ticket prices
There’s no disputing that concert tickets are more expensive than ever, with prices rising faster in the last three years than any previous period. Most of the major players in the concert business have recognized the rapid double-digit increase since the end of the pandemic, but few agree on what’s causing prices to spike or whether the increase represents a real problem.
“It’s like going to Disneyland on a really packed day and wondering, ‘How can so many people afford to be here right now?’” says Jed Weitzman, a ticket-pricing expert who specializes in the concert business. “Part of you wonders how a family of four can afford to be there, and yet, clearly, there’s no shortage of people willing to pay to get in.”
This year, the median ticket price to see one of the top 40 highest-grossing tours of 2024 — playing arenas and stadiums — will cost fans $151, according to data compiled by Billboard Boxscore. Three years from now, in 2027, the average cost of such a tour ticket is on track to hit $200 due to steady year-over-year increases to see in-demand top-tier acts like U2, The Weeknd, Sabrina Carpenter and Billy Joel.
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Prior to the pandemic, the price of admission to a top 40 concert had increased 3% to 4% a year, according to Billboard Boxscore. That number more than doubled when touring resumed, increasing an average 9.9% annually. A recent study from Torsten Sløk, chief economist at Apollo Global Management, concluded that tickets were increasing at about 11% a year.
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The reason for the price increase is less straightforward. Live Nation, the world’s largest concert promoter, attributes the escalation largely to the inflationary costs of global business in 2024. It also contends that tickets to see superstar talent, whether it be Oasis, Beyoncé or Bruce Springsteen, have long been underpriced by image-conscious artists who don’t want their fans to accuse them of price-gouging.
The problem with this argument, say officials with the U.S. Department of Justice who have filed a historic antitrust lawsuit against Live Nation, is that it ignores the structural advantages the megapromoter enjoys against nearly all of its competitors. Prices are rising, the government claims, because Live Nation can outbid its rivals by overpaying for touring talent and making up its losses in the concert promotion sector through its affiliated businesses: venue ownership, Ticketmaster and sponsorships.
The government argues that by overpaying for talent, Live Nation is also passing on these increased costs to consumers through higher prices. The problem with this theory, many concert experts argue, is that it oversimplifies the economics of touring and lets the government off the hook for its failure to enforce the Better Online Ticket Sales Act, which was signed into law in 2016 to thwart mass ticketbuying by scalpers using bots.
That failure to rein in the illegal use of software and hacking tools — which lead to huge markups on the secondary market — these experts contend, has created a pricing crisis that has made accessing tickets to popular tours at face value practically impossible. In a piece on StubHub’s postponed initial public offering earlier this year, longtime music analyst Chris Castle alleged that the wholesale use of bots to acquire and sell concert tickets “is not a theoretical antitrust case,” but one “dealing with real-time massive consumer fraud” that’s “perpetuated and funded by the public financial markets.”
WME agent Kirk Sommer, whose artist clients include Bruno Mars, The Killers, Adele and Hozier, says he’s cognizant of what other artists are charging for tickets, but fans tend to evaluate concerts on a case-by-case basis and are less concerned about pricing trends.
“I’m never focused on creating one price for a tour that is going to satisfy an artist’s fans,” Sommer explains. “The goal is always to create a wide range of opportunities that fans from all income levels can buy into. It’s important there is something for everyone.”
Sturgill Simpson is keeping it simple for his Why Not? Tour this fall.
The country artist announced on his website in July that although he and his team were “doing everything in our power to keep tickets in the hands of fans and out of the hands of scalpers,” they were opting out of using dynamic pricing for the 37-date run.
Although dynamic pricing is one of the concert business’ most effective tools for keeping tickets off the secondary market, it’s also a major factor in the sharp rise of ticket prices, and Simpson was taking his fans’ wallets into account.
For years, promoters put tickets on sale at a handful of price points, then watched them sell out and get listed with huge markups on the secondary market — revenue that would not accrue to them.
