Written evidence submitted by the Society of Ticket Agents and Retailers (STAR)

Digital, Culture, Media and Sport Committee Inquiry into the Impact of Covid-19 on DCMS Sectors

1. ABOUT STAR 1.1. STAR, the Society of Ticket Agents and Retailers, is the self-regulatory body for the ticket industry formed in 1997 by companies and organisations within the ticketing industry. Its membership encompasses ticket agents, ticketing system suppliers, arenas, sports bodies, promoters, producers, music venues, most West End theatres and many other theatres and venues in London and across the UK. STAR members subscribe to a Code of Practice covering standards of service and information and we estimate that our ticket agent members represent over 90% of that sector. STAR works to help resolve disputes between its members and ticket buyers and is approved by Government under the Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) Regulations 2015. (See list of members below) 2. EXECUTIVE SUMMARY 2.1. Ticketing is a key element of the delicate eco-system that supports the tremendous UK live entertainment and events industries as well as other significant sectors in the remit of the DCMS which have been devastated as a consequence of the Covid-19 pandemic. 2.2. Ticket agents represent a significant proportion of ticket sales for UK events and are an important factor in the success of marketing shows and achieving successful ticket sales. They also play a significant role in helping build new audiences, creating innovation, developing technical resources, finding new distribution channels, marketing and advertising events to both domestic and overseas markets. 2.3. Ticketing systems suppliers provide important tools that are crucial to the operation of all companies selling tickets. 2.4. Ticketing businesses are seriously impacted by the closure of events and the loss of ticket sales. They are dependent on events being able to re-open fully to be able to build back up their businesses. Given that mass gatherings will be the last to leave lockdown, the ending of the Job Retention Scheme in October may therefore lead to necessary redundancies. An extension of the furlough scheme or other support for businesses affected by lack of ticket sales that reflects the extended lockdown for events is crucial to helping save jobs. 2.5. We support venues, promoters, producers, festivals and other event organisers (including the Concert Promoters Association, Society of London Theatre, UK Theatre, National Arenas Association, Association of Independent Festivals etc.) in the calls they have made for practical and economic assistance in their own submissions to the Committee and the Government. Some of those organisations are also STAR members. They are each best placed to identify the right support needed for their sector. The restoration of the UK’s world-leading live entertainment and events industries is vital to the wellbeing and success of the UK, as well as the myriad of individuals and businesses that make and service it. 2.6. The return of live entertainment and events is not possible without ticket agents and ticketing systems. As well as providing the mechanism to sell tickets and the marketing data to reach potential customers, it is key to addressing new challenges around reducing contact in sales and admissions, for example timed entry for museums and attractions, timed arrival at venues and managing Safe Distancing. Both ticket agents and systems therefore are crucial in helping restore consumer confidence and reaching new and existing audiences, both in the immediate term and as we see the eventual return of overseas visitors. 2.7. The ticketing industry will play an integral role in the solutions that allow live events to reopen and operate safely again. 3. SCOPE OF THIS EVIDENCE 3.1. Ticketing is an essential part of the wider eco-system of the huge range of the sectors covered by the Department for Digital, Culture, Media and Sport. As such, many organisations, particularly those responsible for creating and housing content, will have already provided their own evidence on the scale of their work and the impact of Covid- 19. Rather than repeat that, we are instead here focusing on two specific areas of the ticketing industry, ticket agents and ticketing system suppliers. 