{"id":393525,"date":"2024-10-18T16:17:26","date_gmt":"2024-10-18T10:47:26","guid":{"rendered":"https:\/\/zerodha.com\/z-connect\/?p=393525"},"modified":"2024-10-18T17:17:10","modified_gmt":"2024-10-18T11:47:10","slug":"a-better-way-to-sell-coldplay-tickets","status":"publish","type":"post","link":"https:\/\/zerodha.com\/z-connect\/subtext\/a-better-way-to-sell-coldplay-tickets","title":{"rendered":"A better way to sell Coldplay tickets"},"content":{"rendered":"\n<p>When Coldplay decided to play two shows in Mumbai early next year, they vastly underestimated how many Indians desperately wanted to see them live. BookMyShow, their \u2018exclusive\u2019 ticketing platform, was immediately overwhelmed by the response. The website crashed before sales even began. Eventually, BookMyShow had to throw up massive online \u2018queues\u2019 to accommodate the tens of lakhs of people seeking a ticket. Most walked away empty-handed.&nbsp;<\/p>\n\n\n\n<p>But that wasn\u2019t even the worst bit. Many people who got tickets <em>didn\u2019t even want to see the show<\/em>! They wanted to sell them onwards and make a quick buck. Almost immediately, tickets appeared for re-sale on websites like Viagogo, for up to <a href=\"https:\/\/www.indiatimes.com\/trending\/social-relevance\/coldplay-concert-tickets-resell-for-up-to-9-lakhs-fans-call-bookmyshow-a-scam-642348.html\">\u20b99 lakh a pop<\/a>.<\/p>\n\n\n\n<p>I guess we\u2019re all supposed to get angry at this whole episode, or at least that\u2019s what Twitter tells me. And while Twitter could get mad at a newborn puppy cuddling with a child, in this case, I see why. It <em>feels<\/em> unfair. It\u2019s just not how things should be done.<\/p>\n\n\n\n<p>What I\u2019m a little confused about, though, is <em>who <\/em>it\u2019s unfair to.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-theory-1-it-s-unfair-to-coldplay\"><strong>Theory #1: It\u2019s unfair to Coldplay<\/strong><\/h2>\n\n\n\n<p>You could argue something like: \u201c<em>Coldplay built a legacy over three extremely difficult decades. They wrote music, performed night after night, and ground patiently through the politics of the music industry, until people recognised their name on every corner of this planet. And now, when lakhs of Indian fans try to see them, these wretched ticket scalpers make money at their expense?!<\/em>\u201d<\/p>\n\n\n\n<p>Horrible! That money belongs to Coldplay \u2014 not some rando who got lucky with ticketing queues!<\/p>\n\n\n\n<p>But also \u2026 <em>so what<\/em>?&nbsp;<\/p>\n\n\n\n<p>Coldplay and its management were probably front-and-centre in planning their Indian shows. They came with a vague sense of what India could afford and how much it cared for international music \u2014 and they planned accordingly. Happily, they underestimated themselves.<br><br>At some point in the last many months, Coldplay sat down with its management, did some math and decided: <em>hey, maybe some of those billion-plus people would like to see an ancient British band whose best songs came in the early 2000s! If we sell X tickets for Y bucks each, we\u2019ll probably earn enough to spend a whole week in India!<\/em> And then, they went and sold exactly as many tickets for exactly those rates. They knew the most they could earn from these shows well in advance. They hit that number in minutes. Even if there were no reselling, they wouldn\u2019t have made a single extra paisa.<\/p>\n\n\n\n<p>In fact, this mania showed Coldplay that people weren\u2019t done with them. It was a signal; there was enough demand in India for them to sell out a whole <em>third<\/em> show. So they <a href=\"https:\/\/www.ndtv.com\/india-news\/coldplay-adds-3rd-mumbai-show-due-to-high-demand-tickets-sell-out-fast-6623688#:~:text=ticket%20platform%20BookMyShow.-,According%20to%20the%20platform's%20website%2C%20all%20three%20shows%20are%20sold,Stadium%20for%2021%20January%2C%202025.\">promptly planned one<\/a>, and sold it out. The long queues, the social media sobbing and the ticket scalping <em>allowed <\/em>Coldplay to push their revenues up by 50%.