Should SeatGeek prioritize expanding its inventory of niche events to attract passionate fans or focus on high-demand mainstream events for broader appeal?

Introduction

The trade-off SeatGeek faces is whether to prioritize expanding its inventory of niche events to attract passionate fans or focus on high-demand mainstream events for broader appeal. This decision impacts SeatGeek's market positioning, user acquisition strategy, and long-term growth potential. I'll analyze this trade-off by examining the product ecosystem, key metrics, and potential experiments to inform our decision.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about SeatGeek's current market position. Could you share our current market share in the ticketing industry, particularly compared to major competitors like Ticketmaster?

Why it matters: Helps understand our competitive landscape and growth potential. Expected answer: Mid-tier player with significant room for growth. Impact on approach: If we're a smaller player, focusing on niche events could be a differentiator.

• Business Context: Based on our revenue model, I assume we take a percentage of each ticket sale. Is this correct, and are there any other significant revenue streams we should consider?

Why it matters: Informs which strategy might be more financially beneficial. Expected answer: Primarily ticket sales commission, with some advertising revenue. Impact on approach: If we have diverse revenue streams, we might be able to take more risks with niche events.

• User Impact: I'm curious about our user retention rates. Do we see higher retention among users who purchase tickets for niche events compared to mainstream events?

Why it matters: Indicates which strategy might lead to more loyal users. Expected answer: Niche event buyers show slightly higher retention. Impact on approach: Could justify focusing on niche events for long-term user value.

• Technical: Considering our current platform, how much additional development would be required to support a wider variety of niche event types?

Why it matters: Assesses feasibility and resource requirements for the niche strategy. Expected answer: Moderate development needed for new event categories. Impact on approach: If significant development is required, it might favor the mainstream focus in the short term.

• Resource: What's our current team capacity for expanding into new event categories or scaling our mainstream offerings?

Why it matters: Determines our ability to execute either strategy effectively. Expected answer: Limited additional capacity without hiring. Impact on approach: Might need to choose one strategy to focus on rather than pursuing both simultaneously.