the russian ticket market - pwc · industry segments: venues, ticketing systems and operators, and...
TRANSCRIPT
The Russian ticket market
Russian Ticketing Industry Survey 2018
2 PwC
Sporting events, music festivals, concerts, theatrical productions and shows are events that are difficult to imagine without passionate fans in attendance. Sold-out halls and full stadiums are a sign of devotion, and a packed house is the ultimate goal for any event organiser.
Selling tickets is not just a step in preparing for an event, but rather a multifaceted process that requires a lot of effort. However, it is not all about the changing preferences of audiences and the demands of contemporary spectators.
Rapid advances in marketing technology, emerging user interfaces, and new payment and feedback methods are creating new challenges and increasingly complex tasks for all market players.
This report is devoted to discussing the trends, key drivers and issues in the ticket market with representatives of ticketing systems and ticket operators, as well as with venues and organisers.
We are confident that the energy and care our experts put into what they do will support the successful development of this market.
Oleg MalyshevPartner, Deals Leader, PwC Russia
Welcome to the Russian Ticketing Industry Survey, which was prepared by PwC during the run-up to the Moscow Ticketing Forum.
The ticket market in Russia is growing quickly and gaining increasing attention. We see this in the success stories presented at the conference and in the increased interest towards our event from foreign companies. Recent acquisitions by ticket operators prove that the industry is on the rise.
We hope that this survey, which was carried out with the active involvement of the speakers and delegates in attendance at the Moscow Ticketing Forum, will be appreciated by both the guests at our event and all those interested in the entertainment industry.
Artem MilakovProducer, Moscow Ticketing Forum, CEO, Strategium Conferences
3The Russian ticket market
Table of contents
The Russian ticketing industry 4
About the survey respondents 5
Expert view 6
Event organisers 6
Event venues 8
Ticket operators 10
Ticketing systems 12
Sales management 14
Sales channels 14
Sales planning 15
Seasonality and sales dynamics 16
Customer management 18
Ticketing and CRM systems 18
Pricing tools 19
Payment methods 20
Value-adding services 21
Event advertising 22
Feedback channels 23
E-tickets 24
Ticket fraud 26
Ticket market outlook 30
Development trends 31
Development drivers 32
Development challenges 33
Contacts 35
4 PwC
The Russian ticketing industryThe entertainment market is both growing and becoming increasingly attractive globally. According to PwC’s outlook for 2017–2021, Russia’s entertainment industry will grow at a CAGR of 7.2% in comparison to the global average of 4.2%.
The ticket market is an essential segment of the entertainment industry, as it generates a significant share of any event’s revenue.
The size of the ticket market in Russia, according to estimates by different industry experts, ranges from RUB 45bn to RUB 60bn per year (excluding cinemas).
The market in Russia has shown the same general trends as the global ticketing industry, such as the adoption of emerging technologies, the development of new approaches towards regulating the secondary market and increased interest from investors, primarily telecommunications and media companies.
Global media and e-commerce players are increasingly embracing the ticket market and either creating their own ticketing solutions or partnering with existing ticket operators and platforms.
Russia is no exception to this trend. For example, the telecommunications company MTS acquired the ticket operators Ticketland and Ponominalu in February 2018.
Following this deal, Sergei Solonin, an ex-shareholder of Ticketland and a co-founder of the Qiwi payment system, invested in the acquisition of the ticketing system Timepad.
The industry’s evolution is gradually changing its structure and practices. Therefore, the economic and legal aspects of creating an integral ticketing framework are now a pressing concern for market players. They have joined efforts to develop an approach towards the secondary market, which largely operates in a grey area at the moment.
As competition increases, market players are coming up with new offerings and value-adding services for their customers. For example, the ticket operator Kassir.ru has partnered with the OneTwoTrip ticketing platform, so now they can sell tickets not only for events but also for air and train travel, as well as offer hotel booking services to their users.
Emerging technologies, especially blockchain, are being increasingly applied by Russian industry players to their operations. Tickets Cloud and eTicket4 have already concluded successful ICOs, and still more are developing their own blockchain solutions.
In the run-up to the Moscow Ticketing Forum, an event that focuses specifically on the Russian ticket market, we joined our efforts with the forum’s organisers to conduct a survey on the ticketing industry to gain insight into its current state, understand the differentiators and define further development trends.
5The Russian ticket market
About the survey respondentsThis research on the Russian ticket market was conducted in February 2018 through an online survey of ticketing industry representatives ranging from senior executives to mid-level management.
We surveyed representatives from all key industry segments: venues, ticketing systems and operators, and organisers. Among our respondents also were software developers and distributors, as well as ticket aggregators and marketing agencies.
27%
22%
20%
4%
20%
7%
Venue
Ticketing system
Ticket operator
Organiser
Other*
Software and technology developers
Профиль деятельности, % от общего количества респондентов
78%
* Marketing agencies and ticket aggregators.
CIS countries
Other countries
Russia
11%
11%
78%
Business segment, % of total number of respondents
68%
Concerts
57%
FestivalsTheatres
70%
43%45%48%
Musicals
48%
Circuses
32%
43%
ExhibitionsChildren’s events
Sportingevents
10%
Businessevents
Movietheatres
10%
Other**
** Museums, parks, zoos, etc.
Business location, % of total number of respondents
Business segment, % of total number of respondents
Business location, % of total number of respondents
27%
22%
20%
4%
20%
7%
Venue
Ticketing system
Ticket operator
Organiser
Other*
Software and technology developers
Профиль деятельности, % от общего количества респондентов
78%
* Marketing agencies and ticket aggregators.
CIS countries
Other countries
Russia
11%
11%
78%
Business segment, % of total number of respondents
68%
Concerts
57%
FestivalsTheatres
70%
43%45%48%
Musicals
48%
Circuses
32%
43%
ExhibitionsChildren’s events
Sportingevents
10%
Businessevents
Movietheatres
10%
Other**
** Museums, parks, zoos, etc.
Business location, % of total number of respondents
Business profile, % of total number of respondents
27%
22%
20%
4%
20%
7%
Venue
Ticketing system
Ticket operator
Organiser
Other*
Software and technology developers
Профиль деятельности, % от общего количества респондентов
78%
* Marketing agencies and ticket aggregators.
CIS countries
Other countries
Russia
11%
11%
78%
Business segment, % of total number of respondents
68%
Concerts
57%
FestivalsTheatres
70%
43%45%48%
Musicals
48%
Circuses
32%
43%
ExhibitionsChildren’s events
Sportingevents
10%
Businessevents
Movietheatres
10%
Other**
** Museums, parks, zoos, etc.
Business location, % of total number of respondents
Sources: survey data and PwC analysis.
Sources: survey data and PwC analysis.
Sources: survey data and PwC analysis.
6 PwC
Expert view
Event organisers
An increase in organisers selling tickets to their own events was cited by experts both in Russia and abroad as one of the key market trends.