<\/p>\n\n\n\n<p>So maybe the ticket scalpers used Coldplay\u2019s name to make money. But how did they leave Coldplay any worse off? If anything, they had a better idea of how crazy Indians were for Coldplay <em>than Coldplay themselves<\/em>, and this difference in perceptions was how they made money. And, I don\u2019t know, that doesn\u2019t really seem unfair to me?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-theory-2-it-s-unfair-to-bookmyshow\"><strong>Theory #2: It\u2019s unfair to BookMyShow<\/strong><\/h2>\n\n\n\n<p>I have a lot less sympathy for this one, because BookMyShow\u2019s platform IS ABSOLUTELY FU-&#8230; (I should keep that one for my personal blog).<\/p>\n\n\n\n<p>But anyway, here\u2019s the case: \u201c<em>BookMyShow was the exclusive platform to sell Coldplay tickets. It probably took them many rounds of negotiation and some big concessions to bag the contract. They put in all that effort for a reason: for it, they\u2019d get service fees, data and lakhs of eyeballs. But at the very last moment, Viagogo swooped in from nowhere and rubbished their exclusive rights! They scraped all those benefits, and a lot of free publicity besides, with none of the hard work!<\/em>\u201d&nbsp;<\/p>\n\n\n\n<p>My God. So sad.&nbsp;<\/p>\n\n\n\n<p>But, of course\u2026 this isn\u2019t <em>unfair<\/em>?<\/p>\n\n\n\n<p>Just like Coldplay, BookMyShow knew exactly what it stood to gain if both shows were sold out. It got there in minutes. From what I can tell, on the day of booking, it got <a href=\"https:\/\/www.mid-day.com\/lifestyle\/culture\/article\/coldplay-india-2025-amid-server-crash-bookmyshow-says-1-3-crore-fans-logged-in-to-book-tickets-for-mumbai-concert-at-dy-patil-stadium-with-capacity-of-50000-23397803\">1.3 crore people<\/a> on its platform. That\u2019s two-and-a-half New Zealands put together. Trust me when I say this, because I work for a tech company: that\u2019s <em>mad<\/em> traffic. Server crashes aside, this might well be one of the best days the company ever saw.&nbsp;<\/p>\n\n\n\n<p>In all, BookMyShow had some expectations from the Coldplay tour, and those expectations were, well, <em>met<\/em>. Does ticket scalping take anything away from it? Maybe it still wants exclusivity on principle, and maybe all the reselling goes against the terms on which they sold tickets. But that\u2019s for their lawyers to sort out. Those aren\u2019t principled questions, they\u2019re arcane matters of contract law.<\/p>\n\n\n\n<p>Principally, Viagogo (or those reselling tickets) didn\u2019t take anything away from BookMyShow. They benefitted <em>in addition to<\/em> it. Of course BookMyShow doesn\u2019t like that. But <a href=\"https:\/\/inc42.com\/buzz\/concert-mania-bookmyshow-zomato-take-legal-action-against-ticket-reselling-platforms\/\">their complaint<\/a> isn\u2019t that people resold tickets \u2014 it\u2019s that they resold tickets on <em>another platform<\/em>. If people did the same thing using BookMyShow\u2019s own services, they\u2019d be perfectly happy.<br><br>How do I know that? Because arch-rival Zomato Live is actually trying out its own <a href=\"https:\/\/blog.zomato.com\/book-now-sell-anytime-experience-a-seamless-secure-and-stress-free-ticket-booking-experience\">in-house reselling platform<\/a>.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-theory-3-it-s-unfair-to-the-fans\">Theory #3: It\u2019s unfair to the fans!<\/h2>\n\n\n\n<p>Now for the most convincing complaint \u2014 the one from fans:<\/p>\n\n\n\n<p>\u201c<em>I did everything they asked me too! I tracked the concert from the moment it was announced; I logged in as soon as I could, and refreshed the page fifteen times before it would work \u2014 and what do I find? These a-holes had already bought all the tickets, in bulk! Using BOTS! They didn\u2019t even want them \u2014 they\u2019re just selling them for lakhs! There\u2019s no way I can afford that! I hate this!<\/em>\u201d<\/p>\n\n\n\n<p>Hey, I get it.<\/p>\n\n\n\n<p>If you were one of the first 0.5% that logged in, and still couldn\u2019t land a ticket \u2014 it <em>does <\/em>suck to be you. If BookMyShow didn\u2019t maintain basic digital hygiene and forced you to race against bots, that\u2019s worse. And if, by any chance, the <a href=\"https:\/\/www.newindianexpress.com\/entertainment\/english\/2024\/Sep\/28\/coldplay-concert-row-mumbai-police-summons-bookmyshows-ashish-hemrajani-for-ticket-black-marketing\">conspiracy theories<\/a> are true \u2014 that BookMyShow actually throttled sales so they could hand tickets over to resellers, that\u2019s <em>criminal<\/em>. If there\u2019s a way in which you want people to buy tickets, stick to it!