The cost of concert tickets is a hotly debated issue among music fans. Prices have skyrocketed in recent years, with some tickets costing hundreds or even thousands of dollars. This has led many to accuse artists and concert promoters of price gouging. But how much control do musicians really have over how much their tickets cost? The answer is complicated and depends on many factors.
The Basics of Ticket Pricing
At a basic level, ticket prices are determined by the interplay between supply and demand. For large concerts in major venues, promoters want to charge high prices because of the immense demand to see top artists. On the supply side, there are only so many seats in an arena, which limits availability. When demand is high and supply is finite, prices naturally go up. Performers with legions of fans can usually charge more than up-and-coming acts with a smaller following.
Artists and their management negotiate with promoters over how to price tickets. Their fee for performing is baked into the ticket price and accounted for as an expense by the promoter. The exact artist fee can vary greatly, from hundreds of thousands of dollars for stadium shows to only a few thousand dollars for club gigs. The artist and promoter may include provisions in their contract over ticket prices if they wish.
Market-Based Pricing
In practice, the market largely dictates pricing. Promoters are for-profit businesses trying to maximize revenue. While artists may give some guidance or input, the promoter has financial incentives to charge as much as the market can bear regardless of the artist’s wishes. Ultimately, promoters want to sell out all seats, and they use variable or “dynamic” pricing to achieve this.
Dynamic pricing means using algorithms and data to adjust prices in real time based on supply, demand, and other factors. Rather than a single fixed price, the price for the same seat varies over time. As a Beyoncé concert sells out, remaining seats increase in price, sometimes drastically. Dynamic pricing also offers discounts when demand is lower in order to sell more tickets. The most in-demand seats carry premium pricing throughout.
Variable pricing is controversial but its use is spreading throughout the live music industry. Promoters can optimize revenue by extracting top dollar from hardcore fans willing to pay hundreds or thousands of dollars for front row seats. Supporters argue dynamic pricing helps manage high demand and ensures fair market pricing.
Tiered Pricing by Seat Location
Most major concerts use tiered ticket pricing based on seat location. Front row seats are most expensive, with prices declining further back. For very large shows, even the cheapest seats can cost over $100 after fees while prime spots cost upwards of $1,000.
Tiered pricing is beneficial for artists and promoters alike. Top prices allow them to capture revenue from dedicated fans buying premium seats. Lower prices on cheaper sections expand accessibility and help sell out the venue. However, some worry large numbers of seats being priced out of reach of average fans exploit their loyalty.
Service and Processing Fees
When you buy a concert ticket, extra fees are tacked on above face value. These include service fees to the ticket seller and venue fees that may go to the promoter or artist. While not directly setting the ticket’s face value, high fees can substantially increase what fans pay. Artists may negotiate a piece of the fees as part of their compensation.
Here is a breakdown of common concert ticket fees:
| Fee Type | Description |
|---|---|
| Service Fee | Charged by primary or secondary ticket sellers for using their platform |
| Facility Fee | Pays for venue operating costs and maintenance |
| Order Processing Fee | Covers costs for ticket seller to process the transaction |
Artists have little direct control over the amount and types of fees, which can make up a substantial portion of the final ticket cost. While fans often blame artists for the fees, they are levied primarily by promoters and ticketing companies.
The Secondary Market
The secondary ticket market also impacts pricing. Reseller sites like Stubhub allow fans to resell event tickets sometimes for huge profits. Artists do not receive any revenue from inflated secondary market prices. Some bands try to curb reselling by requiring ID or the original credit card used for purchase to enter the venue. But policing the secondary market remains a challenge.
VIP & Experience Packages
Special VIP and experience packages have grown popular for squeezing more money from superfans. These can include options like:
- Premium reserved seating in the front rows
- Pre-show receptions with food and drinks
- Backstage tours and meet & greets
- Exclusive merchandise
- Photo opportunities with the performers
Packages frequently exceed $1,000 per seat for A-list artists. The artist has more control over attached perks and pricing strategies for upgrade options than they do over standard ticket prices. Still, the underlying ticket prices mirror broader pricing tiers.
Platinum Tickets
“Platinum tickets” is an industry term for the highest priced seats, typically the first 10 rows. They may cost 5-10 times more than regular tickets for the same show. While platinum refers to location, these tickets sometimes come bundled with VIP amenities.
The premium platinum designation provides cover for dramatically raising prices on the best seats. While artists participate in decisions about VIP packages, they are not responsible for applying the platinum label at inflated prices.
How Artists Justify High Ticket Prices
Artists often point to the exploding costs of live production to justify increasing ticket prices. Concert staging has become extremely sophisticated, with massive lighting rigs, HD video walls, pyrotechnics, moving stages, and other special effects. Top artists also demand huge fees for themselves and their extensive entourage while on tour.
When asked about high ticket costs, some artists argue they are simply charging market rates in line with what fans will pay. Others express frustration with market-driven pricing but say they lack power over promoters, or they need high gross receipts to fund expensive tours.