More than 80% of the organisers surveyed said that they sell their own tickets, with 8% of respondents doing so without using contractors.
Share of tickets sold by organisers on their own (as estimated by respondents by segment), % (median and value range)
Ticket sales channel, % of total number of respondents
Share of tickets sold by organisers on their own (as estimated by respondents by segment), % (median and value range)
8%
17%
75%
Own sales only
Through contractors only
Hybrid
27%
27%
46%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
One contractor
Two contractors
More than two contractors
Number of contractors used, % of total number of respondents
37%35%
50%52%57%
60%64%
70%70%
49%
Gener
al
Busine
ss e
vent
s
Exhibi
tions
Sports
Circus
es
Childr
en’s
even
ts
Conce
rts
Mus
icals
Festiv
als
Theat
res
Ticket sales channel, % of total number of respondents
Share of tickets sold by organisers on their own (as estimated by respondents by segment), % (median and value range)
8%
17%
75%
Own sales only
Through contractors only
Hybrid
27%
27%
46%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
One contractor
Two contractors
More than two contractors
Number of contractors used, % of total number of respondents
37%35%
50%52%57%
60%64%
70%70%
49%
Gener
al
Busine
ss e
vent
s
Exhibi
tions
Sports
Circus
es
Childr
en’s
even
ts
Conce
rts
Mus
icals
Festiv
als
Theat
res
Ticket sales channel, % of total number of respondents
Number of contractors used, % of total number of respondents
The share of tickets sold by organisers on their own tends to vary depending on the event segment, and it amounts to 49% on average. Organisers of business-related events and fairs require additional sales channels the least, whereas tickets for theatrical events and festivals are distributed primarily through contractors.
Ticket sales channel, % of total number of respondents
Share of tickets sold by organisers on their own (as estimated by respondents by segment), % (median and value range)
8%
17%
75%
Own sales only
Through contractors only
Hybrid
27%
27%
46%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
One contractor
Two contractors
More than two contractors
Number of contractors used, % of total number of respondents
37%35%
50%52%57%
60%64%
70%70%
49%
Gener
al
Busine
ss e
vent
s
Exhibi
tions
Sports
Circus
es
Childr
en’s
even
ts
Conce
rts
Mus
icals
Festiv
als
Theat
res
Sources: survey data and PwC analysis. Sources: survey data and PwC analysis.
Sources: survey data and PwC analysis.
7The Russian ticket market
On the ticket market in Russia
The ticket market for concerts depends on the preferences and the available budgets of the audience. Since the crisis, spectators have become more selective in their choice of events and are going to concerts more rarely.
The overall capacity of the ticket market declined by 20–30%. However, there are artists who always sell out, so the key challenge for an organiser is to choose the right talent.
Performers and their managers generally do not care about how tickets are selling. Only a few performers make announcements on social networks or record welcome videos for their fans from different countries. What they usually do is post the date of a concert and a link to a ticket seller on their official website.
We are not selling concert tickets ourselves; instead we ask our partners to do so. We have a long-term agreement with Kassir.ru, a market leader that receives all available tickets. There are events for which Kassir.ru sells all of the tickets. Otherwise, our contractor might reallocate some of the tickets to other operators. We control our ticket sales, but we rely on our partner’s experience and their perception of the market.
I think that Kassir.ru is currently the number one platform in the Russian ticket market. The market for ticket operators is highly competitive. We recently saw a large deal in which MTS acquired two ticket operators. Given the experience and capabilities of this telecommunications giant, it will have a significant impact on the market. As for foreign players in the ticket market, I have not yet seen any particular interest towards Russia. I do not expect this to change any time soon either.
When we talk about foreign operators with a presence in the Russian market, only parter.ru, which is part of the Eventum Group, comes to mind.
On online sales and the Russian ticket-buying culture
More and more tickets are now sold online. According to my estimates, more than 30% of tickets to our events are electronic. We are eager to promote online sales, as it makes it much easier for a spectator to book a ticket since they do not have to stand in line or wait for the tickets to be delivered.
However, we still have a long way to go before tickets sell out within days of going up for sale online. If we assume that there is certain ticket-buying behaviour, then it differs from the West in Russia. Tickets in our country are sold gradually, more or less evenly over the entire sales period, which could be anywhere from eight to ten months.
One of the exceptions was Zemfira’s show in Olympiysky, when the servers of ticket operators were unable to handle all the requests. Another curious case from my own experience was when we worked with the band Ruki Vverkh in the late 1990s. There were many unsold tickets left for one of the Russian shows, but on the date of the concert and close to its start, tickets started to sell like hotcakes in box offices, as if people were purposely brought to us in order to buy the remaining tickets.
There is no clear trend of buying tickets in advance in Russia or, conversely, at the last minute. Tickets are always available, if not always from official sellers.
We do not see a big problem with ticket touts, but there have been events when we needed security to keep them away from box offices. Problems crop up when a performer does not sell well. In this case, touts can afford to sell below face value, whereas we the organiser cannot compete. If we reduce prices one day, then the audience will be expecting such promotions in the future, and they will not buy tickets to our events at full price.
On modern arenas and audiences' favourite venues
Moscow now has new venues, including Oktrytie Arena, the renovated Luzhniki Stadium and the new Dinamo Stadium with indoor hall. These are modern facilities that are comfortable for spectators. On the other hand, people like the old-fashioned Olympiysky and are willing to go to events held there.
The Moscow Youth Palace (MDM) is a curious example. The venue is located close to the city centre, mere footsteps away from a metro station, but it was never a popular venue for spectators. Once musicals became popular, audiences re-discovered this venue for themselves.
Arenas that will open their doors in Russian cities for the World Cup this summer are unlikely to be used for shows, although they will be used for one-off events. They are bound by date constraints related to their main use, which is for football matches. The demand in the regions for massive concerts is also limited. We live in a big country where travelling from one place to another can be rather expensive. That is why people rarely travel to other towns for their favourite performers, at least not in the numbers that football or hockey fans do.
Foreign spectators do not often decide to come to Russia because the European cities where performers go on tour are more logistically convenient for them. There are certainly some mad fans (in a good way) who follow their idols all over the world and come to Russia to see them, but they are very few in number.
Vladimir Zubitsky
CEO
Russian Show Centre
8 PwC
Event venues
We surveyed venues with different capacities, with more than half of our respondents representing halls that seat up to 1,000 people.
Almost a third of venues said they achieve day-to-day utilisation, i.e. hosting more than 300 events per year.
Venue type, % of total number of respondents
Venue capacity, % of total number of respondents
As noted by respondents, this figure, apart from events held by tenants, includes events that they organise themselves.
More than half of the survey respondents said that they only sell tickets to events themselves, while the rest use organisers and contractors as their main source of sales or as an additional channel.
