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After warning fans in a tweet spree earlier this week that Ticketmaster’s “Verified Fan” system was “far from perfect,” The Cure singer Robert Smith continued his Twitter rant on Thursday after his band’s 30-date Shows of a Lost World North American tour went on sale.
“I AM AS SICKENED AS YOU ALL ARE BY TODAY’S TICKETMASTER ‘FEES’ DEBACLE,” Smith raged in his latest all-caps broadside against Ticketmaster. “TO BE VERY CLEAR: THE ARTIST HAS NO WAY TO LIMIT THEM. I HAVE BEEN ASKING HOW THEY ARE JUSTIFIED. IF I GET ANYTHING COHERENT BY WAY OF AN ANSWER I WILL LET YOU ALL KNOW.”
Smith’s tweet came as fans complained that despite the band offering reasonably priced tickets for the outing and making sure the tickets will be non-transferable to minimize resale and keep prices at face value, in some cases the added-on service fees, facility charges and order processing fees added up to more than the cost of entry.
By making the tickets non-transferable, scalpers will be unable to purchase tickets and then resell them for a profit since the original owner will have to be present to enter the venue. For fans who purchase tickets but can’t make it to the event, they will be able to resell the ticket on a face-value ticket exchange.
Before the VF onsale, Smith assured fans that he was doing everything he could to alleviate ticketing pain points, including avoiding platinum packages and dynamic pricing, referring to those practices as “a bit of a scam.” But when he saw the complaints about the service charges during Thursday’s onsale, the singer could not hold back; at press time a spokesperson for Ticketmaster had not returned Billboard‘s request for comment.
Following up on his “scam” tweet, on Wednesday (March 15), Smith explained, “I HAD A SEPARATE CONVERSATION ABOUT ‘PLATINUM’, TO SEE IF I HAD MISUNDERSTOOD SOMETHING… BUT I HADN’T! IT IS A GREEDY SCAM – AND ALL ARTISTS HAVE THE CHOICE NOT TO PARTICIPATE… IF NO ARTISTS PARTICIPATED, IT WOULD CEASE TO EXIST.”
If nothing else, Smith implored his fans to avoid buying tickets secondhand from scalpers, writing, “I HAVE BEEN TOLD: StubHub has pulled listings in all markets except NY, Chicago, Denver (IE. CITIES IN STATES THAT HAVE LAWS PROTECTING SCALPERS). PLEASE DON’T BUY FROM THE SCALPERS – THERE ARE STILL TICKETS AVAILABLE – IT IS JUST A VERY SLOW PROCESS… I WILL BE BACK IF I GET ANYTHING SERIOUS ON THE TM FEES… IN THE MEANTIME, I AM COMPELLED TO NOTE DOWN MY OBVIOUS RECURRING ELEPHANT IN THE ROOM THOUGHT… THAT IF NO-ONE BOUGHT FROM SCALPERS… THEN.”
The Cure’s efforts to combat resale ticketing comes after a season of in-demand tours facing astronomical price increases due to dynamic ticketing and scalpers. Ticketmaster is currently facing government inquiries into its handling of the disastrous Taylor Swift Eras Tour presale, which left many fans outraged when service delays and website crashes (caused in part by bots) prevented many of them from securing tickets.
See Smith’s tweets below.
I AM AS SICKENED AS YOU ALL ARE BY TODAY’S TICKETMASTER ‘FEES’ DEBACLE. TO BE VERY CLEAR: THE ARTIST HAS NO WAY TO LIMIT THEM. I HAVE BEEN ASKING HOW THEY ARE JUSTIFIED. IF I GET ANYTHING COHERENT BY WAY OF AN ANSWER I WILL LET YOU ALL KNOW. X— ROBERT SMITH (@RobertSmith) March 16, 2023
WHAT I MEANT BY THIS BIT WAS… I HAD A SEPARATE CONVERSATION ABOUT ‘PLATINUM’, TO SEE IF I HAD MISUNDERSTOOD SOMETHING… BUT I HADN’T! IT IS A GREEDY SCAM – AND ALL ARTISTS HAVE THE CHOICE NOT TO PARTICIPATE… IF NO ARTISTS PARTICIPATED, IT WOULD CEASE TO EXIST X https://t.co/Kj7hjkRGn1— ROBERT SMITH (@RobertSmith) March 15, 2023
I HAVE BEEN TOLD: StubHub has pulled listings in all markets except NY, Chicago, Denver (IE. CITIES IN STATES THAT HAVE LAWS PROTECTING SCALPERS). PLEASE DON’T BUY FROM THE SCALPERS – THERE ARE STILL TICKETS AVAILABLE – IT IS JUST A VERY SLOW PROCESS… X— ROBERT SMITH (@RobertSmith) March 16, 2023
The Cure is taking serious measures to avoid outrageous ticket prices for their upcoming tour dates. The band, which announced a 30-date run of shows earlier this week, took to social media Friday (March 10) to let fans (and scalpers) know that tickets for their Shows of a Lost World Tour dates will be non-transferable.
