How many times have you heard a company or product referred to as “the Netflix of _______?”
You like eating? Well why don’t you try the Netflix for snacks. Enjoy wearing stuff? Check out the Netflix for clothes. It’s a common analogy because everyone is trying to think of ways to tap into the growing subscription economy, a phrase coined by Zuora CEO Tien Tzou “to describe this new era of companies and business models.”
This rise in the subscription-based, on-demand world underscores how consumer habits have dramatically shifted in the last 10 years toward access over ownership, especially when it comes to entertainment. In 2008, the best way for me to watch movies at home was to head over to my local Blockbuster, rent Forgetting Sarah Marshall, and then inevitably forget to return the film before the $3 late fee. Now, I can subscribe to unlimited movies, right at my fingertips. And that entertainment is only regarding streaming content. What about being there in person?
The very best content in the entire world is the live content that you can only experience from being present at a game or a concert. There’s nothing like the feeling of the cold from the ice rink or hearing the squeaks of the sneakers on the hardwood or experiencing the hair stand up on the back of your neck while watching your favorite band play a hit song. But the only way to attend is with the analog purchase of a physical ticket to a specific seat. There’s been virtually no way for fans to subscribe to the sports and entertainment that they want to attend, until now.
Experience Pass® technology is the first and only white-labeled, flexible ticketing technology that allows sports and entertainment companies to deliver subscription tickets directly to their fans.
We built Pass technology to be app agnostic, so that it can plug into your mobile ecosystem and live under your brand.
Enough selling you on the product – here are six reasons why I believe that you, live sports and entertainment leaders, should consider the concept of subscription ticketing in 2018.
1. Consumers want access, not necessarily ownership.
Subscription businesses are growing 9X faster than the S&P 500. The aforementioned subscription giant Netflix is now worth over $100B, and more and more content owners are making the shift to subscription services. People want to consume entertainment very differently today than they did ten years ago and they are willing to pay for it, if you can deliver the flexibility and convenience they demand. More options, less friction, and technology-enabled features will win over this new era of consumers.
2. Live sports and entertainment companies can capture the value.
Traditional tickets to live sports and entertainment are the only products in the world that can have more secondary market value than original value. Think about it. Imagine trying to resell your plane tickets to NYC in the holiday season or resell your hotel room in San Francisco during Dreamforce. While there is plenty of financial upside for me to resell my room at the Westin, the mere prospect of selling my hotel room is ludicrous. So why are we all okay with fans reselling a seat to a sporting event? Instead of the secondary markets seeing that value, the content owners – sports and entertainment companies – should be able to capture the value in those especially high demand events. Subscription ticketing shifts the value back to the content owners.
3. It creates new revenue opportunities.
In the last five years, Experience has enabled nearly 2 million subscription-based tickets to flow through our platform, and on average, usage rates of those tickets hover between 60% to 80%. In the same way that no one watches every show on Netflix each month and no one listens to every song on Spotify, with subscription tickets, we know that not every pass holder will come to every game (remember, 60% to 80% usage?). And when you add a layer of data science that predicts attendance patterns, you can instantly use that 20% to 40% of additional inventory that would have gone toward the subscription tickets to sell as single-game tickets, upgrades, group sales, or any other revenue-generator that you can imagine.
4. No more no shows.
Can you picture a world where Empty Seats Galore disappears? What if year after year we didn’t have to read any more articles like this or this or this? With traditional tickets, fans that don’t use their tickets still lay claim to specific seats and therefore the seats, obviously, need to be held in case the owner shows up. More often than we’d like, this results in no shows. With subscription ticketing, fans can only claim tickets if they actually attend the games, reserving seat inventory for attendees. No more wasted seats.
5. It’s working in every sports league.
23 of the 30 MLB teams are using Ballpark Pass, most often powered by Experience Pass technology. Dozens of NBA and NHL teams leverage subscription-based Pass technology to reach new types of consumers. We’ve seen success throughout the NCAA and even dipped our toes into the NFL.
6. Technology-enabled features will help evolve the season ticket.
At Experience, we will continue to bring new concepts to the subscription ticketing market as we leverage our deep ticketing integrations and years of working with over 350 sports and entertainment properties. We’re already exploring how we can build new features like allowing two people to buy tickets separately and link their tickets so that they can sit together, or giving a fan who has tickets a simple way to add guests to her group in a few taps on her phone. We want to create a rich user experience so that we can increase the value of subscription ticketing to both our partners and the fans.
Some people believe that season tickets are dying. They aren’t, but they are evolving. We want to help sports and entertainment companies evolve their ticketing with the ways consumer habits are moving. We will work together to help you create more value for fans, while unlocking new revenue streams, and do it all with subscription-based ticketing. Join us.