Ticketing
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President Joe Biden announced a major accomplishment in his battle against ticketing junk fees Thursday (June 15), but the impact is likely to be minimal.
After meeting with executives at Ticketmaster, SeatGeek and Dice, among others, those companies agreed to adopt all-in ticket pricing for their sales. For Ticketmaster, that will specifically impact shows at the more than 250 venues owned by parent company Live Nation in the United States — not all its ticketing clients.
The companies’ commitments to all-in pricing are part of a larger effort under the Biden administration and the Federal Trade Commission to reign in billions of dollars in junk fees charged to consumers by banks, hotel companies and entertainment groups. And while the buy-in from some of the world’s largest ticketing companies is an important milestone, the voluntary change will likely only impact a small percentage of tickets and give ticket sellers who conceal add-on fees to consumers until the end of the checkout process a competitive advantage over firms who display the full price at checkout.
The limited impact of Thursday’s announcement underscores the challenges lawmakers face as they attempt to come up with legislative fixes for the ticketing industry in the wake of disruptions to Taylor Swift’s high profile Eras tour. While politicians like Senator Amy Klobuchar (D-Minn.) have pointed the finger at Ticketmaster’s dominant market share, a growing coalition of music industry insiders under the #FixTheTix banner have blamed scalpers for the disruptions to the Taylor Swift sale and continued bot attacks on the ticketing industry.
While much of the battle between Ticketmaster and secondary sites like Stubhub and SeatGeek comes down to fundamental disagreements over artists’ rights to control their tickets and consumers’ rights to buy and sell tickets at whatever price the market will bear, the elimination of last minute fees added to tickets at checkout — sometimes as high as 25% to 35% of the face value of the ticket — had support from both primary and secondary ticket sellers.
In order for the all-in pricing to work, however, most experts agree that it must be mandated by law. Otherwise, many ticketing companies, sports teams and venues are unlikely to voluntarily change their pricing policy out of concern it could be a competitive disadvantage for their facility.
Even Thursday’s commitment from Ticketmaster has no impact on the hundreds of sports venues that sell millions of tickets to games and concerts each year. That’s because Ticketmaster cannot force teams within National Hockey League, National Basketball Association and National Football League to adopt all-in pricing at their stadiums and arenas, despite holding the exclusive ticketing rights to approximately 80% of the teams within those three leagues.
The same goes for the hundreds of independently owned venues for which Ticketmaster provides ticketing services.
Looking at the top 40 venues on Billboard‘s midyear Boxscore charts, while most are ticketed by Ticketmaster, none are owned by parent company Live Nation and none of the facilities will initially offer all-in pricing on their websites or ticket sales pages under the new commitment. The same goes for the hundreds of tours Live Nation promotes as well. That’s because standard ticketing contracts allow venues — and not Ticketmaster or other ticketing companies — to decide how tickets are sold, how much money in fees is added to a ticket, and how and when the breakdown between face value and add-ons like facility fees are displayed to consumers.
Studies show that ticketing companies that don’t use all in pricing have a competitive advantage over companies that show the full price of a ticket upfront. A consumer study by Stubhub in the 2010s shown that fans were more likely to purchase a ticket, even if it had a higher checkout price, if the initial price they were shown was lower than comparable tickets on other websites prices
“Live Nation’s promise today to give Americans price transparency at their venues is encouraging, but we need all-in pricing at all venues, for all live events, and on all ticket selling services now,” Rep. Bill Pascrell (D-N.J.) wrote in an email to Billboard, noting his bill, the BOSS and SWIFT ACT legislation would “mandate in law all-in pricing for true transparency.”
“Not until every seller offers all-in pricing can consumers get the comparison shopping experience for tickets that they deserve,” he wrote.
Critics of the BOSS and SWIFT ACT argue that while the legislation does improve transparency, it includes protections for ticket scalpers that would make it impossible for artists to protect their concert tickets from price gauging.
