Archive for 16 July, 2010
“Recent weeks have seen two of the UK’s five mobile operators make further inroads into the £800m ticketing market. Orange is trialling a discounted ticketing service called Last Second Tickets from Orange, while Vodafone has launched its Vodafone VIP service through a tie-up with Live Nation.“
“The trend is regarded as an attempt to emulate the success of Orange Wednesdays, which has won the approval of every UK cinema chain to allow the network’s subscribers two-for-one entry each Wednesday. Pizza Express jumped on the success of the scheme and joined the promotion in early 2009.“
“Although these schemes are unlikely to generate much in the way of new revenues, they are good at attracting new and keeping their existing subscribers” for the mobile operators. But there is no indication that it develops attracts new audiences to the events or assists in retaining existing.
“Such schemes also give (mobile) operators an alternative to competing in a price war to keep subscribers.“
“…it’s difficult to see how they’re making money for partner brands, particularly since the key proposition is discounts.“
So in summary, the mobile operators are attempting to add value to their brands to avoid purely competing on price as a commodity. The value they are adding is a discount on another product or service, in this case music events. The value the mobile operator gains is at the expense of the value of the partner product or service. Unless the discounting is attracting new audiences (that will return without a discount), then it is just discounting the value of existing customers and generating no new or additional revenue.