Number of events held per year, % of total number of respondents
Ticket sales channel, % of total number of respondents
Use and type of access control system, % of total number of respondents
Events organised internally, % of total number of respondents
Тип площадки, % от общего количества респондентов
21%
7%
72%
Indoor
Combined
Outdoor
Вместимость площадки % от общего количества
респондентов
15%
54%31%
Over 5,000 people
Up to 1,000 people
From 1 – 5,000 people
28%
36%
36%
Mobile system
Permanent installation
None/gatekeeper (ticket-taker)
Тип используемых СКУД, % от общего количества респондентов
86%
14%
Самостоятельная организация мероприятий, % от общегоколичества респондентов
Yes
No
Количество проводимыхмероприятий в год, % отобщего количествареспондентов
Up to 99
From 200 – 299
From 100 – 199
Способ реализации билетов, % от общего количества респондентов
21%58%
21%
Only their own
Only through organisers/contractors
Combined
31%23%
31%15%
300 and above
Тип площадки, % от общего количества респондентов
21%
7%
72%
Indoor
Combined
Outdoor
Вместимость площадки % от общего количества
респондентов
15%
54%31%
Over 5,000 people
Up to 1,000 people
From 1 – 5,000 people
28%
36%
36%
Mobile system
Permanent installation
None/gatekeeper (ticket-taker)
Тип используемых СКУД, % от общего количества респондентов
86%
14%
Самостоятельная организация мероприятий, % от общегоколичества респондентов
Yes
No
Количество проводимыхмероприятий в год, % отобщего количествареспондентов
Up to 99
From 200 – 299
From 100 – 199
Способ реализации билетов, % от общего количества респондентов
21%58%
21%
Only their own
Only through organisers/contractors
Combined
31%23%
31%15%
300 and aboveSources: survey data and PwC analysis.
9The Russian ticket market
Crocus City HallOn the competition between venues
An organiser, when selecting a venue, makes their decision based on a number of factors. First of all, the venue should fit the organiser’s budget, which includes concert fees paid to the artist, technical and hospitality riders, rental payments to venue owners and taxes. If an artist is very expensive to book, we cannot compete with spacious stadiums, since the ticket price would need to be as high as RUB 200,000 per seat to recover the investment needed to attract a big name.
Second, the organiser should be able to meet the performer’s expectations. Some insist on using the Crocus City Hall stage and come to us every year, while others prefer smaller, more intimate venues. Others still dream of performing before an audience in a big stadium.
And third, how well the venue is equipped matters. An artist may perform using our basic equipment without needing to rent anything extra or having to hire a professional technical staff. This is an important advantage for tenants.
Crocus City Hall hosts about 200 events a year. These are mostly tenancies, and events in which Crocus acts both as the venue and the organiser account for 10–15% of total events.
We also have a new hall – Vegas City Hall – where our share in the total number of events currently is 80%, but the number of external tenants is increasing.
On ticketing arrangements
We mostly sell tickets to events ourselves if the organiser does not have any obstacles in the form of advance payments or other agreements with ticket operators. Out of the quota of seats we have, our box offices and online systems account for 70–100% of total sales, with Ticketland being a leader in selling tickets to our events among external ticket operators.
Most tickets are sold online, with events for adults usually enjoying a greater share of online sales than ones for children (80% against 65%). Interestingly, there seems to be a great demand for ticket insurance for children’s productions. That is, for example, a child gets sick and the family cannot attend an event, so the ticket is refunded by the insurance provider.
Our physical box offices are located both at the venues themselves and in the VEGAS and Tvoy Dom shopping malls. There is also a ticket office in the centre of Moscow in Lotte Plaza. In our view, the percentage of impulse purchases is not high, but it is a useful promotional channel.
Most tickets are sold two to six weeks before an event. The first to buy tickets are an artist’s devoted fans, followed by those who prefer to plan activities for their free time in advance.
We have a 1C CRM system in which we accumulate all customer data. We see that there are spectators who are loyal to our venue in particular, a group that accounts for approximately 20% of our audience. Such loyal customers may attend from five to six concerts every year. However, we do not see any value in ticket subscriptions since we offer a very wide range of performances.
On plans to set up their own ticket operator
We are now working on launching a new service for customers of the Crocus concert venues and entertainment centres. Essentially, we are setting up a new ticket operator that provides connectivity with third-party platforms. Over the years, we have built an exceptional customer base and we would like to use the new service to improve the user experience, expand our offerings and launch a loyalty programme.
We might implement new services over time, but to be able to develop effective and mutually beneficial relationships with providers of such services, we first need to ensure that the ticket-selling process is up and running.
On sales through social media
Many ticket resources already have the technical means to integrate a buy button into social networks. However, judging by current statistics, this channel should not be relied on too much. The percentage of purchases is not high, while promoting events on social media and through messengers is more about reputation, engagement between the customer and the venue, and the chance to get direct feedback.
We have had some conversions from social networks, but it is more a layaway than an immediate purchase. For example, a spectator learns about an event on Facebook or VKontakte and makes a purchase within a week. Consequently, social networks represent a source of information that encourages them to visit the website selling tickets. That is why ticketing services, venues and organisers alike are embracing these communication channels.
Anastasia Levitskaya
Head of Ticket Sales
Irina Nurmatova
NOWTICKET Project Leader
`
10 PwC
Ticket operators
Ticket operators act as intermediaries for organisers and venues in the ticket-selling process. They can either sell all of the tickets for an event as the exclusive operator or sell only their portion.
Operators sell tickets through their own box offices, websites and mobile apps. There are two pricing options: a commission for when tickets are purchased below face value and then resold at face value, or a service fee added on top of the face value of the tickets when they are sold to the end consumer.
Almost all ticket operators said they prefer to structure their relationships with organisers based on the commission model; however, half of them from time to time use service fee arrangements.
The way a commission or service fee is defined, and consequently its amount, varies in most cases depending on the event and the projected sales.
Используемая модель ценообразования% от общего количества респондентов
Принцип формирования комиссии / наценки, % от общего количества респондентов
82%
18%
Variable depending on the event
Standard
10%
45%45%
Commission only
Service fee only
Commission and service fee
Pricing model used, % of total number of respondents
Defining of commission/service fee, % of total number of respondents
Используемая модель ценообразования% от общего количества респондентов
Принцип формирования комиссии / наценки, % от общего количества респондентов
82%
18%
Variable depending on the event
Standard
10%
45%45%
Commission only
Service fee only
Commission and service fee
Sources: survey data and PwC analysis. Sources: survey data and PwC analysis.
11The Russian ticket market
TicketlandOn the ticket market and the theatre audience
We are currently positioned as number two in the Russian market. After the deal with MTS and as we gradually combine our resources with Ponominalu, we will hopefully rise to first place, but for now we are second. I cannot say clearly whether the market for ticket operators is saturated and whether there is still room left for new entrants – it is a philosophical question for me. For example, I would not set up a new ticket operator myself, but it may be interesting for someone else.