Since then, scalpers have hacked most efforts to foil them, including one of the strategies Simpson is employing: vetting presale buyers. The only proven deterrent has been dynamic pricing: charging what the market will bear during the initial on-sale in hopes of curbing secondary markups.
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In the early days of the music industry’s post-pandemic return to live shows, when pent-up demand led to robust sales, dynamic pricing became the go-to strategy for major acts. The move helped lead to a 30% rise in ticket prices from 2019 to 2024, however, according to Billboard Boxscore, with the average ticket price of a top 40-grossing tour jumping $111 to $144 at midyear 2024 — 6.6% in the past six months.
With the pandemic in the rearview mirror, many in the industry express concern about the sustainability of this upswing. In recent weeks, The Black Keys, Jennifer Lopez and other high-profile artists have canceled tours due to backlash over ticket prices. (The Black Keys fired their management in the aftermath.)
According to Billboard Boxscore, only a handful of acts can charge more than $200 a ticket and sell out, and yet more artists are pushing the boundaries on ticket price and quickly approaching average ticket prices between $150 to $200, getting very close to the ceiling of what fans can or will pay.
“Patronage is up — we are seeing more fans come out to shows, but our costs are eating into the increase in volume,” said Morgan Margolin, CEO of Knitting Factory Entertainment, who says agents and managers are charging 30% to 40% more for acts than they did prior to the pandemic.
“It’s getting more difficult to do business in the major markets, especially with minimum wage increases, insurance, rent, and other costs,” he added. “If artists and managers and agents keep escalating on top of those fees, where is the tipping point?”
The Black Keys successfully played U.S. arenas in the past but only a handful. Most of their dates were either festival slots or amphitheater and theater shows. In 2019, they grossed $28 million on their co-headlining Let’s Rock run with Modest Mouse. Tickets for that tour started at $36.50, with four price points under $100. For the band’s canceled International Players Tour, some tickets were priced at $59.75 and $89.75 but others were listed for $119.75, $159.75 and $199.75. In comparison, the bulk of Simpson’s tickets are selling in the $53 to $72 range.
Pricing tickets based on how much scalpers might profit is difficult and risky. If they are overpriced and the tour flops on the initial on-sale, it’s almost impossible to save. Reducing the price can alienate fans who paid the full cost. Stay the course, and if the tour is deemed a loser, fans will avoid it.
“I think a lot of these artists are getting bad advice and not thinking through the long-term consequences of chasing big bucks,” one arena booking executive says. “And that’s going to hurt them in the long run.”
A version of this story will appear in the Aug. 31, 2024 issue of Billboard.
Ticketing for live events is not only under the Justice Department’s microscope but front and center for music fans across the country. This focus places our industry at a crossroads. We can either stay with the status quo, in which events are egregiously expensive and funds go to resellers rather than artists and venues, or we can use this moment to support reform that benefits the broader live event ecosystem.
For too long, fans, artists, and venues have been caught in an unchecked marketplace riddled with speculative ticketing, deceptive practices and exorbitant price gouging.
But all is not lost. We have an opportunity to establish guardrails that protect fans, create trust and promote a healthy live event industry.
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The Fans First Act is the right bill, at the right time. If passed, this important bipartisan legislation will bring much-needed enforcement and transparency, prohibit deceptive websites, disclose resellers, and ban speculative ticketing. That is why we call on Congress to pass this important legislation and move it to the White House for signature.
The Problem
To understand why we need the Fans First Act requires a full understanding of the problem and how we got here.
Fans find themselves in a perfect storm. Amid inflation and an unpredictable economy, they face bots, brokers and skyrocketing prices for live experiences (concert ticket prices have increased by 35% since 2019), according to Pollstar. While fans are eager to see their favorite acts and artists live, too many cannot.
Music festivals are a prime example of live events looking to adapt to the current economic environment of increased costs for fans (tickets, travel/lodging and food) and rising production fees. Unfortunately for fans, this means canceled events. This year, manyfestivals have been canceled as organizers look to consolidate and adjust to rising fees and economic constraints.
