Ticketmaster is the largest ticket sales and distribution company in the world. It sells tickets for concerts, sporting events, theater shows, and more. Ticketmaster has exclusive contracts with many major venues and artists to sell their tickets. This gives them a lot of control over ticket prices and fees.
Ticketmaster Fees
When you buy tickets on Ticketmaster, you’ll notice there are a lot of additional fees added to the base ticket price. These fees go to Ticketmaster for providing their ticketing services. The fees can add a significant extra cost to the total ticket price.
Here are some of the main fees Ticketmaster charges:
- Service fee – This covers the cost of Ticketmaster’s ticketing software and services. It is typically around 25% of the base ticket price.
- Order processing fee – A fee to process the ticket order, usually around $5-$10 per ticket.
- Facility charge – This goes to the venue to cover their costs of hosting the event. The amount varies by venue.
- Convenience charge – For the convenience of buying tickets online and having them delivered. Around $2-$5 per ticket.
- Shipping fees – To ship paper tickets to you. Can be $2-$12 per order.
These fees mean that the final ticket price is often 20-30% higher, or sometimes even more, than the initial base price listed. The various fees go to both Ticketmaster and the venue/performers.
Ticketmaster’s Cut
So how much of those fees actually go to Ticketmaster? What percentage of the total ticket price ends up in their pockets?
The exact percentages can vary based on the event, venues, and other factors. But according to multiple reports, Ticketmaster typically keeps between 20-25% of the total ticket price. This includes:
- Around 70% of the main service fee
- 100% of the order processing fee
- 100% of the convenience charge
- 100% of the shipping fees
Some sources estimate that Ticketmaster’s cut may be even higher for major events like concerts – up to 35% of the total ticket cost. Part of this comes from extra fees or “price floors” that Ticketmaster implements dynamically for in-demand shows.
Where the Rest Goes
Where does the other 75-80% of the ticket price go? Here is the breakdown:
- Base ticket price – This portion goes to the performers/teams to pay for their costs and profits.
- Venue facility charge – To the venue hosting the event.
- Remainder of the Ticketmaster service fee – Back to Ticketmaster to cover their technology and operating expenses.
In general, Ticketmaster takes a larger share of fees for bigger, high-demand shows and sporting events. The performers and venues have more leverage to negotiate lower Ticketmaster fees for smaller, independent shows.
Is Ticketmaster’s Cut Justified?
With Ticketmaster taking home up to 25-35% of ticket prices, some fans argue their fees are too high. Critics say their near monopoly in ticketing allows them to charge unjustified fees.
However, Ticketmaster argues these fees are necessary to provide their ticketing services and keep improving their technology. These include investments in:
- State-of-the-art ticketing software
- Website design and maintenance
- Online security systems
- Customer support resources
- Combating ticket fraud and scalping
Ticketmaster also incurs substantial marketing costs to promote shows and sell tickets in an increasingly competitive landscape.
Ways to Avoid Ticketmaster Fees
If you want to avoid paying Ticketmaster’s fees, here are some options to consider:
- Buy directly from the venue box office – Many venues will sell tickets with minimal or no extra fees.
- Use fan club presales – Artists’ fan clubs often get first dibs on tickets before the general public.
- Check out secondary ticketing sites – StubHub, Vivid Seats, and other resellers may have tickets withoutTicketmaster fees.
- See the show late – Last-minute tickets bought at the door sometimes have lower or no fees.
However, these options are not always available and run the risk of missing out on tickets. Many big concerts still primarily sell through Ticketmaster. So fans are often stuck paying their fees as the price of admission.
Recent Changes and Developments
In recent years, there are some signs Ticketmaster is adapting its fees structure in the face of criticism and competition:
- They reduced or eliminated delivery fees for mobile tickets.
- Some event pages now show “all-in” ticket prices upfront that include fees.
- They launched lower-fee ticket sales for charity events.
However, the core service fees remain consistent. And Ticketmaster still dominates as the primary ticketing provider for most major concerts, sports leagues, and live entertainment events.
Key Takeaways
Here are some key points on Ticketmaster’s cut of ticket prices:
- Ticketmaster typically keeps 20-25% of the total ticket price as their fee for services.
- This includes a portion of the service fee plus charges like processing fees.
- For major concerts and in-demand events, their cut may be as high as 35%.
- The remainder of the price goes to the venues, performers, teams, and operational costs.
- Fans complain about Ticketmaster’s high fees but have limited alternatives.
- Venues and box offices may offer lower fees on some tickets.
So while fans may feel frustrated by the fees, Ticketmaster still dominates as the key ticketing service for live events. The convenience and reliability they provide remains attractive to many venues and teams. And that means Ticketmaster retains pricing power to take a healthy percentage cut of each ticket sold through their platform.
Conclusion
Ticketmaster retains around 20-35% of ticket prices as their fee for providing ticketing services. Exact percentages vary based on the event, demand, and other factors. But across the board, their cut represents a significant markup on every ticket sold. While fans and critics argue these fees are too high, Ticketmaster maintains they are justified costs for their ticketing systems and services. The company still has a dominant position in the industry, meaning venues, teams, and fans often have little choice but to pay their fees if they want admission to top live events.