Of course, critics counter that modern tours also do more business than ever before. Higher ticket prices coupled with greater attendance numbers result in unprecedented revenues.
Attempts to Lower Ticket Prices
Some bands do actively work to make tickets more affordable for their fans. Country singer Garth Brooks garnered headlines in 2016 when he started selling tickets for $94.95 all-inclusive for his comeback tour, a fraction of what other artists charged.
Other acts trying to keep prices low will negotiate deals giving them a percentage of the overall gross rather than a large fixed fee. They also resist dynamic pricing and limits on discounted sale tickets. While these measures help restrain prices, the resulting savings pass through to fans unevenly.
Benefits of Lower Ticket Prices
Here are some of the benefits artists see from pushing to lower ticket prices within their control:
- Increases accessibility to lower income fans
- Helps sell out shows by boosting demand
- Reduces resentment and backlash from fans
- Generates goodwill and positive press
- Creates allure by making tickets seem more scarce
That said, artists with the leverage to demand lower pricing often stand to make even more money at market rates. So there are financial disincentives for restraint, especially for superstar acts.
Government Legislation
Lawmakers have sometimes tried passing legislation aimed at reining in concert ticket costs. New York State has limits on ticket resale prices, with fines for violators. Some in Congress have sought unsuccessfully to mandate more fee transparency.
In 2022, members introduced the BOSS Act which would regulate the use of dynamic pricing by primary ticket sellers. But political attempts at ticket pricing reform have stalled in the face of industry opposition.
Fair Ticketing Acts
A handful of major artists have worked with Congressman Bill Pascrell to advocate for his proposed Fair Ticketing Act. The legislation would prohibit restrictive ticketing practices like limits on public sales. Artists supporting the act argue it would increase general access to tickets.
Notable musicians backing the Fair Ticketing Act include:
- Pearl Jam
- U2
- Kid Rock
- Reba McEntire
- Lady Gaga
While the act could provide mild relief on some industry tactics, it would not directly cap or regulate prices. Any versions that pass still face uncertain implementation and enforcement.
Artist Ticketing Platforms
Some big name performers have launched their own ticketing platforms as an alternative model. These include services like Metallica’s Encore and Louis C.K’s. The solutions let them better control distribution, scalping, and pricing.
Key features of artist ticketing platforms include:
- Prices closer to face value for more shows
- Capping or eliminating service fees
- Integrated identification and entry to reduce scalping
- Registration periods to limit early sellouts
- Limited-release sales direct to fans
However, operating ticketing infrastructure requires huge investment that only the most successful artists can afford. It also may not prevent secondary market reselling.
Fan Club Presales
Many artists do fan club presales before public on-sales to reward loyal supporters with first access. These typically make a small portion available for a couple days before wider public access.
Some benefits of fan club presales include:
- Direct purchase from primary seller at face value
- Option for good seats before scalpers scoop them up
- Makes fans feel recognized and valued
- Provides band with buyer data and marketing platform
Fan club presales alone cannot fix broader issues around soaring market prices and tiered pricing. But they provide a nice perk for an artist’s biggest advocates.
Exceptions for Past Purchasers
Some artists will guarantee ticket access or price caps for past purchasers of their concert tickets. Fans register their purchase history to unlock special privileges for future shows. Pearl Jam and Bruce Springsteen use forms of this reward system for repeat customers.
Potential benefits include:
- Offers loyalty rewards for long-time concert goers
- Helps combat predatory reselling market
- Makes fair pricing accessible based on patronage
Like presales, this caters to an artist’s existing fanbase more than new fans. But it does demonstrate good faith efforts toward their biggest supporters.
Smaller Shows & Venues
Artists have much more control over ticket prices at smaller venues and shows. Prices tend to be lower when they perform at clubs, theaters, and casinos compared to large arenas and stadiums.
Some advantages of smaller concerts include:
- Intimate atmosphere and closer access for fans
- Reduced production costs
- Artists retain a larger cut of revenue
- Easier to mandate fair pricing
Of course, doing mostly small venues also limits an artist’s total gross potential. But it serves as an option for bands looking to keep things affordable for supporters.
Conclusion
In the end, market forces largely dictate concert ticket prices based on demand, with the artist’s influence limited outside of their personal performance fee. Promoters, ticketing platforms, and resellers drive cost increases as much as the performers themselves.
Top artists certainly profit enormously from high ticket prices they could theoretically resist. However, those aiming to curb prices face stubborn industry practices shaped by profit motives and market pressures. Only the very biggest acts have the leverage to restrain pricing through contractual provisions, exclusive platforms, or sacrificing income.
For most musicians, factors outside of their control make it extremely difficult to lower ticket costs. They can provide access to die-hard fans through presales and rewards programs. But addressing inflated market pricing in a meaningful way may prove impossible without structural industry changes.