<\/p>\n\n\n\n<p>In the grand scheme of things, though, those were just a small number of tickets. There\u2019s a larger problem here: ultimately, too many people who wanted too few tickets. Someone <em>had<\/em> to lose out. And whoever lost out would feel cheated.&nbsp;<\/p>\n\n\n\n<p>In an ideal world, those limited tickets would go to India\u2019s biggest Coldplay fans. Some bands are trying that. Oasis, for instance, wants people to <a href=\"https:\/\/loudwire.com\/oasis-quiz-2025-tour-presale-scalpers\/\">answer a quiz<\/a> before they can buy a ticket. That\u2019s hardly practical, though? More people tried getting a Coldplay ticket than those that wrote the IIT-JEE (Mains!) this year. If even the IIT-JEE doesn\u2019t catch all of India\u2019s best engineers-to-be, can BookMyShow do any better?<\/p>\n\n\n\n<p>If it can\u2019t, you <em>have<\/em> to pick a completely arbitrary metric to decide who to give tickets to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You could give tickets out on a first-come-first-serve basis. This sucks in practice, though, because you\u2019re basically putting everyone through a giant all-versus-all battle royale with millions of people. One\u2019s only shot is to obsessively track when ticket sales will open, hit refresh a million times on the D-day, wait through long queues, and maybe, after all that effort, grab a ticket. A bit like this: <\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-4-3 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe width=\"100%\" src=\"https:\/\/www.youtube.com\/embed\/VWMR1ReDvZ8\" frameborder=\"0\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You could sell tickets to whoever\u2019s willing to pay the most. Those who really want to see the show can let their wallet speak. Again, the competition is brutal, so they might just have to shell out a year\u2019s salary for a single pass.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>The choice is basically to either ask people to spend more <em>time<\/em> than anyone else, or more <em>money<\/em>, to show their commitment to the band. To me, it isn\u2019t obvious which is better?<\/p>\n\n\n\n<p>Yes, the second option skews the game heavily in favour of the rich. But is the first one any more fair? Most people have neither the time nor the patience to fight a brutal, national-level contest of first-on-the-buzzer. Sure, capitalism has its flaws. If we were using one\u2019s paying capacity to decide who gets an organ transplant, or grain during a famine, that would be terrible. But if there\u2019s one place the logic of capitalism should work at its nasty, brutish best, isn\u2019t it when you\u2019re distributing tickets for <em>a foreign pop-music band<\/em>? Really, is there anything more inherently capitalist than that?<\/p>\n\n\n\n<p>From what I can see, the gig\u2019s organisers chose to keep tickets cheap. That created a first-come-first-serve stampede. A \u2018secondary market\u2019 then swung into action, and made tickets available again. But this time, sellers were courting the highest bidder. Both were arbitrary ways of allotting tickets. But in a world with more fans than tickets, can you really avoid arbitrariness?<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<p>Hmm. So it\u2019s hard to see who gets short-changed by this situation. Nevertheless, the whole episode still leaves you with a bad taste in the mouth. It <em>feels<\/em> unfair.&nbsp;<\/p>\n\n\n\n<p>Should we listen to our gut on this one and stop something like this from happening <em>anyway<\/em>? Maybe. Before we whip up the lynch mobs, though, let\u2019s understand the problem: the way things work right now, it\u2019s hard to do something about ticket scalping. Show tickets simply don\u2019t work like airline tickets; nobody checks (or wants to check) the personal details of who they\u2019re selling a ticket to. Why should they? Neither organisers nor concert-goers want that extra layer of inconvenience. And so, even if you could <a href=\"https:\/\/news.sky.com\/story\/regulator-asks-for-power-to-shut-down-ticket-resale-websites-that-break-rules-12382904\">shut a platform like Viagogo down<\/a> (and it\u2019s not clear you can), people will sell their tickets on Whatsapp \/ Telegram \/ wherever else.