“Live Nation is proud to provide fans with a better ticketing buying experience,” said Tom See, president of Live Nation’s Venue Nation, in a statement. “We have thousands of crew working behind the scenes every day to help artists share their music live with fans, and we’ll continue advocating for innovations and reforms that protect that amazing connection.”
Stephen Parker, executive director of the National Independent Venue Association, told Billboard in an email, “Up-front pricing should be the start of comprehensive ticketing reform that protects consumers from price gouging and deceptive practices by predatory resellers.”
“We applaud the President for today’s meeting and look forward to working with his Administration and Congress to make comprehensive, bipartisan ticketing reform a reality,” Parker continued.
The National Independent Talent Organization, a group representing independent talent booking agents, applauded the voluntary change at Ticketmaster, but noted the change was “an important first step.”
“Until Congress acts to eliminate excessive fees and secondary ticketing is carefully regulated,” the organization said in a statement, “millions of consumers will still be the victim of predatory ticketing practices.”
Sen. Ted Cruz (R-Texas) and many liberal Democrats have two things in common, and perhaps only two: They hate the way concert and sports ticket sales work — specifically the company selling most of them, Ticketmaster — and they love Taylor Swift. Or, at least, they acknowledge that ingratiating themselves to Swift’s fan army as she sells out stadiums in their states is an efficient way to build up constituent support.
Over the past couple of months, Cruz, Sen. Amy Klobuchar (D-Minn.), Massachusetts Sen. John Velis (D-Hampden and Hampshire) and others have presented a variety of bills intended to reform the ticket-selling business, invoking Swift and fans’ displeasure with Ticketmaster’s Eras Tour on-sale fiasco in November, when more than 100,000 fans were kicked out of the online sale queue. Following a Senate subcommittee hearing focused on Ticketmaster in January, politicians clearly see positioning themselves against the ticketing giant and attaching themselves to Swift’s millions of passionate fans as a winning combination. They’re even naming their bills after her.
“There’s a growing awareness of the problem, and the Taylor Swift concert debacle played a part in focusing a lot of attention on the issue,” Cruz tells Billboard, adding that his 12-year-old daughter recently attended an Eras Tour show.
That debacle, Ticketmaster declared at the time, was due to unprecedented levels of illegal bots attacking the online sale. But that claim did little to satisfy fans and politicians, who during a January Senate hearing instead chose to focus on monopolistic behavior by Ticketmaster and its owner, promoter Live Nation, often referencing Swift lyrics between swipes at the company. Since then, the rhetoric has changed slightly. While politicians continue to scrutinize the concert giant — Klobuchar says the Department of Justice is investigating Live Nation and Ticketmaster for possible violations of their 2010 consent decree — senators and congresspeople at federal and state levels are proposing solutions to potentially more manageable issues.
In Massachusetts, Velis and his co-sponsor, Rep. Dan Carey (D-Easthampton), have introduced what they nicknamed the “Taylor Swift bill,” which aims to abolish hidden ticket fees and require sellers such as Ticketmaster and SeatGeek to disclose service charges and costs upfront. A similar law already exists in New York state, and Live Nation actually supports the issue — including it in the company’s own proposed legislation outline. “Taylor Swift obviously sells out every concert,” Velis says, “but she’s also got this support ecosystem that lends itself to, ‘If you want to do something about this, why not use something that’s absolutely going to get the public’s attention?’”
But at a time when opposing Ticketmaster is good politics, one source in touring suggested politicians do not want to be seen aligning with the corporate giant. That political strategy may even be holding back legislation on other subjects where there’s popular consensus. Other bills, like the one Klobuchar and Sen. Richard Blumenthal (D-Conn.) introduced in April, limit exclusive deals with venues and therefore more directly target Ticketmaster.
Velis said he and Carey plan to meet with Ticketmaster executives in the coming weeks to discuss their bill. “The more you can firm up a piece of legislation to get rid of unintended consequences, you’re better off,” Velis says. “That being said, as it relates to just telling a consumer, ‘This is what you’re going to spend if you want to go to this concert’ — I can’t think of anything remotely close to approaching how someone can convince me that’s not a good idea.”