Dig deeper into the fan experience and we find that many fans’ first engagement with live entertainment is through a reseller on a secondary ticketing site, sometimes posing as the actual venue.
Fans are often asked to cough up well over $500 for a decent ticket on the secondary market, and that’s for real tickets. A buyer has no sense of clarity about the primary ticket seller. For example, Seattle fan Kerry Dellisanti had her own dream crushed when her $895 nosebleed ticket for a Taylor Swift concert turned out to be speculative (fake). Her friends ended up enjoying the show without her.
Fans across genres and localities are frequently deceived by fake tickets. Many book non-refundable travel and hotels for concerts they think they have a real ticket for, but they’ve been scammed.
Everyone is losing in this environment.
Unscrupulous brokers and illegal bots have been increasingly detrimental to consumers. As they resell tickets at the highest possible price, it’s having a direct impact on the full ecosystem of live events, harming fans, artists and venues alike.
Sky-high profit margins for the secondary ticket seller means fans are seeing fewer shows and spending less on venue concessions and merchandise that sustain organizers and artists. When fans show up at a venue with a fake or overpriced ticket, the predatory seller who defrauded them is nowhere to be found. It is the venue owners, artists and small businesses who are left to pick up the pieces of this unchecked ticketing ecosystem.
The Solution
Our industry is at a crossroads. Cater to the resellers and brokers who have no investment in the concerts? Or swing the power of the live performance industry back into the hands of fans, artists and venues?
We call on Congress to pass the Fans First Act. Fans, artists and venues are the lifeblood of the live entertainment industry and their experience should always be at the forefront. The time is now to give the industry back to the people who make it tick and get back to what makes live events and music so important — and what fuels local economies across the country.
The connection. The experience.
Julia Hartz is co-founder, CEO and executive board chair of Eventbrite.
Stephen Parker is executive director of the National Independent Venue Association (NIVA).
After months of public handwringing over slow ticket sales, the annual Coachella Valley Music and Arts festival opens Friday (April 12) near Palm Springs with an anticipated attendance of nearly 200,000 fans over two weekends, sources tell Billboard, selling approximately 80% of the 250,000 tickets available for purchase this year.
How the shortfall will impact the festival’s bottom line is unclear, but the sources close to the festival say the dip in sales, down 14%-17% over last year, is not as bad as many had predicted. The first weekend of the festival has historically sold out of tickets in a few hours, but this year, it took nearly a month for tickets to the first weekend to sell out.
Coachella remains the most-attended and highest-grossing annual festival in North America, beating out Austin City Limits — which is also spread out over two weekends with an attendance capped at 75,000 people per weekend — and Electric Daisy Carnival at the Las Vegas Speedway, which saw attendance max out at more than 130,000 in 2022.
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Coachella is also the largest media platform in the festival space, drawing in a massive viewership thanks to its partnership with YouTube and the hundreds of media credentials it assigns to major news outlets who provide nonstop coverage. In January, Gwen Stefani’s manager Irving Azoff told Billboard that one of the reasons No Doubt decided to stage their 2024 reunion performance at Coachella was due to the attention the festival attracted globally.
But Coachella’s size and cachet doesn’t make it immune to the challenges facing much of the festival industry. A number of popular festivals set for the second quarter of 2024 — New Orleans’ JazzFest, which runs from April 25 to May 5, along with L.A.’s Beach Life festival in early May and Daytona Beach’s famed Welcome to Rockville festival May 9-12 — have not sold out of tickets, for example. Other popular events later in the year, like Governors Ball in New York (June 7-9), Electric Forest (June 20-23) and Lollapalooza (Aug 1-4), which used to sell out days after going on sale, haven’t sold out either.
There’s little agreement on why sales have slowed. Ticket brokers used to buy up thousands of tickets to flip for profit on sites like StubHub, but sales volume for events like Coachella or Lollapalooza have dropped significantly in recent years as the markup potential has dwindled away.
