Ticket prices exploded in 2023 - and your favourite artists are just as much to blame as Ticketmaster
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In 2023, the thrill of live music has become an exorbitant privilege. Concert ticket prices now rival a month's rent or even a mortgage payment. Despite these staggering costs, passionate music fans remain undeterred. A post-pandemic fervor to experience live music propels them to secure those coveted seats, no matter the price.
But how did a musical outing transform into such a significant financial decision?
Initially, ticket prices might seem reasonable. However, when resellers take charge, these figures can easily escalate into the thousands. The Los Angeles Times identifies "five major players" influencing this surge: artists, promoters, concert venues, ticketing companies, and resellers. Promoters, despite officially setting ticket prices, face potential losses if sales don't meet expectations. The irony is that while smaller artists are often beholden to venues' dictates, megastars typically have significant influence over ticket pricing. These megastars, being aware of the pricing tactics employed by platforms like Ticketmaster, actively participate in and benefit from these strategies, making them complicit in the price inflation.
The complex financial dance of the concert world sees venues profiting from promoters, who in turn generate their revenue from ticket sales. But, the buck doesn't stop at the ticket's face value. A barrage of fees—service, processing, delivery, and facility charges—often accompany the ticket price. Recent data uncovers an alarming trend: an average addition of 32% due to fees, making even moderately-priced tickets feel exorbitant.
Ticketmaster's virtual monopoly in high-demand ticket sales, especially in association with exclusive venue deals under Live Nation Entertainment, exacerbates the problem. The chaos surrounding the sale of tickets for Taylor Swift's Eras Tour is a testament to these complications. Fans grappled with system glitches and unforeseen obstacles, leading to a lawsuit against Ticketmaster's parent company, Live Nation Entertainment, and a subsequent antitrust investigation by the U.S. Justice Department.
Promising transparency, Ticketmaster, following President Joe Biden's stance against hidden fees, pledged to display all fees upfront. By September, their partner Live Nation will offer a consolidated price for all its events.
Yet, the ticket resale platforms like StubHub and SeatGeek remain a significant hurdle. Although serving as secondary markets for ticket resales, they also facilitate price inflation. Promoters occasionally engage with these platforms, profiting from the escalated resale prices without risking their reputation. Resale prices often exceed the ticket's original value, governed by seller-set prices, which might be influenced by the platform's suggested amounts.
Leading artists such as Taylor Swift, Beyoncé, Bruce Springsteen, and Adele naturally command the highest ticket prices. Data reveals a doubling in average concert ticket prices over the last five years. Swift's Eras tour, with its record-breaking earnings, typifies this trend—a rapid price hike vastly outstripping general inflation.
The solution may lie in multi-pronged strategies
Transparency is critical. A clear account of every dollar spent could foster trust. Regulating the resale market, introducing volume-based pricing, or exploring alternative revenue streams could alleviate ticket price pressures.
Moreover, music enthusiasts should consider venturing into smaller venues. Supporting emerging talents in these intimate settings can offer both affordability and a distinct, genuine musical experience. While mega concerts undoubtedly hold allure, music's soul might resonate more profoundly in smaller gatherings. As ticket dynamics continue to evolve, it beckons fans to explore diverse musical experiences beyond just the megastars.