To help wade through the many different pro-Swift, Ticketmaster-targeting bills out there, here’s a rundown of what they each intend to achieve — and what each legislator gets out of sponsoring them:
Unlocking Tickets Markets Act, in the U.S. Senate
WASHINGTON (AP) — President Joe Biden is hosting executives from Live Nation, Airbnb and other companies at the White House on Thursday to highlight his administration’s push to end so-called junk fees that surprise consumers. Biden prioritized the effort to combat surprise or undisclosed fees in his State of the Union address and has called […]
German television personality Jan Böhmermann appears to have single-handedly knocked more than 1 billion euros ($1.15 billion) from the market value of CTS Eventim after he criticized the concert promoter and ticketing company on his late-night talk show ZDF Magazin Royale on German public television on Friday.
According to various media reports, Böhmermann, in a 23-minute news-styled feature, bemoaned the company’s dominant market position in promotion and ticketing and a lack of transparency about the fees added to tickets. “Eventim is practically the German event industry,” the satirist said (as translated to English) He singled out the company’s re-sale platform, fanSale, which allows ticket holders to sell tickets at a premium to their face values. “Why fight the black market when you can earn money yourself?” he asked.
Böhmermann also said that CTS Eventim received 15 million euros ($16 million) of COVID-19 economic aid from the Federal Government Commissioner for Culture and the Media. In total, the company received 272 million euros ($295 million) in economic aid from Germany and elsewhere from 2020 to 2022, according to the company’s financial statements. He noted that a director, Juliane Schulenberg, is the daughter of CTS Eventim founder and chairman Klaus-Peter Schulenberg. She has been a member of the CTS Eventim’s supervisory board since May 2016, according to the company’s website.
“Unfortunately, many facts are twisted and not the truth,” a CTS Eventim spokesperson told Billboard in an email. While Böhmermann suggested Juliane Schulenberg influenced COVID-19 aid received by CTS Eventim, the company’s spokesperson says she “had no professional position in this regard and therefore no influence.”
ZDF Magazin Royale made a significant impact when the market opened after the weekend. Shares of CTS Eventim fell 8.9% on Monday and another 7.5% on Tuesday, bringing the two-day decline to 15.7% — a 1.07 billion euros ($1.15 billion) decline in market capitalization. After a 0.8% gain on Wednesday, shares of CTS Eventim were up 1.3% year to date.
CTS Eventim is the largest concert promotion and ticketing company in Europe and had revenues of 1.9 billion euros ($2 billion) and sold 69 million tickets online in 2022. Its portfolio includes EDM promoter ALDA Germany; the Rock am Ring and Rock im Park festivals; numerous ticketing brands; EMC Presents, a partnership with U.S. tour promoter and producer Michael Cohl; and Eventim Live Asia, a partnership with former Live Nation executive Jason Miller based in Singapore.
U.S. audiences will recall a similar segment about the country’s dominant ticketing company, Ticketmaster, by comedian John Oliver on his HBO show Last Week Tonight in 2022. Oliver touched on the same themes brought up by Böhmermann: market dominance, rising ticket fees and ownership of a secondary market that profits from in-demand tickets’ re-sale values. Oliver had a negligible effect, however, as the share price of Ticketmaster’s parent company, Live Nation, dropped just 0.5% the day after the episode aired. A chance of government intervention has given Live Nation investors pause on numerous occasions, however, such as politicians’ criticism of Ticketmaster’s Taylor Swift pre-sale in November and a 2018 New York Times article about Live Nation’s alleged anticompetitive business practices.
Just as Live Nation and Ticketmaster are under constant scrutiny in the U.S., CTS Eventim routinely falls into the crosshairs of consumer advocates and government regulators. In February, more than 1,500 consumers in Germany had joined a model declaratory judgment against CTS Eventim filed by the Federation of German Consumer Organizations. The consumer advocacy group alleges the company did not refund ticketing fees for cancelled events. In 2018, CTS Eventim’s share price fell as much as 10% after Germany’s Federal Supreme Court ruled the fees charged for printing out tickets ordered online were illegal. Also in 2018, the German Federal Cartel Office banned CTS Eventim from having exclusive ticketing agreements with promoters and box offices. In 2017, the Cartel Office blocked CTS Eventim from acquiring promoter and booking agency Four Artists, which a German court upheld the following year.