3.2. However, it cannot be repeated enough that the impact of the consequences of Covid- 19 and the closing of all events is devastating on the live events industry. Any business related to the number of tickets sold for events is affected – promoters, producers, venues, festivals – as well as the content creators – the actors, writers, musicians, designers, technicians – and those that service the industry – production staff, agents, managements, marketeers, publicists and many, many others. 3.3. The effects of the lockdown are also true for other sectors selling tickets including attractions, sports and other leisure and cultural activities. 4. TICKETING 4.1. The sale of a ticket is the principle means of contracting with a customer booking to attend an event. This may be a booking made directly with a venue or event organiser or through a ticket agent. The industry extends across all ticketed events - major rock and pop concerts, sports, theatre, festivals, attractions, museums and galleries. 4.2. In addition to facilitating the administrative process of ticket selling, ticketing is a key tool that feeds into and supports many other areas of work including finance, marketing and audience development. Ticketing systems help organisations manage their customer data, pricing, financial management and reporting. 5. TICKET AGENTS 5.1. While a number of different commercial arrangements exist, we estimate that for live entertainment events an average of 68% of tickets are sold through ticket agents, although there are wide-ranging differences in this percentage depending on the type of event. The highest proportion sold through agents is for live music events including festivals. In the West End it is a lower proportion and considerably lower for most regional theatre. 5.2. Primary ticket agents are those that work alongside venues and events and sports and are authorised to sell their tickets to help achieve a greater audience reach. Agents earn their income from booking fees that are usually levied on the top of the usual ticket price, though on occasion this fee may be on the inside of that price. In addition to an element of profit, these fees cover payment processing fees, customer services, fraud prevention and other administrative costs and overheads. Ticket agents also work to help build new audiences, create innovation, develop technical resources to improve the customer experience and ensure that the ticketing process is more secure and more accessible to a wider audience, find new distribution channels, market and advertise events. In the case of marketing and advertising, these are things that would otherwise be charged by the marketing companies or theatres to the producers if not covered by booking fees. 5.3. Ticket agents also provide on-site ticketing services and entry systems for many outdoor events and festivals and are able to cope with complex, high-demand ticketing for major shows and sporting events. 5.4. We estimate that the total ticketing revenue for the UK Live entertainment industry is £2.62bn, with ticket agents selling approximately £1.8bn of those tickets. With per ticket booking fee income averaged across all markets at 9.85%, that equates to income to ticket agents of around £179m a year. However, there may be some additional income streams where agents provide venue ticketing systems and different revenue arrangements are in place. (See Table 1 below.) 5.5. It should be noted that, while we have here focused on live entertainment, many ticket agents and other STAR members also sell for other DCMS sectors such as sports, attractions, museums, galleries and other leisure activities. 6. TICKETING SYSTEM SUPPLIERS 6.1. There are many different ticketing systems supporting all ticketed events. These range from ‘self-service’ ticketing where organisers can list their own tickets for sale to systems principally focusing on the arts or attractions sectors, to systems provided to venue by ticket agents. Some systems contract with clients on a licence basis and some are wholly or partly tied to per-ticket revenues. 6.2. Ticketing systems are much more than a means of issuing a ticket and are essential in supporting many other areas of work, including finance, marketing and audience development. They provide the main customer database for businesses and enable the analysis of sales and customer data through reporting functions, producing information that helps decision-making on programming, pricing and other forward-planning.

