Damaizu on the Brink of Collapse? Record Complaints Amidst Hundred Million Dollar Revenue Surge

DAMAI.cn faces widespread criticism despite significant revenue growth, with a high volume of complaints. Issues include a flawed ticketing system, opaque refund policies, and alleged “fake shipments.” Workarounds like “breaking through the shield” lead to phantom attendees, disrupting events. Repeated fines highlight management problems, and the platform’s simplistic approach to ticketing harms consumer trust and hinders its market development.

In a recent incident that once again put DAMAI.cn under the spotlight, an apology statement regarding a ticketing glitch for a Lu Han concert in Xi’an ignited public outcry. The statement cited an internal error in configuring priority ticket sales, which prevented the general public from accessing tickets at the scheduled time.

This latest mishap adds to a pattern of fan dissatisfaction. For years, concertgoers vocalizing their frustration with DAMAI.cn has become a familiar scene, often heard during the customary acknowledgments of ticketing platforms, with chants of “shut down” frequently directed at the company.

Industry insiders point to a dual problem: DAMAI.cn’s notoriously difficult ticketing process and equally challenging refund procedures. Compounding these issues are high-profile incidents, such as a fan being allegedly denied tickets for a Jay Chou concert on behalf of a deceased sister, and reports of exorbitant markups on Sun Yanzi concert tickets, which have significantly eroded consumer trust.

This report delves into the persistent challenges facing DAMAI.cn:

According to its latest financial report, DAMAI.cn’s box office revenue from major concerts surged by 236% in 2024, reaching approximately 2.06 billion RMB, averaging over 170 million RMB monthly. Yet, this financial success stands in stark contrast to a persistently high volume of customer complaints, with a resolution rate hovering at a mere 33%. Issues such as opaque refund policies and so-called “dragon-beard clauses” preventing ticket reimbursement dominate these grievances;

On social media platforms like Xiaohongshu, a workaround for DAMAI.cn’s ticketing system, known as “breaking through the shield,” has emerged. This involves purchasing low-cost or free tickets for other venue-based events to ostensibly improve chances of acquiring sought-after concert tickets. While DAMAI.cn has denied the efficacy of such methods, widespread adoption has led to an influx of “phantom attendees” at various exhibitions, disrupting their operations;

Experts suggest that the root of these persistent issues lies in DAMAI.cn’s fundamental positioning. The platform continues to operate as a mere ticketing portal, leading to a steady decline in its reputation. This trajectory places it increasingly at odds with its stated goal, as articulated by Li Jie, President of DAMAI Entertainment, of providing a “fast, comprehensive, accurate, and accessible” consumer experience.

DAMAI.cn Faces Scrutiny for Allegations of “Fake Shipments”

The recent Lu Han concert fiasco has starkly highlighted the imbalance between DAMAI.cn as a platform and its user base.

The incident unfolded as many users attempted to secure tickets, discovering that while priority sales were slated for 6:07 PM and general sales for 7:07 PM, the general sales window unexpectedly remained locked to priority access. Clicking to purchase for general admission resulted in a “no priority access” message, effectively blocking regular users.

Adding to the frustration, some users who had not intended to use their priority access for the Xi’an stop were involuntarily disqualified due to the system bug, losing their single-use privilege and jeopardizing their chances for subsequent concerts. Despite DAMAI.cn’s late-night apology and proposed resolutions for affected orders, thousands of users flooded the comments section with complaints. Many questioned why those who secured tickets without priority should have their orders canceled, and who would bear the costs of consequential losses like travel and accommodation.

DAMAI.cn's Revenue Boom Amidst a Flood of Complaints

While compensation was offered, a significant number of users expressed dissatisfaction, labeling the situation as a “fake shipment and breach of contract,” and demanding triple damages as stipulated by consumer protection laws.

One user recounted successfully completing a payment through official channels, receiving confirmation of their order and a text message notification. Subsequently, DAMAI.cn unilaterally canceled the confirmed order citing a “staff configuration error,” offering only a refund and requiring re-entry into the lottery. The user argued this constituted a breach of contract, asserting the offered compensation was inadequate and the platform’s unilateral cancellation lacked legal basis.

Similar grievances are prevalent. Numerous users on the Black Cat Complaints platform reported booking flights and hotels only to have their tickets forcibly canceled, demanding compensation for alteration fees. They believe the platform should offer more substantial restitution.

When questioned about further compensation, DAMAI.cn officials stated that all updates would be according to official announcements. As of this report, the official DAMAI Weibo account has not provided further clarification.

Annual Revenue of 2 Billion RMB, Yet Drowned in Complaints

A report jointly released by the China Performance Industry Association and Lighthouse Pro revealed that in 2024, the total number of commercial performances nationwide (excluding those in entertainment venues) reached 488,400, an increase of 10.85% year-on-year. Box office revenue climbed to approximately 57.95 billion RMB, a 15.37% rise.

Major concerts, in particular, saw box office receipts exceed 26 billion RMB, marking a substantial 78.1% year-over-year growth and emerging as the most rapidly expanding segment of the performance market. Leveraging this booming market and its industry standing, DAMAI.cn’s revenue from this segment reached roughly 2.06 billion RMB, a significant leap from the 613 million RMB reported in the previous year, with segment profits soaring by 339% to 1.23 billion RMB.

This translates to an average monthly revenue of 171 million RMB for DAMAI.cn in 2024. Such growth and revenue scale place it at the forefront of the ticketing industry.