BRISBANE, Australia — Twenty years after its launch in a red-hot entertainment market, Oztix, Australia’s biggest independent ticketer, just got bigger with the acquisition of Local Tickets.
With immediate effect, Local Tickets, a smaller, rival ticketing agency specializing in local events across the country, is rebranded to Localtix. And as part of the arrangement, all Local Tickets employees join its new parent, while founder and CEO Kristen Goldup is appointed as brand director across Oztix and Localtix.
Also, Oztix events will be populated across 70 local ticket marketplaces, expanding the marketing potential for events ticketed by Oztix.
“Our brands and product offerings are entirely complementary, and after just one meeting with Oztix, it was clear that we had great synergy and shared a mutual culture of putting our clients first,” comments Goldup, who founded the agency in 2011. “My Local Tickets clients will benefit greatly from access to a new collaborative platform, and even more eyeballs will be on our local tickets marketplace websites with Oztix events being listed”.
Financial terms of the deal weren’t disclosed.
Currently, Oztix handles ticketing for venues, festivals and expos such as Big Red Bash, Crafted Beer & Cider Festival, Good Things Festival, and Summernats, while the new addition to its ranks works across a range of agricultural shows, rodeos, turf clubs, hospitality events and more.
Oztix presented its new family members with a celebratory lunch Tuesday (June 6) at its Woolloongabba headquarters, close to Brisbane’s Gabba stadium and timed to coincide with the annual Queensland Day.
“At any given time,” Oztix commercial director Seth Clancy told industry guests, “the business boasts 4,000 events on sale across the country across both platforms.” Prior to the acquisition, Oztix sold close to 3 million tickets each year.
Now, the enlarged group employs 50 full-time staff and hundreds of casual staff at events around the country, notes Oztix co-founder Stuart Field. Each year, millions are pumped into technology and innovation, he explained, a sometimes painful but essential outlay “to evolve with the way technology is changing.”
Co-founder Brian “Smash” Chladil recounted the business’ first steps, starting out under his house in Toowong, in Brisbane’s inner west, and landing contracts with mega-festivals Big Day Out, Soundwave and Falls.
“The next 20 years are looking great,” he explains, “we’re growing because our clients are growing, we’re growing because we win new business and mainly because we don’t lose business.”
Guests at Oztix’s “launch and lunch” included QMusic president Natalie Strijland and CEO Kris Stewart; Fortitude Music Hall and The Triffid venue director John “JC” Collins, former bass player with Powderfinger; Vicki Gordon, founding executive producer and program director of the Australian Women in Music Awards (AWMA); and Shane King, state member of parliament for Kurwongbah.
Australia’s ticketing industry is dominated by the big two, Live Nation affiliate Ticketmaster, and TEG-owned Ticketek. Oztix expands as a new player arrives on these shores in AEG-owned ticketer AXS, led by venue management professional and former Gold Cost Suns chief Andrew Travis as CEO of AXS Australia and New Zealand.
As 2023 heads into summer, multiple signs point to a healthy and growing live music business for the rest of the year. In recent weeks, executives from the publicly traded concert promotion and ticketing companies have signaled that surging consumer demand won’t slow down, and there will be enough tours to satiate music fans’ appetite for live events.
Demand has been strong “and is showing no signs of letting up,” said Live Nation CEO Michael Rapino during the company’s May 4 earnings call. Live Nation expects to sell more than 600 million tickets in 2023, up from 550 million in 2022. To date, the concert promoter has sold more than 100 million tickets to Live Nation events, a 20% increase from the prior-year period, and expects to host a record number of fans in 2023.