&nbsp;&nbsp;<\/p>\n\n\n\n<p>We <em>can<\/em> solve this problem. We\u2019ll need some way to confirm the identity of whoever\u2019s buying a ticket, and make sure that only they enter. K-Y-C, in other words. Only, this would be horribly expensive \u2014 requiring <em>crores<\/em> in investment \u2014 while making the concert-going experience more painful than it already is. Financial institutions do these things because they\u2019d like to stop fraud and money laundering and all kinds of horrible stuff. Do we really want people to put in all that effort for <em>equitable access to Coldplay<\/em>, though?<\/p>\n\n\n\n<p>Before we come to an answer, maybe we should see if there are any <em>benefits<\/em> to ticket resales.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-benefit-1-you-can-still-buy-tickets-after-like-the-first-five-minutes\"><strong>Benefit #1: You can still buy tickets after, like, the first five minutes<\/strong><\/h2>\n\n\n\n<p>This is the most obvious benefit. In the Coldplay debacle, you could be left high-and-dry even if you tried buying Coldplay tickets <em>within the very first hour<\/em>. It didn\u2019t matter if you were the biggest Coldplay fan in the world; if your earliest memories were you babbling along to <em>Yellow<\/em>, or if <em>Viva La Vida<\/em> helped you survive your teenage years, or if you fell in love with your soulmate to <em>Fix You<\/em>. If you were timed out, you were timed out. Just too bad.&nbsp;<\/p>\n\n\n\n<p>Except\u2026 if you were willing to pay a hefty premium, you could get a second chance. You could still see the band of your dreams, live.&nbsp;<\/p>\n\n\n\n<p>Isn\u2019t that a good thing?&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-benefit-2-if-you-can-t-go-you-can-sell-your-ticket-to-someone-who-can\"><strong>Benefit #2: If you can\u2019t go, you can sell your ticket to someone who can<\/strong><\/h2>\n\n\n\n<p>If you bought a ticket on September 22, you\u2019d have to wait another four months before the day of the concert. That\u2019s a long time. There\u2019s a good chance your plans could fall apart by the time January rolls around. Here are just a few:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If you\u2019re planning to go there with your significant other, there\u2019s a non-zero chance you\u2019ll break up by then, and won\u2019t feel like going any more.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You could fall into a ditch, break your leg and get saddled with a wheelchair for half a year.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You could win a fellowship for some prestigious program in Europe, for which you need to travel on exactly those dates.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>\u2026 and so on.<\/p>\n\n\n\n<p>If any of this were to happen, your ticket would be useless. For all the hype, there would be an empty spot at the venue when Coldplay finally performed. In fact, you might hesitate to buy a ticket at all if there were even a 20% chance that you couldn\u2019t be in Mumbai four months later. After all, that\u2019s a 20% chance you\u2019d get stuck with a useless ticket and lose all your money.&nbsp;<\/p>\n\n\n\n<p>\u2026 Except, of course, if you could sell your ticket. If a bolt-from-the-blue ruins your Coldplay plans, you <em>should<\/em> be able to sell your ticket to someone who can actually see the show. After all, nobody benefits from your ticket being wasted. I don\u2019t think people mind if someone gives their tickets away if the circumstances call for it. They only mind people who buy tickets with the<em> specific intention <\/em>of selling them.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-benefit-3-can-scalpers-de-risk-concerts\"><strong>Benefit #3: Can scalpers de-risk concerts?