The key segment for Ticketland is the theatre, and we use a broad definition that includes both circuses and theatrical productions for children. Other segments are also interesting for us, but after first checking the financial indicators, we see that most money in the ticket market is earned through cinemas, followed by theatres and then concerts and festivals.
The audience for the theatre is not large, but it is stable. I think that approximately one in ten Russians is a theatregoer. There may not be lots of theatre lovers as such, considering its educational rather than entertainment role. The occupancy rate in theatres remains stable at 60%. Spectators on average start to buy tickets three weeks before an event. Good tickets for popular productions need to be bought in advance, as closer to the date there might simply be no tickets left.
On increasing online sales and the importance of an operator’s brand
We now sell as many as 85% of tickets online, and the share of online sales will continue to grow.We might only have ten offline box offices in the near future. The pace of change in the regions is a bit slower, but people are the same everywhere and an increasing preference for online purchases is being seen everywhere.
Online purchases take place mainly on the website, while the share of purchases through apps does not exceed 7%. The best apps are ultimately those that we use in our everyday life, e.g. social networks and mobile banks. If you buy a ticket once every three months, you hardly seem to remember that you have installed a special app to do so.
The ticket operator brand is important for spectators. We all tend to focus on brands and are willing to pay more for a brand we trust, and ticket purchases are no exception.
We have a call centre for buyers and we are quick to help if something goes wrong, but we are not focusing on putting in place a feedback system. In my opinion, customers should not call us, as we do not provide any services by phone. We place an emphasis on making purchases as easy and convenient as possible. If people come to us and call us, it is not a sign of a good feedback s ystem but instead an indication that some of our processes are not very convenient.
On customer data
Data about ticket buyers, in my opinion, is considerably overvalued. The spectator database does have a certain value. However, data collection methods that are now available make it possible to get information about customers very quickly by offering them a kind of bonus for sharing their contact details. The database is just one of the success factors, but probably not the key one. What matters is the quality of service and an understanding of how to use data wisely, e.g. how to record the required traffic, improve the efficiency of marketing campaigns, properly set up targeting and create better experiences for users visiting your website.
Considerable effort is required to fine-tune such algorithms to put together the pieces of the customer puzzle. There is no silver bullet. Anyone can now get hold of an audience’s data, and the big question is not who has more data but who is capable of making the most of it.
On selling value-adding services
We have been watching the competition, but we have not yet seen any successful cases of this. For example, there are tickets that include meals, but I do not see any great demand for such offerings. In order to offer some value-adding services to spectators, for example meals or a taxi, we would first have to “spoil” the website interface, and we should then develop the on-site infrastructure that makes it possible to book a table or certain meals.
I am convinced that everyone should do their own job. Attendees can easily order a taxi after a performance on their own with a couple of clicks.
Vitaly Vinogradov
CEO
12 PwC
Ticketing systems
Ticketing systems provide special software to organisers, venues and operators to sell their own tickets, as well as the necessary set-up, support and maintenance services through a variety of monetisation models.
Therefore, just under 40% of respondents said they operate on a commission-based model that provides software free of charge.
Используемая модель ценообразования, % от общего количества респондентов
15,4%
38,4%15,4%
15,4%
15,4%
Commission per ticket sold
Fixed payment for software installation
Combined
Fixed payment for software installation plus a subscription fee
Fixed payment for software installation plus commission per ticket sold
Pricing model used, % of total number of respondents
Another model cited by 15% of survey participants was a one-off fixed payment for software installation. The remaining ticketing systems apply a hybrid payment model that combines a fixed payment along with a commission or subscription fee for system maintenance.
Sources: survey data and PwC analysis.
13The Russian ticket market
On effective event marketing and feedback
The Radario marketing platform has eight basic scenarios of audience management for organizers to use both individually and in combination as part of integrated marketing campaigns and loyalty programmes. The analytics section helps to understand when and how to reach out to your audience to increase sales and the average ticket price, as well as to improve loyalty.
In our view, email marketing supported by proper customer base segmentation appears to be a very promising marketing tool. Very good results can be achieved with Yandex.Direct and traditional targeting in VKontakte. We also suggest using Facebook – which for some reason is not very popular among our organisers – because you can attract an audience at a relatively low cost with the right ad placement.
As for out-of-home advertising, it still works well in the regions, whereas in Moscow and St Petersburg the demand for such channels is gradually declining. Organisers are starting to realise that this is an expensive tool to use, the effectiveness of which is almost impossible to assess.
Our clients have an opportunity to handle the end buyers of tickets themselves. We provide support through all popular communication channels, such as email, call centres and social media.
On promising sales channels and segments
The number of tickets sold through social networks is increasing each year, as people find it convenient to shop where they happen to be most often. There are organisers targeting younger audiences whose share of sales on social networks reaches 70–80%.
As for the most promising segments, these are obviously cybersports and tours of popular bloggers, stand-up comedians and niche musicians. We also see increasing sales in the theatre segment due to the attraction of a new Internet audience and the emergence of new theatre formats, such as immersive shows.
RadarioOn the advantages of ticketing systems and competition in the marketplace
This past year, in our opinion, was ground-breaking since organisers realised the value of the audience and the need to engage with consumers the right way through new technologies. This is where ticketing systems come into play, making it possible to independently manage sales and marketing online.
Besides, many ticketing systems have gateways with large ticket operators that enable the selling of tickets in a common environment through all possible channels, e.g. the organiser’s website, social networks, ticket operators and agents. It is up to the organiser to define through which channel and on what conditions to sell tickets. Therefore, the organiser becomes a self-sufficient e-commerce agent that is independent of any contractors and with direct access to the audience, along with the possibility of collecting additional data to be further analysed and managed.
We have positioned ourselves as one of the leaders in the market for ticketing systems by the number and variety of client solutions.
For example, we are the only vendor in Russia to offer a solution for attracting sponsors and integrating them into events based on audience data. Intickets and Edinoe Pole are our main competitors that also have the same customer value proposition.
The Russian market for ticketing solutions is quite mature and fully meets all the requirements of organisers. Our solutions are popular abroad as well. Within a few months after the launch of the Radario marketing platform in the US, the number of platform users rose to over 100, and these are mostly repertory venues. We also have some clients in Europe, and our solutions as part of a franchise agreement have been used in Southeast Asia as well. Working with foreign partners is essentially no different, apart from the time zones.
Sergey Suchkov
CEO
Daria Bednaya
Commercial Director
14 PwC
Sales management
Sales channels
Use of sales channels, % of total number of respondents
Own website
Own box offices
Intermediary websites
Intermediary box offices
Social media and messengers
Mobile apps
92%
79%
83%
86%50%
33%
29%
71%
67%
64%
58%
29%
Organisers Venues
Organisers tend to give preference to such sales channels as intermediary box offices and websites. In the meantime, venues are increasingly using their own channels.
