BangTango To Look Beyond Telstra Amid ACCC Investigation

Telstra's premium entertainment ticket partners BangTango have indicated they're looking to work with sponsorship partners and brands beyond the telecommunications giant next year following a turbulent first six months that's likely to see them named in an Australian Competition and Consumer Commission [ACCC] investigation.

TICKET WARS

• Telstra's BangTango endures rocky first six months
• Venue managers AEG Ogden allegedly under ACCC investigation
• BangTango say AEG Ogden stifling their sponsorship-for-tickets model
• Ticketing company looking for new sponsorship partnerships in 2014

“Our arrival into the market has created a vibrancy that consumers are responding to,” BangTango founder and Managing Director Daniel Popic said today, as a BangTango representative confirmed to theMusic.com.au that venue management giant AEG Ogden was the subject of an ACCC case.

Initially part of Telstra's 'Thanks' program which aims to offer value to its user base, BangTango was launched in April to compete in the premium ticket space. Their business model looks to leverage Telstra's sponsorship of an event for exclusive and first-chance tickets and as a foundation partner theMusic.com.au understands that Telstra had a six-month exclusivity deal with BangTango.

The road has not been smooth, however, with BangTango's executives finding major resistance from venue management goliath AEG Ogden – who operate six Australian arenas, including Allphones Arena and Perth Arena – in particular. With strong ties to Ticketek, AEG Ogden's policy of capping the amount of tickets allowed for re-selling arrangements at 15 percent clashes with BangTango's business model spectacularly.

In August BangTango Director Jamie Olsen said, “[AEG Ogden] will kill the corporate sponsorship market for the music industry in Australia. The issues we face are serious enough that I have a copy of the Competition And Consumer Commission Act sitting on my desk and I have to frequently refer to it to see if we are being subject to misuse of market power.”

Today a representative for BangTango confirmed to theMusic that the ACCC were investigating the actions of AEG Ogden, but denied starting the proceedings.

They confirmed that they will be named in the investigation as a result of their interaction with AEG Ogden.

Following Olsen's quotes an AEG Ogden spokesperson told theMusic, at the time, “We deny this matter has anything to do with market power and we specifically deny any such accusation.”

They are yet to comment to theMusic today on the ACCC case specifically.

Last week Fairfax reported that BangTango had made a complaint against AEG Ogden following the Pitbull and Ke$sha tour cancellation, when AEG Ogden are believed to have turned down Telstra's sponsorship offer for the tour, to be promoted by Paul Dainty. Although no official reason was given for the cancellation, the extra sponsorship support may have given the tour a better chance of taking place in the final weeks before it was due to start.

The ACCC were unable to comment on the investigation to theMusic but it is understood that they have also spoken to resellers Showbiz and Preferred Seating (Pinpoint).

Dainty is also promoting the Bon Jovi tour, which served as the infamous major event launch for BangTango earlier this year. Intended to be their arrival to stadium tours, the ticketing platform's website crashed and prompted a mass social media backlash.

Today Dainty – whose has opted for Showbiz to handle the Eminem tour ticket packages today – said that when the matter's “all said and done” Telstra's sponsorship of the Bon Jovi tour has been a “resounding success”.

He said that Telstra's support offered “key drivers” for the tour's Perth date and the addition of a second Melbourne show. West Australian shows are a notoriously expensive gamble for promoters touring major events.

“For a new business and loyalty program… to sell out of their allocation for a stadium tour at only their third sponsorship event is an extraordinary achievement,” Dainty added.

BangTango have today also indicated a desire to work with further “sponsorship partners and brands” beyond Telstra in 2014, “all with the key objective of supporting the local live music and touring industry.” At this stage their website log-in is still only available to Telstra customers.

A ticket presale exclusive to Telstra customers for The Presets' Rottnest Island show will begin through BangTango Wednesday 23 October.

Outside of the ticketing platform, the Telstra Road To Discovery band competition will provide the Bon Jovi tour with an opener later this year.