Vivid Seats, the publicly traded secondary ticketing marketplace, shares Live Nation’s sentiment. “Consumers continued to crave live experiences in the first quarter,” said CEO Stan Chia during a May 9 earnings call, “and we believe this trend will continue for many years.” Vivid Seats does business primarily in the U.S. while German promoter and ticketing provider CTS Eventim focuses on Europe. “Both in Germany and internationally, we are pursuing organic growth and anticipate that our business performance will continue on its successful course,” said CTS Eventim CEO Klaus-Peter Schulenberg in the quarterly results released May 24 that reiterated the positive outlook in its 2022 annual report of “moderately higher earnings” for the live entertainment segment 2023.
The concert business is meeting — and perhaps surpassing — some lofty expectations. In 2022, as the concert business exited the pandemic, the widespread belief was that pent-up demand for in-person experiences would drive the concert business beyond pre-pandemic levels. That turned out to be true. Concert promoter Live Nation posted record revenue of $6.2 billion in the third quarter that was 67% above the same period in 2019. What’s more, the volume of fans returning to concert venues was augmented by an unmatched willingness to absorb higher prices. Frenzied demand — and sky-high prices on the secondary market — for tours by Taylor Swift, Beyonce and Bruce Springsteen have showed A-list artists have yet to find their ceiling on prices.
Concert promoters have posted strong quarterly earnings that fit their narratives. Live Nation’s first-quarter revenue was up 71% to $3.1 billion. CTS Eventim’s online ticket sales increased 58% to 18 million as consolidated revenue improved 163% to 366.2 million euros ($393 million). At Vivid Seats, which also does business in major sports such as baseball and basketball, first quarter revenue grew 23.2% to $161 million and adjusted earnings before interest, taxes, depreciation and amortization doubled to $42.4 million.
Investors absorb past earnings history while figuring out what to expect in the future, and according to JP Morgan analyst David Karnovky they often ask two questions about Live Nation: First, is there enough supply to meet growing, healthy demand? Yes, Live Nation president and CFO Joe Berchtold said at JP Morgan’s Global Technology, Media and Communications conference on Tuesday. That’s because global streaming platforms such as Spotify and social media apps like Instagram and TikTok allow artists to build global followings in ways that weren’t previously possible, he explained. K-pop and other up-and-coming genres of music “that maybe once were regional are now going global,” he said, and artists that used to sell out mid-sized venues are now selling out stadiums. “So, you’re seeing that supply continue to build.”
The second thing investors want to know is how demand will respond during a softer economy. Live Nation closely follows the indicators — such as on-sales show closings — Berchtold said, “but we’re not seeing anything that gives us pause.” Separately, Berchtold noted that Live Nation’s research indicates getting back to concerts are one of fans’ top priorities after the pandemic and will be “one of the last things they’re going to cut back on.”
Vivid Seats CFO Lawrence Fey also addressed the possibility of an economic downturn — a scenario becoming increasingly likely in the U.S. should Congress fail to find a compromise to raise the debt ceiling by early June. “[T]here’s a lot of chatter and concern out there” that demand will weaken “in the not-too-distant future,” said Fey, “but it continues to be the case that we’re seeing very robust demand across our event categories [and] across price points.” Beyond the consistently strong demand, Vivid Seats has “been pleasantly surprised by the supply calendar,” particularly a concert schedule that includes recently announced tours by Drake and Aerosmith, he added, “and [that] gives us optimism.”
Fans buying tickets to upcoming Wu-Tang Clan and De La Soul tours now have easy access to custom messages from the RZA, the GZA and other members of each outfit via a new partnership between Ticketmaster and HiNOTE. The ticketing giant has partnered with the platform, which allows fans to request custom videos from artists […]
SeatGeek executives were scrambling to recover from an unforced error earlier this month when two discount codes leaked on social media granting users $500 discounts on the secondary ticketing marketplace. After about a half-hour of frenzied buying, the ticket resale site was forced to cancel thousands of sales and cover costs incurred by untold numbers of brokers.
