Ticketmaster is one of the largest ticket sales and distribution companies in the world. There has been ongoing debate about whether Ticketmaster charges higher fees and Dynamic Pricing leading to more expensive tickets for customers.
Opening Summary
The short answer is – yes, tickets purchased on Ticketmaster are generally more expensive compared to tickets for the same events purchased directly from the venue or artist. However, there are some nuances to Ticketmaster’s pricing models that account for the higher costs.
Some key reasons Ticketmaster tickets tend to be pricier include:
- Service and processing fees – Ticketmaster adds on extra fees for using their platform which can add 10-25% to the base ticket price.
- Dynamic and surge pricing – Ticketmaster utilizes demand-based pricing models to increase prices for high demand events.
- Lack of competition – In many cases, Ticketmaster has exclusive ticketing deals with venues and artists limiting options for price comparison.
That said, Ticketmaster provides a convenient and secure way for fans to purchase tickets. The extra costs partly pay for the technology, security, and convenience of using their systems. Still, many feel these fees are excessive and border on price gouging for captive audiences.
Ticketmaster’s Fees and Charges
A major factor that leads to increased Ticketmaster ticket prices are the additional fees and charges they add on top of the initial ticket face value. These can include:
- Service fees – Typically 10-25% of ticket price covering operational costs
- Order processing fees – On a per ticket or per order basis e.g. $5 per ticket
- Facility charges – Costs passed on by the venue
- Convenience fees – For digital ticket delivery, mobile tickets etc.
- Taxes and government levies
These extra fees can quickly add up. For example, a $100 base ticket price could end up costing $140 after a $25 service fee and $10 order processing fee plus taxes. Ticketmaster claims the fees cover their operating costs and technology investments. But critics argue they represent a ‘monopoly tax’ due to lack of competitors in the space.
Breakdown of Ticketmaster Fees
| Fee Type | Amount |
|---|---|
| Ticket Price | $100 |
| Service Fee | $25 |
| Order Processing Fee | $10 |
| Facility Charge | $5 |
| Total Ticket Cost | $140 |
This breakdown shows how a $100 base ticket can end up costing $140 after various Ticketmaster fees. The fees add 40% above the initial ticket price in this case.
Dynamic and Surge Pricing
In addition to service fees, Ticketmaster also utilizes dynamic and surge pricing practices on high demand tickets. This involves using algorithms and machine learning to adjust prices continually based on projected demand.
As an event gains popularity or scarce tickets remain, Ticketmaster can raise prices accordingly. This allows them to charge higher prices that fans are willing to pay based on demand at any given time.
Some concern exists that this opaque pricing discriminates against fans unwilling or unable to pay the highest demand-driven prices. Again, lack of competition arguably empowers Ticketmaster to impose dynamic pricing freely. Verified Fan Presales are one way Ticketmaster tries to reward loyal customers with initial ticket access.
Example of Dynamic Pricing for Taylor Swift Concert Tickets
| Timing | Ticket Price |
|---|---|
| Pre-sale | $150 |
| 1 week before event | $250 |
| Day before event | $350 |
For high demand artists like Taylor Swift, Ticketmaster prices may start around $150 initially but dynamically increase to $350 closer to the event as tickets become more scarce.
Captive Audiences and Lack of Competition
Ticketmaster also maintains exclusive ticketing agreements with many large venues and promoters. This means they have a captive audience for hot events where fans have no other ticket purchasing options.
In a typical competitive market, alternatives arising should theoretically help keep prices in check. But Ticketmaster’s 30% market share of primary ticket sales demonstrates limited rivals. Their exclusive contracts deny consumer choice at many events.
While secondary resellers like Stubhub provide some competition, their ticket supplies rely on fan reselling. Ticketmaster’s exclusive deals with so many beloved artists and venues put them in a unique position to charge higher fees and dynamic prices.
Is the Higher Price Worth It for Convenience?
Ticketmaster justifies its higher costs by providing a convenient and trusted ticketing service. Key benefits customers receive include:
- Secure verified tickets with anti-fraud guarantees
- Convenient digital ticket management and seamless entry to events
- Refunds available for cancelled/postponed events
- Largest inventory of tickets from official platform
- Customer service resources for ticket issues
For fans unwilling to risk scam purchases or hassle with limited ticket supply elsewhere, Ticketmaster provides peace of mind. While secondary resellers offer similar convenience, ticket validity and security cannot be guaranteed.
Nonetheless, many customers feel Ticketmaster’s fees remain disproportionately high for the utility provided. There is an element of captive pricing power being exerted thanks to their place in the ticketing ecosystem.
U.S. Government Scrutiny of Ticketmaster
Ticketmaster’s dominant position and pricing practices have caught the eye of U.S. regulatory bodies as well. The Department of Justice previously investigated Live Nation’s 2010 merger with Ticketmaster over antitrust concerns. As part of the eventual approval, Ticketmaster was prohibited from threatening venues that partnered with competitors.
In 2019, the DOJ expressed fresh concerns over Ticketmaster and LiveNation’s industry power. Another government review remains ongoing related to possible anticompetitive conduct. This includes exclusive dealing contracts seen as stifling innovation. The findings could lead to antitrust enforcement action and renewed scrutiny over Ticketmaster’s fees.
Alternatives for More Affordable Tickets
While Ticketmaster remains dominant, consumers do have some options to find cheaper tickets on selected events, such as:
- Buy directly from the venue box office – avoids fees but less convenient
- Join fan clubs – artists often provide pre-sales and other benefits
- Check secondary resellers – risks around ticket validity
- Consider other primary sellers – Axs, Altitude Tickets, eBay
- Buy group tickets – discounts often offered for groups 10+
Being flexible on seat location and date can also help find better pricing. However, for the most in-demand events, Ticketmaster will likely remain the primary and most expensive ticket source.
Conclusion
In summary, Ticketmaster ticket prices are generally higher than alternate sources for a few key reasons. Service and processing fees tack on an extra 10-25% to ticket costs right off the bat. For high demand events, dynamic pricing further raises prices as availability drops. Their exclusive ticketing deals across numerous major venues also reduce price competition in the market.
While fans pay a premium, some find the benefits around security, convenience, and inventory selection worthwhile. Still, the lack of ticket price transparency and choice has fueled ongoing criticism and government antitrust concerns.
For bargain hunters, some limited alternatives exist like direct box office purchases and fan club presales. But overall, Ticketmaster remains the most dominant centralized ticketing marketplace. And with dominance comes the power to charge higher fees and embedded costs, which they appear to fully exert.