However, this financial success is sharply contrasted by a growing tide of customer complaints against DAMAI.cn in recent years. A review of the Black Cat Complaints platform shows DAMAI.cn has accumulated over 70,000 complaints, with a resolution rate of just 33% and a user satisfaction score of a mere two stars. The primary drivers of these complaints stem from unclear refund and exchange policies, and exclusionary terms that prevent ticket reimbursements.

Consumers frequently report facing considerable hurdles when attempting to refund or exchange tickets purchased through DAMAI.cn. The platform’s policies are often convoluted, featuring unreasonable stipulations, such as outright refusal of legitimate refund requests based on the “timely and scarce nature of performance tickets.”

Legal professionals argue that while the principle of “no refunds or exchanges after purchase” for concert tickets has some validity, DAMAI.cn’s sole offering of “no refunds or exchanges” as a ticketing service option constitutes an unfair contract term.

Under Article 26 of the Consumer Rights Protection Law, businesses are prohibited from using standard terms or other means to formulate unfair or unreasonable provisions that exclude or restrict consumer rights, reduce or exempt their own responsibilities, or increase consumer liabilities.

Workarounds Lead to Widespread “Fake Attendance”

Beyond direct customer service complaints, issues arising from the difficulty of securing tickets on DAMAI.cn have become increasingly severe.

Over the past two years, a ticketing “hack” known as “breaking through the shield” has gained traction on social media platforms. This method involves purchasing low-cost or free tickets for venue-based events to purportedly increase the success rate of acquiring coveted concert tickets. Many users share anecdotal evidence suggesting a bolstered chance of securing concert tickets after buying admission to exhibitions or smaller performances within venues.

DAMAI.cn's Revenue Boom Amidst a Flood of Complaints

DAMAI.cn has officially denied these claims, stating, “DAMAI does not have shield accounts; do not believe unfounded rumors.” However, the widespread user testimonials challenge this assertion.

Motivated to secure their desired concert tickets, a multitude of users have experimented with these “shield-breaking” methods, inadvertently impacting legitimate exhibition projects. Many venues have reported an increase in “phantom attendees”—individuals who purchase tickets for smaller events solely to fulfill the “shield-breaking” requirement, often failing to show up on the actual event day. This practice has also led to capacity restrictions for genuine attendees.

DAMAI.cn's Revenue Boom Amidst a Flood of Complaints

This phenomenon not only complicates venue management but also disrupts cultural and artistic exhibitions. Organizers of smaller art shows have voiced concerns about operational chaos and compromised attendee experiences due to the surge in “fake attendees.”

Furthermore, this practice undermines the fairness of DAMAI.cn’s ticketing system. Consumers who rely on legitimate channels face even greater difficulty in obtaining tickets, exacerbating existing dissatisfaction with the platform.

Repeated Fines and a Diverging Path for DAMAI

In recent years, DAMAI.cn has been embroiled in several controversies, including the “pillar ticket” incident and the case of a fan denied tickets for a Jay Chou concert, leading to a continuous erosion of its public image and multiple regulatory penalties.

In January of this year, Beijing DAMAI Culture Media Development Co., Ltd. was fined over 659,000 RMB and had over 73,000 RMB in illegal gains confiscated by the Qingyuan City Qingcheng District Culture, Radio, Television, Tourism, and Sports Bureau for failing to fulfill its obligations in commercial performance activities. This follows a history of administrative penalties.

For instance, in June 2023, the company was fined 5,000 RMB and had 4,776.6 RMB in illegal gains confiscated by the Zhongshan City Culture, Radio, Television, Tourism, and Sports Bureau of Guangdong Province for illegally selling performance tickets, contravening relevant regulations. In February 2024, it faced a 30,000 RMB fine from the Beijing Municipal Bureau of Culture and Tourism for the same violation.

These repeated fines underscore underlying management issues within DAMAI.cn.

Public records and organizational restructuring within Ali Entertainment indicate that since its acquisition by Alibaba in 2017, DAMAI.cn has seen several changes in its CEO position. Li Jie, currently the President of DAMAI Entertainment, stated at a press conference earlier this year during the renaming of Alibaba Pictures to DAMAI Entertainment, “With the inclusion of films, performing arts tourism, sports events, and attraction tickets, the ‘buy tickets on DAMAI’ mindset will continuously expand, offering users a ‘fast, comprehensive, accurate, and accessible’ consumer experience.” However, current realities suggest a significant gap remains in achieving this envisioned goal.

Industry analyst Zhang Shule suggests that while unforeseen events are inevitable for a leading platform, DAMAI.cn’s approach of employing “simple and crude methods” in response to such incidents, thereby provoking widespread consumer doubt, is unacceptable. Despite its dominant market position, the true measure of a mature enterprise lies in its preparedness for various scenarios and its consideration for consumer rights.

He bluntly states that the myriad of problems plaguing DAMAI.cn, as the industry leader in ticketing, are fundamentally a matter of positioning. The platform operates as a mere ticketing conduit, engaged in mechanical ticket sales as a lightweight entity, rather than acting as an efficient matchmaking institution that leverages ticketing as an entry point to further standardize and provide value-added services within the performance market.

This “simplistic positioning” has resulted in blunt and ineffective handling of individual cases, unforeseen events, and scalper issues, generating considerable consumer controversy and indirectly hindering its exploration of the performance industry’s upstream and downstream value chains due to reputational damage.

DAMAI.cn's Revenue Boom Amidst a Flood of Complaints

Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/3714.html

Like (0)
Previous 3 hours ago
Next 1 hour ago

Related News