2020 was certainly a lonely year for many people around the world as the COVID-19 pandemic resulted in almost all social events and gatherings being canceled. As a result, Online events have become the new normal for almost every industry. While some see this as an innovative development, many industries are struggling to exist due to the lack of event ticket sales.
For example, In the multi-billion dollar concert and event promotion industry, annual revenue is down 11.5% to $ 17.1 billion in 2021. The data also shows that this decline is a direct result of the coronavirus. Despite the provision of COVID-19 vaccinations, several important live events are still being canceled.
Blockchain for the ticketing industry
Given the current circumstances, ticketing platforms are looking for new ways to ensure revenue growth and customer satisfaction while adapting to today’s digital economy. Blockchain technology in particular is used by large ticket platforms as a solution for providing digital tickets, special offers, updates and more for event attendees.
For example, Live Nation Entertainment – one of the world’s leading live entertainment companies consisting of Ticketmaster, Live Nation concerts and Live Nation sponsorship – will use a blockchain network to attract, communicate and reward ticket holders.
Specific, Live Nation SAS (France) will use TixTo.Me, a digital entertainment wallet created by ticketing company FanDragon Technologies and Aventus Network, a second-tier blockchain protocol.
Alan Rakov, CEO of FanDragon, told Cointelegraph that Live Nation France wanted to find a way to keep its ticket holders and found that the biggest problem facing the ticket industry in 2020 was ticket holder refunds for concerts canceled due to the coronavirus::
“We use blockchain to make sure we know who a ticket holder is and then send engaging messages so they can keep their ticket. We can even send new ticket holders over the blockchain if an event is postponed.”
Rakov stated that TixTo.Me guarantees that all tickets and vouchers are insured on a single platform, regardless of where they were purchased. “”Blockchain is used as a verification device between ticket sales and fans. Fans simply enter a barcode and then we review that information to create an entry on the blockchain.“Said Rakov.
The Aventus network then processes every transaction. Live Nation France is expected to ship hundreds of thousands of tickets per year through TixTo.Me’s digital wallet.
Relationship with ticket holders through a blockchain network
While innovative, it’s important to note that using a blockchain network to output secure and verifiable input is not new. For example, in December 2019, Ticketmasters VP of Blockchain Products explained how the company has been using blockchain for pilot use cases.
The Union of European Football Associations or better known as UEFA announced in February 2020 that 1 million soccer game cards would be distributed to fans via a blockchain-enabled mobile application.
Although the concept of issuing tickets via a blockchain network has been implemented earlier, the COVID-19 pandemic has resulted in customers having to keep their tickets. So, Innovations like TixTo.Me go one step further, enabling organizations and artists to send ticket holders special offers, updates and engaging content directly to ticket holders to ensure retention. Rakov mentioned:
“Live Nation France can connect with its customers through offers and branding. This is a big leap for the industry. We now have a complete system for delivering content through a streaming entry in a mobile application.”
In addition to Live Nation France, the Boston Symphony Orchestra (BSO) plans to use blockchain to improve ticket delivery later this year. The BSO recently partnered with True Tickets, a blockchain-based ticketing platform powered by Hyperledger Fabric, to create a post-COVID-19 compliant ticketing experience.
Matt Zarracina, Co-Founder and CEO of True Tickets, told Cointelegraph so The solution enables the BSO to better understand who owns a ticket from the point of sale to the time the tickets are scanned::
“This allows the BSO to effectively understand who is actually attending a performance. This solves some of the common challenges theaters are facing today, including regaining control of secondary market entries, while also providing a better view of who is customers in a room. “
While True Tickets’ blockchain platform ultimately allows BSO customers to skip physical ticket transactions, selling digital tickets also allows the BSO to communicate with ticket holders earlier, after and during events. Ticket holders will be notified directly of the updated policies and procedures regarding the logs related to the pandemic. The True Tickets platform will also keep people informed of the reopening plans expected to take place this summer in Tanglewood, home of the BSO since 1937.
Concern for consumer privacy
Although some of the major ticketing platforms have started using the blockchain, privacy concerns remain. This should come as no surprise as privacy laws continue to be fragmented and new technologies like blockchain networks continue to be the target of sophisticated hackers.
Alan Vey, Co-Founder and CEO of Aventus Network, told Cointelegraph so FanDragon ensures that there is a cryptographic connection to every digital input, along with a proof of association for every user in the FanDragon system. However, there is no personal data in the public area of the blockchain.
Rakov also noted that FanDragon complies with the General Data Protection Regulation of the European Union and that the platform itself does not sell tickets. “”Different companies sell their own tickets. We just deliver them. We don’t have any transaction-level data“Based on Rakov, Zarracina pointed out that True Tickets does not collect or store any personal data of the partners or customers of the premises.
In addition, platforms such as TixTo.Me and True Tickets can usher in a new era of digital ticketing. Rakov says Live Nation France is currently using TixTo.Me, and the company plans to add new features to meet Live Nation’s current needs.
Zarracina also noted that True Tickets’ partners no longer viewed the company’s service as something “beautiful” but became a requirement due to the pandemic:
“While the doors of most live events have closed, behind the scenes, digital and technological change has accelerated. We have a number of new partners that we will be announcing this year to add to the list of locals with we work together. ” True tickets. “