<\/strong><\/h2>\n\n\n\n<p>The Coldplay incident was an edge case. The way it all played out \u2014 tickets selling out immediately and then being resold at ridiculous prices \u2014 ticket scalpers looked like <em>obvious <\/em>villains. But are scalpers <em>always <\/em>bad?&nbsp;<\/p>\n\n\n\n<p>Most bands don\u2019t immediately sell entire stadiums. Usually, concert tickets stay listed online, unsold, for months at an end. What\u2019s more, the liquidity that early ticket sales bring are <em>really important<\/em> for a concert\u2019s success. Often, organisers rely on the money they make from early ticket sales to hire the equipment and workers they need for a good show. Until those sales happen, they basically grit their teeth and work through a lot of financial risk. And\u2026 <em>that\u2019s not ideal?<\/em> If you\u2019re an Indian music aficionado, you probably want concerts to be a lot easier to host.&nbsp;<\/p>\n\n\n\n<p>The good thing about scalpers \u2014 maybe the only good thing \u2014 is that they could take this financial risk off the hands of organisers. They\u2019d get money in-hand, which simply lets them work on arranging the best possible show for you.&nbsp;&nbsp;<\/p>\n\n\n\n<p>The associated headaches \u2014 do people know about the concert, is their pricing right, are enough people buying tickets \u2014 shift to scalpers instead. If they take smart bets and there\u2019s enough demand for the concert, they pocket a tidy pay-off. If they take a bad bet, though, and tickets aren\u2019t selling, it\u2019s for them to figure out how to move them anyway. If they have to sell them at a loss, well, who cares? It\u2019s fair, isn\u2019t it? To profit off a band\u2019s reputation, you need to put your own butt on the line.&nbsp;<\/p>\n\n\n\n<p>Now, this <em>does <\/em>mean high prices whenever a superstar band like Coldplay comes to India. If the demand for tickets goes wild, prices will follow. For the vast majority of concerts, though, they could simply take a lot of the load off organisers\u2019 backs.&nbsp;&nbsp;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<h1 class=\"wp-block-heading\" id=\"h-a-ridiculous-proposal\"><strong>A ridiculous proposal<\/strong><\/h1>\n\n\n\n<p>With all this in mind, here\u2019s an idea for a better way to sell Coldplay tickets. Stick with me \u2014 things will get very weird, very soon.&nbsp;<\/p>\n\n\n\n<p>The way I see it, the worst enemy of a scalper is, well, another scalper. The only reason anyone was able to sell a \u20b99 lakh ticket is that they were alone in selling such a ticket. Now, imagine: if there were dozens of tickets being resold, they wouldn\u2019t have this pricing power. If <em>you<\/em> overcharge and there are plenty of other tickets available, people simply buy from someone else. If anything, these ridiculous prices are a consequence of ticket scalping being a distasteful, legally grey activity that most wouldn\u2019t do openly. The rarer tickets are, the more scalpers can charge.&nbsp;<\/p>\n\n\n\n<p>What if you went in the other direction? What if you let people resell their tickets with no barriers at all, on an open, transparent platform? Well, you\u2019d create a market. And there are two <em>incredible <\/em>things about markets: <strong>liquidity<\/strong> and <strong>price discovery<\/strong>.&nbsp;<\/p>\n\n\n\n<p>Imagine an <em>active <\/em>market for Coldplay tickets, where people constantly traded in tickets, purely to make profits. Here, a lot of people would scalp; they\u2019d only buy tickets to sell them later. But there would be a <em>benefit<\/em> to their scalping. These people would actually \u2018make\u2019 the market. They\u2019d buy tickets if they seemed cheap, and sell them when the markets were willing to offer a good price.&nbsp;<\/p>\n\n\n\n<p>In doing so, they\u2019d perform a valuable service for <em>genuine <\/em>buyers and sellers. If you bought a ticket but your plans fizzled out, they\u2019d give you a place to sell your ticket. If you wanted a ticket but weren\u2019t able to get your hands on one, they\u2019d sell them to you.&nbsp;<\/p>\n\n\n\n<p>Meanwhile, they would also \u2018discover\u2019 the right price for tickets.