WHAT HAS BEEN THE IMMEDIATE IMPACT OF COVID-19 ON THE SECTOR? 7. Ticket Agents 7.1. With ticket sales being at the heart of the business, with all events being suspended for an indefinite period of time and with uncertainty about how and when business will resume, ticket agents have seen little or no sales income since 16 March. In the meantime, they have worked to help book customers into future or rescheduled performances and processed refunds for cancelled events or where customers cannot attend on a new date. Businesses have therefore been busy working to reverse transactions at a time where there is no income. 7.2. It is common for advance ticket receipts to be transferred to venues or event organisers ahead of the event date. Ticket agents therefore have to wait until receiving those monies back before being able to process refunds to their customers. 7.3. Given the concerns and uncertainties for consumers, there has been an increased demand on customer service provisions which have had to be managed at a time where there is no income, a need for remote working and the need to furlough staff to reduce overheads. 7.4. There are payment processing charges levied on refund transactions. While these are an understandable risk of business when events are cancelled, the cost is much more punitive when it is for all events for a period of time which is continuing to extend, month by month. 7.5. Uncertainty over when business may resume makes it difficult to invest in marketing to gain new sales for future events. 7.6. An encouraging number of customers have accepted rescheduled dates for shows rather than asking for a refund, demonstrating an enthusiasm to return to events once the restrictions are lifted. However, it is also clear that there will be caution amongst customers who will need the confidence to know they can attend events at minimum risk. 7.7. A few new opportunities have been revealed as a consequence of the current crisis, such as helping attractions with timed-entry ticketing and online sales or outdoor events such as drive-in entertainment, but these are tiny in comparison with the overall loss of the live events industry. 7.8. There are also serious implications in the current loss of the UK tourism industry given that many events rely on ticket sales to overseas visitors. As this is another sector where there is great uncertainty about the future and how visitor numbers might grow again, there is a great concern for ticket agents that have previously serviced that market through extensive marketing and promotions to overseas markets for UK events. 7.9. Increasing, understandable caution is leading to decisions being made that are beginning to push the return of some live events to 2021. For example, the closing of Cameron Mackintosh’s shows in the West End until a currently unspecified date in 2021 represents a significant marker in respect of confidence in the potential for the industry to return. 8. Ticketing System Suppliers 8.1. Systems contracts and licenses operate in a variety of ways, but some include payment based on variable revenue streams such as per ticket fees. For those that rely on this variable income, there has been a severe impact as a result of the suspension of events. 8.2. Although some suppliers may see a modest return to some per ticket income as a result of the re-opening of attractions, this will be on a lower level than usual and in any case tends to be a smaller part of the turnover of suppliers that are members of STAR. 8.3. Suppliers are dependent on the live events industries, especially both subsidised and commercial arts and cultural organisations. 8.4. Where there is less reliance on variable income streams tied to ticket sales, the economic impact has not yet hit so hard, and suppliers have been able to continue their usual business but with some reduced demand and limited sales opportunities for new clients. However, as their clients reach financial difficulty as a result of the crisis, suppliers will find that those clients may be unable to maintain their regular payments. Some have also mentioned that they have been able to spend some time on development work, though the necessary furloughing of staff has limited such opportunities.

