The High Cost of Concert Tickets: Why Are They So Expensive?

TLDRConcert tickets have become increasingly expensive, with prices exceeding face value and high fees. Ticketmaster, the largest ticketing company, plays a major role in determining ticket fees. Only a small percentage of tickets are made available to the general public, with the rest held back for credit card offers, promoters, and fan clubs. Professional ticket brokers buy up tickets and sell them at a huge markup on the secondary market. Resale sites like SeatGeek and StubHub are dominated by professional brokers, who make a significant profit from ticket sales.

Key insights

💸Concert ticket prices have more than tripled since the mid-90s, outpacing inflation.

🎟️Ticketmaster, the largest player in the industry, sets and shares ticket fees with venues, promoters, and even artists.

🔒Exclusive contracts between Ticketmaster and venues prevent artists from using alternative ticketing companies.

🤖Professional ticket brokers use bots to quickly buy up tickets, which they later sell on the secondary market at a markup.

💰Resale sites like SeatGeek and StubHub are dominated by professional brokers, who profit from selling tickets.

Q&A

Why have concert ticket prices increased so much?

—Concert ticket prices have increased due to a combination of factors, including rising demand, fees set by ticketing companies, and the influence of the secondary market.

Who determines ticket fees?

—Ticket fees are determined in collaboration between ticketing companies like Ticketmaster and venues, promoters, and artists.

Why are only a small percentage of tickets available to the general public?

—A significant number of tickets are held back for credit card offers, promoters, and fan clubs, limiting the availability of tickets to the general public.

How do professional ticket brokers make money?

—Professional ticket brokers buy up tickets and sell them at a markup on the secondary market, profiting from the high demand and limited availability of tickets.

Are resale sites like SeatGeek and StubHub dominated by professional brokers?

—Yes, a government report found that professional brokers represent the majority of ticket sales on these platforms.

Timestamped Summary

00:04Live entertainment, including concerts, is highly anticipated after a year without it.

01:11Ticket prices for popular concerts have more than tripled since the mid-90s, exceeding inflation rates.

02:49Ticketmaster, the largest ticketing company, determines and shares ticket fees with venues, promoters, and even artists.

07:18Only a small percentage of tickets are initially released to the general public, with the rest held back for credit card offers, promoters, and fan clubs.

10:32Professional ticket brokers buy up tickets using bots and sell them on the secondary market at a significant markup.

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