Ticketmaster’s Official Platinum Seats program has been controversial since its introduction in 2013. Under this system, Ticketmaster algorithms identify high-demand tickets and price them much higher than face value. This frustrates many fans who accuse Ticketmaster of scalping its own tickets. However, Ticketmaster claims Official Platinum seats provide fair market value. This article will examine arguments on both sides to determine if Ticketmaster ever lowers platinum prices.
How Official Platinum Seating Works
First, it helps to understand how Official Platinum seating works. Ticketmaster applies algorithms to identify seats likely to be in high demand. This may include front row seats or seats near the stage at a concert. Ticketmaster then prices those seats far above face value, sometimes at 10 times the standard cost or more. The prices fluctuate based on market demand. As an event approaches, platinum tickets may drop in price if demand is low. But prices can also increase as the event sells out.
Ticketmaster’s Arguments
Ticketmaster argues Official Platinum seating benefits fans by making more tickets available at market value. The program adds up to 500,000 extra seats for high-demand events. These might be seats held for band members or industry insiders that get released to the public. Without platinum pricing, those seats might never reach consumers. Ticketmaster also says its algorithm prices tickets fairly based on demand. A front row seat to a hot concert is inherently worth more than a seat in the back. Official Platinum prices just reflect that.
Criticisms of Official Platinum Seats
However, many critics dispute Ticketmaster’s claims about Official Platinum seating:
- They argue Ticketmaster artificially inflates prices by deliberately holding back seats to manufacture scarcity. Platinum seats could be sold for face value instead.
- Critics say Ticketmaster double dips by collecting fees on both face value tickets and marked-up platinum seats.
- They accuse Ticketmaster of scalping its own tickets rather than preventing scalping by third parties.
- Some argue Ticketmaster does not adequately disclose which seats are subject to platinum pricing during the initial sale.
Overall, critics say Ticketmaster abuses its position as the primary ticket seller to squeeze more money out of fans. As evidence, they point to the strikingly high prices sometimes charged.
Does Ticketmaster Ever Lower Prices on Platinum Tickets?
This brings us to the key question – does Ticketmaster ever lower prices on Official Platinum seats when demand is low? The evidence suggests the answer is yes, but only modestly. Ticketmaster is reluctant to make major platinum price reductions.
Here are some examples of Ticketmaster lowering platinum ticket prices:
- In 2017, platinum tickets for U2’s Joshua Tree tour dropped from $1,228 down to $774 as the concert date approached. But they were still 7 times face value.
- For a 2018 Kenny Chesney concert, platinum seats dropped from $755 to $549 in the final weeks before the show. Again, still 5 times face value.
- Floor seats for a Justin Timberlake concert were cut from $503 to $375 just 6 days before the event. But the base price was only $175.
In all cases, while prices decreased, platinum tickets remained significantly marked up from face value.
Why Ticketmaster Rarely Makes Big Price Cuts
There are a few reasons why Ticketmaster generally does not drastically slash platinum prices, even when demand is weak:
- Ticketmaster wants to preserve the perceived value of front row seats and other privileged locations.
- Making huge price cuts risks angering customers who previously paid higher prices.
- Ticketmaster likely wants to avoid creating an expectation of future discounts.
- The company still makes sizable profits on platinum tickets even at reduced prices.
So while Ticketmaster does marginally drop prices for low-demand events, major reductions are quite rare. The company prefers to hold platinum prices higher.
Case Study: Bruce Springsteen on Broadway
Bruce Springsteen’s Broadway concert residency from 2017 to 2018 provides an insightful case study on Ticketmaster and platinum tickets. The hugely popular shows were a top draw for Ticketmaster platinum pricing. Let’s examine how those prices fluctuated:
Platinum Prices Initially Very High
When tickets first went on sale in August 2017, platinum seats were priced from $1,500 to $9,000. At the time, the highest face value ticket was only $850. Critics blasted these massive markups, arguing regular fans were being priced out.
Prices Lowered Multiple Times
However, as the show’s opening night approached, Ticketmaster incrementally reduced platinum prices several times:
- In September, high-end platinum tickets dropped from $9,000 to $3,600.
