Why are there so many fees on Ticketmaster?

Ticket fees on Ticketmaster have become increasingly controversial in recent years. Consumers are frustrated by the sheer number of fees added to their ticket purchases, which can end up doubling or tripling the base ticket price. Ticketmaster defends the fees as necessary to operate its business, but critics argue many of the fees are excessive or unjustified.

What are the different fees charged by Ticketmaster?

There are a number of different fees that get tacked onto Ticketmaster orders. The most common fees include:

• Service Fee – This fee goes to Ticketmaster for using its platform. It ranges from about $5-20 per ticket.
• Facility Charge – This fee goes to the venue hosting the event to cover their costs.
• Order Processing Fee – This fee covers Ticketmaster’s costs for processing an order.

Here are some other fees customers may encounter:

• Shipping Fees – For hard tickets shipped to you.
• Charity Donation – An optional fee to donate to a charity.
• Convenience Charge – For using certain payment methods.
• Purchase Fees – This vague fee is sometimes added to all orders.

Tickets sold on the secondary market through Ticketmaster often carry even higher fees. Fees will vary based on the event, seat location, and demand.

Why does Ticketmaster charge so many fees?

Ticketmaster provides a number of explanations for why its fee structure is so complicated and expensive for consumers:

• Cover costs of doing business – Ticketmaster says fees like the order processing fee help cover the costs of running its platform and services.
• Contracts with clients – Some fees, like the facility charge, are set by the venue or event organizer, not Ticketmaster.
• Deter ticket fraud/scalping – Fees like shipping and convenience charges make it harder for scalpers to scoop up tickets.
• Fan benefits – Programs like Ticketmaster’s Verified Fan are powered by fees and help get more tickets directly to fans.

Critics claim Ticketmaster uses fees to squeeze more money out of customers since ticketing services have high profit margins. They also argue venues, not customers, should cover operational costs through their share of ticket revenue.

Are Ticketmaster’s fees higher than competitors?

Ticketmaster maintains a dominant market share of around 70% in the primary ticket sales market. This lack of competition likely enables Ticketmaster to charge higher fees compared to some other ticketing platforms and marketplaces.

Here is a breakdown of average fees charged by major ticket sellers for a $100 concert ticket:

As seen above, Ticketmaster’s fees tend to be $5-$10 higher on average compared to other major ticketing marketplaces. They take a higher cut on the overall ticket price compared to competitors.

Is Ticketmaster transparent about its fees?

One of the biggest complaints about Ticketmaster is the lack of transparency around its fees. Customers are often caught off guard by the pile of fees added at checkout. Some industry experts say Ticketmaster intentionally makes fees non-transparent:

• Fees are revealed late in the checkout process after the customer has already selected tickets.
• Customers must click through disclaimers to see a breakdown of all fees.
• Names of fees like “service fee” or “order processing fee” are vague and unclear.
• Fees are not shown upfront when browsing ticket listings.

The Canadian ticketing company Tickefly filed a lawsuit against Ticketmaster in 2021 arguing their practices around fee disclosures violate consumer protection laws. But Ticketmaster maintains they provide full fee breakdowns for those willing to click through and they aim to be as transparent as possible.

Does Ticketmaster face any oversight on fees?

Ticketmaster has managed to avoid significant regulation or oversight when it comes to their service fees. A few key reasons why:

• Lack of competition – With little competition in ticketing, Ticketmaster has been able to set fees largely unchecked.
• Contracts with venues/artists – Ticketmaster locks venues into long-term contracts that likely give them free reign on fees.
• Live entertainment monopoly – Ticketmaster’s parent company Live Nation owns concert venues, teams, and artists creating a vertically integrated monopoly.
• Difficulty regulating services – Ticket fees are technically a service charge, not a product, making regulation more difficult.

The lack of oversight and transparency around fees has made the U.S. Department of Justice investigate Ticketmaster and Live Nation’s practices. But so far no meaningful action has been taken to regulate or curtail Ticketmaster’s fees.

Could Ticketmaster’s fees be considered predatory pricing?

Some economists argue Ticketmaster’s fee practices amount to a form of predatory pricing, meaning they exploit their dominant position to charge excessively high fees that customers have little choice but to pay. Others contend Ticketmaster’s fees reflect normal activity of a monopoly maximizing profits.

Here are some key points around Ticketmaster’s fees possibly being predatory:

• They exploit customers who have no alternative due to Ticketmaster’s market dominance.
• Fees are disproportionately high compared to costs and services rendered.
• Fee amounts are arbitrary rather than market-driven.
• Predatory pricing is difficult to prove and regulate with modern technology firms.

Ultimately, accusations of predatory pricing come down to whether Ticketmaster is abusing its monopoly power or simply maximizing profits. But it illustrates the level of resentment and mistrust many customers feel toward Ticketmaster’s fees.

Could more artists boycott Ticketmaster?

Some major music artists like Bruce Springsteen and Pearl Jam have chosen not to use Ticketmaster in recent years to avoid their controversial fees. Could more artists follow suit?

• Big artists have the leverage to negotiate their own ticketing terms or use other platforms.
• Ticketmaster’s long-term venue contracts make it hard for most artists to avoid them completely.
• Artists still want to tap into Ticketmaster’s huge customer base despite the fees.
• Boycotting Ticketmaster carries financial risks and logistical challenges for artists.
• Fans may have limited ticketing options and pay higher prices if artists ditch Ticketmaster.

A few big names boycotting Ticketmaster grabs headlines but likely won’t significantly impact their dominant market position. Most artists grudgingly accept Ticketmaster’s fees as the cost of accessing their huge network of customers.

Could Ticketmaster’s fees be capped through regulation?

Some consumer rights groups argue the most effective way to curb Ticketmaster’s fees is caps set through federal or state regulation. But the ticketing industry has successfully avoided regulation so far.

• Industry argues capping their fees or profits would be government overreach.
• Difficult for regulators to determine what level of fees are acceptable.
• Hard to enforce caps across different ticketing platforms and jurisdictions.
• Critics say caps could stifle innovation and investment in ticketing technology.

The political will for regulation is growing with customer resentment of fees reaching new heights. But any meaningful policy action would face aggressive industry opposition and legal challenges around fee caps limiting commerce.

Does Ticketmaster benefit consumers in any way?

Despite uproar over fees, Ticketmaster argues they provide meaningful value and benefits to consumers including:

• Helps fans secure tickets by verifying their identity and securing inventory.
• Platform investment has improved ticket buying experience.
• Ticketing data analytics deter scalping and get tickets to real fans.
• Customer service team provides support for issues with orders.
• Convenience of marketplace gives consumers choices and options.

Critics argue any consumer value Ticketmaster provides is outweighed by their opaque fees and monopoly power. But Ticketmaster contends they deserve fair compensation for the utility they bring to the live event experience.

Conclusion

Thenumber and cost of feesadded to Ticketmaster orders have long outraged customers. Ticketmaster maintains the fees are justified to cover their costs and services. But there is a growing consensus among consumers and regulators that Ticketmaster exploits its market dominance through fees that are excessive and confusing. While more transparency around fees would help, wider access to rival ticketing platforms is the only likely way to impose true discipline and fairness around Ticketmaster’s pricing.