Social media and messengers are only now emerging as viable sales channels, and just
over half of the organisers and less than a third of the venue operators surveyed said that they use them.
No more than a third of respondents reported that they use mobile apps to sell tickets.
Sources: survey data and PwC analysis.
15The Russian ticket market
Sales planning
Start of ticket sales before an event, % of total number of respondents
24%
12%
32%
32%
Less than a month in advance
Half a year or more in advance
Начало продаж билетов, период до мероприятия, % от общего количества респондентов
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
8%
20%
27%
23%
Half a year or morein advance
31%
38%
Less than a monthin advance
One to two monthsin advance
30%
50%
Three to six monthsin advance
46%
27%
Venues
Organisers
Ticket operators
One to two months in advance
Three to six months in advance
0% 0%
24%
12%
32%
32%
Less than a month in advance
Half a year or more in advance
Начало продаж билетов, период до мероприятия, % от общего количества респондентов
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
8%
20%
27%
23%
Half a year or morein advance
31%
38%
Less than a monthin advance
One to two monthsin advance
30%
50%
Three to six monthsin advance
46%
27%
Venues
Organisers
Ticket operators
One to two months in advance
Three to six months in advance
0% 0%
Breakdown by business profile
Roughly a third of respondents put tickets on sale shortly before an event, e.g. one to two months beforehand. The same number of respondents said that they launch sales well in advance, e.g. three to six months before an event.
Almost a quarter of market players can afford to launch long-term ticket programmes, e.g. more than half a year before an event.
Some respondents (12%) representing event organisers and venues reported that they usually start selling tickets less than a month before an event.
Sources: survey data and PwC analysis.
16 PwC
Seasonality and sales dynamics
Impact of seasonality on ticket sales, % of total number of respondents
Наличие фактора сезонностив продажах билетов, % от общего количества респондентов
62%
27%
11%
Tickets mostly sold at start of sales
Tickets mostly sold immediately before an event
Tickets sell consistently
Динамика продаж билетов пооценке респондентов, % от общего количества респондентов
26%
74%
There is an impact
There is no impact
0%
10%
20%
30%
40%
50%
60%
70%
80%
Tickets sell consistently
30%
40%
9%
18%
Tickets mostly soldimmediately before an event
40% 38%
70%
62%
73%
20%
Tickets mostly sold at start of sales
Venues
Organisers
Ticket operators
Ticketing systems
0%0%
The majority of respondents said that ticket sales are driven by seasonality, with the periods of peak demand varying depending on the event segment.
Survey participants generally agreed that sales of tickets to events in summer are significantly lower, the exception being tickets for festivals and outdoor activities, such as parks, zoos and other attractions.
The New Year holiday period is when different market players experience either a decline or a surge in ticket sales. Respondents reported a high demand for theatrical productions, circuses, musicals, children’s events and sporting events during the winter holiday season.
The sporting events segment for tickets is reliant on schedules and the position of clubs and athletes in their respective league tables.
Sources: survey data and PwC analysis.
17The Russian ticket market
Наличие фактора сезонностив продажах билетов, % от общего количества респондентов
62%
27%
11%
Tickets mostly sold at start of sales
Tickets mostly sold immediately before an event
Tickets sell consistently
Динамика продаж билетов пооценке респондентов, % от общего количества респондентов
26%
74%
There is an impact
There is no impact
0%
10%
20%
30%
40%
50%
60%
70%
80%
Tickets sell consistently
30%
40%
9%
18%
Tickets mostly soldimmediately before an event
40% 38%
70%
62%
73%
20%
Tickets mostly sold at start of sales
Venues
Organisers
Ticket operators
Ticketing systems
0%0%
Dynamics of ticket sales, % of total number of respondents
Наличие фактора сезонностив продажах билетов, % от общего количества респондентов
62%
27%
11%
Tickets mostly sold at start of sales
Tickets mostly sold immediately before an event
Tickets sell consistently
Динамика продаж билетов пооценке респондентов, % от общего количества респондентов
26%
74%
There is an impact
There is no impact
0%
10%
20%
30%
40%
50%
60%
70%
80%
Tickets sell consistently
30%
40%
9%
18%
Tickets mostly soldimmediately before an event
40% 38%
70%
62%
73%
20%
Tickets mostly sold at start of sales
Venues
Organisers
Ticket operators
Ticketing systems
0%0%
Some industry players surveyed said that they see a trend of last-minute ticket purchases, i.e. right before an event. This is the result of such phenomena as delayed purchases, when potential attendees postpone the decision to purchase tickets for several weeks after learning about an event.
About a third of respondents said that tickets sell consistently, while 40% of representatives of ticketing systems reported a high demand for tickets at the very start of sales from their devoted audience.
Breakdown by business profile
Sources: survey data and PwC analysis.
18 PwC
Customer management
Ticketing and CRM systems
Use of CRM system by respondents, % of total number of respondents
Ticketing systems by vendor type, % of total number of respondents
Билетные системы по типуразработчика, % от общегоколичества респондентов
83%
17%
Off-the-shelf solution
In-house solution
10%
54%
64%
44%
90%
46%
36%
56%
Насколько компетентен менеджмент Вашей компании в следующих областях:
Ticket operators
Venues
Organisers
General profile
NoYes
Билетные системы по типуразработчика, % от общегоколичества респондентов
83%
17%
Off-the-shelf solution
In-house solution
10%
54%
64%
44%
90%
46%
36%
56%
Насколько компетентен менеджмент Вашей компании в следующих областях:
Ticket operators
Venues
Organisers
General profile
NoYes
The majority of organisers and venues prefer to use commercial off-the-shelf ticketing solutions for their events. Only 17% claimed that the ticketing system they use is customised.
Despite the growing relevance of customer data analytics, CRM systems are used by just over half of respondents in their operations.
Sources: survey data and PwC analysis.
Sources: survey data and PwC analysis.
19The Russian ticket market
Pricing tools
Use of pricing tools, % of total number of respondents
Dynamic pricing
Discounts for variousgroups of attendees
Bundled offersand subscriptions
Free promotionaltickets
Joint discount programmes withbanks (e.g. cash back)
Auction pricing
Generalprofile
Organisers Venues Ticket operators
73% 69%
69%
57%
55% 50%
50%
40%
40% 40%
40%
38%
30%
70%66% 64% 60%
18%
Общий профиль
Организаторы Площадки Билетныеоператоры
Билетные системы
Динамическое ценообразование на основе статистических алгоритмов
66%
32%
25%
9%
18%
18%
18%
31%
31%
8%
8%
30%
20%
40%
0%
50%
50%
40%
10%
64% 69% 70% 60%
Скидки для социальных категорий клиентов
57% 73% 69% 40% 40%
Пакетные предложения, абонементы
39% 55%
Бесплатные промо-билеты
Совместные скидочныепрограммы с банками (например, cash back)
Аукционное ценообразование
Ticketing systems
32% 31%
31%
25%
9%
18%
18%
20%
8%
8%
10%0%
The main pricing tool used for ticketing programmes is dynamic pricing, which makes it possible to automatically adjust prices based on an analysis of the sales dynamics, which themselves depend on the existing demand and the remaining supply. Discounts for various groups of attendees are also a popular pricing tool.
