What is the point of platinum tickets Ticketmaster?

Ticketmaster’s platinum tickets are a controversial topic among concert-goers and music fans. Platinum tickets are the highest priced tickets for concerts and live events sold through Ticketmaster. They give fans access to the best seats in the house, but come at a steep premium over standard ticket prices.

What are platinum tickets?

Platinum tickets are premium tickets sold for high demand concerts and events. They provide access to the best seats in venues – front row, VIP sections, box seats, etc. Platinum tickets are dynamically priced, meaning the ticket price fluctuates based on demand. The more popular an event is, the higher platinum tickets are priced by Ticketmaster.

Some key things to know about platinum tickets:

• Platinum tickets are a tier above standard tickets. They provide the best seats available.
• Prices vary event to event, but are always more expensive than standard tickets.
• The fluctuating prices are based on demand forecasts from Ticketmaster.
• They go on sale at the same time as standard tickets for an event.
• Quantities are limited for platinum tickets.

Platinum tickets sell for extremely high markups in many cases. For very popular concerts or events, platinum tickets can cost hundreds, if not thousands, more than standard admission.

Why does Ticketmaster offer platinum tickets?

There are a few reasons Ticketmaster utilizes platinum tickets:

1. Capture full value for highest demand tickets – Platinum tickets allow Ticketmaster to charge much higher prices for the best seats that are in extremely high demand. This lets them maximize revenue on these limited tickets.
2. Increase profit margins – The extra revenue from platinum tickets is mostly profit for Ticketmaster, as the base ticket price has already covered operational costs.
3. Offer perks for top spenders – Platinum tickets give high-spending fans access to the best seats and a VIP experience. This caters to their desires for exclusive treatment.
4. Reduce secondary market competition – By pricing tickets higher initially, less tickets end up on resale sites like StubHub at even higher markups.

Platinum tickets are essentially Ticketmaster’s way of monetizing their inventory of highest quality seats to match demand. The platinum designation allows them to capture more revenue from frenzy around top concerts or sporting events.

How does Ticketmaster determine platinum ticket prices?

Ticketmaster uses dynamic pricing algorithms to price platinum tickets based on predicted demand. The specifics of how prices are set is proprietary to Ticketmaster, but generally they examine factors like:

• Initial ticket buying frenzy – how fast are standard tickets selling
• Public buzz/hype around an event
• Price levels on secondary markets like StubHub
• Prices for past events of similar performers/teams
• Day of week, season, and timing of event

As demand appears to increase, Ticketmaster’s system raises platinum prices continuously. The goal is to hit the highest price the market will bear for the best seats. As a live event approaches, platinum ticket prices usually hit their peak.

Why are platinum tickets controversial?

Platinum tickets frustrate many fans and have generated significant controversy for a few reasons:

1. High prices – Platinum tickets often cost several times more than standard tickets, pricing many fans out.
2. Lack of transparency – Ticketmaster does not disclose specifics on how platinum prices are set or the number of platinum tickets available.
3. Ties up best tickets – Some feel the best seats shouldn’t be withheld from general on-sales for the platinum program.
4. Questionable price gouging tactics – Rapidly escalating platinum prices as events approach strikes some as price gouging.
5. Revenues don’t aid performers – Extra revenues go to Ticketmaster, not to artists or teams fans are paying to see.

These complaints have led to fan backlash, boycotts, and multiple lawsuits over Ticketmaster’s platinum tickets. Critics view the platinum concept as an exploitive cash grab that harms consumers.

What do performers think about platinum tickets?

Performers themselves have mixed opinions on Ticketmaster’s platinum tickets:

• Some support platinums tickets, seeing it as a way to capture fair value for their work. Higher ticket revenue can aid their careers.
• Many recognize why fans resent platinum tickets and have spoken out against the practice. They want tickets affordable for their core fanbase.
• Certain artists like Bruce Springsteen have banned the use of platinum tickets for their concerts completely.
• Others just view it as an unfortunate reality of working with Ticketmaster as the dominant ticketing giant.

While performers appreciate the profits that live events generate, some dislike Ticketmaster controlling pricing policies. Artists have limited say in how platinum tickets are utilized for their events.

Does Ticketmaster have monopolistic control over ticketing?

Many critics argue that Ticketmaster maintains an near monopoly position in ticketing, allowing them to impose unfriendly policies like platinum tickets on fans and performers:

• Ticketmaster has deals with the vast majority of major venues and promoters for exclusive sales rights.
• They recently merged with LiveNation, acquiring even more leverage in the industry.
• Competitors in ticketing lack the scale, infrastructure, and venue relationships to truly challenge Ticketmaster currently.
• Their market dominance enables Ticketmaster to set pricing levels and policies as they choose.

Ticketmaster does still face some competition from rivals like AXS and SeatGeek. But the ticketing landscape is still lopsided in Ticketmaster’s favor, enabling unpopular programs like platinum tickets to thrive.