“We want the tour to be affordable for all fans, and we have a very wide (and we think very fair) range of pricing at every show,” the message said. “Our ticketing partners have agreed to help us stop scalpers from getting in the way; to help minimise resale and keep prices at face value, tickets for this tour will not be transferable.”
By making the tickets non-transferable, scalpers will be unable to purchase tickets and then resell them for a profit since the original owner will have to be present to enter the venue. For fans who purchase tickets but can’t make it to the event, they will be able to resell the ticket on a face-value ticket exchange.
Three states in the U.S. have outlawed non-transferable tickets, making it illegal for The Cure to uphold the practice for shows in New York, Illinois and Colorado. For those dates, the band encourages fans to only purchase tickets from face-value exchange platforms like Twickets and Cash or Trade.
“Fans should avoid buying tickets that are being resold at inflated prices by scalpers, and the sites that host these scalpers should refrain from reselling tickets for our shows,” the message reads.
The band went on to explain that any tickets listed as of today (March 10) on secondary ticketing sites are not legitimate. Scalpers will post tickets onto secondary ticketing platforms prior to a tour’s on-sale via a practice called speculative ticketing. When a fan pays for the “speculative ticket”, the scalper will acquire a ticket at a lower price once tickets actually go on sale and pocket the difference. The Cure has stated that they will work with Ticketmaster to cancel any tickets obtained via this method.
When the band announced the world tour earlier this week, they established that “there will be no ‘Platinum’ or ‘Dynamically Priced’ tickets on this tour,” which includes stops at Hollywood Bowl in Los Angeles, Moody Center in Austin, Madison Square Garden in New York and State Farm Arena in Atlanta.
Fans looking to secure tickets to The Cure’s 2023 tour should register with Ticketmaster’s Verified Fan program. Registration is open through Monday (March 13). After registering, fans will be entered into a lottery system to try to purchase tickets for their preferred date and location.
The Cure’s efforts to combat resale ticketing comes after a season of in-demand tours facing astronomical price increases due to dynamic ticketing and scalpers. Ticketmaster is currently facing government inquiries into its handling of the disastrous Taylor Swift Eras Tour presale, which left many fans outraged when service delays and website crashes (caused in part by bots) prevented many of them from securing tickets.
Live Nation president/CFO Joe Berchtold might have been the sole defender of his company’s 2010 merger with Ticketmaster at a Senate Judiciary Committee hearing in January, but behind the scenes, he wasn’t alone.
Advising Berchtold and managing key relationships on Capitol Hill is a small army of over 30 lobbyists, deployed to defend the company from growing criticism by senators like Amy Klobuchar, D-Minn., and Richard Blumenthal, D-Conn. Klobuchar, who serves as the chair of the Senate Judiciary Subcommittee on Competition Policy, Antitrust and Consumer Rights, has made repeated calls to the Department of Justice to investigate Ticketmaster and break up the company if any wrongdoing is uncovered during a DOJ review of the consent decree it created to foster competition in ticketing. That review is expected to wrap up soon.
While Live Nation’s lobbying spending has been historically low for a company of its size and domi- nance, that’s changing. Last year, the company spent nearly five times as much on lobbying as it has in the past, according to data from Open Secrets, which uses public records to track such spending. From 2012 to 2018, Live Nation spent an average of $225,000 annually to lobby federal officials. In 2022, its annual lobbying expenses had increased to $1.1 million.
The company’s agendas include defending criticism regarding Ticketmaster’s handling of the Swift presale last November.
One of those insiders is Seth Bloom, a former longtime general counsel for the Senate’s antitrust subcommittee and advisory board member for the American Antitrust Institute. Another is Jonathan Becker, a former chief of staff and chief counsel to Klobuchar who now serves as a partner at law firm Mayer Brown and represented a dozen big-name clients in 2022, including Meta, Microsoft and Phillip Morris.
Live Nation now spends significantly more than its competitors in the touring sector. Last year, enter- tainment conglomerate AEG spent $140,000 on federal lobbying, according to Open Secrets, while secondary-market ticketing competitor SeatGeek spent $170,000 and Viagogo, the British company that bought StubHub in 2020, spent $140,000. Live Nation partner company Oak View Group spent $570,000 on lobbying, while Spotify, which has rolled out a new ticketing offering for concert promoters and is hoping to broaden its reach within the live space, spent $710,000.
