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The Ticket Fairy is tech’s best hope against Ticketmaster – TechCrunch

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Ticketmaster’s dominance has led to ridiculous service fees, scalpers galore and exclusive contracts that exploit venues and artists. The moronic approval of venue operator and artist management giant Live Nation’s merger with Ticketmaster in 2010 produced an anti-competitive juggernaut. It pressures venues to sign ticketing contracts under veiled threat that artists would otherwise be routed to different concert halls. Now it’s become difficult for venues, artists and fans to avoid Ticketmaster, which charges fees as high as 50% that many see as a ripoff.

The Ticket Fairy wants to wrestle away from Ticketmaster control of venues while giving fans ways to earn tickets for referring their friends. The startup is doing that by offering the most technologically advanced ticketing platform that not only handles sales and check-ins, but acts as a full-stack Salesforce for concerts that can analyze buyers and run ad campaigns while thwarting scalpers. Co-founder Ritesh Patel says The Ticket Fairy has increased revenue for event organizers by 15% to 25% during its private beta focused on dance music festivals.

Now after 850,000 tickets sold, it’s officially launching its ticketing suite and actively poaching venues from Eventbrite as it moves deeper into esports and conventions. With a little more scale, it will be ready to challenge Ticketmaster for lucrative clients.

Ritesh’s combination of product and engineering skills, rapid progress and charismatic passion for live events after throwing 400 of his own has attracted an impressive cadre of angel investors. They’ve delivered a $2.5 million seed round for Ticket Fairy, adding to its $485,000 pre-seed from angels like Twitch/Atrium founder Justin Kan, Twitch COO Kevin Lin and Reddit CEO Steve Huffman.

The new round includes YouTube founder Steve Chen, former Kleiner Perkins partner (and Mark’s sister) Arielle Zuckerberg and funds like 500 Startups, ex-Uber angels Fantastic Ventures, G2 Ventures, Tempo Ventures and WeFunder. It’s also scored music industry angels like Serato DJ hardware CEO AJ Bertenshaw, Spotify’s head of label licensing Niklas Lundberg, and celebrity lawyer Ken Hertz, who reps Will Smith and Gwen Stefani.

“The purpose of starting The Ticket Fairy was not to be another Eventbrite, but to reduce the risk of the person running the event so they can be profitable. We’re not just another shopping cart,” Patel says. The Ticket Fairy charges a comparable rate to Eventbrite’s $1.59 + 3.5% per ticket plus payment processing that brings it closer to 6%, but Patel insists it offers far stronger functionality.

Constantly clad in his golden disco hoodie over a Ticket Fairy t-shirt, Patel lives his product, spending late nights dancing and taking feedback at the events his clients host. He’s been a savior of SXSW the past two years, injecting the aging festival that shuts down at 2am with multi-night after-hours raves. Featuring top DJs like Pretty Lights in creative locations cab drivers don’t believe are real, The Ticket Fairy’s parties have won the hearts of music industry folks.

The Ticket Fairy co-founders. Center and inset left: Ritesh Patel. Inset right: Jigar Patel

Now the Y Combinator startup hopes its ticketing platform will do the same thanks to a slew of savvy features:

  • Earn A Ticket – The Ticket Fairy supercharges word of mouth marketing with a referral system that lets fans get a rebate or full-free ticket if they get enough friends to buy a ticket. Indeed, 30% of ticket buyers are now sharing a Ticket Fairy referral link, and Patel says the return on investment is $30 in revenue for each $1 paid out in rewards, with 10% to 25% of all ticket sales coming from referrals. A public leaderboard further encourages referrals, with those at the top eligible for backstage passes, free merch and bar tabs. And to prevent mass spamming, only buyers, partners and street teamers get a referral code.
  • Creative Payment Options – The startup offers “FreeFund” tickets for free events that otherwise see huge no-show rates. Users pay a small deposit that’s refunded when they scan their ticket for entry, discouraging RSVPs from those who won’t come. Buyers can also pay on layaway with Affirm or LayBuy and then earn a ticket before their debt is due.
  • Anti-Scalping – The Ticket Fairy offers identity-locked tickets that must be presented with the buyer’s ID on arrival, which means customers can’t scalp them. Instead, the startup offers a waitlist for sold-out events, and buyers can sell their tickets back to the company, which then redistributes them to a specific friend or whoever’s at the top of the waitlist at face value with a new QR code. Patel says client SunAndBass Festival hasn’t had a scalped ticket in five years of working with the ticketer.
  • Clever Analytics – Never wasting an opportunity, The Ticket Fairy lets events collect contact info and demand before ticket sales start with its pre-registration system. It can create multiple variants of ticketing sites designed for different demographics, like rock versus dance fans for a festival, track sales and demographics in real time and relay instant stats about check-ins at the door. Integration of email managers like Mailchimp and sales pixels like Facebook plus the ability to instantly retarget people who abandoned their shopping via Facebook Custom Audience ads makes marketing easier. And all the metrics, budgets and expenses are automatically organized into financial reports to eliminate spreadsheet busywork.

