Background and Challenge
One of the world’s largest live-events, concert promoters and venue owners asked L.E.K. Consulting to evaluate the business opportunity to launch its own ticketing, and assist it in developing a strategy to roll out the new ticketing operation and to develop new ticket-led revenue opportunities.
Approach and Recommendations
The L.E.K. team helped evaluate different ticketing options for the company to:
- Identify the most appropriate ticketing partners
- Determine how to best establish ticketing fees
First, L.E.K. evaluated distribution partners in multiple geographies based on reach and potential profitability. Then L.E.K. identified the most attractive primary partner in the traditional ticket distribution channel, and also selected a major e-commerce site as a secondary channel to further increase the company’s access to consumers.
As the L.E.K. team supported ramp-up operations for this new service, it determined that it was more efficient and cost effective to outsource certain operations in Europe while maintaining an internal team in the U.S. and other geographies. The L.E.K. team also assisted the company with day-to-day activities such as recruiting and hiring staff to support the new ticketing service.
Additionally, the L.E.K. team developed an optimal method of allocating ticketing fees along with an updated version of the ticketing model developed in L.E.K.’s previous work with the client.
The live-events & concert promoter partnered with the ticketing service provider that L.E.K. recommended. Through the partnership the client gained new revenue streams, increased control over its ticket inventory, and realized new opportunities to strengthen relationships with its customers. The client’s self-ticketing operation was successfully launched, and it achieved its strategic objectives.