Live Nation could spend even more this year as it ramps up efforts to exit the consent decree once the five year extension ends in 2024. The company now has more than seven lobbying firms working for it on issues that include ticketing, event safety and Federal Aviation Administration rules on the use of drones at events.
After weeks of strategizing how to salvage Ticketmaster’s reputation in the wake of last November’s Taylor Swift presale debacle and Live Nation president/CFO Joe Berchtold’s January grilling by the Senate Judiciary Committee, the ticketing giant’s parent company has settled on an approach that will ramp up lobbying to hit back at scalpers while educating consumers about ticketing fees.
Despite breaking two company records with the Nov. 15 The Eras Tour presale — the most tickets ever sold in a single day (2.4 million) and, according to the company, keeping 95% of those tickets off secondary sites like StubHub and SeatGeek — Ticketmaster found itself cast as the villain and Live Nation as a monopoly after a cyberattack disrupted over 100,000 transactions.
The outcry has led to a mixture of disbelief and self-reflection at Live Nation’s global headquarters in Beverly Hills, Calif. “The company enables music fans to connect with the world’s greatest artists through concerts and events that often become the cornerstone moments of people’s lives,” says a Live Nation executive who was not authorized to speak on the record. “Why the fuck do people hate us so much?”
Although the controversy over the Swift presale had to do with ticket availability rather than price — the prime complaint of Ticketmaster’s July 2022 Verified Fan sale of tickets to Bruce Springsteen’s 2023 tour — the executive says that Live Nation has determined that redeeming itself with consumers “starts with the fees,” which can add over 30% to the final price of a concert ticket.
“We’ve got to now go out and do a much better job so policymakers and consumers understand how the business operates,” Live Nation president/CEO Michael Rapino said during the company’s most recent investor call. “We’ve historically not had a big incentive to shout out loud that venues are charging high service fees or artist costs are expensive. But I think now [that] education is paramount.”
Ticketmaster’s main source of revenue comes from the fees it charges to process ticket transactions. A ticket’s face value goes to the artist, while the ticketing giant shares the fees it collects with the venues that contract for its services.
Ticketmaster typically keeps $2 to $5 per ticket for processing costs and a small portion of the fees it collects to recoup any loans, advances or bonuses it may have paid the venue to win its ticketing contract. Contracts for large venues can be worth millions of dollars. The balance of the fees collected goes to the venue, which uses the money to cover the cost of the show.
Traditionally, promoters book venues for artists, pay rent to use the space and hire its staff. What’s left over as profit is divvied up with the act, which typically receives 80% to 85% of that amount.
But as competition to book top-shelf headline talent has increased over the last decade, venues have reduced the rent they charge and promoters have agreed to take a smaller percentage of base ticket sales — sometimes as little as 5%.
As Rapino said on the investor call: “The artist takes most of that ticket fee base. So the way that the venue, the promoter or the ticketing company [earns its] revenue fees is through that extra fee.”
The increasing costs of concert production, which are borne by the promoter, have also wid- ened the gap between a ticket’s face value and the final amount charged after fees, which can induce sticker shock when two $100 tickets can end up costing $265. While it has been very profitable for Ticketmaster to cover more of a concert’s costs through these fees, it has helped turn ticket buyers against the company.
Ticketmaster executives are hoping a simple fix can solve the problem — showing the total cost of a ticket, face value plus fees, at the be- ginning of the checkout process. That method is already used in New York, where it is mandated by state law.
“We all want to know what is the true cost to see the show when we start shopping,” Rapino said on the call. “We wish that would be mandated tomorrow across the board [because] that would relieve a lot of the stress [and] the consumer’s perception that there’s this magical extra fee added on” that isn’t part of the overall show cost.
Ticketmaster and other ticketing companies have long debated whether to abandon what’s known as a “drip pricing” model but haven’t pulled the trigger because studies show that fans are more likely to make a purchase if the fees that are tacked onto the face value of a ticket don’t appear until checkout. Secondary-market ticketing companies have also adopted the practice, advertising tickets at prices below those sold on the primary market, then hitting consumers with a 35% to 45% markup at checkout.
In a move more closely tied to the Swift situation, Ticketmaster has also decided to target scalpers through legislation and proposed legislation called the FAIR Ticketing Act that would outlaw drip pricing and grant artists the ability to ban scalper websites from reselling their tour tickets. Support for the initiative includes all four major talent agencies, Universal Music Group and a number of management companies.
