The company, which calls itself the first “socially responsible” live events ticketing platform, was founded by CEO Josh Katz alongside partners The Chainsmokers’ Alex Pall and Drew Taggart, and Adam Alpert, who is CEO at Disruptor Records and also The Chainsmokers’ manager.
Ticket scalping has long been a menace for both ripped-off fans and artists, who don’t share in profits from the marked-up tickets anyway. But YellowHeart doesn’t try to get rid of scalping completely. Instead, artists on the platform govern how their tickets are sold and resold, with options like setting a price ceiling for resold tickets and choosing who profits from the resale.
All this runs on a public blockchain, which Katz says is key to the platform’s success.
“The plague of the scalping industry is something I’ve talked to artists and friends about for years, and with the unprecedented growth of this underground system, we knew it was time to find a real solution,” he explains. “While technology and secondary ticketing sites are to blame for the growth of scalpers, we believe that technology is also our solution. Blockchain offers us the unique ability to track the entire ticketing lifecycle, which means the tickets end up in the hands of the fans, and no one else.”
YellowHeart, which will launch in 2020, is just the latest startup to target the secondary market. It joins the likes of London-based mobile ticketing company Dice, which recently partnered with Primavera Sound, and San Francisco-based online ticket exchange Lyte, which has worked with Coachella.
“With The Chainsmokers, we’ve been outspoken about the issue of scalpers for years, and are excited to partner with YellowHeart to provide a smart and effective solution that gives control back to artists and fans,” Alpert adds. “As we continue to build this platform, we are focused on the issues that matter to us and our peers across genres.”