Ticket fees have long been a source of frustration for concertgoers. When you go to purchase tickets on Ticketmaster, the advertised ticket price is usually far lower than the final amount you end up paying after all the fees are added on. This has led many people to blame the artists and assume the fees go straight to their pockets. However, the reality is more complicated than that. While artists do have some control over setting their initial ticket prices, they are not the ones directly setting all the additional fees and charges that get tacked on.
What are Ticketmaster fees?
Ticketmaster fees refer to the various additional charges and surcharges applied to ticket orders on top of the base ticket price. These can include:
– Service fees – Charges for using the Ticketmaster platform to process and deliver tickets. This usually makes up the bulk of the extra fees added to an order.
– Facility fees – Fees that go to the concert venue to cover their operating costs.
– Order processing fees – Fees to cover the costs of processing the ticket order.
– Delivery fees – Charges for how the tickets are delivered, such as by mail or mobile transfer.
– Taxes and government charges – Local taxes and fees mandated by law.
The combination of these charges typically adds 15-30% to the overall cost of a concert ticket purchased through Ticketmaster. The exact fees vary based on factors like ticket price, venue, and delivery method.
Do artists control Ticketmaster fees?
Artists generally do not directly control Ticketmaster’s fees. The service fees, order processing fees, and delivery fees all ultimately go to Ticketmaster itself to cover its operating expenses and profits. However, artists do have some indirect influence over parts of the Ticketmaster fee structure:
– Initial ticket price – The artist and their management team work with the concert promoter to set the initial ticket price for their shows. This base price forms the foundation for how high Ticketmaster’s fees will go. A higher initial ticket price allows Ticketmaster to charge higher fees on top.
– Facility fees – While these fees go to the venue, artists could theoretically negotiate lower venue fees as part of their concert contracts. This could potentially lower the facility fees passed onto fans.
– Demand-based pricing – For very high-demand shows, Ticketmaster utilizes ‘dynamic pricing’ to raise prices. The artist would need to approve raising the initial ticket prices in order for these demand-based increases to be applied.
So essentially the artist agrees to the starting ticket price, which enables Ticketmaster to stack on higher fees. But they are not directly setting the service, processing, or delivery fees themselves. Those are Ticketmaster’s domain.
Do artists get a cut of the fees?
Artists generally do not receive any direct cut of the various fees and surcharges added onto ticket orders. Here is a breakdown of where the money from Ticketmaster fees goes:
– Service fees – Go entirely to Ticketmaster. This is their main revenue source.
– Facility fees – Go to the concert venue.
– Order processing fees – Go to Ticketmaster.
– Delivery fees – Go to Ticketmaster to cover shipping costs.
– Taxes and fees – Go to the government.
The artist does not directly receive money from any of these additional fees. Their income from the event comes solely from their cut of the base ticket price and a percentage of merchandise sales.
Some have speculated that artists could get bigger overall payouts from tours with Ticketmaster thanks to the fees, but these higher payouts would stem from selling more expensive initial tickets rather than taking a cut of fees.
Could artists speak out against the fees?
In theory, artists could speak out against Ticketmaster’s fees if they wanted to. Especially major artists with significant clout and star power. However, there are a few reasons why we rarely see this happen:
– Contractual restrictions – Industry insiders have noted that Ticketmaster’s contracts may prohibit artists from openly criticizing their fees. Speaking out could be considered a breach of contract.
– Business relationships – Like it or not, Ticketmaster still dominates as a major ticketing platform. Artists depend on them to efficiently sell tickets and don’t want to rock the boat too much.
– Beneficial fees – While fans may hate the fees, the additional revenue may allow Ticketmaster to offer artists higher guaranteed payouts for shows and tours. Even if the artist doesn’t directly get the fees, they benefit indirectly.
– Lack of competition – Fans sometimes argue artists should ditch Ticketmaster. But there are few major ticketing alternatives with the same reach and scale for distributing tickets. Most artists feel tied to them.
So in summary, contractual ties, business relationships, and financial incentives prevent artists from taking a strong stand against Ticketmaster fees, even if they might personally want to. Lack of competition also plays a role.
Are Ticketmaster fees unavoidable?
Given Ticketmaster’s dominance in the industry, most fans find Ticketmaster fees are unavoidable if you want to attend major concerts and shows. However, here are a few ways you may be able to avoid the highest fees:
– Buy directly at the venue – Some concert venues will allow you to purchase tickets in person without additional service fees. However, selection is more limited.
– Fan-to-fan exchanges – You can sometimes buy tickets secondhand from other fans, such as on Craigslist. This bypasses fees but carries additional risks.
– Wait for last minute – Last minute unsold tickets will sometimes be offered with lower fees. But you risk the show selling out entirely.
– Smaller shows – Smaller club shows and independent concerts often use other ticketing companies with lower fees or sell directly. But fees still exist.
– Season ticket packages – If you plan to attend multiple shows, season ticket packages may offer bundled discounts and lower per-ticket fees.
– Shop presales – Special artist presales sometimes have lower initial fees before public on-sales.
While these tactics can help, for very popular shows and prime seats the Ticketmaster fees remain unavoidable if you want guaranteed tickets. Unfortunately the high fees are just part of the concert experience under the current system.
Could regulations curtail the fees?
There is always the possibility that regulators could step in and take action around Ticketmaster’s fees and policies. Some ideas that have been raised include:
– Capping fees – Legislatively limiting how high Ticketmaster’s fees can go relative to the ticket’s face value. This would directly cut into Ticketmaster’s revenue.
– Greater fee transparency – Requiring Ticketmaster to clearly break down for customers where all the different charges are going to make it more clear the artist is not receiving them.
– Antitrust action – Prosecuting Ticketmaster if their practices are deemed anti-competitive monopolistic behavior under antitrust law. This could force changes to their pricing model.
– Public utility regulation – Designating ticket services as a public utility, which would place ticket sales under greater government oversight like a utility.
However, Ticketmaster also has an army of lobbyists who work hard to prevent unfavorable regulations. And they will argue fees allow them to provide services that benefit artists, venues, and fans. So major regulatory action remains unlikely in the near future unless public pressure mounts significantly.
Conclusion
In summary, while artists do not directly set Ticketmaster’s fees and do not receive a cut, they have some indirect influence through their starting ticket prices. However, contractual ties and business relationships between Ticketmaster and the music industry likely prevent most artists from speaking out about the controversial fees. Fans have limited options to avoid the hefty fees if they want to secure tickets to top concerts. For now, the inconvenient fees remain an entrenched part of the modern ticketing experience. But increased transparency and a shift toward direct artist-to-fan ticketing platforms could potentially help improve the situation over time.
Fee Type | Amount | Recipient |
---|---|---|
Service fee | 15-25% of ticket price | Ticketmaster |
Facility fee | $5-$20 per ticket | Venue |
Order processing fee | $5-$15 per order | Ticketmaster |
Delivery fee | $2-$15 per ticket | Ticketmaster |
Taxes and government charges | Varies | Government |