Booking agents from major agencies representing A-list talent have begun arguing that festivals need to create more lucrative financial incentives to attract better headliners, while many independent agents link the decline to price increases that have made tickets unaffordable.
Ticket prices for Coachella increased $50 from 2022, when three-day GA passes cost $449, to $499 in 2024, an increase of about 11%. In 2019, prior to the pandemic, three-day GA passes were priced at $429.
Booking agent JJ Cassiere, co-founder of independent booking agency 33rd and West, says festival fans are more sensitive to price increases than they have been in the past, especially younger fans who are seeing their spending power eaten away by inflation.
“I’m very concerned about the fans who are finding themselves priced out of the market,” Cassiere tells Billboard, noting that even a $20 price increase can be a make-or-break hike for some fans.
Other agents blame the dip in sales on headliner talent, arguing that the 2024 festival headliner pool — which, for Coachella, includes Lana Del Rey, Tyler the Creator, Doja Cat and No Doubt — doesn’t generate the same enthusiasm that touring artists like Taylor Swift and Beyoncé did in 2023.
The festival’s lineup is a sign “that Coachella and nearly all other festival bookers had limited options when it came to talent,” says one booking agent who has worked with the festival for over a decade and asked to speak anonymously for this article. “The number of artists wanting to tour around festivals this year is very small.”
For much of the 2010s, festivals were able to pay headlining artists as much as 50% more than artists would make headlining their own arena tours — after all, festivals often charged more for tickets, drew much larger crowds and covered much of an artist’s production costs. That began to change in 2016 and 2017, explains agent Jared Arfa with IAG, as ticketing companies like Ticketmaster and AEG AXS began focusing on the amount of money that scalpers were making selling tickets at large markups. To help close the gap and capture that revenue for artists, Arfa says, Ticketmaster and others began using programs like dynamic pricing and platinum to strategically increase the price of higher-demand tickets — such as front-row seats — and significantly increase how much artists were making at their own concerts.
The result has been a huge increase in price, with the top 10 tours of 2023 earning an average of $5.7 million per show compared to 2017, when the top 10 tours were averaging $3.6 million per show — a 58% increase in only six years.
“The issue for every festival now is that dynamic pricing is so good and prevalent that any artist big enough to headline a festival is more motivated to just headline their own shows,” one agent tells Billboard, noting that a headlining slot at Coachella in 2024 is less of a financial decision and more about artists “who are on their way up and need to make a statement.”
“In the future,” the agent continues, “festivals need to adjust to accommodate this changing reality, by either paying headliners more or booking stronger undercards — but that’s not easy.”
While headliners are important, Peter Shapiro with Brooklyn Bowl and Day Glo Ventures says spending more on talent isn’t always a viable long-term solution and notes that the best investments festival producers can make are in their festival community and overall experience.
“People attend festivals because they enjoy an outdoor experience with other fans in a setting that feels comfortable,” Shapiro says. “That won’t change and the more organizers can invest in improving that experience, the more it will pay off in the years ahead.”
The concert business has had a record year in 2023 — tours by Taylor Swift and Beyoncé were pop culture moments, festivals roared back to life and consumers’ splurging on tickets seemed to defy gravity. There’s likely more good news on the horizon, too. By all forecasts, next year is shaping up for continued success, even as consumers still feel pinched by inflation.
Among the big names to announce stadium tours next year are The Rolling Stones, Foo Fighters, Green Day and a pairing of Journey and Def Leppard. Chris Stapleton, Zach Bryan and Luke Combs will hit both stadiums and arenas. Drake, Bad Bunny, Thirty Seconds to Mars, Hootie & the Blowfish, New Kids on the Block, Alanis Morissette and The Trilogy Tour featuring Enrique Iglesias, Ricky Martin and Pitbull will play arenas and amphitheaters. Taylor Swift’s The Eras Tour continues in 2024, too, with 85 shows announced for Asia, Australia and North America.
