Ticketmaster is the largest ticket sales and distribution company in the United States. As the exclusive ticket provider for many major venues and artists, Ticketmaster has significant control over how tickets for live events are sold and distributed. This has led many people to wonder – does Ticketmaster hold back tickets only to release them later? Here is an in-depth look at Ticketmaster’s ticket release practices.
How Ticketmaster gets tickets
First, it’s important to understand how Ticketmaster gets access to tickets in the first place. Ticketmaster has exclusive contracts with many major venues, sports teams, and artists to sell tickets for their events. Under these contracts, the client provides Ticketmaster with an allotment of tickets to sell on their behalf. This allotment makes up the majority of tickets that are available on Ticketmaster for a given event.
In a typical on-sale, Ticketmaster will release these allotted tickets for public sale all at once. The exact quantity released depends on the size of the venue and expected demand. Popular shows will often sell out very quickly when tickets go on sale.
Do they hold back tickets?
This has led to speculation that Ticketmaster is deliberately holding back tickets, only to release them later at a higher price point. However, Ticketmaster has denied these claims. They state that they do not determine how many tickets are available for a show – that is up to the venue and artist. Ticketmaster simply sells the allotment they are provided.
That said, Ticketmaster does not put all tickets up for sale right away. A portion of tickets are held back for presales, VIP packages, fan club memberships, credit card rewards, and artist allocations. These tickets are not part of the general public on-sale.
Presales
Presales allow certain groups to purchase tickets before the general public. This includes presales for fan club members, VIP package buyers, credit card holders, Spotify listeners, and more. Typically 10-30% of tickets are allocated for these presales. This ensures that die-hard fans have first access before the remaining tickets go on sale.
VIP Packages
Many events offer premium VIP packages that combine a ticket with merchandise, food, parking, and other perks. These packages are put on sale before general admission tickets so buyers can get the best seats. The tickets sold as part of VIP packages are not released during the general public on-sale.
Fan Clubs
Popular artists often have official fan clubs that offer members early access to tickets. Fan club members are able to purchase tickets before they go on sale to the general public. These fan club presales usually last for 24-48 hours before the remaining tickets are released.
Credit Card Rewards
Certain credit card companies like American Express and Chase have deals with Ticketmaster to offer cardholders early access to tickets. These presales are typically limited to a few hours before the general on-sale time. The number of tickets allotted for these presales is usually quite small.
Artist and Venue Holdings
Lastly, the venue and artist often retain a portion of tickets for their own use. The artist may reserve tickets for family, friends, and the band. The venue likely keeps tickets for giveaways, contests, and other promotional purposes. These tickets are never released by Ticketmaster – they are used at the discretion of the client.
Dynamic pricing
Ticketmaster does use a system called “dynamic pricing” or “market-based pricing” which can raise or lower prices for tickets in real time based on demand. This has also fueled speculation of Ticketmaster holding back tickets only to later charge more. In reality, dynamic pricing adjusts prices gradually based on sales patterns – it does not rely on withholding ticket inventory.
For example, if there is very high demand for a particular show right when tickets go on sale, dynamic pricing may incrementally raise prices to discourage scalpers and bots. On the other hand, if sales are slow as the event approaches, prices may decrease to encourage more purchases. In both cases all tickets are available from the start – none are held back.
Last-minute ticket releases
In some cases, there are last-minute releases of tickets close to the event date after the initial on-sales have sold out. This has led to frustration from fans who missed out on buying earlier. However, these late releases are typically driven by the venue or artist, not Ticketmaster.
There are a few common reasons for these last-minute ticket drops:
- The artist releases more tickets due to high demand
- The venue opens up obstructed view sections that initially could not be sold
- Production needs change, allowing more space for ticketed seats
- The client cancels holds on tickets originally reserved for their own use
In these cases, Ticketmaster simply gets notified by the venue or artist that more seats have become available for sale. Their inventory management systems automatically update to allow purchases in those newly opened sections. So while fans may feel like Ticketmaster “released” more tickets, they are just selling what the client provides access to.
Using holdbacks to drive scarcity and demand
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While Ticketmaster denies deliberately holding back inventory, some artists and venues likely do so to drive scarcity, hype, and demand. Releasing only a portion of seats immediately can create a rush to buy and a fear of missing out.
By moving additional ticket inventory in incremental phases – such as presales, VIP offers, and late releases – the perception of high demand is perpetuated. Each new batch of seats feels like a limited opportunity.
This strategy roots back to basic principles of supply and demand. When supply is constrained, demand goes up. This leads to more media coverage, social media buzz, and an urgent buyer mentality that boosts sales velocity.
Bots and scalpers
Another reason some industry insiders argue for ticket holdbacks is to mitigate bot attacks and scalping activity. Highly anticipated shows often see a swarm of ticket bots and scalpers trying to scoop up seats early to resell at a premium.
By withholding some inventory for later sales phases, the initial on-sale rush becomes slightly less appealing and lucrative for these bad actors. Scalpers may be less inclined to target shows if only a portion of seats are released upfront.
However, fans are often critical of this rationale. Many feel it is unfair for real fans to miss out on great tickets that are instead resold at inflated prices by scalpers later.
Is it legal?
The legality of deliberate ticket holdbacks is questionable in some states. A number of US states have passed anti-scalping laws that prohibit withholding tickets just to drive up prices and demand. For example:
- New York’s anti-scalping law bans intentionally holding back tickets “for the purpose of increasing the price.”
- In California, knowingly selling tickets that were “not intended for public sale” is illegal.
- Ohio passed a 2016 law prohibiting the use of ticket bots or speculative ticketing practices.
However, these laws are challenging to enforce. Proving intentional withholding of inventory is difficult without insider admission. The practice continues discreetly in many parts of the live events industry.
Calls for greater transparency
Fans, consumer advocates, and policymakers have called for greater transparency around ticket holdbacks and releases. Many argue that buyers deserve clarity on how much inventory is being released and when. Hiding some tickets only to move them through alternate sales channels results in confusion and distrust.
Some have proposed requiring ticket sellers to disclose the total event capacity and the number of tickets being released in each sale. Enforcing upfront transparency could protect consumers from predatory practices. However, venues, artists, and ticket companies often resist these transparency demands.
Is it ethical?
While deliberate ticket holdbacks may not always be illegal, many question whether they are ethical. There is an ongoing debate around tactics perceived to unfairly manipulate supply, limit consumer choice, and drive prices upwards. Critics argue these practices exploit fan loyalty and lock out those unwilling or unable to play games trying to buy tickets.
On the other side, industry insiders defend the need to strategically manage inventory and prevent scalping. They view segmented sales phases as rewarding loyal fans first before opening up to the general market. There are reasonable arguments on both sides, with no universal consensus on the best approach.
Conclusion
In summary, while Ticketmaster denies any organized efforts to hold back tickets, the evidence suggests deliberate inventory throttling does occur:
- Only a portion of tickets go on sale to the general public, with the rest held for presales, VIP offers, and client allocations
- Last-minute ticket releases generate widespread complaints from fans
- Artists and venues have financial incentives to manage supply and demand
However, Ticketmaster likely has little direct control in these practices. Venues and artists make the ultimate decisions on how many seats get released and when. Ticketmaster simply facilitates the sales process according to client instructions.
The live events industry will continue weighing consumer demands for fairness and transparency against desires for maximizing revenue. This ongoing debate has fueled mistrust of Ticketmaster’s motives despite their statements denying any organized holdbacks. Fans are left unsure whether failure to get tickets is bad luck or intentional manipulation.