According to Statista, the ticketing industry is on track to surpass $90bn by 2027. But this growing industry is not without faults. Ticket scams and scalping are becoming huge problem at the expense of artists and their fans.
NFT ticketing is emerging as an alternative to conventional ticketing, promising to revolutionize the way we buy, sell, and exchange tickets for events. By creating unique digital assets that represent ownership and authenticity, NFT ticketing offers a solution to longstanding issues such as scams and ticket touting.
In the last year, Lloyds Bank found that ticket scams had risen by more than 529%, with victims losing an average of £110 per scam. Most of these are purchase scams, where people buy ‘tickets’ that do not exist. But NFT tickets, hosted on the blockchain are entirely traceable and unique, making it impossible to duplicate or counterfeit tickets — preventing scammers from running purchase scams.
NFT tickets can be programmed with smart contracts, which could revolutionise the secondary market, making it fairer for fans and artists alike. Smart contracts are self-executing agreements on the blockchain that can be embedded within NFT tickets. These contracts can define price ceilings and revenue shares.
The secondary market, or resale of tickets, is worth more than $15bn. Tickets in the resale market are often more expensive for fans and return nothing to artists and organisers. With smart contracts, revenue shares can be embedded, meaning that when an NFT ticket is resold, the organiser and artist can recoup a percentage of the secondary market sale. Fans are often exploited by scalpers, who bulk-buy tickets and resell them for profit. Last year Adele tickets resold for up to £38,000, despite initially being listed between £73 to £590. Fortunately, this is preventable with NFT ticketing, a resale price ceiling could be set, removing the touters’ incentive to buy and resell.
NFT ticketing also presents new possibilities for enhancing the fan experience. NFT tickets can include additional perks, such as exclusive access to backstage areas, or special merchandise. These added incentives increase the value of the ticket, even after the event has happened, and create unique experiences for fans, fostering stronger connections between artists and their audience.
NFT tackles long-standing challenges in traditional ticketing systems and creates new opportunities for organisers, artists, and fans alike. As the technology continues to evolve, we can expect NFT ticketing to become a prevalent and transformative force in the ticketing industry, shaping the way we attend events in the future.