Advanced ticket sales suggest consumers remain eager to see their favorite artists perform live. Through mid-October, Live Nation’s event-related deferred revenue — from ticket sales to events that had not yet occurred — was up 39% year over year, according to the company’s third-quarter earnings release.
AEG Presents, the second-largest promoter, is “feeling really positive” about 2024 tours across all venue sizes and genres, says Rich Schaefer, president of global touring. “I think people are discovering new artists and want to see big shows — and they’re willing to pay for it.” They’re buying well in advance, too: AEG put tickets on sale for 76 Zach Bryan shows in 2024 — some won’t happen until December — and has “largely sold everything out,” says Schaeffer. “That artist especially has a crazy connection with his fans. They’ve seen videos of what his shows are like, and I think everybody wants to experience it.”
Those big tours — and thousands of others — are counting on consumers to continue to open their wallets despite continued high prices for staples and living expenses, rising debt delinquencies and Americans’ credit card debt reaching a record level in the third quarter. The holidays are presenting mixed signals: Black Friday spending was up 2.5% compared to 2022, but numerous surveys have found consumers plan to spend less on gifts this year.
Consumers may feel beleaguered, but they continue to spend to see their favorite artists perform live. “I have weekly booking calls with the over 40 presidents around the world and we talk booking clubs up to stadiums and festivals, and we have not seen anything taper off in any sense,” said Live Nation CEO Michael Rapino during the company’s Nov. 2 earnings call. The company is “not seeing any pullback in any way” in consumer demand regardless of the region or venue size, he added.
A big question, though, is whether consumers will be in a spending mood throughout 2024. A new Goldman Sachs economic outlook report says the U.S. economy today is better than was expected a year ago, inflation will continue to subside and the likelihood of a recession in 2024 is “limited.” The latest data from the University of Michigan is encouraging: U.S. consumer sentiment soared in December and people’s expectations for year-ahead inflation dropped to 3.1% from 4.5% last month.
Whatever uncertainties exist — including falling savings rates and weakening credit conditions — have not materialized in ticket sales thus far. “We certainly see the headlines [about macroeconomic conditions], but it’s not flowing through to numbers that we can see,” Lawrence Fey, CFO of secondary ticket marketplace Vivid Seats, said during a Nov. 7 earnings call.
One could simply look at who’s touring in 2024 to get a sense of where ticket buyers are thinking. “You got The Stones going on the road in parts in North America,” says Doug Arthur of Huber Research Partners. “They’re always a pretty big draw. The Stones are pretty savvy historically about touring when they think the economics support it.”
Consumers’ willingness to spend increasing amounts on live music isn’t a new trend — although some of 2023’s record-setting box office numbers appear to be the result of music fans may be clamoring for live events in after suffering through pandemic-era restrictions. The concert industry has benefited from a lasting shift among consumers from goods to experiences over the last 10 to 15 years, says Brandon Ross, an analyst with LightShed Partners.
This year’s boffo box office numbers weren’t outliers, and Ross expects to see “outsized performance on a global basis” in 2024. “There has been a year-and-a-half long concern for a broader pullback in consumer spending,” says Ross. “I don’t think will not impact growth, but I think there’s substantial tailwind supporting this industry.”
Those tailwinds probably won’t be strong enough for next year’s touring business to duplicate 2023’s stellar growth rate — but no one seems to be expecting that. “I don’t think you’re talking about another up 30% type of year, and I don’t think [Live Nation is] talking about that either,” says Arthur. “But can the concert revenues be up high single digits between volume, fans per show, price per ticket and spending per fan? Yeah, I think that’s not unreasonable at all.”
Artists and promoters will continue to encounter high costs in 2024 — labor, catering, buses and staging are stretched thin with a high number of big tours on the road. That’ll continue to push ticket prices up. Even so, AEG hasn’t seen resistance to higher prices, says Schaefer. “There’s very few instances where we think that pricing is responsible for tickets not selling.”
Live Nation officials are at an impasse with a powerful Senate subcommittee over demands that the concert promoter hand over confidential emails, contracts and memos detailing sensitive information about artist compensation.