&nbsp;<\/p>\n\n\n\n<p>It\u2019s almost impossible for any one person to guess the right price for anything. There are simply too many ways of getting it wrong. If something\u2019s too expensive, many will decide it\u2019s outside their budget and hold back from buying it. If something\u2019s too cheap, you\u2019ll get a whole lot of buyers \u2014 but without enough of a profit, nobody will be motivated to supply it. The \u2018right\u2019 price for something must strike a perfect balance, keeping both buyers and sellers interested. Unfortunately, unless you have God-like intelligence (and knowledge), you\u2019re unlikely to know where that balance lies.&nbsp;<\/p>\n\n\n\n<p>The magic of markets is that they do this job automatically \u2014 by bringing hundreds of people to put their heads to a task. Markets nudge both sellers and buyers to test the waters constantly and find the best deals they can. In doing so, they balance each other out. There\u2019s no guess-work involved. If there\u2019s a price at which a whole lot of buyers and sellers are able to strike deals, that <em>is <\/em>the right price.&nbsp;<\/p>\n\n\n\n<p>Beyond the mania and outrage, a big ingredient in this episode was that Coldplay priced their tickets too cheap. Their tour was a once-in-a-decade event. Coldplay brought many generations of Indians to English music, and yet, they were selling tickets cheaper than some half-decent Indian bands. This was a golden opportunity. If one was lucky enough to get to the ticket queue in time, it made <em>complete <\/em>sense to buy as many tickets as one could and sell them later. People <em>loved <\/em>the band, after all. They would pay through their nose for your tickets.&nbsp;<\/p>\n\n\n\n<p>This isn\u2019t Coldplay\u2019s fault, of course. Their job is to make music. It isn\u2019t to have an encyclopaedic understanding of contemporary Indian society. They could, however, <em>outsource <\/em>this job to scalpers.&nbsp;<\/p>\n\n\n\n<p>Imagine: instead of releasing all their tickets at once, Coldplay only sold one-third of their concert tickets, in some sort of \u2018initial ticket offering\u2019, and then let them float freely on a transparently-run secondary ticket market. Very quickly, the market would discover the \u2018right\u2019 price for those tickets.&nbsp;<\/p>\n\n\n\n<p>This would be vital information. It would set a benchmark. When Coldplay released the next tranche of tickets, it could factor this information in. Even if they didn\u2019t stick to the <em>market\u2019s<\/em> price, they\u2019d be able to take smarter ticketing decisions. If people were willing to pay several lakhs to be right in front of the stage, for instance, they could sell a hundred extra spots there for \u20b91 lakh each, instead of \u20b915,000. All that additional money would go to Coldplay, not the scalpers. If the market lapped those up too, Coldplay could be even smarter with the <em>next <\/em>tranche of tickets. And so on.&nbsp;<\/p>\n\n\n\n<p>But the benefits wouldn\u2019t end with Coldplay. If a transparent market screamed \u201c<em>popular foreign bands can make millions in India!!<\/em>\u201d, others bands would take note. India would <em>obviously <\/em>become a million-dollar opportunity. Who else could we then draw? Linkin Park? Taylor Swift? <em>Kendrick Lamar<\/em>?<\/p>\n\n\n\n<p>I\u2019m just putting this out there: if ticket scalpers could bring the K-Dot himself&nbsp; to India, <em>please<\/em>, for God\u2019s sake, start scalping immediately!<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<h1 class=\"wp-block-heading\" id=\"h-why-the-hell-is-zerodha-writing-about-coldplay-tickets\"><strong>Why the hell is Zerodha writing about Coldplay tickets?<\/strong><\/h1>\n\n\n\n<p>If you\u2019ve stuck with me for this long, let me tell you a secret: this isn\u2019t really about Coldplay.&nbsp;<\/p>\n\n\n\n<p>My point isn\u2019t to defend Viagogo, or ticket scalping. I know nothing about the music industry, and honestly, IDGAF about Coldplay. (Now, if this were <em>Radiohead<\/em> on the other hand\u2026)<\/p>\n\n\n\n<p>I\u2019m just trying to demonstrate what secondary markets do.