Pure Business

According to the Wall Street Journal on October 11th, it has been announced that the ex-CEO, Fredric D. Rosen will be the CEO of Outbox Enterprises LLC.

This new ticket selling company, Outbox Enterprises brings in a different type of ticket selling model called the white-level service which offers direct selling of tickets from the websites of their clients.  Ticketmaster uses its one, centralized website to provide all the tickets for the consumers. This model which is the works of Rosen in the 90’s is considered outdated according to Rosen himself. Due to the high usage of search engines such as Google and other social-media sites, Rosen claims that “The middle-man model is dead,” and that “You have to evolve.”

I find this statement made by Rosen very ironic. A business model that led a company to being the most popular in its industry until now is described as “dead” by the CEO who built the very model. This shows that the market trend is growing rapidly with both internal and external factors. These changes in the market can go so far to the necessity of taking down the entire business model for a new one.

Rosen observed the society in North America and recognized the change of market behaviors and trends. This analysis evolved into a new idea which created the model, white-level service. Along with the change of market trend of consumers, the sales of tickets has been decreasing this year. Rosen takes these two market change and takes them as an opportunity for Outbox Enterprises to compete against Ticketmaster. “I view that as an opportunity,” Mr. Rosen says. “If everything’s good, and everyone is happy, and everyone is making money, it’s a lot harder to break in.”
It would be interesting to see after several years how the ex-CEO of Ticketmaster positions his new company, Outbox against his formal company in the ticket sales industry.