- Two weeks later, the highest platinum price fell again to $1,800.
- In the final days before opening night, platinum tickets could be found for $850-$1,500.
This seemed to indicate weakening demand with the initial frenzy dying down. But prices remained well above face value.
New Tickets Prompt Price Increases
In early 2018, Springsteen extended his Broadway run. When the newly released tickets went on sale, Ticketmaster again used high platinum prices:
- Top tickets were priced at $5,000.
- Over several months, Ticketmaster lowered prices to $1,800.
- But prices jumped back up to $2,500 later after Springsteen announced a Netflix special.
This shows how Ticketmaster responded to changing demand signals. More carrot than stick was used, with modest price decreases aimed at boosting sales.
Does Dynamic Pricing Benefit Consumers?
The Springsteen example demonstrates a core argument Ticketmaster makes to defend platinum pricing – that dynamic pricing benefits consumers. By continually adjusting prices based on demand, Ticketmaster claims it helps tickets end up in the hands of true fans. Scalpers are cut out of the equation. Critics maintain it is really about squeezing fans to maximize profits.
Let’s evaluate the positives and negatives dynamic pricing creates for consumers:
Potential Benefits of Dynamic Pricing
- Prices reflect real supply and demand rather than arbitrary face values.
- Fans can shop for deals as prices fluctuate.
- Dynamic pricing combats scalpers who hoard tickets.
- High demand concerts are accessible without needing to pay secondary market markup.
Potential Drawbacks of Dynamic Pricing
- Customers accustomed to set ticket prices may find dynamic pricing unfair.
- Lower income fans can get priced out of shows they want to attend.
- Constant price changes create uncertainty about the “right” time to buy.
- Dynamic pricing incentives can lead to artificial supply constraints.
There are good arguments on both sides. Dynamic pricing does offer some real benefits in theory. But Ticketmaster’s execution with platinum seats shows how it can also be abused without proper oversight.
Regulatory Issues Around Ticketmaster’s Practices
The controversy over Ticketmaster’s Official Platinum program has also caught the attention of regulators. A few noteworthy actions include:
FTC Warnings
In 2016, the Federal Trade Commission sent a warning letter to Ticketmaster questioning if platinum practices constituted deceptive advertising. Specific concerns included:
- Failure to disclose which tickets are subject to platinum pricing.
- Not making it clear platinum tickets are not regular tickets.
- Creating a false scarcity by holding back seats.
Though no further action was taken, the warning put Ticketmaster on notice.
New York Settlement
In 2016, New York Attorney General Eric Schneiderman reached a settlement with Ticketmaster over several issues. These included inadequate disclosures over platinum ticket pricing and concerns about holding back seats. Under the settlement terms, Ticketmaster agreed to:
- Be more transparent about how platinum pricing works.
- Provide consumers the option to see platinum tickets last during searches.
- Make a $500,000 contribution toward improving ticket industry practices.
Though falling short of banning platinum tickets, Schneiderman’s actions led to helpful reforms.
Class Action Lawsuits
A few lawsuits over platinum pricing have also been filed:
- A 2017 lawsuit accused Ticketmaster of artificially inflating platinum prices. It was dismissed in 2018 over lack of evidence.
- In 2019, Ticketmaster settled a class action suit alleging it colluded with scalpers. The company paid $10 million.
- Similar lawsuits are likely to follow given ongoing public anger over platinum tickets.
So far, these cases have not produced major changes. But legal actions have brought added scrutiny on Ticketmaster.
Conclusion
In conclusion, Ticketmaster does occasionally lower platinum ticket prices when demand is weak. However, major reductions remain rare. The company relies heavily on platinum pricing to maximize revenues on hot events. While dynamic pricing has benefits in theory, many criticize Ticketmaster for appearing to artificially constrain supply and lack transparency. Ongoing regulatory actions highlight real concerns around how platinum pricing gets implemented in practice. But so far, no overwhelming legal case or legislation has forced systemic changes. Dynamic pricing seems likely to remain a reality in the ticket industry. Still, better oversight and reforms may help balance fairness for consumers against rewards for Ticketmaster. Moderation on both sides could produce a model with wider advantages.