What percent does Ticketmaster take?

Ticketmaster is a major ticket sales and distribution company that provides ticketing services for many of the largest venues and events worldwide. When you purchase tickets through Ticketmaster, they add on various fees and service charges to the base ticket price. These fees go to Ticketmaster and other parties involved in the event, but much of the money ends up as profit for Ticketmaster.

Ticketmaster Fees

There are several different fees that Ticketmaster commonly charges on top of the initial ticket price. This includes:

• Convenience fees – This covers the cost of providing the online ticketing platform and processing the transaction. Often around $5-15 per ticket.
• Service fees – A charge Ticketmaster collects for its services. Usually around 10-25% of the base ticket price.
• Order processing fees – Charged per ticket order, not per ticket. Typically around $5-10 per order.
• Delivery fees – For shipping tickets to you. Can be $5-$20 depending on method.
• Facility fees – These go to the venue to cover their costs. Varies greatly.

The exact fees and percentages charged depends on the event, venue, and ticket price. For very expensive tickets, the fees can add up to 30% or more to the base ticket price. For inexpensive tickets under $20, the fees can effectively double or triple the price paid.

Estimating the Percent Ticketmaster Takes

It’s difficult to determine an exact percentage of the total ticket price that goes to Ticketmaster. Some key factors include:

• Fees are not consistent across events or venues.
• Ticketmaster does not disclose specifics on how much money goes to them versus other parties.
• The convenience and service fees are where Ticketmaster makes most of their money.
• Higher priced tickets generally have a lower percentage going to fees.

That said, most industry experts estimate Ticketmaster ends up with anywhere from 25-40% of the total ticket price. This figure is based on analysis of their fees, revenues, and distributions to partners across large sample sizes of events.

According to a recent report, convenience and service fee revenues accounted for 24% of Ticketmaster’s total revenues in 2018. Their operating income from these fees was estimated at 10-15% of revenue, or around $250 million based on their $1.5 billion in service fee revenues.

Factors That Impact Fees

Some key factors that influence the total fees charged by Ticketmaster and the percentage they represent include:

In general, expect to pay 10-25% of the base ticket price in fees for medium-large events. Small club shows and concerts can see fees up to 30%. High demand sporting events and concerts often have fees in the 15-20% range.

Strategies to Avoid High Fees

If you want to avoid paying the high service and convenience fees added by Ticketmaster, here are some strategies to consider:

• Buy at the box office – This avoids the online processing fees which are often $10-$15 per order.
• Purchase season ticket packages – Sporting events and concert venues offer bundled packages with lower per ticket fees.
• Ask about fee waivers – Some venues provide waivers for students, military, or other groups.
• Buy on the secondary market – Sites like StubHub let you avoid fees and potentially pay below face value.
• Buy fan club or venue presales – Early presales sometimes have lower or no fees before public sale.

Scouring sites like Craigslist for ticket resellers is another option. You’ll want to take precautions buying secondhand, but can find tickets with no extra fees built in. Just avoid buying anything above face value, as you’ll pay the fees twice.

Is Ticketmaster Worth the Fees?

Given the high service fees Ticketmaster charges, you may wonder if it’s worthwhile buying through them or just avoiding their platform altogether.

There are a few benefits that Ticketmaster does provide when using their services:

• Access to tickets – For major concerts and sporting events, Ticketmaster will have exclusive presale ticket blocks not available elsewhere.
• Security – Ticketmaster has anti-bot and anti-scalping measures providing peace of mind against fraud.
• Support – You can get customer service help with the order or tickets if any issues come up.
• Insurance – Some tickets include insurance coverage in case you need to cancel or change plans.
• Verified tickets – Ticketmaster is the official source so you know the tickets are legitimate and valid.

However, these benefits are often not enough to outweigh the very high fees, especially considering that alternative ticketing sites provide many of the same benefits.

In many cases, you end up paying 25-40% extra just to use Ticketmaster instead of another reputable ticketing platform. For expensive tickets that can add up to hundreds in extra fees. Many consumers are willing to forgo the minor benefits Ticketmaster provides to avoid paying the very high premium they charge.

Is Ticketmaster a Monopoly?

Ticketmaster currently has very little competition in the primary ticket sales market. They have exclusive ticketing agreements with many of the largest venues and promoters across the United States.

Some key statistics on Ticketmaster’s market dominance:

• They sell over 60% of all event tickets sold in the US annually.
• They are the exclusive ticket provider for 70 of the top 100 concert venues.
• They have long-term contracts with most major concert promoters like LiveNation.
• Over 80% of major music acts use Ticketmaster as their default ticketing service.

This level of market control has led many consumers and regulators to accuse Ticketmaster of being a monopoly. They use their position to charge very high fees that customers have little ability to avoid when purchasing tickets to popular events and venues.

However, from a legal perspective, Ticketmaster has not been found guilty of violating antitrust laws in the United States. They don’t have 100% control over ticketing, even if their market share is very high. As long as there are reasonable alternatives for consumers to purchase primary tickets, Ticketmaster avoids the legal definition of an outright monopoly.

Ongoing Legal Actions

There are currently a few pending legal actions aimed at reducing Ticketmaster’s market control and addressing alleged anti-competitive practices:

• Class action lawsuits around artificially inflating ticket prices and fees.
• DOJ investigations into exclusive venue agreements that lock out competitors.
• Cases targetingocompletelybundling primary and secondary ticketing markets through subsidiaries.

Despite frequent public complaints and legal actions around their fees and practices, Ticketmaster has avoided any major repercussions thus far. Their position continues to remain secured by long-term exclusive deals with venues, promoters, and artists.

The Future of Ticketmaster Fees

Looking ahead, Ticketmaster fees are likely to remain high as long as they maintain their dominant market position. There are a few ways that increased competition could potentially force Ticketmaster to bring down fees in the future:

• Venues offering direct sales – Large venues like MSG in New York are selling tickets directly and avoiding Ticketmaster fees.
• Artists using alternative platforms – Some big acts have chosen other sites like AXS to reduce fees for fans.
• Secondary market growth – More fans using resale sites puts pressure on primary prices.
• New technologies – Blockchain/crypto startups are exploring lower fee models to challenge the status quo.

However, it will take a lot to disrupt Ticketmaster’s entrenched position in the industry. They will likely remain the dominant player for major event ticketing for the foreseeable future.

Conclusion

Ticketmaster adds fees ranging from 10-25% on top of base ticket prices in most cases. These fees include unavoidable convenience and service charges that represent a major profit source for Ticketmaster. While fans are often frustrated by the high premiums, Ticketmaster’s market dominance in primary ticketing leaves consumers with little option but to pay the fees if they want guaranteed access to major concerts and events. Increased competition may eventually pressure Ticketmaster to reduce fees, but they remain very well positioned to continue their fee practices for now.