Dynamic Pricing Used by Ticketmaster is Pushing Fans Away from Live Concerts in a Post Covid Market
Fans have long feared the nightmare scenario: being shut out of their favorite concert because Ticketmaster has used dynamic Pricing to increase prices. According to recent articles, this happened to many concertgoers when tickets went on sale for an upcoming Bruce Springsteen tour. As demand increased, the price of tickets skyrocketed, with some seats costing as much as $5,500!
This news has caused outrage among fans, who feel they are being taken advantage of by Ticketmaster. In an emailed statement, a Ticketmaster spokesperson said that promoters and artist representatives set the pricing strategy for all tickets, including dynamic and fixed price points. They went on to say that prices go up when more people want to attend an event than there are tickets available. But the real reason for dynamic Pricing is to reduce the secondary market and to increase revenue. Suppose the secondary market sells a ticket to an event for six times the face value. In that case, the ticket distributor is undervaluing the asset. As the world starts to emerge from the pandemic, concert venues are filling up. But, ticketmaster’s alienating of fans in a post-COVID-19 market is leaving artists with little recourse and difficult decisions to make about how to best serve their fans.
What is Dynamic Pricing, and How Does it Work?
Concert dynamic pricing is a system where the prices of tickets for a concert are constantly changing in real-time based on demand. The prices will increase if many people are interested in seeing a particular show. On the other hand, if there are fewer people interested in seeing the concert, the prices will go down. Concert promoters use dynamic pricing to maximize profits by charging the most possible for each ticket. Dynamic Pricing can be frustrating for concertgoers, who may have to pay more than they originally planned to see their favorite band. However, dynamic Pricing can also work in favor of concertgoers, as promoters may lower prices if there is not enough interest in the concert. In either case, knowing how dynamic pricing works is important before buying tickets for a show.
The Pros and Cons of Dynamic Pricing.
The debate over concert ticket prices is nothing new. Still, in recent years, a new wrinkle has been added in the form of dynamic pricing. Under this system, ticket prices are constantly changing based on demand, meaning that fans who don't buy tickets right away may end up paying more. While dynamic Pricing can benefit artists and promoters, it also has disadvantages. For one thing, it can be difficult for fans to keep track of prices, making it easy to overpay accidentally. Dynamic Pricing can also lead to sharp price hikes when an artist unexpectedly becomes popular. Fans on a budget are unable to see their favorite performers. Dynamic Pricing is another tool that promoters can use to maximize their profits. While it has some advantages, it also has some disadvantages. Fans who are aware of how dynamic pricing works can be sure to get the best deal on concert tickets.
How Do Ticket Prices Affect Fans?
Ticket prices are a significant factor in whether fans attend a concert. Many fans will stay home and consume other media if prices are too high. However, if ticket prices are reasonable, fans are more likely to attend the concert. The number of people who attend a concert can also affect ticket prices. If a show sells out, ticket prices for the next concert may increase because there is more ticket demand. On the other hand, if a concert is not selling well, ticket prices may go down to attract more fans.
Are There Any Other Ways to Buy Tickets?
Fans can buy concert tickets in many ways other than through Ticketmaster. For example, people can buy them on secondary market websites like StubHub or Vivid Seats. Also, sometimes people will resell their tickets on Craigslist or eBay. Another option is to purchase tickets from a scalper outside the concert venue. Buying tickets from scalpers is illegal in many states because it is a private sale and is often untaxed. When buying concert tickets, it is essential to do some research to find the best option for you.
Should the Government Get Involved in Regulating Ticket Prices?
With inflation and the rising cost of living, household budgets are increasingly tightening. Fans are struggling to afford the ever-increasing price of tickets for sporting events, concerts, and theatre productions. As a result, there are growing calls for the government to intervene and regulate ticket prices. While some argue that this would lead to fewer choices and events, others believe it would make these activities more affordable for everyday people. Ultimately, it is up to the government to decide whether to get involved in regulating ticket prices. However, whatever the decision, something must be done to address the affordability issue.
How can fans protect themselves from price gouging?
With the rise of the secondary ticket market, concertgoers have become increasingly susceptible to price gouging. Many fans find themselves shelling out hundreds of dollars for tickets that were initially only a fraction of the price. While it may seem like there's no way to avoid getting ripped off, there are a few things that fans can do to protect themselves. First and foremost, avoid buying tickets from secondary marketplaces. These platforms typically charge significantly higher prices than the original ticket provider. Instead, try to purchase tickets directly from the venue or through an official re-seller such as Ticketmaster. If you do find yourself resorting to the secondary market, be sure to do your research ahead of time. Familiarize yourself with the average prices for similar tickets to spot a scalper when you see one. Finally, remember that concert tickets are a hot commodity, so don't be afraid to shop around. With a little effort, you should be able to find tickets that fit both your budget and your schedule.
Conclusion.
Many fans feel they are being used as guinea pigs in a continuing experiment to determine the actual market price of live events. Dynamic Pricing is unfair, making it difficult for fans to enjoy the concerts they love without breaking the bank. Ticketmaster needs to do better for its fans and find a way to sell fair and transparent tickets. Otherwise, it risks losing the support of the people who keep the live music industry alive.
What do you think? Are you outraged by Ticketmaster's use of dynamic Pricing? Or do you think it's just a case of supply and demand? Let us know in the comments!
Dr. Mike Testa
