The practice of reselling concert tickets, also known as ticket scalping, has become increasingly common in recent years. With the emergence of online ticket resale marketplaces like StubHub and Vivid Seats, it’s easier than ever for people to buy tickets to concerts and sporting events with the intent to resell them at a higher price. This has sparked a debate around the ethics and legality of ticket scalping. Here are some quick answers to key questions about concert ticket resaling:
- What is ticket scalping? Ticket scalping is the practice of buying tickets to concerts, shows or sporting events with the sole intention of reselling those tickets at a higher price to make a profit.
- Is it legal? Ticket scalping is legal in many parts of the United States but some states have laws restricting or regulating it.
- Why do people resell tickets? The main motivation is to make money. There is often high demand for tickets to popular concerts which drives up resale prices.
- What are the risks? There is a risk of not being able to sell the tickets and losing money. Many major event venues are now using paperless ticketing which makes reselling harder.
In this article, we’ll take an in-depth look at the pros and cons of reselling concert tickets and examine whether it’s ultimately a good idea and ethical practice.
The case for reselling concert tickets
Here are some of the main arguments that supporters make in favor of reselling tickets:
It provides access to high-demand events
Not everyone can buy tickets the moment they go on sale. Resellers provide a secondary market where people can buy tickets to sold out or high-demand concerts and events. This allows more fans to attend shows they otherwise may not have been able to get into.
Tickets can be resold at fair market value
If an artist or sports team drastically underprices tickets for an event, resellers can recoup a fairer market value. The price that resellers are able to charge depends on demand from buyers.
It’s a way for people to make extra income
For some industrious individuals, reselling tickets provides an opportunity to make money, sometimes substantial amounts. They take on the time and risk required to source in-demand tickets and resell them.
Resellers provide convenience
Online ticket marketplaces allow people to buy tickets any time, without having to go through box offices. Delivery of tickets is arranged through the platforms.
The case against reselling concert tickets
However, there are also strong arguments opponents make against ticket reselling:
It inflates prices for fans
When resellers mark up the price of tickets by large margins, it prices regular fans out of the market for concerts they want to attend. Some resellers use ‘bots’ which buy up tickets in bulk the moment they go on sale.
Unethical practices
In some cases, ticket resellers have engaged in unethical practices like selling fake or duplicated tickets. Some platforms have insufficient buyer protection.
Artists and promoters lose out
The artist and concert promoters earn less revenue when tickets are resold above original prices. The inflated secondary prices also incentivize scalpers to scoop up more tickets.
It contributes to unfair access
Bots give large-scale resellers an unfair advantage in buying tickets quickly. Average buyers can lose out and may have no choice but to pay inflated secondary prices.
When is ticket reselling prohibited?
While ticket reselling is legal in many parts of the United States, some states have laws prohibiting or restricting it:
- New York – bans ticket reselling above face value and restricts the use of ticket buying bots.
- Connecticut – reselling is prohibited within 1,500 feet of an event venue.
- Massachusetts – reselling restricted to $2 above face value.
- Pennsylvania – reselling for more than 25% above face value is prohibited.
Major event promoters like LiveNation and AEG have lobbied for anti-scalping laws. Some artists like Bruce Springsteen have also fought against ticket resales.
Factors driving the ticket resale market
There are several key factors that have contributed to the rapid growth of ticket reselling in recent years:
Shift to online ticketing
The rise of digital ticketing makes it easier for resellers to buy inventory online and instantly transfer tickets to buyers over the internet. Online marketplaces like StubHub emerged in the early 2000s.
Increasing Ticket Demand
Demand for concert and event tickets has grown significantly in the past two decades, especially for major pop, rock and hip-hop acts. Limited ticket supply for must-see events fuels the secondary market.
| Year | Total Concert Ticket Sales in North America |
|---|---|
| 1998 | $1.5 billion |
| 2008 | $4.2 billion |
| 2018 | $10.4 billion |
Touring business growth
The North American concert touring industry has grown steadily from $4.4 billion in revenue in 2001 to $9.8 billion in 2019 according to Pollstar. Top artists now rely on touring for the bulk of their income.
Advances in bot technology
Resellers have developed sophisticated bots that can buy up thousands of tickets per minute online. This gives large-scale resellers a huge advantage.