Still, the biggest barrier to adoption remains the long exclusive contracts Ticketmaster and other giants like AEG coerce venues into in the U.S. Abroad, venues typically work with multiple ticket promoters who sell from the same pool, which is why 80% of The Ticket Fairy’s business is international right now. In the U.S., ticketing is often handled by a single company, except for the 8% of tickets artists can sell however they want. That’s why The Ticket Fairy has focused on signing up non-traditional venues for festivals, trade convention halls, newly built esports arenas, as well as concert halls.

“Coming from the event promotion background, we understand the risk event organizers take in creating these experiences,” The Ticket Fairy’s co-founder and Ritesh’s brother Jigar Patel explains. “The odds of breaking even are poor and many are unable to overcome those challenges, but it is sheer passion that keeps them going in the face of financial uncertainty and multi-year losses.” As competitors’ contracts expire, The Ticket Fairy hopes to swoop in by dangling its sales-boosting tech. “We get locked out of certain things because people are locked in a contract, not because they don’t want to use our system.”

The live music industry can be brutal, though. Events can have slim margins, organizers are loathe to change their process and it’s a sales-heavy process convincing them to try new software. But while the record business has been redefined by streaming, ticketing looks a lot like it did a decade ago. That makes it ripe for disruption.

“The events industry is more important than ever, with artists making the bulk of their income from touring instead of record sales, and demand from fans for live experiences is increasing at a global level,” Jigar concludes. “When events go out of business, everybody loses, including artists and fans. Everything we do at The Ticket Fairy has that firmly in mind – we are here to keep the ecosystem alive.”

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Afterpay unveils BNPL subscription offering for US customers – TechCrunch

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“Buy now, pay later” company Afterpay announced Wednesday that it was going after the $1.5 trillion global subscription payments market by offering to its U.S. customers payment installments for subscriptions, like gym memberships, entertainment subscriptions and online services.

The service will launch in both the U.S. and Australia beginning early in 2022 and will be free for customers who pay on time. IPSY, BoxyCharm, Savage X Fenty and Fabletics are among the initial list of merchants that will offer the feature. The company plans to expand the feature in-store and into other regions later, including Canada, New Zealand, the U.K. and Europe.

In addition to paying for subscriptions in installments, Afterpay is also enabling its offering to be used on preordered items, where users can pay in four installments over time once the item ships. Another feature coming soon will allow merchants to accept deposits on custom items.

“By offering customers the option to pay for subscriptions with Afterpay, we’re not only giving consumers flexibility to pay for more expensive monthly costs, but we’re also helping our merchant partners capture a wider consumer base through this convenient experience,” said Zahir Khoja, general manager of North America for Afterpay, in a written statement.

Klarna, Afterpay’s competitor in the BNPL space, also announced news this week for its U.S. customers that it was offering its “Pay Now” option.

Meanwhile, in August, Square announced that it was buying Afterpay in an all-stock deal valued at $29 billion. Afterpay has also been on a roll with feature debuts recently, launching both Afterpay Ads, a suite of advertising products for brands to engage with shoppers within the ecosystem, and merchant analytics tool Afterpay IQ, in August.

Afterpay works with 100,000 retailers and has approximately 10.5 million active customers in North America as of June 30, up from 5.6 million the year prior. North America is the company’s “largest region in terms of underlying sales,” which grew 145% year over year, or from $4 billion in fiscal year 2020 to $9.8 billion in fiscal year 2021, according to the company.

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Fairphone hits software support longevity akin to Apple’s iPhone – TechCrunch

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Fairphone, the Dutch social enterprise dedicated to making consumer electronics (more) sustainable and ethical, including by supporting repairability so that users can hold onto their hardware for longer, has announced public testing of Android 10 for the six-year-old Fairphone 2.

Owners of the modular handset that was first released back in 2015, running Android 5, should expect to be able to upgrade to Android 10 (released date: 2019) in early 2022, Fairphone said today, announcing the beta rollout of the upgrade.

Fairphone stopped producing (but not supporting) the Fairphone 2 back in 2018 — going on to release the Fairphone 3 (in 2019), the Fairphone 3+ (in 2020, also available as a modular upgrade to the 3) and, earlier this fall, the Fairphone 4, its first 5G handset — which it said would be supported until at least 2025.

Given the Fairphone 2’s impending update to Android 10 next year — which will mean it will have been supported for a total of seven years — 2025 looks like a conservative estimate of how long Fairphone 4 owners should expect to receive software support.