Does Ticketmaster have dynamic pricing for all tickets?

Currently, demand-based dynamic pricing only applies to Ticketmaster’s platinum tickets. Their standard ticket prices remain static once on sale:

• Standard ticket prices are set ahead of on-sales by artists and promoters using industry norms for venue and performer.
• These base ticket prices don’t fluctuate in response to demand after being listed.
• Prices only change if an artist or promoter actively makes an adjustment for business reasons.

So regular tickets don’t see the same automated price hikes platinum tickets do. But that may change in the future, as variable ticket pricing becomes more commonplace throughout the industry.

Does Ticketmaster charge substantial fees?

Yes, Ticketmaster is well known for tacking on substantial fees during the ticket buying process. These fees often add 25-30% to the base ticket price:

These fees have also drawn criticism and lawsuits from consumers. Some view them as excessive considering Ticketmaster’s dominant position in ticketing.

Does Ticketmaster have an official resale platform?

Yes, Ticketmaster operates an official ticket resale platform as well:

• The resale market allows ticket holders to re-sell event tickets they can no longer use.
• Ticketmaster Resale offers a secure, guaranteed marketplace for ticket resales.
• Tickets sold through Ticketmaster Resale tend to be higher priced than face value.
• Ticketmaster captures a percentage fee on all resold tickets.

Ticketmaster Resale competes against secondary marketplaces like StubHub. It provides Ticketmaster one more avenue to participate in the lucrative ticket resale business.

Do other ticketing companies use platinum tickets?

While Ticketmaster popularized platinum tickets, other major ticketing companies have adopted similar premium ticket programs:

• AXS Premium tickets – AXS’s version has variable “market-based” pricing.
• VIP Tickets from StubHub – StubHub adds elite packages onto high demand events.
• SeatGeek Deal Score – SeatGeek rates listings as Good, Great, or Amazing Deals.

These copycat premium ticket services enable competitors to also capitalize on intense demand for certain concerts or games. The controversial practices developed by Ticketmaster have spread industry-wide.

Does Ticketmaster have competitors in ticketing?

While Ticketmaster still dominates, they do face some growing competitors in ticketing:

• AXS – Created by Anschutz Entertainment Group, AXS sells tickets through its owned/partner venues.
• SeatGeek – Online ticket marketplace that integrates with some venues.
• Eventbrite – Focused on smaller music and local events currently.
• StubHub – Primarily a resale marketplace but moving into primary sales.
• VividSeats – Resale site that has begun undercutting Ticketmaster prices.

These alternatives still make up a fraction of the market share compared to Ticketmaster/LiveNation. But Ticketmaster is aware of the competitive threat they represent in the future.

Can Ticketmaster’s practices be regulated?

There have been calls to better regulate some of Ticketmaster’s business practices like platinum tickets and fees:

• Legislation could ban deceptive fees or force fee transparency.
• Price gouging laws could prohibit extreme price hikes for platinum tickets.
• Anti-trust review of acquisition like LiveNation could promote competition.
• Regulations might cap Ticketmaster’s share of primary + resale ticket sales.

However, Ticketmaster uses extensive lobbying to protect its interests in any regulatory efforts. Major policy changes have remained elusive so far despite public pressures.

Does Ticketmaster have exclusive venue deals?

Yes, Ticketmaster’s venue exclusivity deals are a key source of their dominant market position:

• They have multi-year contracts with most major arenas, stadiums and theaters to be sole ticketing provider.
• This includes large chains like LiveNation venues, AEG, and The Madison Square Garden Company.
• Venues get a share of service fees and ticketing revenue as an incentive to maintain exclusivity.
• Guaranteed exclusivity allows Ticketmaster to impose terms like platinum tickets without losing venue clients.

Until competitors can challenge Ticketmaster’s hold on major venues, dislodging them as primary ticketing service will remain very difficult.

How does Ticketmaster respond to criticism of platinum tickets?

Ticketmaster defends platinum tickets and their pricing strategies in a few ways:

• They argue platinum tickets help limit scalpers and secondary markups for the best seats.
• The prices simply reflect fair market value for seats in scarce supply and high demand.
• Fans aren’t required to buy platinum tickets if they object to the pricing.
• Awide range of standard ticket price points are still offered.
• Performers ultimately have control over platinum ticket usage for their events if desired.

Despite backlash, Ticketmaster feels platinum tickets are an effective model for fully capitalizing on fan demand for premium seats. Controversy hasn’t deterred them thus far.

Conclusion

Platinum tickets remain a divisive tactic by Ticketmaster. Supporters argue they efficiently price premium seats in response to market demand. But critics see platinum tickets as a manipulative strategy that harms consumers and exploits artists’ fanbases. Despite ongoing controversy, platinum tickets aren’t going away as long as Ticketmaster retains its industry clout. For disgruntled fans, the best recourses are avoiding platinum purchases, supporting alternative ticketing services, and pressing for more regulation of Ticketmaster’s practices.