On August 10, Spotify launched a new website that allows users to purchase tickets directly from Spotify (previously, the streaming site had redirected listeners to other ticketing outlets including Ticketmaster and AXS).
This follows on the heels of Ticketmaster and TikTok announcing a partnership last week which will inform viewers of concerts and tours while scrolling through the short form videos. It also allows content creators to add links to shows directly to their posts.
So how will these two announcements affect the live events industry?
This is a brilliant move by both Spotify and TikTok.
Think of the hours people spend scrolling through TikTok or streaming on Spotify. To have them be notified of an area concert of an artist they follow that allows one simple click through to purchase a ticket is extremely user-friendly and saves that fan from dealing with third-party vendors where that sale might not be valid.
Spotify and TikTok aren't necessarily solving a discovery problem (concert-goers are already targeted in multiple ways) but it does make the purchase more personal if you're buying a ticket directly after hearing an artist's song or seeing one of their videos.
It wouldn't be surprising if other streaming services including Amazon Music soon follow suit with some variation of online ticketing.
There are several groups who will gain an advantage from these new services.
First, global promoters like Live Nation will benefit from an increase of sales through the TikTok deal, being able to market all of their venues and shows in one place.
Artists are always happy if a promoter can sell out a show and will more likely sign with Live Nation the next time they tour. Quite simply, this deal will get more people into each of their concert venues.
Secondly, independent promoters will benefit utilizing the Spotify method (assuming they don't already have a contract in place with another ticket broker).
Right now, the offerings with the Spotify tickets are smaller shows (seven in total) at various venues ranging from Chicago to Santa Cruz. Independent promoters could negotiate a deal on a show-by-show basis, and wait and see how the ticketing service performs and how user-friendly it is. If there are issues, they can choose not to work with them in the future.
The benefits to fans remain to be seen. Other than making it easier to find tickets to shows by artists they love, whether or not the added competition will help drive down the cost of tickets and fees will be something to watch out for.