Pro-ticket scalping groups have proposed their own counter-legislation, effectively banning Ticketmaster from using its proprietary technology to stop scalpers. Neither bill has a congressional sponsor in either chamber of Congress, however, and unless that happens, neither has any chance of passing.
Ticketmaster does appear to have some serious muscle in its corner when it comes to the scalp- ing issue. In a February interview with Billboard, Gregg Perloff, founder and CEO of independent promoter Another Planet Entertainment, which produces San Francisco’s Outside Lands festival, said: “My question for [Congress] is, ‘Why are you picking on Ticketmaster and Live Nation when you should be outlawing brokers?’ They are the ones who screw up everything. Does every promoter take a few tickets? Does every venue have a few tickets? … Sure. But it’s the scalpers that make it so no one can get a decent seat except the rich. The Senate didn’t do the research they should have done before they started pontificating and acting like they knew what they were talking about.”
In addition, Perloff suggested that touring artists were partially responsible because they “really want to go on sale for the whole tour at once because they can advertise the whole tour at once and make a bigger splash.” Regarding Swift’s tour, he said, “There’s no system in the world — and this is where I have to defend Ticketmaster — that could have handled the onslaught.”
Also in February, at the Pollstar Live conference in Los Angeles, music mogul Irving Azoff and Madison Square Garden Entertainment chairman James Dolan took on pro-scalping journalist-podcaster Eric Fuller when he argued that scalping made tickets cheaper, citing discredited media reports of bargain bin-priced tickets available for Springsteen’s North American tour dates.
“It’s about a half-hour conversation, but you’re dead wrong,” Azoff told Fuller, who also operates a consulting business in ticketing.
“You got to take your hat off to this paid lobbying group that’s working for the scalpers,” Dolan chimed in. “These guys are pretty good. Maybe we should hire them.” In response, Fuller says Dolan’s comments are “grossly inaccurate.”
As North America’s largest independent promoter, Gregg Perloff, the co-founder/CEO of Another Planet Entertainment, isn’t the type to ask for permission from the majors before making his next move.
Perloff has learned since selling Bill Graham Presents in the 1990s to the company that would become Live Nation that stealth can be a strategic advantage in the live-music business. That’s especially true when competing against Live Nation and AEG, which each have hundreds of millions of dollars in capital.
So, after three years of secretly negotiating, leasing and remodeling a 45,000-square-foot venue in downtown Los Angeles — AEG and Live Nation turf — Perloff and The Bowery Presents co-founder Michael Swier are about to open The Bellwether. The two-story venue is located west of the 110 Freeway between Third and Fourth streets. The one-city-block-long space is anchored by a 1,600-capacity general-admission theater and features a street-level bar and restaurant, plus a 600-capacity private event space. The venue also comes with provenance: It was once owned by Prince, who named it after his 1992 song “Glam Slam.”
Prince moved out in 1995, and a parade of lesser-known club operators followed. Months before the 2020 shutdown of live music, Swier found it. Instead of buying the building from its current owner, Perloff and Swier — who owns L.A.’s Teragram Ballroom and Moroccan Lounge — quietly worked out a long-term lease and started preparing the building for a 2023 opening. The Bellwether will be booked by long-time Another Planet Talent buyer Nick Barrie.
Perloff pulled off a similar coup in 2007 when he engaged in under-the-radar negotiations with San Francisco officials to secure a permit for the first multiday, after-sundown private festival in Golden Gate Park. Knowing the city badly needed revenue due to budget shortfalls, Perloff and his team kept the talks under wraps and got the agreement signed despite the last-minute protests of his competitors in San Francisco’s Live Nation office. That event, Outside Lands, is today one of the highest-grossing independently owned festivals in the United States.
Basketballs signed by late UCLA Bruins coach John Wooden and Golden State Warriors point guard Steph Curry. Former San Francisco Giants catcher Buster Posey autographed the miniature bat.
Karen Santos
Perloff, who has six decades of experience in the live-music business, sat down with Billboard to discuss his new L.A. venue, his thoughts on the Taylor Swift ticketing debacle, the U.S. Senate’s subsequent grilling of Ticketmaster, and the effectiveness of the U.S. Department of Justice’s 2010 consent decree and the protections put in place to protect Ticketmaster customers.
Let’s hear the big news about your new music venue.