Bundled offers, i.e. sets of tickets for several events, enjoy relative popularity among organisers and ticketing systems.
Representatives of ticketing systems also said that they use free promotional tickets to boost sales, as well as joint discount programmes with banks in partnership with ticket operators.
Auction pricing is not yet widely used in the Russian market, and it is mostly favoured by organisers.
Sources: survey data and PwC analysis.
20 PwC
Payment methods
Payment methods, % of total number of respondents
Generalprofile
Organisers Venues Ticket operators
Ticketing systems
Cash
Bank transfers
Payment throughterminals
Payment throughdigital wallets
Payment in telecom retail stores
SMS payments
100% 100%93% 92%
92%
80%
55%
50%48%
40%
29%
70%64%
60%
60%
18%
31%
35% 36%
20%
20%
20%
7%
8%
11%
10%
0%
Общий профиль
Организаторы Площадки Билетныеоператоры
Билетные системы
Безналичная оплата 93% 100% 92% 100% 80%
Наличная оплата 84% 91% 92% 90% 60%
Банковский перевод 48%
7%
11%
35% 36%
27%
18%
55%
8%
0%
0%
23%
40%
0%
0%
20%
20%
20%
10%
60%29%
64% 31% 70% 50%
Оплата через электронные терминалы
Оплата через электронныекошельки
Оплата в салонах связи
СМС-платежи
Cashless payments
27%
91% 90%
0%
0% 0%
23%
84%
The most common payment methods according to the survey respondents are electronic and cash. Just under half of respondents said they accept bank transfers from their clients.
Organisers and ticketing systems offer a wide range of options for buyers to choose from, e.g. making payments through electronic terminals, telecom retail stores and SMS.
Sources: survey data and PwC analysis.
21The Russian ticket market
Value-adding services
Provision of value-adding services, % of total number of respondents
Excursionsupport
VIP hospitality
Ticket insurance
Hotel bookings
Gift packages
Transfers
100%50% 50%
50%
40%
17%
33%
33% 33%
33%
30%
25%
25%
25%
17%
20%
6%
6%
13%
13%
13%
13%
Ticket delivery 89%
Airline tickets
6%
11%
0%
0%
0%0%
0%
0%
0%
0%
0%
0%
0%22%
Rental cars
Generalprofile
Organisers Venues Ticket operators
The most popular service in addition to purchasing tickets is delivery. Delivery is offered by all of the ticket operators surveyed, as well as a by a considerable number of organisers and venues.
Roughly a third of respondents said they provide extra excursion support and VIP hospitality
packages, which include a number of services related to transfers, accommodations, meals and additional entertainment.
The widest range of value-adding services, such as ticket insurance in case an event is cancelled, accommodations and transfers, are offered to clients by ticket operators.
Sources: survey data and PwC analysis.
22 PwC
Event advertising
Use of advertising channels, % of total number of respondents
Out-of-home ads
Radio
Online advertising
Paid searches
Print media
Television
Generalprofile
Organisers Venues Ticket operators
100% 100%97% 92%
80%
77%73%
73%
74%
69%
55%
53%
54%
50%
50%
45%
45%
45%38%
40%
70%
65%
62%
62%
30%31%
38%
20%6%
13%
Social media
90%
CPA networks
6%
0%
0%0%
0%
Advances in new technologies and digital platforms are gradually transforming the advertising market, including the ticketing industry.
Social media has emerged as the key channel for promoting events and is used by almost all of the survey participants. Out-of-home advertising and radio still play a significant role in promoting events thanks to the scope of their audience.
Internet resources such as online advertising, paid searches and cost-per-acquisition (CPA) networks are most often used by ticket operators.
Print media is still used by half of respondents for advertising, and it is even more popular to use than television commercials.
Sources: survey data and PwC analysis.
23The Russian ticket market
Feedback channels
Use of feedback channels, % of total number of respondents
Social media
Call centres
Chatbotson website/messengers
Generalprofile
Organisers Venues Ticket operators
100%
100% 100%
100% 90%
85%
86% 50%
40%23%
66% 62%18%
18% 15%
Ticketing systems
20%
91%
90%89%
Общий профиль Организаторы Площадки Билетные операторы Билетные сервисы
90%100%85%82% 89%
100%50%
100%91%86%
100%
18%62%66%
90%
20%15%23% 18%
40%
Электронная почта
Социальные сети
Call-центр
Чат-боты на сайте / в мессенджерах
82%
The survey revealed that the most common customer feedback channels are email and social networks. This is because of their mobility and convenience, both for customers and companies.
Two-thirds of market players (mostly ticket services and operators) provide customer support over the phone as well.
Chatbots on websites or in messengers are not yet widely used in the Russian market. Less than a quarter of survey participants reported using them.
Sources: survey data and PwC analysis.
24 PwC
E-tickets
Share of e-tickets (as estimated by respondents by company profile), % of total sales (median and value range)
Доля электронных билетов по оценке респондентов по профилюкомпаний, % от общего объема продаж
Доля электронных билетов по оценке респондентов по сегментам,% от общего объема продаж
Gener
al pr
ofile
Busine
ss e
vent
s
Exhibi
tions
Sports
Circus
es
Childr
en’s
even
ts
Conce
rts
Mus
icals
Festiv
als
Theat
res
0%
20%
40%
60%
80%
100%
120%
Ticket operators Venues Organisers
52%60%
44%
0%
20%
40%
60%
80%
100%
120%
52%
64%59% 58% 57% 56% 55% 54% 51% 50%
Прогноз роста доли электронных билетов в ближайшие пять лет по оценке респондентов по профилю компаний, %
0%
20%
40%
60%
80%
100%
120%
Gener
al pr
ofile
Softw
are
deve
loper
s
Ticket
ope
rato
rs
Ticket
ing sy
stem
s
Venue
s
Organ
isers
50%
60%56%
51% 51%
38%
Electronic tickets are gaining popularity in the Russian market. Some respondents estimate that the share of e-tickets out of the total volume sold in Moscow and St Petersburg in certain event segments may reach 90–100%.
However, it is different for the rest of Russia, which is explained by a slower rate of adopting emerging technologies and changes in consumer habits.
According to respondents’ estimates, the share of e-tickets in total sales stands at 52% for Russia. E-tickets are most often used in the business event segment, which might be due to the lower value of a paper ticket for their guests.