&nbsp;<\/p>\n\n\n\n<p>By and large, the stock market is a secondary market. At first glance, it looks extremely weird (much like ticket scalping does). Here\u2019s a whole industry dedicated to taking bets on the price of little bits of companies. That\u2019s all there is to it \u2014 betting. This market doesn\u2019t <em>create <\/em>anything. It doesn\u2019t help those companies in any obvious way. The companies do all the work themselves. People simply profit off their good name on the markets. How in the world is this a legitimate thing? It\u2019s hard to see what point it has at all!&nbsp;<\/p>\n\n\n\n<p>That is, until you understand a simple fact: <em>secondary markets can be powerful.<\/em><\/p>\n\n\n\n<p>If there\u2019s one thing we know, it\u2019s this: well-run companies are incredible at making money \u2014 better than the average person, anyway. Left to their own devices, the average person would be hard-pressed to use their money better than a well-run company. So, instead of breaking their heads looking for worthy investments, it makes sense for regular people to just buy little bits of these companies with their money, so that they get a share in their incredible returns. That\u2019s what a \u2018share\u2019 is, after all. Companies benefit from this too \u2014 they need money to run, and regular people\u2019s savings are a good source. It\u2019s a win-win bargain.&nbsp;<\/p>\n\n\n\n<p>There\u2019s a problem, though: regular people wouldn\u2019t invest in a company if they can\u2019t sell those investments whenever they want. However, as soon as a company allows people to buy and sell their shares freely, just like Coldplay, it loses control. The shares take a life of their own. Many people start buying shares just so that they can sell them for a profit \u2014 not because they care about <em>that <\/em>company. Any profit they make is <em>theirs<\/em> \u2014 none of it will reach the company.&nbsp;<\/p>\n\n\n\n<p>At first brush, this seems pointless. Those \u2018speculators\u2019, the company may reasonably think, are no better than ticket scalpers ripping off Coldplay. What\u2019s easy to miss, though, is that these speculators <em>create liquidity<\/em>, and <em>discover prices<\/em>. That\u2019s immensely useful to everyone around:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If you genuinely like a company and want a part of it, the market gives you easy access to its shares, because thousands of speculators are willing to sell shares to you.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If you hold a share in a company that you want to sell, there are thousands of speculators that will buy it off you.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The next time that company needs money, the markets tell it the \u2018right\u2019 price at which it can issue some shares, and gives it an army of buyers that\u2019ll take the risk of courting genuine investors off its hands.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Other companies might reasonably look at this market, and decide that it would be a good idea to try selling their <em>own <\/em>shares.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>This is the magic of the stock market. By giving people the opportunity to make money off a company\u2019s reputation, it makes life easier for the company <em>and <\/em>anyone that genuinely wants to invest in it.\u00a0<\/p>\n\n\n\n<p>If someone asks you what the point of a stock market is, here\u2019s an easy answer: \u201c<em>the stock market is the Viagogo of the finance world. But really, that ain&#8217;t such a bad thing!<\/em>\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ticket scalpers are the obvious villain in the Coldplay ticketing saga. But are scalpers actually useful? Can scalping be good, even? <\/p>\n","protected":false},"author":242542,"featured_media":393527,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[532],"tags":[],"class_list":["post-393525","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-subtext"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.5 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A better way to sell Coldplay tickets &#8211; Z-Connect by Zerodha<\/title>\n<meta name=\"description\" content=\"Ticket scalpers are the obvious villain in the Coldplay ticketing saga. But are scalpers actually useful? 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