The source of those troublesome codes? SeatGeek created the codes for a business conference for Major League Baseball box office managers and ticketing staff, sources tell Billboard — three months after SeatGeek signed a reported $100 million, five-year deal to take over from rival StubHub as the league’s official ticket reseller.
The $500 discount codes — “MLB1” and “MLB2” — were originally given out as prizes for a team building exercise during the event on May 3 at Globe Life Stadium in Arlington, Texas, home to the Texas Rangers. Known to most in the sports ticketing industry as the Baseball Ticketing and Marketing Meetings, the summit is a typically low key affair where baseball ticketing staff come together to network, share ideas and meet with league vendors. SeatGeek representatives were present at the meeting to discuss their new agreement with the league, according to multiple sources. The two discount codes did not include any expiration date or limit on how many times they could be used.
Nine days after the summit, the codes leaked onto the internet and quickly spread across social media. The first instance of the code sharing on Twitter on May 12 at 11:29 p.m. EST appears to have come from an account linked to a sports gambler named Drew Morgan, writing, “I just got 2 tickets to 2 different Steelers games 100% free on SeatGeek. Sounds too good to be true but there was zero catch at all.”
Holy shit I just got 2 tickets to 2 different Steelers games 100% free on Seat Geek. Sounds too good to be true but there was zero catch at all 🤯Use codes MLB1 or MLB2 for a $500 discount on the tickets. I have no incentive at all to promote this. My friend told me about… pic.twitter.com/8G6ELGHPkn— Drew Morgan (@DMProps) May 13, 2023
Three minutes later, an account calling itself “Lord Restock” with 168,000 followers posted the codes, kicking off a frenzy of fans using the codes to buy tickets to sporting events, SZA concerts and more.
Around midnight, SeatGeek staff noticed the frenzied use of the $500 discount code and took the SeatGeek site offline to investigate what was happening. The site remained offline for several hours before the issue with the codes was identified and the codes were deactivated.
A SeatGeek spokesperson declined to comment on specifics about the code leaks, but told Billboard in a statement, “Last week, some fans made purchases on our site using an ineligible promo code that was wrongfully distributed without authorization. Tickets acquired via these purchases are not valid and we are working to resolve each situation accordingly.”
Officials with Major League Baseball did not respond to Billboard’s inquiries about the SeatGeek ticket codes and how they leaked online.
In the days following, SeatGeek staff began contacting ticket sellers on the site, laying out plans to cancel any transactions that used the leaked discount codes, refund any money that was spent in transactions using the codes and claw back any tickets possible before they reached fans.
“At this stage, we have been able to contain the impact to SeatGeek, but that came at the cost of an operational burden that you have all helped us to shoulder,” company co-founder Russ D’Souza wrote in an email to ticket broker Randall Smith, CEO of America’s Top Tix, and obtained by Billboard.
SeatGeek operates as both a primary ticketing site for a number of sports teams, as well as a massive secondary ticketing site where tens of thousands of brokers list tickets for resale for concerts, sporting events and festivals. The company implemented a triage system to respond to the code leak, where sales made for teams that use the SeatGeek ticketing system could easily be canceled and reversed. Sales for tickets that haven’t been delivered yet will also be canceled.
Tickets originally issued by rival companies like Ticketmaster, however, were more difficult to claw back. While Ticketmaster technology does allow resellers to digitally transfer tickets from seller to buyer – a process SeatGeek can automate to occur immediately after a sale on its site is made – it can’t transfer the ticket back to the seller if an error is discovered. Because of this, SeatGeek is now covering any losses incurred by brokers who now must reselling tickets issued by Ticketmaster and other services.
As a result, dozens and maybe hundreds of fans who received Ticketmaster-issued tickets using the SeatGeek discount code are now in possession of tickets that can’t be canceled. Since the code was discovered and taken down, many of these fans have taken to Twitter asking other fans if they think the tickets are still valid.
Brokers on the site are also angry, saying SeatGeek took too long to respond to the crisis and should have to pay the same 100% fine it charges its own sellers when customer service mistakes are made.