Share of e-tickets (as estimated by respondents by segment), % of total sales (median and value range)
Доля электронных билетов по оценке респондентов по профилюкомпаний, % от общего объема продаж
Доля электронных билетов по оценке респондентов по сегментам,% от общего объема продаж
Gener
al pr
ofile
Busine
ss e
vent
s
Exhibi
tions
Sports
Circus
es
Childr
en’s
even
ts
Conce
rts
Mus
icals
Festiv
als
Theat
res
0%
20%
40%
60%
80%
100%
120%
Ticket operators Venues Organisers
52%60%
44%
0%
20%
40%
60%
80%
100%
120%
52%
64%59% 58% 57% 56% 55% 54% 51% 50%
Прогноз роста доли электронных билетов в ближайшие пять лет по оценке респондентов по профилю компаний, %
0%
20%
40%
60%
80%
100%
120%
Gener
al pr
ofile
Softw
are
deve
loper
s
Ticket
ope
rato
rs
Ticket
ing sy
stem
s
Venue
s
Organ
isers
50%
60%56%
51% 51%
38%
Sources: survey data and PwC analysis.
Sources: survey data and PwC analysis.
25The Russian ticket market
Projected increase in share of e-tickets over the next five years (as estimated by respondents by company profile), % (median and value range)
Доля электронных билетов по оценке респондентов по профилюкомпаний, % от общего объема продаж
Доля электронных билетов по оценке респондентов по сегментам,% от общего объема продаж
Gener
al pr
ofile
Busine
ss e
vent
s
Exhibi
tions
Sports
Circus
es
Childr
en’s
even
ts
Conce
rts
Mus
icals
Festiv
als
Theat
res
0%
20%
40%
60%
80%
100%
120%
Ticket operators Venues Organisers
52%60%
44%
0%
20%
40%
60%
80%
100%
120%
52%
64%59% 58% 57% 56% 55% 54% 51% 50%
Прогноз роста доли электронных билетов в ближайшие пять лет по оценке респондентов по профилю компаний, %
0%
20%
40%
60%
80%
100%
120%
Gener
al pr
ofile
Softw
are
deve
loper
s
Ticket
ope
rato
rs
Ticket
ing sy
stem
s
Venue
s
Organ
isers
50%
60%56%
51% 51%
38%
The market players surveyed expect that e-ticket sales will grow by 50% over the next five years.
Software developers and vendors were more optimistic about the prospects of e-tickets, whereas ticketing systems presumed that the market is already quite saturated and expect only a growth of 38%.
Sources: survey data and PwC analysis.
26 PwC
Issues with ticket fraud
Attitude towards fake tickets, % of total number of respondents
It is a major concern for usThere is a problem, but it is nota major concern for us
We do not have such a problem
Organisers
Venues
Ticket operators
12%53%General profile
15%
20%
46%39%
18%36%46%
80%
35%
Отношение к проблеме поддельных билетов, % от общего количества респондентов
The problem with fake tickets is that spectators cannot attend an event, while organisers lose a portion of profits and customer loyalty. Market players such as manufacturers of ticket terminals and machines, as well as vendors of control and access management systems, are looking out for new solutions
to ensure additional protections for tickets, whereas organisers and venue operators are trying to educate potential customers to prevent such cases in the future.
Ticket market players in Russia recognise that ticket forgery exists, but it represents a major concern for only 18% of organisers and 15% of venues.
Sources: survey data and PwC analysis.
27The Russian ticket market
Illegal ticket resales, though they do not entail any financial losses for an organiser, negatively affect the experience and satisfaction of attendees, and therefore affect the image of the event.
The ticketing industry has embraced various approaches to combatting this problem, from tightening regulations in order to impose greater liability for illegal resales to developing solutions that can help to legalise the secondary market.
Russian ticket market players are taking the problem with ticket touts seriously, with almost a third of respondents saying that they considered it a major concern. Just under half of respondents acknowledged that there is a problem with the illegal resale of tickets; however, in their view, it has not had any significant impact on the market.
Attitude towards the illegal resale of tickets, % of total number of respondents
It is a major concern for usThere is a problem, but it is nota major concern for us
We do not have such a problem
Organisers
Venues
Ticket operators
29%42%General profile
31%
20% 20%
31%38%
28%36%36%
60%
29%
Отношение к проблеме поддельных билетов, % от общего количества респондентов
Sources: survey data and PwC analysis.
28 PwC
Use of limitation on the number of tickets per customer, % of total number of respondents
One way to fight ticket fraud is to limit the total number of tickets a single customer can purchase. The use of such a tool was reported by half of respondents, and the limit itself in most cases is from three to five tickets per customer.
More popular tools to counter touts and ticket fraud include black-listing customers who commit such offences and monitoring of social media and classified aggregators for illegal ticket postings.
It is noteworthy that such activity on the Internet is most often initiated by venues that regularly monitor Internet resources and search for fake or scam websites selling tickets.
Blocking users with a historyof ticket fraud
Limitation on the numberof tickets per customer
Screening for fake sites
Priority selling of tickets to clubcard/loyalty card holders
Generalprofile
Organisers Venues Ticket operators
80%
50%
50%
50%50%
43%
43%
46%
29%
71%
60%
60%62%
71%62%
15%
Билетныесистемы
30%
30%
20%
Monitoring of social mediaand classified aggregatorsfor illegal ticket postings
0%
8%
31%
61%
Six to ten tickets
Three to five tickets
One to two tickets
Использование органичений по количеству билетов в одни руки, % от общего количества респондентов
Blocking users with a historyof ticket fraud
Limitation on the numberof tickets per customer
Screening for fake sites
Priority selling of tickets to clubcard/loyalty card holders
Generalprofile
Organisers Venues Ticket operators
80%
50%
50%
50%50%
43%
43%
46%
29%
71%
60%
60%62%
71%62%
15%
Билетныесистемы
30%
30%
20%
Monitoring of social mediaand classified aggregatorsfor illegal ticket postings
0%
8%
31%
61%
Six to ten tickets
Three to five tickets
One to two tickets
Использование органичений по количеству билетов в одни руки, % от общего количества респондентов
Sources: survey data and PwC analysis.
Sources: survey data and PwC analysis.
29The Russian ticket market
The secondary ticket market in Russia has traditionally operated in a grey area, which complicates our analysis of it. We asked the survey respondents to give their estimates of the secondary market’s share as a percentage of the total market.
According to ticketing industry representatives, the estimated share of the secondary ticket
market in Russia is approximately 21% of the total market.
Interestingly, software developers and distributors estimated that the share was higher, which might be accounted for by their low involvement in the actual process of selling tickets. Deviations from the average among representatives of different event segments did not exceed three percentage points.
