The Big Interview – Stubhub

Danielle Maged, head of business development at StubHub, talks to SportIndustry.biz about the development of the secondary ticketing market and the company’s plans to break into the UK…

Could you tell us a little bit about StubHub’s background?

StubHub is the world’s largest ticket marketplace – we began in the US in 2000, and we are now at a point where we are an adopted consumer brand. The marketplace sells approximately a ticket every second. It’s that big. It has even become a destination where people come to when they are trying to find an event – people are just coming to us straight away. 

It’s a rapidly developing market in both sport and entertainment globally – how does it change the fan experience?

It is very much focused on the fan. We offer the ultimate in customer service, which changes the fan experience tremendously. I don’t think companies in this space have ever truly been focused in offering the best customer experience. It also offers choice and it offers access, which are the three main pillars and I don’t think anyone had focused on those three pillars to the obsessive degree that we do. 

What are the advantages to using a secondary ticketing site over other websites?

You can sit where you want to sit, when you want to sit. That is the main advantage, and that is the simplest way of putting it.

There is controversy around the market – with some fans and also some teams/leagues expressing disquiet over the market. Are their concerns valid?

We have been in the industry for a very long time, and the resale market has really matured. With our parent company eBay, there was a fundamental understanding that there could be a marketplace where people could buy and sell from each other. What we have done is offered the best possible marketplace to do that with tickets, and that is our goal over here, in the UK. In doing so, we have partnered with some of the biggest names, companies, teams and venues in the US industry. We have Major League Baseball and all 30 of their teams, a number of venues, at one point we had ten NFL teams that were partners, so we have experience with some of the biggest brands in sports, and our expectation is that we will do that in the UK and wherever else we expand as well.

There are also tremendous benefits for teams and venues to partner with us, whether that be through data or the revenue source, and our focus on the fan experience should be something that they appreciate as well. 

How helpful is it to you having eBay as a parent company?

We are part of the eBay family, which is incredibly focused on innovation. Over the last year or two they have bought companies such as Red Laser – which allows you to use your phone to scan barcodes – and of course they have PayPal. From a StubHub perspective, there is always a focus on how we can use the innovations that eBay are rolling out with their new companies, and layering it onto what we do. We are always on the hunt for new companies that can be a great match for us to enhance the fan experience. 

Recently, we bought a company called PeekSpy, which is effectively view-from-seat technology that offers customers the ability to see the view of the seat they are buying. We are slowly going to start rolling that out across the site shortly.

Are you expecting any major differences in the UK from your US business?

The main difference in the UK as a market as opposed to the US is that it is highly regulated on the sport side. In the US you do not need an official relationship, but here, for football tickets specifically, you do. There is a vast sport landscape available in the UK, but the most, passionate fanbase, I would say, would have to do with English football. That is definitely the most differentiating factor between the two markets, so we have been actively educating the market and explaining our consumer proposition – what we offer the fan. All the problems are very solvable, so it something we hope to be able to come to terms and educate people with in time.

You recently announced a new partnership with basketball in the UK, do you think the NBA can replicate the success of the NFL at Wembley?

It’s difficult because they are two very different sports, even in the US there are very independent, discrete fanbases for both. The NFL is probably a little more mature as far as international popularity is concerned, although there are a few exceptions – in markets such as Germany NBA is much more popular. 

As far as the UK market specifically is concerned, we believe that the NBA is a brand and with the brand equity and the interest it has, it will grow. The Olympics will also help with interest of the sport in the UK and Team US will be playing Team GB at an exhibition in Manchester. We think the NBA is a great platform for us to start our partnership, given the potential growth and the interest of the Olympics.

Was the NBA relationship specifically targeted as a way of breaking into the UK market?

The NBA relationship, in conjunction with the timing of the Olympic Games in London, was definitely a factor for sure.

You also have a partnership with Beyond Sport – what brought that about?

Beyond Sport came to our attention in the US and I was really impressed with their ethics and what their vision was. So when we were thinking of expansion, even before we announced in the UK, it seemed to me to be a company that was a really good fit with our philosophy and the charitable area that we knew we were going to move into. 

So far we have partnered with them for two events, one in New York and one in South Africa, and it has been a really great relationship for us – long may it continue. 

What is the next step after the UK?

The UK is a launch pad for us, where we see continued expansion into Europe and potentially beyond. But our next step is continued penetration into UK football – it is a very high interest for us and we’ve had a lot of traction, with new announcements to come in the next few weeks on more partners.