We will be opening our first venue in L.A. in decades: a 1,600-seat music venue just west of downtown. We’re partnering with Michael Swier, who owns some of New York’s most iconic rooms like Bowery Ballroom and the Mercury Lounge. The new venue will have an open floor plan that can host any type of contemporary music act or genre. It’s got perfect sight lines with a wraparound balcony and side lounge where people can relax. We’ve got a d&b [audiotechnik] sound system custom-built for this particular room. When we saw this new space, every one of us said, “Oh, my God. We have to do this.”
Perloff says he bought this sculpture by glass artist Dale Chihuly “at an Oakland children’s hospital music therapy event.”
Karen Santos
Did 2022 meet your expectations in terms of sales?
It was a really good year for us, and our sales in 2023 are so much better than they’ve ever been. I don’t think I’m alone in this. While everyone’s saying there aren’t enough acts out there, the other side of the coin is sales are spectacular. When the end of 2021 came, there seemed to be this built-up demand after the pandemic, and we had a burst of great sales including for our festivals Outside Lands and Life Is Beautiful, both of which sold out. We had a really great 2022 as well. [Billboard parent company PMC Media is a majority owner of Life Is Beautiful.]
Why is sales momentum continuing to build?
Maybe it’s that half the people going to shows right now were ready the day the doors opened back up, and the other half now have joined in. I literally have never seen a situation like this.
Do you worry about business cooling off in late summer?
Not for Outside Lands. It was held during the first week of August and had its best year in 2022. But to your point, I’ve always said that it would be better for everyone if we could figure out how to convince artists to play all year round and go from a six- or seven-month business where everyone’s compressed together to one where artists go out earlier in the year.
Another Planet was one of the few concert companies that did not lay off any of its staff during the pandemic. Why was that important to you?
We were the only concert company that kept 100% of our employees on payroll with no salary reduction during the entire pandemic. It was important that people could continue their lifestyle. I didn’t understand why these big companies didn’t do the same. There was plenty of work to be done from home: new venues, different ways to tell people about our shows and production and building maintenance. When the pandemic ended, we were ready to go.
You’ve been a Ticketmaster client for a long time and stayed with the company after its merger with Live Nation. Over a decade later, do you think the Department of Justice got it right?
I’ll say this: There is supposed to be a firewall in place so that Ticketmaster won’t share your data with the concert promotion side of Live Nation. If anyone believes that Live Nation can’t get numbers from Ticketmaster, they’re very naive. Somehow people seem to know what everybody else’s ticket sales are.
A tambourine depicting legendary concert promoter Bill Graham that Perloff got at an event thrown by his late boss’ memorial foundation.
Karen Santos
Do you agree with the argument that Ticketmaster leverages Live Nation content to land ticketing contracts?
No, and I can’t believe that the Senate keeps fixating on something that is irrelevant. They don’t do it. That isn’t an issue. To listen to the Senate talking about arenas when Live Nation doesn’t even own an arena in this country is just crazy. Secondly, when the Department of Justice said it was going to subsidize AEG’s AXS ticketing to be a competitor to Ticketmaster [in 2010], we all saw how that went — not very good. I’m not sure that most people would pick AXS over Ticketmaster.
Because of Ticketmaster’s dominance?
No. What I’m saying is that it’s hard for me to take the government seriously when they say they want to stop monopolies when there are monopolies in every part of business, from telecom to transportation.
What are your reasons for sticking with Ticketmaster?
I thought Ticketmaster was doing a good job for us. I have nothing bad to say about my competitors. Everyone wants to pick on AEG and Live Nation, but most people have no idea how hard it is to produce a tour. I toured Star Wars: In Concert with LucasFilm around the world for five years and worked on tours with Bill Graham; it’s a completely different game than being a local promoter. AEG and Live Nation do an incredible job and should be applauded for the work they do with Taylor Swift and Bruce Springsteen. Every five years, you get an artist that’s so popular that you just can’t make everyone happy.
Do you think the Swift ticket sale was mishandled?
I think there were a number of problems with the Taylor Swift on-sale. This might be the first controversial thing I’ll say in this interview: Bands really want to put the whole tour on sale at once because they can advertise the whole tour at once and make a bigger splash.
Fender guitar cases containing instruments won at a benefit auction for The Bridge School, which was co-founded by Pegi Young, the first wife of Neil Young.
Karen Santos
Right, and for Swift, something like 2.2 million tickets went on sale simultaneously.
If someone’s touring for six months, it might make some sense to maybe break the tour into two segments and go on sale with the second part of the tour closer to the dates. But there’s no system in the world — and this is where I have to defend Ticketmaster — that could have handled the onslaught.
Do you think the Senate understands that?