Share of the secondary market (as estimated by respondents by company profile), % of total market (median and value range)
0%
10%
20%
30%
40%
50%
60%
70%
Softwaredevelopers
Venues Organisers Ticket operators
Доля вторичного рынка по оценке респондентов по профилю компаний, % от общего объема рынка
Доля вторичного рынка по оценке респондентов по сегментам, % от общего объема рынка
0%
10%
20%
30%
40%
50%
60%
70%
27%
23%20% 19% 18%
21%24% 23% 22% 21% 20% 20% 20% 19% 19%
Gener
al pr
ofile
Childr
en’s
even
ts
Circus
es
Theat
res
Busine
ss e
vent
s
Exhibi
tions
Conce
rts
Mus
icals
Festiv
als
Sporti
ng e
vent
s
Ticketing systems
Share of the secondary market (as estimated by respondents by segment), % of total market (median and value range)
0%
10%
20%
30%
40%
50%
60%
70%
Softwaredevelopers
Venues Organisers Ticket operators
Доля вторичного рынка по оценке респондентов по профилю компаний, % от общего объема рынка
Доля вторичного рынка по оценке респондентов по сегментам, % от общего объема рынка
0%
10%
20%
30%
40%
50%
60%
70%
27%
23%20% 19% 18%
21%24% 23% 22% 21% 20% 20% 20% 19% 19%
Gener
al pr
ofile
Childr
en’s
even
ts
Circus
es
Theat
res
Busine
ss e
vent
s
Exhibi
tions
Conce
rts
Mus
icals
Festiv
als
Sporti
ng e
vent
s
Ticketing systems
Sources: survey data and PwC analysis.
Sources: survey data and PwC analysis.
30 PwC
Ticket market outlook
Projected ticket market growth in the next five years (as estimated by respondents by company profile), % (median and value range)
Segments with the strongest growth potential over the next five years, % of mentions by respondents
Доля вторичного рынка по оценке респондентов по профилю компаний, % от общего объема рынка
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Ticketoperators
Venues Organisers Ticketingsystems
Softwaredevelopers
Прогноз роста билетного рынка в ближайшие пять лет по оценке респондентов по профилю компаний, %
Сегменты с наибольшим потенциалом развития в ближайшие пять лет, % упоминания респондентами
64%
36%36%
CinemasMusicals
22% 22%
CircusesFestivals ExhibitionsBusiness events
Children’s events
20%
58%
73%
36%
Concerts Theatres
31%
Sports
26%22% 20%
17% 16%
Survey participants were asked to assess the potential growth of the ticket market over the next five years.
Respondents expected a 21% growth in the ticketing industry in Russia over that period. Those most optimistic about the prospects for growth were representatives of ticket operators,
while the least confident about the industry’s development were software developers and distributors.
Most respondents said that the segments that have the strongest potential for growth in the near term are sporting events, concerts and festivals.
Доля вторичного рынка по оценке респондентов по профилю компаний, % от общего объема рынка
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Ticketoperators
Venues Organisers Ticketingsystems
Softwaredevelopers
Прогноз роста билетного рынка в ближайшие пять лет по оценке респондентов по профилю компаний, %
Сегменты с наибольшим потенциалом развития в ближайшие пять лет, % упоминания респондентами
64%
36%36%
CinemasMusicals
22% 22%
CircusesFestivals ExhibitionsBusiness events
Children’s events
20%
58%
73%
36%
Concerts Theatres
31%
Sports
26%22% 20%
17% 16%
Sources: survey data and PwC analysis.
Sources: survey data and PwC analysis.
31The Russian ticket market
Development trends
Factors that will have the strongest impact on the market over the next five years, % of mentions by respondents
Advances in emergingtechnologies
New opportunities to improve comfort and to entertain spectators
New technology-enabled venues
Changesin consumer habits
New event formats
Generalprofile
Organisers Venues Ticket operators
82%
80%
80%
57%
55%
54% 50%
48%
45%
45%
37%
40% 40%
40%
43% 40%
40%
40%
70%
67%
67%
63% 64%
64%
64%
60%
60%
59%
18%
Ticketing systems
Softwaredevelopers
33%
33%
30%35% 36%
Development of online marketingtools
0%
0%
Lorem ipsum
The key trends that will have a significant impact on the industry’s development over the next five years, according to the majority of respondents, include advances in online marketing tools and emerging technologies on the whole.
Ticket operators are the most confident about the significant impact of emerging technologies (e.g. AR/VR, blockchain and artificial intelligence).
Ticketing systems say that the future development of the industry, apart from the sophistication of online promotional tools for events, will be largely driven by new solutions designed to improve comfort for spectators.
Software developers and distributors cited potential changes in consumer habits as a significant factor.
Sources: survey data and PwC analysis.
32 PwC
Development drivers
Potential industry development drivers over the next five years,% of mentions by respondents
Creating an integral ticketing framework
Dynamic pricingalgorithms
Growth of inhouse salesby event organisers
Adoption of artificialintelligence
Primary and secondarymarket unification
Blockchain adoption
Generalprofile
Organisers Venues Ticketoperators
82% 80%
57%
57%
50%
45%
45%
40%
40%
43%
43%
71%
67%
64%
60%
60%
60%
59%
18%
Ticketingsystems
Softwaredevelopers
33%
33%
33%
33%
33%
33%
32%
30%
30%
36%
36% 36%
36%
9%
9%
20%
21%
21%
20%20%
20%
20%
20%
6%
13%
13%
Big data
6%
0%
0%0%
0%
The industry’s development drivers over the next five years, according to respondents, will most likely include using Big Data for ticket sales, with ticket operators and ticketing systems feeling especially confident about this, and adopting an integral ticketing framework.
Ticketing systems also reported a strong potential for using dynamic pricing algorithms, as well
as the growing popularity among organisers of selling tickets themselves.
In the meantime, software developers and vendors say that the key driver of the industry’s development will be the unification of the primary and secondary markets.
Sources: survey data and PwC analysis.
33The Russian ticket market
Development challenges
Potential threats to the industry’s development over the next five years, % of mentions by respondents
Decline in attendance
Growth of secondarymarket
Other*
80%
60%
61%
50%46%
40% 29%
70%
67%
67%64%64%
33%
36%
20%
Market consolidationby major players
0%
0%
0%
0%
0%0%
0%
18%15%
Generalprofile
Organisers Venues Ticketoperators
Ticketingsystems
Softwaredevelopers
Respondents named potential market consolidation by several major players and a possible decline in event attendance because of economic and social reasons as the top threats to the industry’s development.
The potential growth of the illegal secondary market was cited only by organisers and venues as a potential threat.
Other key threats reported by respondents included general economic uncertainty and price wars between market players, as well the conservatism of government institutions and authorities toward emerging technologies and solutions.
* Economic uncertainty; price wars; drop in revenue; conservatism of government-related players towards emerging technologies
and solutions; and security threats related to attendance at mass public events.
Sources: survey data and PwC analysis.
34 PwC
Contacts
Oleg Malyshev
Partner [email protected]
Aleksander Kardash
Senior Manager [email protected]
Anastasia Shalimova
Assistant Manager [email protected]
PwC Russia’s Sports and Entertainment Consulting Practice
Vladimir Lapin
Senior Manager [email protected]
35The Russian ticket market
www.pwc.ru
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