Ticketmaster is the largest ticket sales and distribution company in the United States. They sell tickets for concerts, sports events, theater shows, and more. Ticketmaster has exclusive contracts with many major venues and artists to sell tickets for their events. This gives them a lot of control over ticket prices in the secondary market.
Can Ticketmaster Legally Change Prices?
Yes, in most cases Ticketmaster can legally change ticket prices whenever they want. Here’s why:
- They have dynamic pricing models that automatically adjust prices based on supply and demand.
- Contracts with venues and artists often give Ticketmaster authority over pricing.
- As the market leader, they have leverage to charge service fees which affect overall ticket prices.
- There are no federal laws in the U.S. restricting how much ticket resellers can charge.
Many states have laws against ticket scalping that make it illegal to resell tickets above face value. But these laws generally don’t apply to Ticketmaster for a few reasons:
- Ticketmaster is considered a primary ticket seller, not a reseller.
- The face value prices are set by Ticketmaster in the first place.
- Ticketmaster has direct contracts with venues, artists, and promoters to sell the tickets.
So in most situations, Ticketmaster has free reign to adjust pricing at their own discretion. The one exception is when ticket prices are contractually obligated, such as season ticket packages or group discounts.
When Does Ticketmaster Change Prices?
Ticketmaster utilizes dynamic pricing to adjust ticket prices fluidly based on supply, demand, and other factors. Prices can change frequently as an event approaches and tickets sell. Here are some of the key times Ticketmaster is most likely to change prices:
- When tickets first go on sale – Prices usually start high and then drop over time if demand is low.
- As the event date approaches – Prices typically increase the closer you get to the event as inventory shrinks.
- For highly in-demand events – Hot shows will see prices increase quickly before selling out.
- Around key sale dates – Prices may rise around holidays, paydays, or other high-traffic times.
- In response to competitor prices – Ticketmaster may adjust to be in line with other sellers.
So prices are constantly recalibrated based on the latest market conditions. There is no predictable pattern, so prices can go up or down at any time.
Why Does Ticketmaster Change Prices?
There are several key reasons why Ticketmaster frequently adjusts ticket prices:
To Maximize Profits
First and foremost, dynamic pricing allows Ticketmaster to maximize their profits on ticket sales. They lower prices to boost sales when demand is weak. They raise prices when demand is high to capture more revenue.
To Discourage Resellers
Ticketmaster also wants to discourage ticket resales on secondary sites. Sometimes they purposefully keep prices low initially to crowd out resellers who need room to markup prices. But this can backfire by fueling resales.
To Reflect Market Demand
Adjusting prices based on market demand helps allocate tickets efficiently. High prices dissuade casual fans when supply is scarce. Low prices encourage sales when supply exceeds demand.
To Drive Impulse Purchases
Lower prices boosted at strategic times helps drive impulse ticket purchases. People rush to buy when prices suddenly seem like a bargain.
To Equalize Prices Across Events
Ticketmaster likes to standardize service fees across similar events. So sometimes ticket prices are adjusted to offset increases or decreases in fees.
Does Dynamic Pricing Benefit Consumers?
There are arguably some benefits, but also drawbacks, to consumers from Ticketmaster’s dynamic pricing model:
Potential Benefits
- Prices can go down as well as up, opening tickets to more fans.
- Consumers have access to tickets directly from the source.
- Dynamic pricing allocates tickets efficiently to those who want them most.
Potential Drawbacks
- Prices can change frequently, requiring consumers to monitor closely.
- Price drops reward those with time flexibility to wait for deals.
- Price hikes can squeeze out cost-conscious fans.
- Fees and surcharges raise prices above face value costs.
Overall, savvy flexible consumers can benefit by strategically timing purchases around price drops. But it disadvantages buyers who need reliable upfront pricing.
Does Dynamic Pricing Apply to Secondary Sales?
Ticketmaster’s pricing model directly impacts the secondary ticket market. Third-party resellers benchmark initial pricing partly based on Ticketmaster’s face value prices. Higher initial pricing gives resellers more headroom to markup secondary prices.
But Ticketmaster also competes heavily in the secondary market. They own several major resale sites like StubHub and TicketsNow. On these secondary platforms, Ticketmaster uses dynamic pricing just as aggressively:
- Prices update rapidly in real-time based on market conditions.