“If a broker makes an error and cancels an order, they are penalized. If the exchange that dings you makes an error, they unilaterally effectuate a mutual cancelation without consent of the broker,” one reseller wrote on a forum for brokers. “It is a totally one-sided relationship, and I really hope customers, brokers, or both bring a well-deserved class action against SG.”
SeatGeek is the second largest ticket resale site in the United States and last year raised $238 million in Series E funding. A recently abandoned effort to take the company public valued it at $1.35 billion.
Tickets for Taylor Swift’s Eras Tour are being protected by some of the most advanced ticketing technology ever created, but it’s done little to stop some Swifties from falling victim to fraud.
With what’s likely to be the year’s most in-demand tour has come a wave of online scams that mix high-tech identity theft with low-tech social engineering to target frustrated fans unable to buy tickets during the initial sale in November. Now ticket prices are going for up to 10-times face value on secondary sites and many fans are desperately looking for more affordable options. That’s also leaving them vulnerable to too-good-to-be-true swindlers selling fake tickets. In many cases, the fans don’t even realize they were ripped off until they get to the show.
Nationwide, consumer fraud was up 30% in 2022 over 2021, according to the Federal Trade Commission, costing consumers $8.8 billion. Fake ticket scams fall under what the FTC labels as “imposter scams,” second in total cost only to investor scams according to the FTC, which notes that individuals aged 30-39 are the most likely to be defrauded in 2023 with social media sites listed as the most common place where fraud occurs. The targeting of Taylor Swift fans and offering cheap tickets the seller doesn’t have (and then disappearing on the buyer after they send over the money) is in part due to enormous publicity around the tour and the huge demand for tickets and low supply.
“Con artists will seize any opportunity to rip people off and as soon as the tours for Taylor Swift or artists Beyoncé or The Cure were even announced, scammers trying to figure out ways to capitalize on people’s desperation to get tickets,” says Teresa Murray, a consumer watchdog with the Denver-based Public Interest Research Group. Murray says her group saw an uptick in forged barcodes, fake websites and spoofs on legitimate sights like StubHub and Ticketmaster popping up hoping to profit off the frenzy around the Eras tour.
Fans who have fallen victim to Taylor Swift ticket fraud often say they are lured into the scam through a post on Facebook, listed on regional group pages from seemingly legitimate accounts offering to sell tickets for an upcoming Swift show below the current asking price on secondary ticket markets.
“When you have people who are desperate [to buy tickets] and vulnerable to fraud, they tend to suspend their common sense and make decisions they wouldn’t normally make,” says Murray, adding that this type of fraud is perpetrated by both “people living in their mom’s basement” and sophisticated criminal groups operating in an organized manner.
What victims do not realize is that instead of talking to person living in their city, they are often talking to a hacker who has recently taken over someone’s Facebook account to appear like a real person with ties in the community. After some back and forth, the scammer convinces the victim to send them money though a cash app like Venmo or Zelle in exchange for tickets that either never arrive or are obvious fakes.
This increase in fraud is happening against a backdrop of transformative technology at Ticketmaster, deployed at a large scale for the Eras tour with the potential to drastically reduce and even eliminate most instances of ticket fraud. Whereas it used to be fraudsters could buy a print-at-home ticket and then sell multiple copies of that, Ticketmaster is now employing its Safetix technology for Swift’s tour and others to issue digital tickets that live exclusively within the Ticketmaster app and are impossible to duplicate in this way. Safetix creates an entire digital ecosystem around the life of the ticket, from its original purchase, through resale and up until the ticket is redeemed on the night of the show. The scam Swift fans describe operates completely outside of that ecosystem, without any protections for consumers.
For scammers, demanding payment upfront is a low-tech way to defeat an otherwise sophisticated security system. The only way to curb this type of fraud, Murray says, is to educate fans on how digital tickets work. Much of Ticketmaster’s consumer education efforts have focused on Swift fans who successfully bought tickets and need to know how to load tickets into their accounts, transfer them to friends and redeem the tickets on show night. While this effort to educate fans is important, it does little to inform fans who were unable to buy during the public sale so that they are better equipped to avoid being sold fake tickets when they attempt to buy secondary tickets
Murray recommends only purchasing resale tickets from official sellers with a clearly visible fan guarantee listed on their site, to only use credit cards (not debit cards) and to match up the seats being sold with a seat map of the venue to verify the seats and rows actually exist.