Fairphone says it collaborated with its community of users for the Android 10 upgrade project — and with a software developer in India, Bharath Ravi Prakash, which it says worked as a volunteer open source dev — and by doing that says it was able to streamline the process and shrink the time required to carry out the upgrade.

So while the prior Fairphone 2 OS update (to Android 9) took 18 months, this time the process has been condensed to 10 months.

Google, meanwhile, has gone on to release Android 11 (2020) and Android 12 (last month) — for a sense of how far behind the Fairphone 2 upgrades are trailing the latest OS release.

“The company learned a lot from the Android 9 upgrade and although still complex, Android 10 was more predictable than Android 9,” Fairphone notes in a press release, which also quotes its head of software longevity & IT, Agnes Crepet, who writes: “Our unique approach to software has allowed us to help our users keep their devices for as long as possible. We’re pleased to be able to provide our Fairphone 2 community with yet another software upgrade, reaching our goal to provide at least five years of support from launch for our phones and with the Android 10 upgrade, we’re going beyond that to seven years of support. We are constantly raising the bar for ourselves and the industry, showing that doing things more sustainably in software is possible.”

Seven years’ support puts Fairphone into Apple iPhone software support timespans. But of course the average Android-based handset can expect fair fewer years of software love — typically Android smartphones only get around three years’ support. So it’s a major achievement.

And while Fairphone may only now be catching up to Apple on the software longevity front it is already years ahead of Cupertino in another respect: Hardware sustainability through repairability via modular construction and offering direct-to-consumer spare parts.

Earlier this month Apple announced that, starting next year, it would kick off a “Self Service Repair” program — shipping spare parts and repair tools to iPhone and Mac users to let them perform basic repairs at home.

It’s by no means full modularity from the company that has — historically — loved a hermetically sealed, stupidly thin, often literally glued shut box, but it is a small step in a more sustainable direction. And one that Fairphone has long pioneered.

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Spotify tests a TikTok-like vertical video feed in its app – TechCrunch

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TikTok has seen its short-form video feed copied by a host of competitors, from Instagram to Snap to YouTube and even Netflix. Now it looks like you can add Spotify to that list. The company has confirmed it’s currently testing a new feature in its app, Discover, which presents a vertical feed of music videos that users can scroll through and optionally like or skip. For those who have access to the feature, it appears as a fourth tab in the navigation bar at the bottom of the Spotify app, in between Home and Search.

The new addition was first spotted by Chris Messina, who tweeted out a video of the Discover feature in action. He described it as a “pared-down version” of a TikTok-style feed of music videos.

Messina told us he found the feature in Spotify’s TestFlight build (a beta version for iOS), where a new icon in the navigation toolbar brings you immediately to the video feed when tapped. You can then swipe up and down to move through the feed, much like you would on TikTok. In addition to tapping the heart to like songs, you also can tap the three-dot menu to bring up the standard song information sheet, he notes.

Messina also speculated the feature may be taking advantage of Spotify’s existing Canvas format.

Introduced broadly in 2019, Canvas allows artists to create videos that accompany their music on the Spotify app. The feature had mixed reviews from users, as some reported they preferred to see just the static album art when listening to music and found the video and its looping imagery distracting. But others said they liked it. Canvas, however, appears to drive the engagement metrics that Spotify wants — the company reports that users are more likely to keep streaming, share tracks or save tracks when they see a Canvas.

From the video Messina shared and others we viewed, we can confirm that the videos playing in the vertical feed are the artists’ existing Canvas videos. But Spotify would not confirm this to us directly.

TechCrunch asked Spotify for further information on the feature, including whether it had plans to roll this out further, whether it was available on both iOS and Android, which markets had access to the feature and more. The company declined to share any details about the feature but did confirm, via a statement, it was exploring the idea of a vertical video feed.

“At Spotify, we routinely conduct a number of tests in an effort to improve our user experience,” a spokesperson told TechCrunch. “Some of those tests end up paving the way for our broader user experience and others serve only as an important learning. We don’t have any further news to share at this time,” they added.

In other words, the test is still very early and may not make its way to the public. But if it did, it wouldn’t be a surprising move on Spotify’s part. The company has before looked to popular social media formats to engage its users. In the past, Spotify tested a Stories feature that allowed influencers to post Stories to introduce their own, curated playlists. But that option never became available to all Spotify users.

While the TikTok format has been adopted by top social platforms, including Instagram (Reels), Snapchat (Spotlight), YouTube (Shorts) and Pinterest (Idea Pins), it’s also proving to be an ideal format for content discovery. Netflix, for instance, recently adopted the short-form vertical video feed in its own app with the launch of its “Fast Laughs” feature, which offers clips from its content library and tools to save the programs to a watch list or just start streaming them. Similarly, Spotify’s video-based Discover feature could help introduce users to new music and offer a way to signal their interests to Spotify in a familiar format.

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