Can the company that's selling tickets to an event also be a scalper? Apparently so. Yesterday's Wall Street Journal explored recent initiatives by Ticketmaster to auction off choice seats at major concerts and allow fans to resell their unwanted tickets.
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Ticketmaster isn't suddenly waking up to this reality. Down here in Miami, the company's TicketExchange has allowed Miami Heat season-ticket holders to resell their game tickets through the team's official website for a buck more than they originally paid. The Florida Marlins followed suit this year, and it's a shock to see the Miami Dolphins hold back from that service.
Ticketmaster's TicketExchange is a win for almost everyone. Both the ticketing agent and team can cash in a second time on the same seat by sharing in the resale markup. Fans also have access to good seats without having to haggle with a scalper out in the parking lot. The concept works, much to the detriment of the thinning fleet of scalpers.
Entering the resale market for music events also makes sense, especially for sold-out concerts. The music industry has left a lot of money on the table in the lucrative resale market, but it's starting to fight back in creative ways. Promoter Live Nation
Goodbye, bootleggers? Goodbye, scalpers? Even Apple Computer's
Longtime Fool contributor Rick Munarriz does not own shares in any of the companies mentioned in this story, though he has been a frequent freelance contributor to IAC's CitySearch. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.