HOW EFFECTIVELY HAS THE SUPPORT PROVIDED BY DCMS, OTHER GOVERNMENT DEPARTMENTS AND ARMS-LENGTH BODIES ADDRESSED THE SECTOR’S NEEDS? 9. Ticket Agents 9.1. The Job Retention Scheme (JRS) has been accessed by all ticket agent members of STAR and has been crucial in allowing businesses the opportunity to manage their staffing overheads while also looking after those employees and working towards helping them retain those people in the future. 9.2. Some businesses have been able to make use of other Government help, including the HMRC Time to Pay Scheme and the Business Rates Holiday, with some indicating that they have also accessed the Small Business Grants Scheme and Bounce Back loans. 10. Ticketing Systems Suppliers 10.1. Most suppliers have made use of the JRS, though fewer have accessed the HMRC Time to Pay Scheme, Business Rates Holiday, Coronavirus Business Interruption Loan Scheme, Small Business Grants Scheme and the Bounce Back Loan Scheme. 10.2. Uncertainties over the future health and return of the live events industry is likely to limit the opportunities for new clients as well as there being the potential for some clients not to be able to continue their businesses. These difficulties may result in suppliers needing to reduce their overheads and therefore redundancies may be necessary.

WHAT WILL THE LIKELY LONG-TERM IMPACTS OF COVID-19 BE ON THE SECTOR, AND WHAT SUPPORT IS NEEDED TO DEAL WITH THOSE? 11. Ticket Agents 11.1. A return to business relies on the opening up of events and gatherings so that ticket sales can begin again with certainty. This is of course dependent on the progress of the pandemic and how and when venues can open. Like the rest of the live industry, there are concerns about the capacity with which venues can open and the reality that most will not be able to open their doors with social distancing measures – at either 2m or 1m – in place because this presents both practical and economic barriers. 11.2. There are concerns about the tapering and eventual ending of the JRS, particularly if this predates the opening of events. As a consequence, companies will need to be considering redundancies to be able to navigate through this continuing crisis with zero income and the consequential impact on reserves. We are most likely to see these redundancies being necessary in Q3 and Q4 of 2020. 11.3. It is possible that some businesses will not be able to continue for long without sales, particularly given the burdens on those businesses during the months of closures. 11.4. We are seeing reductions in lockdown on a sector by sector basis and it is understood that restrictions on mass gatherings and therefore events and venues will be the last to re-open. Extending furlough arrangements or other financially supportive arrangements for businesses affected by the closures, including ticket agents, would help businesses manage this extended lockdown for the live events sector. 11.5. Given their sizeable share of the ticketing market, ticket agents will play a crucial part in the recovery of live events through their customer reach and by helping promote events and sell tickets. 11.6. In most situations, ticket agents have a responsibility to their customers to refund money for cancelled performances. Where advanced ticket receipts have been transferred to the venue or organiser through their contractual arrangement with the ticket agent, there is a risk that, if it is not ring-fenced in some way, this money may not be transferred back to the agent to enable those refunds to be made if the company holding the money gets into financial difficulty as a result of the current crisis. The ticket agent may become an unsecured creditor of the venue or organiser but would still have a liability to customers for refunds. This could therefore have a serious detrimental effect on both the ticket agent’s business and potentially on the consumer’s ability to obtain a refund. 12. Ticketing System Suppliers 12.1. For those who wholly or partly rely on per ticket or other variable revenue related to ticket sales, a return to business relies on the opening up of events and gatherings and the considerations mentioned under Ticket Agents above also apply. 12.2. Some venues have already reached financial difficulty and there are understandable warnings of more to follow. There is the likelihood of a consequential impact on some ticketing suppliers in respect of existing contracts, non-payment of contracted fees and terminations. This will come at a time when businesses have been affected by the lockdown and the need to work remotely and to furlough staff and when business reserves may have been eroded. With a depleted market, it is inevitable that some companies will need to reduce costs and make redundancies. 12.3. For some businesses, the tapering and ending of the JRS will have a serious consequential effect as they forward plan. Given that this is another sector affected by the extended lockdown for mass gatherings, the extension of the furlough arrangements or another means of financial support may help more jobs to be retained coming out of the crisis.

WHAT LESSONS CAN BE LEARNT FROM HOW DCMS, ARMS-LENGTH BODIES AND THE SECTOR HAVE DEALT WITH COVID-19? 12.4. The range of contacts, discussions and submissions of data to the DCMS and the Select Committee will already demonstrate that the provision of live entertainment and events – whether subsidised or commercial – is backed by a complex eco-system of suppliers, creators, technicians, service companies and others. It has also been a tremendously successful sector; in its sustained growth and prodigious output and in its world-leading quality. The value of this sector cannot be underestimated in terms of the value it brings to the UK for both its own population and for visitors from overseas, helping generate much additional revenue for other businesses – hotels, restaurant, bars, cafes, travel companies etc. As such it is a sector worthy of further support and investment given the devastating impact of the lockdown required as a result of Covid- 19. We join other voices in appealing for the Government to listen to those calling for specific help to ensure that the creative industries, including the live events and entertainment sectors, receive the support they need to restore and regrow and, in turn, to support all those that serve the creative industries.

HOW MIGHT THE SECTOR EVOLVE AFTER COVID-19, AND HOW CAN DCMS SUPPORT SUCH INNOVATION TO DEAL WITH FUTURE CHALLENGES? 12.5. With so much current uncertainty, it is very hard to see what happens next and whether we will see audiences return to events, hungry for entertainment, or whether they respond more cautiously. There is some encouragement in the number of people taking tickets for rescheduled events, but there are also warnings in research results that consumers will be hesitant. However, STAR members – including those beyond ticket agents and system suppliers, are braced to vigorously support the restoration of the UK entertainment industry as soon as possible. 12.6. Consumer confidence, a reduction in buying power as a result of the inevitable recession and the absence of inbound tourism will be key inhibitors to a return to business, especially alongside caution within the industry to take risks until the situation becomes more certain. 12.7. Alongside re-opening, it is inevitable that there will need to be some changes in terms of policies and technology to help manage safe buildings and processes and to encourage consumer confidence. Ticket agents and ticketing systems suppliers will play a significant role in this, as will supporting venues and events through marketing to both domestic and overseas markets, as the latter start to return.