Who are the major ticket resellers?
Here are some of the largest and most well-known ticket resale marketplaces:
- StubHub – Owned by Viagogo. Largest ticket marketplace in U.S. Offers buyer guarantees.
- Vivid Seats – Allows users to sell and transfer both digital and physical tickets. No seller fees.
- SeatGeek – Backed by major investors like Accel. Focuses on tech-driven platform.
- Ticketmaster – Owns resale site TicketsNow allowing verified resales.
- Gametime – Last minute app-based reseller with no delivery fees.
There are also large ticket brokers that operate offline but have grown their online resale capabilities like DTI Management and The Ticket Merchant.
Is ticket reselling a viable business?
Becoming a full-time ticket broker reselling tickets for profit is possible but extremely competitive:
Upfront costs
There are inventory costs required to acquire tickets and fees charged by resale platforms that range from 10-20% of sale prices.
Identifying profitable events
It requires concert knowledge and research to predict which events will have tickets in high demand on secondary markets.
Managing risk
For less popular events, there’s a risk of being left holding unwanted tickets that can’t be resold at a profit or even face value.
Competition
Small resellers compete against large brokers and bot users who snap up ticket inventory in seconds when sales open.
Future uncertainty
New ticket technologies or additional regulation could restrict supply channels key for resellers.
Despite the challenges, reselling tickets can still be lucrative in some cases if done selectively and strategically. But it requires an upfront investment and carries financial risk.
Reselling ethics and consumer impacts
There are some clear ethical implications of ticket reselling when it comes to fairness for consumers and artists:
Pricing regular fans out
Mass buying and huge markups make tickets unaffordable for many. Fans may have no choice but to skip shows or buy from scalpers.
Limited event accessibility
When large ticket blocks are immediately tied up by brokers, it reduces access to high-demand events for the general public.
Reduced revenue for artists
The artist misses out on additional revenue when tickets are initially sold below market prices but then marked up for resale.
Incentives for bad behavior
Easy profits from scalping incentivize unethical practices like using bots and buying up all available tickets.
However, reselling also expands access in some cases when additional fans buy tickets on secondary markets. There are arguments on both sides.
How can average buyers get fair access to tickets?
For regular fans who just want to buy event tickets at reasonable prices, here are some tips:
- Buy early – Purchase from official channels right when sales open to get access before scalpers can buy inventory.
- Use pre-sales – Take advantage of artist presales and other pre-sale opportunities available through fan clubs or credit cards.
- Use waiting lists – Sign up for waiting lists on ticket retailer sites which give you first access to tickets released close to event dates.
- Avoid resale sites – If you can, try to buy from primary ticket sellers instead of secondary reselling marketplaces.
- Compare prices – Check multiple resale sites as ticket prices can vary significantly across platforms.
While these tips can help, there are still no guarantees of getting hot tickets these days given the power resellers have in grabbing inventory. But following those steps can improve your chances.
Does ticket reselling have a future?
Some major shifts happening in the industry could impact the ticket reselling market going forward:
Shift to mobile ticketing
Mobile entry replacing paper tickets may make it harder for resellers to sell and transfer tickets efficiently. But digital tickets also create opportunities for scalpers.
Blockchain ticketing
Blockchain-based ticketing platforms like Yellowheart could enhance security and make fraudulent sales harder for resellers.
More stringent regulations
A growing backlash against predatory reselling may drive more states to impose legal limits on markups and bot usage. But lobbying efforts from brokers hamper new laws.
Higher initial ticket prices
Artists and promoters may start pricing tickets closer to true market values from the outset, which would slash profit margins for resellers.
Despite some potential hurdles, ticket reselling still appears poised for growth given ever-rising demand to see top live music acts and sporting events. But artist teams, lawmakers and the industry are actively seeking ways to ensure fairer access.
Conclusion
Reselling concert and event tickets has evolved from a small niche into a massive industry enabling both huge brokerages and average fans to profit. But there are valid arguments on both sides of the debate around the ethics and consumer impacts. Ultimately, moderation is likely the best path forward. Ticket transfers will always happen, but better regulations could curb some of the worst practices like bot usage. For music fans who just want to see their favorite band or artist live, there is hope that new technologies may eventually improve access one day. Until then, try to buy early from official channels and avoid feeding the scalpers if possible.