My question for them is, “Why are you picking on Ticketmaster and Live Nation when you should be outlawing brokers?” They are the ones who screw up everything. Does every promoter take a few tickets? Does every venue have a few tickets? Sure. But it’s the scalpers that make it so no one can get a decent seat except the rich. The Senate didn’t do the research they should have done before they started pontificating and acting like they knew what they were talking about.
What’s the best way to stop scalping?
Many years ago, my business partner, Sherry Wasserman, came up with a brilliant system for Prince at the Wilshire in Los Angeles back when I ran the theater. We wanted to completely stop brokering for the show, and we made people line up the day before the show and present an ID when buying tickets. It was foolproof, we thought. And then the next day as people are walking in, here comes Muhammad Ali with tickets and a matching ID. Muhammad Ali certainly wasn’t in line the day before when we sold the tickets, but here he was with a ticket and ID. We didn’t know how, but he managed to beat the system. We just laughed and thought, “We did the best we could do.”
Just hours the ARMY Member presale for SUGA’s heavily anticipated Agust D tour began on Wednesday (Mar. 1), Ticketmaster took to Twitter to announce that it has canceled the rest of the sales rounds.
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“Due to extremely high demand during today’s ARMY MEMBER Presale, there will not be a General Verified Fan Presale or General Onsale,” the ticket company posted.
UPDATE for SUGA | Agust D TOUR IN U.S. — Due to extremely high demand during today’s ARMY MEMBER Presale, there will not be a General Verified Fan Presale or General Onsale.— Ticketmaster (@Ticketmaster) March 2, 2023
Ticketmaster previously warned fans that the demand exceeded the number of available tickets, and that all tickets would be released during the first round of presale. “If all tickets are purchased during the ARMY MEMBER Presale, there will not be any additional sales,” Ticketmaster tweeted.
However, members of the ARMY quickly pointed out that there are still available tickets under the “Official Platinum” category with inflated prices. “stop with the platinum tickets. i still see them on there 5 hours later, popping in then greying out then appearing again. release them at the fixed prices,” one fan tweeted.
All verified fan tickets were the same price at face value. This is what official platinum looks like. This is what’s still available for The Album night. pic.twitter.com/hVR2SGmd0K— Lindsey (@LindsHutt) March 1, 2023
This is hardly the first time Ticketmaster has faced scrutiny amid chaotic ticket sales for performers including Taylor Swift and Beyoncé. The Senate Judiciary Committee held a hearing in January to analyze the ticketing industry following the messy handling of Swift’s The Eras Tour ticket sale by Ticketmaster.
SUGA announced dates for the tour, named after his Agust D mixtape, on Valentine’s Day. The tour, which is his first as a solo performer, kicks off April 26 at the Belmont Park, New York. The jaunt will stop in New Jersey, Illinois and California before heading overseas for two nights in Seoul, Korea in addition to Jakarta, Bangkok and Singapore.
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Ticket fees have been called everything from “exorbitant” (Sens. Richard Blumenthal and Amy Klobuchar) to “completely bats—” (Last Week Tonight with John Oliver). And they can increase the price of a concert ticket by an average of 27-31%, according to a 2017 study by the U.S. Government Accountability Office.
Unfortunately for ticket buyers, those fees aren’t going anywhere quickly. They may change or disappear completely, but consumers won’t reap any savings in the end, Live Nation CEO Michael Rapino explained during Live Nation’s fourth quarter 2022 earnings call on Thursday.
Say, for example, a venue is prohibited from charging fees on top of a ticket’s face value. “Well, then the venue would say, ‘Okay, artists, the rent isn’t $50,000 anymore. It’s $100,000,’” Rapino said.
The ticket fee is a surcharge that helps cover a venue’s costs. Rapino’s point is that the venue needs to cover its costs, so it’s going to collect money to cover them, no matter what. In a normal scenario, the consumer helps cover those costs by paying a surcharge directly to the venue.
If fees were eliminated, artists — who are the final authority on primary ticket prices — would be forced to raise them to cover the additional cost. The surcharge may have disappeared, but that cost would still exist in the form of a higher face value. Regardless of the approach, the consumer’s expense and the venue’s revenues would be unchanged.
“The true cost of going to a show and making the show happen is the full price all-in,” said Rapino. The concept is apparent to anybody who has pondered how airlines set prices. If airlines charged an all-in fee that encompassed all its costs, ticket prices would be dramatically higher. Legislation that banned fees for checked baggage could result in higher prices for everything from flight themselves to in-flight beverages. Airlines that previously allowed free carry-on bags might start imposing fees on those. They could also charge more to change your travel plans (which used to cost the consumer nothing).