“Often times the con artists don’t bother to check if the seating section, row and seat numbers they claim to hold tickets for actually exist on a seat map,” Murray says. “A little research on your own might help you determine if the tickets being offered actually exist.”
The Cure‘s Robert Smith is not done fighting the good fight on behalf of his band’s fans. The British goth rock legend who is about the launch his Shows of a Lost World North American tour in New Orleans on Wednesday (May 10) posted a series of tweets on Monday (May 8) in which he lashed out at a bill under consideration by the Louisiana legislature (HB 341) that would restrict the resale of tickets between fans.
“THE LOUISIANA LEGISLATURE (HB #341) IS CONSIDERING A RESELLERS-BACKED BILL TO BAN FAN-TO-FAN EXCHANGES (LIKE THE ONE WE ARE USING ON OUR 2023 NORTH AMERICAN TOUR TO TRY AND LIMIT/STOP SCALPING AND BOTS),” Smith said of the bill sponsored by Republican Paula P. Davis that has already passed the GOP-dominated State House which would allow tickets to concerts and sporting events to be legally resold at a profit under specified conditions.
Smith noted that the bill is now headed to the State Senate — which also features a GOP majority — with a hearing scheduled for Wednesday morning. “LOUISIANA LAWMAKERS! PLEASE DON’T PASS THIS BILL! EMPOWER THE ARTISTS, NOT THE SCALPERS AND THE BOTS!,” the singer wrote. “COMMERCIAL LOBBYING CORRUPTS DEMOCRACY X.”
Am abstract of the bill reads: “Proposed law provides for certain definitions with respect to event ticketing. Additionally, proposed law defines ‘nontransferable ticketing’ as prohibiting the resell or exchange of a ticket or limiting the ticket holder to exchange the ticket exclusively through means provided by the ticket issuer. Proposed law provides that a ticket issuer may use a nontransferable ticketing system only if the ticket holder is offered to purchase the same ticket in a transferable form at the initial time of sale.”
Smith’s issues with the proposed bill make sense given his recent broadsides against what he called Ticketmaster’s exorbitant extra fees on tickets for the band’s tour. Earlier this year the bandleader said he’d hoped to keep seat-buying fair and simple for fans by opting out of TM’s dynamic pricing model while shielding them against scalpers with non-transferable tickets. But when the sale opened mid-March, disappointed customers found that TM had added sky-high fees to tickets that sometimes totaled more than the face-value price of the original tickets.
In a series of follow-up tweets, Smith revealed that approximately 7,000 tickets across more than 2,000 orders had been canceled in early April, with the bandleader claiming those tickets were acquired with fake accounts and/or listed on secondary resale sites.
See Smith’s tweets below.
THE LOUISIANA LEGISLATURE (HB #341) IS CONSIDERING A RESELLERS-BACKED BILL TO BAN FAN-TO-FAN EXCHANGES (LIKE THE ONE WE ARE USING ON OUR 2023 NORTH AMERICAN TOUR TO TRY AND LIMIT/STOP SCALPING AND BOTS). THE BILL HAS ALREADY PASSED THE HOUSE…— ROBERT SMITH (@RobertSmith) May 9, 2023
…AND IS UP FOR CONSIDERATION IN THE STATE SENATE. THERE IS A HEARING THIS WEDNESDAY MORNING… LOUISIANA LAWMAKERS! PLEASE DON’T PASS THIS BILL! EMPOWER THE ARTISTS, NOT THE SCALPERS AND THE BOTS! #ShowsOfALostWorld2023— ROBERT SMITH (@RobertSmith) May 9, 2023
COMMERCIAL LOBBYING CORRUPTS DEMOCRACY X— ROBERT SMITH (@RobertSmith) May 9, 2023