SOCIETY OF TICKET AGENTS AND RETAILERS JUNE 2020

STAR MEMBERS AT MARCH 2020 FULL MEMBERS (Ticket Agents) The Ticket Factory Albemarle of London The Ticket Machine Group Alt Tickets TicketCo UK ATG Tickets Ticketline AXS Ticketmaster UK Coras Ticket Quarter Covent Garden Box Office TicketSource DICE FM Tickets Scotland Edinburgh Festival Fringe Society Ticketek Encore Tickets Ticket Text Equine Bookings TicketWeb (UK) Eventim UK TicketZone Family Tickets TKTS Festicket TodayTix Flame Concepts Twickets fromtheboxoffice.com TYG Ltd Gigantic Tickets WeGotTickets Groupon UK WhatsOnStage Kidadl KX Tickets PROVISIONAL MEMBERS Leicester Square Box Office Arctix London Theatre Bookings London Theatre Direct ASSOCIATE MEMBERS Motorsport Live VENUES Music+Sport ACC, Liverpool Quaytickets Adelphi Theatre Ringside World Aldwych Theatre See Tickets Almeida Theatre South West Ticketing Solutions Ambassadors Theatre Theatre Tickets Direct Apollo Theatre Ticket Arena Apollo Victoria Arena Birmingham O2 Academy, Brixton Arts Club Liverpool O2 Academy, Glasgow Aylesbury Waterside Theatre O2 Academy, Islington Beck Theatre O2 Academy, Leeds Bridge Theatre, London O2 Academy, Leicester Brighton Centre O2 Academy, Liverpool Bristol Hippodrome O2 Academy, Newcastle Bristol Old Vic O2 Academy, Oxford Cambridge Theatre O2 Academy, Sheffield Chichester Festival Theatre O2 Apollo, Manchester Churchill Theatre O2 Forum, Kentish Town City Varieties Music Hall, Leeds O2 Guildhall Southampton Cliffs Pavilion, Southend-on-Sea O2 Institute, Birmingham Crewe Lyceum O2 Ritz, Manchester Criterion Theatre O2 Shepherds Bush Empire Delfont Mackintosh Theatres The Old Vic Theatre Duchess Theatre Opera North Duke of York’s Theatre Orchard Theatre, Dartford Edinburgh Playhouse The Other Palace Empire Theatre, Liverpool Oxford Playhouse England Netball Palace Theatre The FA Palace Theatre, Westcliff Fairfield Halls Phoenix Theatre FlyDSA Arena, Sheffield Piccadilly Theatre Fortune Theatre Playhouse Theatre G-Live, Guildford Prince Edward Theatre Garrick Theatre Prince of Wales Theatre Gielgud Theatre Princess Theatre, Torquay Gillian Lynne Theatre Queens Theatre Grand Opera House, York Queens Theatre, Barnstaple Harold Pinter Theatre Really Useful Theatres Group Her Majesty’s Theatre Regent Theatre, Stoke-on-Trent HQ Theatres Resorts World Arena, Birmingham Hyde Park Picture House, Leeds Richmond Theatre JHI Marketing The Royal Edinburgh Military Tattoo King’s Theatre, Glasgow Royal Opera House The Landmark, Ilfracombe Royal Shakespeare Company Leas Cliff Hall, Folkestone The Rugby Football Union Leeds Grand Theatre Sadler’s Wells Theatre London Coliseum St Martin’s Theatre London Palladium Santa Pod Raceway The Lowry, Salford Savoy Theatre LW Theatres Scarborough Spa Lyceum Theatre SEC & The SSE Hydro, Glasgow Lyric Theatre Selladoor Venues Lyric Theatre, Hammersmth Shaftesbury Theatre M&S Bank Arena, Liverpool Sheffield City Hall Manchester Opera House Southport Theatre and Convention Centre Manchester Palace Theatre The SSE Arena, Wembley Milton Keynes Theatre Stephen Joseph Theatre, Scarborough Minerva Theatre, Chichester Sunderland Empire Motorpoint Arena, Cardiff Theatre Royal Brighton Motorpoint Arena, Nottingham Theatre Royal Drury Lane National Theatre Theatre Royal Glasgow Nederlander Dominion Theatre Troubadour Wembley Park Theatre New Alexandra Theatre, Birmingham Twickenham Stadium New Theatre, Oxford Vaudeville Theatre New Theatre Royal, Lincoln Victoria Hall, Stoke-on-Trent New Victoria Theatre, Woking Victoria Palace New Wimbledon Theatre & Studio Watford Colosseum Newcastle Theatre Royal Watford Palace Theatre Nimax Theatres Wembley Stadium Noel Coward Theatre Whitby Pavilion Novello Theatre White Rock Theatre, Hastings Nuffield Theatre, Southampton Wycombe Swan O2 Academy, Birmingham Wyndhams Theatre O2 Academy, Bournemouth Wyvern Theatre and Arts Centre, Swindon O2 Academy, Bristol York Theatre Royal PRODUCERS/PROMOTERS Cameron Mackintosh Disney Theatrical Productions DHP Family Fane Productions Kilimanjaro Live Live Nation SJM Concerts