Rapino acknowledged that Live Nation, which owns and operates venues, would do the same. “If tomorrow someone said, ‘You know, you can’t charge 20% service fees on your amphitheater, you have to [charge] 10%.’ Well, then the $75,000 house rent that we charge artists would be $100,000,” he said as an example. Live Nation couldn’t simply absorb the cost, he explained. Since the company requires money to pay staff and operate the venue, it would find a way to recoup the lost fees.
While what consumers pay won’t change, they may get more transparency. In the wake of Ticketmaster’s disastrous Taylor Swift Eras Tour pre-sale, President Joe Biden unveiled an initiative to limit, among other types of fees, mandatory, back-end fees that “often hide the full price” of a good or service. The White House pointed to research that found hiding the full price encourages consumers to spend more than they would have otherwise.
Live Nation has also come out publicly — and forcefully — against hidden fees. On Thursday, Rapino called numerous times for the industry to adopt all-in pricing that show the ticket buyer a single price at the beginning of the transaction. Also on Thursday, Live Nation issued a press release that encouraged lawmakers to introduce legislation that includes, among other things, mandatory all-in pricing.
The uproar against Live Nation and Ticketmaster over ticket fees is just one of many criticisms to gain momentum in recent months. Some members of Congress have called Live Nation a monopoly that limits competition in the touring business and harms consumers by charging high prices and leaving some unable to purchase tickets for in-demand concerts like Swift’s Eras tour. Many inside and outside of Washington have called for the Department of Justice to break up the company’s concert promotion and ticketing operations. On Thursday, Sens. Klobuchar and Mike Lee sent evidence of the Jan. 24 Senate hearing on the ticketing market to the Department of Justice and encouraged its antitrust division “to take action if it finds that Ticketmaster has walled itself off from competitive pressure at the expense of the industry and fans.” Others have suggested Ticketmaster improve its security practices to deal with the bot attacks that derailed Swift’s pre-sale.
Ticketmaster may be most reviled for its fees, though. And as Rapino pointed out, those aren’t going away anytime soon.
If you’ve been trying to figure out the best strategy to score some tickets to Beyoncé‘s upcoming North American tour, don’t believe the hype. Specifically, don’t buy into the rampant rumors on Twitter from fans claiming that you can nab presale codes by buying a “Cuff It” remix from Bey’s official website.
“This is categorically false,” the singer’s longtime spokesperson, Yvette Noel-Schure tells Billboard.
“I JUST BOUGHT BOTH VERSIONS OF CUFF IT WETTER REMIX ON [link] AND I GOT THE PRESALE CODE TO THE RENAISSANCE WORLD TOUR. BUY TO GET YOURS TOO!,” tweeted one fan, while another claimed they uncovered a similar cheat code in a tweet that read, “People who buy the cuff it remix are most likely to get a presale code and get chosen for lottery at the Renaissance tour. Go hive!!”
At press time it was unclear where the rumor came from or who started it, but it makes sense that the singer’s superfans would be searching high and low for any angle on tickets to the Renaissance Tour.
The first 40 dates of the tour were announced last week, followed by an additional seven shows in Toronto; Chicago; Washington, D.C.; Atlanta; Houston; Los Angeles; and East Rutherford, N.J. If you want to be in the building for one of the most anticipated tours of 2023 the first step is to register for Ticketmaster’s Verified Fan, though registering doesn’t automatically secure you a spot.
According to Ticketmaster, a “lottery-style” process will be used to determine which Verified Fans will receive access codes to purchase tickets while others will be waitlisted. Citi cardmembers can get exclusive access to presale tickets upon registering here until Thursday (Feb. 9.); the first group of Verified Fan presale tickets went on sale on Monday.
Because of the new dates announced last week, the Verified Fan registration for Group A ended at noon last Friday. Registration for Group B will be open until Thursday at 11:59 p.m. ET. Group B registration includes shows in Boston, Dallas, Miami, San Francisco, Seattle, Minneapolis and Tampa. Group C registration ends Feb. 16 at 11:59 p.m. ET and includes shows in Charlotte, Detroit, Phoenix, St. Louis, New Orleans, Philadelphia, Louisville, Pittsburgh, Nashville and Kansas City, Mo. Tickets to the Renaissance Tour are also available on Vivid Seats.
Now the bad news.
“Fan demand already exceeds the number of tickets available by more than 800 percent based on the registration numbers in the Group A cities,” read a statement from Ticketmaster after the initial presale. “It is expected that many interested fans may not be able to get tickets because demand drastically exceeds supply.”
