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Hundreds of thousands of Taylor Swift fans will be checking their phones closely Monday night, waiting to see if they’ve been selected by Ticketmaster’s verified fan system to buy tickets to the pop star and singer-songwriter’s upcoming stadium tour. When those tickets go on sale later in the week, it will take a few minutes for them to sell out.
Live music has boomed in the US since the pandemic has eased, and avoiding high demand for tickets and low inventory is now a common theme for music fans, who in recent weeks have seen 2023 tour announcements for acts up to Blink-182. and Bruce Springsteen and Chris Stapleton from Paramore causing instant sell-outs when tickets became available.
That extreme demand comes as audiences are spending more than ever before to attend a concert. Live Nation EntertainmentTicketmaster’s parent company, as recently indicated, isn’t going down anytime soon.
Ticket sales for concerts in the third quarter of 2022 are up 37% compared to 2019, and ticket sales for concerts scheduled for 2023 are expected to increase by double digits compared to the previous year, the company said. Compared to 2019, fans spent 20% more at the venue on average.
Live Nation president and chief financial officer Joe Berchtold said on the company’s third-quarter earnings call with analysts on Nov. 4 that “this is structurally a level of spending that we’re seeing now from the consumer.”
“More elite, more platinum tickets, getting that money to the artist. And we’re seeing a relatively strong inelasticity in demand for those prime tickets,” he said. “People are going for a bit higher quality when it comes to certain alcohols, some of our product offerings are more of a bargain for people to get higher priced products.”
“All we think is a continuation of the trends we’ve seen over the last few years and there’s no reason to expect that to change going forward,” he added.
Last summer’s arena shows were the most sought-after by acts like Coldplay and the Red Hot Chili Peppers, with more than 500,000 multi-tour tickets sold, pushing Live Nation to record its highest quarterly attendance yet — more than 44 million fans. 11,000 events.
Berchtold said Live Nation’s outlook for next year’s arena tour — enhanced by Swift — will be “the biggest arena we’ve ever had.”
But with high-profile acts like Swift and Springsteen already booked for arenas next spring and summer, and the possibility of other acts like Beyoncé and Rihanna also going on tour, that could push other acts into next year. That means there is no end to the high demand for tickets.
“The good news is that ’22 is probably going to be a record year, but there are only so many Fridays and Saturdays and artists are very smart about how they run their tours and how they look at the world and find their right placements,” Live Nation CEO Michael Rapinoe told analysts. “You don’t get a bunch of tours stacked up in the same weekend. So that meant we had more stock to spread through ’22, ’23, and we’re talking ’24 now. So, I’d say we’re still through the system in ’22, ’23. There’s a downside that needs to be worked through, and it’s going to be an incredibly strong year.”
Criticism of ticket prices
As more people look to buy tickets to their favorite musician’s tour, criticism of the cost of tickets as well as the fees associated with them has grown.
Last month, US President Joe Biden said he would follow suit as part of his plan to cut costs for American citizens.“Hidden unnecessary fees,” one of which is tied to concert tickets, he said.
“I know hidden unnecessary fees — like processing fees on concert tickets — are a pain. They’re unfair, they’re deceptive, they add up,” Biden said. Tweeted.
After Biden’s announcement, Live Nation said in a press release that it appreciates “his advocacy for fee transparency in every industry, including live event ticketing,” and supports an FTC order requiring face value prices and fees to be displayed upfront. As it is needed in other parts of the world.
However, Ticketmaster has faced other complaints about inflated ticket prices as well as the inclusion of premium seating for concerts in its “Official Platinum” feature, which has variable prices based on demand. Tickets in those categories have seen their prices skyrocket during periods of high demand, with some seats for Springsteen’s upcoming tour listed for $5,000 each on the first day they went on sale.
Ticketmaster only included 11.2% of the seats in the program, and the average ticket price sold for the tour was $262, U.S. Rep. Bill Pascrell wrote in a letter to Live Nation in August saying “much-needed transparency in sales, pricing, and Distribution of live event tickets.”
“Verified ticket sales every morning has created high stress and frustration for our voters.
Ticketmaster distanced itself from ticket prices in its own statement, noting that promoters and artist representatives set the pricing strategy and price range parameters of all tickets, including fixed and market-based price points.
“As the resale ticket market has grown into a $10 billion-plus industry over the past few years, artists and bands have lost that revenue to resellers who don’t have the investment to make the event go well, or to the people working behind the scenes to bring it on. , event organizers have looked to market-based pricing to recoup lost revenue,” the company said.
“We’ve had double-digit growth in the live entertainment space, year-over-year. We expect both pricing and global volume to continue as demand and supply continue to grow around the world,” Rapino told analysts.