ORGANISATIONS National Arenas Association Society of London Theatre UK Theatre

AFFILIATES (*Ticketing System Suppliers) Abbey Box Office AKA *Audience View Best of Theatre Booking Protect Dewynters *Front Gate Tickets JM Marketing Line Up Onside Law *PatronBase *Red 61 *Seat Geek SeatPlan *SecuTix *Spektrix Squire Patton Boggs *Tessitura Network Theatreland theatremonkey.com Ticketing Business Forum Ticketing Professionals Conference TicketPlan TickX *TixTrack (Europe) Tungate Group *Universe *Vivaticket

TRAVEL AFFILIATE MEMBERS Big Green Coach/Planet Festival Hotel Direct Scancoming Tuned In Travel Table 1 – Live Entertainment Ticket and Agency Sales

Total 6 7 Average 68% Average estimated Average Total Revenue Sold by Agent Share Income attendances Ticket Price Agents of Fees % 2019

Regional Theatre 18,806,659 1 £ 27.10 £ 509,567,967 West End Theatre 15,315,773 2 £ 52.17 £ 798,994,920 Arenas 12,764,136 3 £ 49.49 £ 631,697,091 3 Festivals 4,900,000 4 £ 160.00 5 £ 784,000,000 Other Live Music 12,235,864 £ 37.37 £ 457,302,909 45,215,773 £2,671,994,920 £1,816,956,546 9.85% £178,970,220

NB - the above represents income earned through booking fees. Some agents may earn additionally through providing system venues.

1 https://uktheatre.org/theatre-industry/news/2018-sales-data-released-uk-theatre-and-society-of-london-theatre/ 2 https://solt.co.uk/about-london-theatre/press-office/2019-box-office-figures-released-by-society-of-london-theatre/ 3 National Arenas Association figures 4 https://www.ukmusic.org/assets/general/Music_By_Numbers_2019_Report.pdf 5 https://www.statista.com/statistics/687719/music-festivals-ticket-prices-in-europe/ 6 Evened out as % varies in different markets. 7 Evened out as % varies in different markets.

Mintel's Music Concerts and Festivals UK report August 2019 forecasts that ticket sales income for live music would reach £1.9bn in 2019 https://reports.mintel.com/display/920418/

Statista's Music concert and festival attendance in the UK report from 2012 to 2018 estimates overall attendance for music events at just under 30 million in 2018 https://www.statista.com/statistics/282032/music-concert-and-festival-attendance-in-the-uk-by-attendee-type/