As the first tickets for Beyoncé‘s eagerly anticipated Renaissance world tour begin to roll out, the Senate Judiciary Committee issued a strong warning to Ticketmaster: “we’re watching.” The tweet from the Democrat members of the committee issued on Thursday afternoon (Feb. 2) included a clip from a CNN report about the Beyhive keeping a close eye on the ticketing giant in the wake of the disastrous roll-out of tickets for Taylor Swift’s Eras Tour.
The tweet came just hours before NPR reported that the initial roll-out of Renaissance tour tickets in the UK on Thursday morning had already led to fear from superfans that they may not get to see the show. With pre-sales beginning in England, NPR spoke to several fans who said that a combination of high prices — up to a reported $2,400 for some seats — and a reported snag in the ticketing system that knocked it offline 15 minutes before sales started has already led to some frustration in the Beyhive.
“Because this is a Beyonce solo show, and it’s her first one in seven years, the demand is going to be really, really high,” BBC music correspondent Mark Savage told NPR, adding that in addition to reportedly going down for a period, Ticketmaster’s system was “inaccessible for a lot of fans until all of the tickets were gone.”
At press time a spokesperson for Ticketmaster had not returned a request for comment on the Judiciary Committee tweet or the NPR report.
Ticketmaster’s president/CFO Joe Berchtold appeared before the Senate Judiciary Committee last week to defend the company over the high-profile Swift ticketing mess, with witnesses calling for drastic action to break up what they claim is a monopoly. Ticketmaster issued a formal apology to Swift and her fans after the chaotic ticket sale process for the 2023 Eras tour, in which the system crashed shortly after launch as 14 million fans and billions of bots flooded the site during the presale, causing service disruptions.
Tickets for the U.S. Beyoncé dates are slated to go on sale on Monday (Feb. 6) after Bey recently added more dates at seven North American stadiums due to high demand. Second shows have been tacked on in Toronto on July 9, Chicago on July 23, East Rutherford on July 30, Washington, DC on August 6, Atlanta on August 12, Los Angeles on September 3 and Houston on September 24.
According to a press release from Live Nation, fan demand for Renaissance seats has already exceeded the number of available tickets by more than 800% based on current registration numbers. However, even with these added dates, “it is still expected that the majority of interested fans will not be able to get tickets because demand drastically exceeds supply.”
See the Judiciary Committee’s tweet below.
President Biden urged Congress to “crack down on excessive online concert, sporting event, and other entertainment ticket fees” on Wednesday (Feb. 1), according to a statement from the White House. Biden’s call for action came roughly a week after Live Nation Entertainment faced scathing critiques from both Democratic and Republic senators during a Senate Judiciary hearing.
Speaking with his competition council, Biden said that Congress “should lower the huge service fees that companies like Ticketmaster slap onto tickets for concerts or sporting events that can easily add hundreds of bucks to a family’s night out,” according to The New York Times. “It’s a basic question of fairness,” he added.
President Biden’s interest in curbing ticket fees is part of the Junk Fee Prevention Act, which he discussed with his competition council Wednesday. The act takes aim at four types of excessive fees that cumulatively “cost American consumers billions of dollars a year.”
“Many online ticket sellers impose massive service fees at check-out that are not disclosed when consumers are choosing their tickets,” the White House noted in a statement. These fees make attending live events prohibitively expensive in some cases: “A family of four attending a show could end up paying far more than $100 in fees above and beyond the cost of the tickets.”
As a result, “the President is calling on Congress to prohibit excessive fees, require the fees to be disclosed in the ticket price, and mandate disclosure of any ticket holdbacks that diminish available supply.”
In addition to limiting ticket fees, the Junk Fee Prevention Act also aims to eliminate “airline fees for family members to sit with young children,” “exorbitant early termination fees for TV, phone, and internet service” and “surprise resort and destination fees.”
Ticket fees were just one of several topics that came up during the Senate Judiciary hearing last month, which also explored the Taylor Swift ticket sale fiasco, whether Live Nation bullies its competitors and the extent to which the company acts as a monopoly. Joe Berchtold, Live Nation’s president and chief financial officer, told lawmakers that his company wasn’t as powerful as critics were making out and argued that “ticketing has never been more competitive.”
The hearing almost immediately caused ripples in the live music industry. The following day, Ineffable Music Group announced that it would no longer collect 20% of touring artists’ merchandise sales at the 10 venues it owns or operates. “Any action we can take to help to insure a healthy, vibrant concert ecosystem is important,” Ineffable Music Group CEO Thomas Cussins told Billboard at the time.