- Big data analytics track price sensitivity and competitor pricing.
- Algorithms drive automated repricing of ticket listings.
So Ticketmaster is constantly adjusting both primary and secondary ticket prices across their various sales channels. The pricing activity aims to capture maximum revenue across their entire ticket ecosystem.
Ways Consumers Can Get Ticketmaster Deals
Given how often Ticketmaster tweaks prices, there are ways savvy buyers can try scoring deals:
1. Buy early when prices are lower
Buying tickets as soon as sales open gives exposure to the initial pricing. First-day prices are usually the lowest offered.
2. Sign up for presales
Get early exclusive access to tickets by joining fan clubs, credit card presales, promo emails lists, etc.
3. Check prices after initial sell-out
Watch for price drops after the initial on-sale inventory sells out to capture released holds.
4. Buy just before showtime
Check last-minute pricing a few days or hours before an event as sellers drop prices.
5. Avoid peak days and times
Shop on weekdays and off-peak hours to bypass pricing spikes around busy periods.
6. Buy single tickets
Singles often go down in price before multi-ticket blocks do.
7. Consider obstructed view seats
Obstructed view seats will be much cheaper than other seat locations.
8. Join the venue club
Venue clubs unlock special offers like early entry to sales, discounts, and more.
Being flexible and strategic with timing can help find deals between price increases.
Is Automated Dynamic Pricing Unethical?
While legal, some criticize Ticketmaster’s fluid pricing model as unethical price gouging. Others argue it’s simply basic supply and demand pricing. There are a few factors fueling the ethical debate over Ticketmaster’s pricing:
- Lack of Transparency – Frequent undocumented price changes reduce pricing clarity for buyers.
- Price Gouging Appearance – Big data-driven price hikes feel like algorithmic gouging.
- Captive Market – Ticketmaster’s exclusivity limits venue/artist options for consumers.
- Fees Padding – Huge surcharges like “convenience fees” further inflate costs.
These points make Ticketmaster’s pricing feel arbitrary and exploitative to many customers. Others counter that buyers don’t have to purchase tickets if prices seem unreasonable. They also note Ticketmaster is just aggressively maximizing profits like any business.
Does Ticketmaster Face Any Pricing Regulations?
Currently, Ticketmaster faces fairly limited pricing regulation. Here are some of the main policies that apply:
State Ticket Scalping Laws
A minority of states regulate how much ticket resellers can markup ticket prices. But primary sellers like Ticketmaster are generally exempt.
Event Price Reporting
Under the BOTS Act, Ticketmaster must disclose the original ticket prices, not including fees, if asked by event organizers.
Deceptive Marketing Practices
The Federal Trade Commission (FTC) prohibits deceptive marketing around pricing, like exaggerated “discounts” that don’t represent actual sales prices history.
Face Value Caps
Some cities have ordinances capping fees at a percentage above face value. For example, restricting total costs to no more than 20% above face value prices.
Aside from limited areas like fee caps, Ticketmaster currently enjoys considerable freedom around pricing models and adjustments.
How Might Pricing Regulations Change?
To address criticisms of Ticketmaster’s pricing model, we could see new regulations introduced. Here are some possible policy changes:
- Caps on fee amounts – Strict limits on percentages or amounts of fees attached to sales.
- Face value lock periods – Requiring initial face value prices to be held for a set time before changes.
- Disclosures on pricing algorithms – Revealing details on what data drives dynamic price changes.
- Regulation as ticket resellers – Subjecting primary sellers to scalping laws and price caps.
- Primary seller competition requirements – Requiring venues/artists to offer tickets across multiple sellers.
However, new pricing regulations would likely face resistance from Ticketmaster. Too many restrictions could undermine the profitability of their current model. But political pressure from consumers could force some concessions.
Conclusion
In summary, Ticketmaster has broad flexibility to adjust ticket prices dynamically as they see fit. This allows them to maximize revenues through demand-based pricing. While legal, some see this as unethical price gouging of captive consumer markets. It provides benefits like cheaper tickets during low demand periods. But it can make buying tickets stressful for consumers through unpredictable fluctuations. For now, Ticketmaster faces minimal pricing regulation. But if critics build sufficient political will, we could see rules introduced to curtail some pricing practices.