What is the average Ticketmaster fee?

Ticketmaster fees have long been a source of frustration for concert-goers and music fans. The fees, which can sometimes add over 20% to the base ticket price, are how Ticketmaster makes its money. But just how much are customers paying in fees on average? Let’s take a look at the data.

Ticketmaster’s business model

First, it’s important to understand Ticketmaster’s business model. Ticketmaster acts as a ticket sales and distribution outlet for concert venues and event organizers. In essence, venues outsource their ticket sales to Ticketmaster. In exchange for providing its platform and services, Ticketmaster charges fees to ticket buyers. There are usually two sets of fees – a “processing fee” and a “service fee.” The processing fee covers Ticketmaster’s costs of processing the ticket order. The service fee is Ticketmaster’s profit.

Fee amounts

Ticketmaster does not publish detailed data on their average fees. However, a number of studies and surveys have aimed to determine the typical fees charged:

• A 2020 analysis looked at over 5,000 Ticketmaster event listings across a variety of ticket prices. It found that on average, Ticketmaster adds fees equal to 19.2% of the base ticket price.
• In 2021, Consumer Reports examined fees on a set of major concert tickets. It found the average fees amounted to 31% of the ticket’s face value.
• A 2022 class action lawsuit alleged Ticketmaster fees add 27% to the base price on average.

While the exact percentage varies by source, most analyses find Ticketmaster typically adds anywhere from 19% to 31% extra to ticket prices through fees.

Fee amounts by ticket price

Several studies have also looked at how Ticketmaster’s fees vary depending on the base price of the ticket. They’ve found that percentage-wise, fees tend to be highest on low-priced tickets.

For example, a 2020 analysis found that for tickets under $50, fees averaged 29.6% of the base price. But for tickets over $350, fees averaged just 10.5%.

Similarly, Consumer Reports found a $150 concert ticket incurred a 34% fee. But a pricier $400 ticket had just a 13% fee.

This trend occurs in part because Ticketmaster charges relatively flat per-ticket processing fees that represent a larger portion of cheaper tickets. Service fees, while a percentage, also appear lower on more expensive seats.

Average fees by ticket price

Breakdown of Ticketmaster fees

Ticketmaster fees consist of:

• Processing fee – A flat per-ticket charge covering Ticketmaster’s operating costs. Typically $5-$10 per ticket.
• Service fee – A variable charge, calculated as a percentage of the ticket price. Typically 10%-25% of ticket price.
• Order processing fee – A per-order charge, like $5 per transaction.

For example, say you buy two $50 tickets to a concert. Your charges might look like:

• Face value of tickets: $100
• Processing fee: $10 per ticket = $20
• Service fee: 15% of ticket price = $15 x 2 = $30
• Order processing fee: $5 per order

Your total fees would be $20 + $30 + $5 = $55. On top of the $100 base ticket cost, this represents 55% in fees.

Factors affecting fees

Ticketmaster fees can vary based on several factors:

• Base ticket price – As shown earlier, fees are typically a higher percentage on lower-priced tickets.
• Venue – Some venues negotiate lower Ticketmaster fees as part of their contract.
• Demand – For very high-demand events, fees may be higher to capture more revenue.
• Channel – Fees are often lower when buying directly through the venue box office.
• Memberships – Ticketmaster offers some fee-reduction for members of its rewards program.

How Ticketmaster sets fees

Ticketmaster does not publicly share details on how it calculates and sets fees. However, some insights can be gleaned:

• Processing fees likely aim to recoup operational expenses like website hosting, customer support, and payment processing.
• Service fees are the major profit center. Ticketmaster likely sets these at the maximum level they believe the market will tolerate.
• Fees are adjusted over time based on factors like sales, venue contracts, and public perception.
• Promotional fee waivers are sometimes used as a marketing tactic togenerate ticket sales.

Ticketmaster’s market power

Part of what allows Ticketmaster to charge high fees is its market dominance in ticket sales. Here are some key figures on Ticketmaster’s size and market power:

• Ticketmaster sells over 400 million tickets per year across 30,000+ events.
• It operates in over 50 countries worldwide.
• The company has an estimated 80% market share of primary ticket sales in the U.S.
• Live Nation, the world’s largest concert promoter, owns Ticketmaster.
• Tickets sold through Ticketmaster are often the exclusive way to get seats for top concerts and shows.

This market dominance means Ticketmaster faces little pressure to reduce fees, allowing them to charge high rates.

Criticisms of Ticketmaster fees

Ticketmaster’s fees have drawn extensive criticism over the years from fans, politicians, and watchdog groups. Some of the main complaints include:

• Fees massively inflate advertised ticket prices, surprising fans with higher costs.
• High and opaque fees amount to “price gouging” on a captive audience.
• Processing fees bear little relation to costs and are a way to hide true prices.
• Ticketmaster’s market powerexploitatively enables high fees.
• Fees disproportionately hurt lower-income fans.

Government scrutiny

Ticketmaster’s fees and market position have repeatedly drawn government scrutiny as well:

• The company paid $350,000 to settle fee-related complaints from the Better Business Bureau in 1994.
• In the late 1990’s, the Justice Department investigated Ticketmaster over antitrust issues but ultimately took no action.
• Numerous elected officials have called for investigations into Ticketmaster’s pricing.
• Most recently, members of Congressrequested a FTC probe into Live Nation and Ticketmaster in 2021.

Despite the criticism and investigations, Ticketmaster has remained dominant and able to maintain high fees. Antitrust challenges to their market position have thus far been unsuccessful.

Alternatives for lower fees

Fans frustrated by fees do have some options to find tickets with lower costs. Alternatives include:

• Buying directly at the venue box office to avoid online fees
• Using a Ticketmaster pre-sale code to get fee-waived tickets
• Purchasing through the fan club or artist presale
• Buying re-sold tickets on the secondary market
• Using a Ticketmaster competitor like AXS or SeatGeek
• Joining Ticketmaster’s rewards program for reduced fees

However, these options aren’t always available and tend to have limited inventory. Big artists aligned with Live Nation still primarily rely on Ticketmaster for initial sales.

The future of Ticketmaster fees

Looking ahead, Ticketmaster shows little sign of substantially decreasing its fees unless forced to by government intervention or competition. Some other possibilities that could impact fees include:

• More artists choosing alternate vendors like SeatGeek or AXS for a portion of ticket sales.
• Growth of ticket resale markets lowering fees on secondary sales.
• Technology improvements lowering Ticketmaster’s operating costs.
• Fan pressure leading venues to renegotiate Ticketmaster deals.

However, Ticketmaster’s entrenched position in the industry makes major near-term fee reductions unlikely without an outside catalyst. The high convenience fees appear poised to remain frustrating music fans into the foreseeable future.

Conclusion

In summary, Ticketmaster typically adds 19%-31% in fees to the face value of tickets. Fees tend to be highest as a percentage on low-priced tickets, averaging around 29% for tickets under $50. Ticketmaster justifies the high fees by the costs of providing its platform and services. But critics argue they use monopoly power to price gouge captive consumers. While fans continue to complain, Ticketmaster’s market dominance has allowed it to maintain high, opaque fees with little reduction. Significant changes seem unlikely barring major government intervention or shifts in the industry. For now, expect the vocal fan frustration over Ticketmaster’s substantial fees to persist.