Attorneys for Live Nation say they have already turned over more than 10,000 documents to investigators working for Sen. Richard Blumenthal (D-Conn.) and the Permanent Subcommittee on Investigations, or PSI, which Blumenthal chairs. Live Nation in-house counsel Dan Wall wrote on Live Nation’s corporate blog on Tuesday (Nov. 21) that the company is willing to hand over more sensitive documents if the PSI agrees to confidentiality protections to ensure the information is kept out of the public domain.
So far, Blumenthal has refused to agree to any restrictions requested by Live Nation and issued a subpoena for the confidential documents on Nov. 16. Live Nation officials plan to challenge the subpoena in court and are preparing for a lengthy legal battle to protect the confidentiality of its artist contracts if the two sides can’t reach an agreement.
“It is only in a subpoena enforcement action [before a federal judge] that Live Nation can assert its rights to protect the confidentiality of this information,” Wall wrote in the blog post.
Live Nation’s insistence on “confidentiality protections” is fairly routine, most legal experts agree, especially when it comes to court proceedings or investigations by government agencies. It’s also common practice for congressional investigators to agree to confidentiality rules while collecting evidence for congressional inquiries, but there’s no legal recourse if a member of Congress or staff discloses confidential information to the public.
News on Monday (Nov. 20) that Live Nation was being investigated by the powerful Department of Homeland Security and PSI surprised many music industry insiders. Created by President Harry Truman in 1941 to investigate wasteful defense spending after World War II, the PSI’s focus for much of its existence has been on matters of national security, including Korean War atrocities, the American Mafia’s influence on major labor unions and the government’s response to Hurricane Katrina.
Under Blumenthal’s leadership, the PSI has shifted its focus to consumer-oriented investigations, like the proposed merger of the PGA and the Saudi-backed LIV Golf league, equity within Medicare Advantage and sexual abuse in federal women’s prisons.
Blumenthal has also long been a critic of Live Nation and its 2010 merger with Ticketmaster, calling for the two companies to be split apart during a high-profile Senate hearing in January. According to a Nov. 16 letter from Blumenthal to Live Nation CEO Michael Rapino, the PSI officially began investigating Live Nation in March, in part for what Blumenthal calls “failure to combat artificially inflated demand fueled by bots in multiple, high-profile incidents, which resulted in consumers being charged exorbitant ticket prices.”
That description is the only public hint of what PSI is focusing on in its Live Nation investigation and doesn’t seem particularly damning of the concert promotion company. While bots, often operated by scalpers, do inflate demand for tickets — especially during high-profile onsales — and can lead to exorbitant ticket prices, it’s almost always Ticketmaster’s competitors in the secondary market who stand the most to gain.
Before Live Nation hands over any documents that contain “highly sensitive client information about artists, venues and others with whom we deal,” Wall wrote in the blog post, the company wants “binding confidentiality protections to prevent its misuse.”
Live Nation’s request might prove more difficult than the company’s leadership realizes, says Andrew Olmem, attorney and partner at Mayer Brown, which specializes in defending clients targeted by major investigations and congressional inquiries.
“Any documents provided to Congress are always vulnerable to public disclosure,” Olmem explains, noting that Congressional members and their staffers enjoy broad protections against criminal and civil liability under the U.S. Constitution’s speech and debate clause.
It is common for attorneys of clients targeted by Congressional inquiries to negotiate terms of documents’ use with investigators requesting the information, Olmem says. Many investigators, he adds, care deeply about reputational trust, knowing that violating confidentiality agreements with targets could make future targets less willing to voluntarily cooperate with document requests and significantly slow down investigations.
“But even if you secure such an agreement, members of Congress and their staffs can’t be liable for releasing confidential documents as part of their official legislative duties, such as submitting (the documents) into the congressional record or reading them on the House or Senate floors for the purpose of informing a legislative debate,” Olmem continues. “There are many circumstances in which members and their staff are incentivized to leak and do leak information for political purposes without consequences.”
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