Biz Buzz: Cold truth
Filipino fans of British rock band Coldplay are expected to flock to the SM Mall of Asia’s open grounds for their widely anticipated concert tomorrow—an event that also upended the economics of concert ticket pricing.
Biz Buzz has already taken note of many would-be scalpers doing a fire sale online of Coldplay tickets they hoarded early on.
Like any limited resource, concert tickets are ultimately subject to supply and demand rules. Greater demand versus limited supply leads to higher profits, in this case, exorbitantly priced tickets.
That was temporarily true after the Manila leg of Coldplay’s Head Full of Dreams Tour was sold out within days, especially after buyers during exclusive offers to Globe and Citibank subscribers were able to purchase tickets first. (It was the same in almost all tour locations, Singapore even had a second concert day).
Big names like Coldplay command massive rates, with retail prices ranging from being very far from the show at P1,800 to dancing with the stars VIP rates of P22,500 a ticket.
Days after being sold out, VIP tickets were being sold at a markup of 50 percent to more than 300 percent.
Fast-forward months later to 2017 with the big surprise: Another 6,000 tickets across all segments were released. Prices collapsed.
Biz Buzz checked with online retailer Stubhub for the going rates for VIP tickets: P17,574. That’s exactly P74 pricier than “platinum” tickets, the next lower rung in the concert’s pecking order. (It actually dipped as low as P15,000 for the VIP section).
If you can’t identify that sound, it’s scalpers rushing to the exit door. Indeed, for some who bet wrong, “every teardrop is a waterfall.” —MIGUEL R. CAMUS
Shady deals
The scions of a wealthy businessman are seething in anger over their sudden and very embarrassing notoriety. The family, which has been quietly enjoying its billions for decades, has been exposed for exploiting government connections to forge shady, lopsided deals that allowed them to make a fortune out of state-owned assets.
The secret deals were exposed following a public spat involving one of their siblings.
But what so incensed the family is the scandal brought upon them by one of their siblings’ paramour. Coffee shops are abuzz that the paramour not only started the whole scandal, but is also directing the public relations efforts that lead to more washing of dirty linen in public, which the family abhors.
Worse, it’s making the entire family look weak and helpless as they remain eerily quiet in the face of the paramour’s public statements.
Close friends of the clan swear that senior family members are totally against the illicit relationship, saying that such will come to no good. They also don’t try to hide their disdain for their sibling’s partner who is said to have a very “colorful” past that totally pales in comparison to their original and definitely more refined former in-law.
Just what this “colorful past” is, is probably something truly interesting but Biz Buzz sources swear many already know. —DAXIM L. LUCAS
‘Indiepreneur’ reality TV
In the last quarter of this year, “Kapatid” network TV5 will air a new reality TV show that seeks to catalyze an entrepreneurial movement in the Philippines. This is to support start-up artists, musicians, craftsmen, inventors and artisans who are building businesses related to the creative economy.
The reality TV show called “I’m In TV” is an American Idol-style national search for small independent/indigenous entrepreneurs (hence, “indiepreneurs”) in need of mentorship, access to financing and avenue to promote their products. It will incorporate business pitching similar to another popular American TV show “Shark Tank” but with some challenges ala “The Apprentice” alongside other twists and turns. It’s an entirely new show designed for the local market, offering a bootcamp for budding entrepreneurs.
The prime mover of the show is technopreneur Winston Damarillo, founder/executive chair of Amihan Global Strategies and head of PLDT Capital, one who knows the ins and outs of Silicon Valley. He set up Creative Capital, a new fund that’s raising $1 million to support the local indiepreneur movement focusing on nontech start-ups. The reality TV show, for him, is just the opening salvo.
TV5 will do a nationwide search to enlist 100 indiepreneurs who will vie for 12 slots. During the finale, there will be three survivors plus one wild card comeback (to be determined by audience voting) competing for the grand prize.
The winner will get the kind of money needed to build his/her business, TV5 chief Chot Reyes told Biz Buzz during the kick-off party for this new reality show. Apart from Damarillo, Reyes said business tycoon Manuel V. Pangilinan and key partners like BDO have also committed to support the program. “We wanted to do things that you won’t find in other networks,” Reyes said. “Also, we want something that will make a difference. I’m an entrepreneur myself so I know the value of entrepreneurs.”
A stellar cast of mentors will be featured in the program. Apart from Damarillo and MVP, Sabin Aboitiz of the Aboitiz group is expected to take part alongside some other bigwigs in the local business circle.
The upcoming TV show will also come with an app that will allow the audience to directly connect with the participating indiepreneurs, they can shop directly for their products or maybe even invest in their business. —DORIS DUMLAO-ABADILLA
Probing ‘Tamad Tips’
Following reports about an online portal selling stock tips (in different packages worth as much as P180,000 a year), the Philippine Stock Exchange issued a public advisory on Friday warning against such platform called “Tamad Tips.”
“Investment advice given to clients or the public is covered by certain rules and regulations. In general, an investment advice should provide a sound basis for evaluating or recommending a particular security,” said PSE chief operating officer Roel Refran. “Recommendations should also not contain promises of specific results, unfounded opinions or untrue statements or information that is false and misleading.”
Refran added that the PSE and Capital Markets Integrity Corp. were now looking into this matter and would evaluate if there were any subsequent actions they might need to undertake. Early on, the Securities and Exchange Commission has initiated its own probe on this.
The investing public was urged to “always carefully evaluate stock recommendations and exercise prudence in acting on the advice provided.”
For its part, the Tamad Tips portal said that since the PSE memorandum had no explicit instruction to cease or terminate its operations, it would “continue to serve its existing subscribers and future subscribers to help improve liquidity in the market through increased participation.” The portal insisted that it was abiding by the PSE’s regulation. —DORIS DUMLAO-ABADILLA
