Beri noted.
Global Context and Financial Considerations
Viagogo's UK push follows StubHub's recent stock market debut in the US, which has seen shares decline by more than 50% since listing in September. Some market analysts attribute this downturn to regulatory pressures across multiple markets.
Despite these challenges, Beri remains confident. "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," he asserted.
The company's expansion into the UK represents a significant bet on the future of ticketing, positioning open distribution as a growth driver that could reshape how fans access live events while navigating an increasingly restrictive regulatory landscape.
