Anytickets And The Rise Of The Tertiary Ticket Market

You have never heard of Anytickets, a company that can project $200 million in annual ticket sales or more this year, and $300 million next year, particularly in an industry covered as deep as tickets. Have you ever tried to buy a ticket? Account for, allocate, and deliver those tickets.

It wasn't hard once. The promoter sold the tickets at the venue they booked. Intermediaries realized there was a place for them. CompuTix and Ticketron built technology to manage the inventory in a venue and arrange delivery of tickets to fans while charging the venue a small fee.

The transformation of ticketing was done by FredRosen. He added a service charge to the price of each ticket and shared it with the venue. Ticketing used to be a cost item, but now it's a profit center. When a potential buyer was able to get a ticket from a ticketing machine, telephone agent, or later across the internet, they bought it knowing that they wouldn't be able to get another ticket.

The law of consequences kicked in when that happened. The marketplace of people who become skilled at buying tickets was created by the scarcity tent pole. The ticket buyers were able to make money by buying tickets and then selling them to other people.

Entrepreneurs realized that there was a better way to distribute tickets. From that insight came the secondary markets like StubHub, Vivid Seats, SeatGeek, and tickpick where ticket buyers could post their tickets for sale and the secondary markets would blast advertising around the world helping to get those tickets sold.

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The concentration of market power among the secondary markets created a new power dynamic in which selling tickets became the game of secondary markets and ticket buyers went back to figuring out how to become more efficient at buying tickets.

There was innovation again. Companies figured out ways to increase their efficiency buying tickets, and their capacity to allocate capital so they can purchase seasons, personal seat licenses or simply hold inventory for more events

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The tertiary market is the evolution. The market in which supply is aggregated is called the market in which supply is distributed. Consumers get a discount when the price of tickets falls because of the losses taken from their purchases. It's possible to get a ticket for an event as late as the scheduled start time because someone else puts up the capital to own and hold the ticket until then. The market in which Any tickets excel.

Marcus, Chris, and Deric are the majority partners of Any tickets. David Jacobs, Matt Moran, and the rest of their employees are using technology to facilitate supplying resale markets. Anytickets builds custom software to manage their ticket inventory and in conjunction with data scientists to project value across the timelines from the date the ticket is purchased until the event occurs.

Anytickets partners with teams, promoter, and rights holders along with their leading ticket buying partners from across the country to purchase tickets for concerts, theater, and sporting events Any tickets has a broad perspective on where demand is and how prices are moving because they have experienced ticket buyers with them. They have been granted a $40 million line of credit to use in purchasing tickets and are now being offered various investments from private equity firms looking for returns in a world in which financial markets offer low yields and little downside protection.

Marcus and I talked about Any tickets. We talked about how his business operates now, and about what it was like for them when events were canceled all over the world because of the Pandemic. The litmus test Anytickets faced was revenue falling to near zero. The profits from sales of events yet to take place had to be returned. This challenge was faced by the entire industry. The line of credit had to be reduced because of the extra pressure.

Marcus explained how they were able to recover money. As ticket sales began to resume in 2021, they were able to get their bank to slowly return their credit line. Any tickets has a bigger line than almost anyone else in this space and they keep getting inquiries from potential investors.

Marcus is so enthusiastic that it is hard not to get swept along as he describes his plans for the future. Marcus was one of the people who made the list.

Talking to Marcus is enjoyable. Our conversation is available in both formats. Don't forget to watch this one.

There are some things in life that aren't true. It is certain that innovation should never be surprising. You have to always tell your partners the truth. If people like you, you will never want to invest in anything. The team at Anytickets is liked by a lot of people. They have grown their company by being authentic. It will grow into an investible opportunity if you apply that formula to most businesses.