Ticketmaster Trying To Cut Down On Scalpers... Or Increase Fee Collection For Itself?
from the some-good,-some-bad dept
Earlier this year, we had covered the news that Ticketmaster was pushing paperless tickets as a way to cut down on scalping, and now that story seems to be getting much wider coverage. The idea is that if you buy a ticket, you have to be the one to show up, with an ID and the credit card you used, in order to attend. Ticketmaster will allow you to transfer... but it can limit the price of a transfer and charge you a fee for the transfer. That makes it seem like this is a lot more about collecting more fees from the secondary market, than really cutting down on scalping. Not to mention that it seems likely to cause problems. How do you handle buying tickets for someone else as a gift? Under this system, you'd need to buy... and then "transfer" at a fee. And what if you really can't go, but the ticket has already been transferred once (a limit they set on the system). Finally, does it really make sense to block out basic market mechanisms? I recognize that there's an issue of scalpers buying up huge blocks of tickets, but there are better mechanisms to deal with that, that don't involve limiting what legitimate purchasers can do with their tickets.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Filed Under: e-tickets, reselling, ticket scalping, tickets
Companies: ticketmaster
Reader Comments
Subscribe: RSS
View by: Time | Thread
What issue could there be with buying low and selling high? Is that illegal now?
If the artists and venues set ticket prices which accurately reflected demand, scalpers would and could no longer exist.
And please don't whine about high ticket prices. There are plenty of things in life we cannot afford. There is no right to cheap prices on the things we want. If you can't afford something, earn more money or live without it.
[ link to this | view in thread ]
In my Crystal Ball
[ link to this | view in thread ]
Ticketscalper
Isn't that how Ticketmaster works?
[ link to this | view in thread ]
[ link to this | view in thread ]
sounds pretty simple to me
[ link to this | view in thread ]
Re:
[ link to this | view in thread ]
Bring it on!
[ link to this | view in thread ]
Usually this happens because of some other bit of corruption within the industry. It's the corporate entertainment and the free tickets to insiders that drive scalping (or touting as we call it in the UK). If it was just the public buying tickets through the official channels it would be really easy to stop (eg limit to 2 tickets per credit card account )
[ link to this | view in thread ]
[ link to this | view in thread ]
I like this move! (non-sarcastically)
Agree with the points about corporate blocks mind you. I think they are mostly for regular scheduled events and the sidewalk arseholes tend to be more for the concerts etc. But again with corporate blocks they should be able to refund those tickets BACK to the seller and not need to send them to a "secondary market". So you could...you know....just buy them from the actual ticket window/website. Seriously.....what value does a secondary market have that a simple refund system can't accomplish.
Ok.....i would just like to have a fair chance at Leafs tickets during the season. There is said it.
[ link to this | view in thread ]
Re: Ticketscalper
[ link to this | view in thread ]
Just one more reason to hate TM
Don't get me wrong, I don't like scalper buying up big blocks... but why is TM allowed to do the same?
I've been wanting some serious competition to them for a while. A ticket vendor committed to low/fair/transparent customer charges. Who wants to help build this? Toronto area...
[ link to this | view in thread ]
On the whole
[ link to this | view in thread ]
TicketMaster is a monopoly
[ link to this | view in thread ]
Re: I like this move! (non-sarcastically)
[ link to this | view in thread ]
Re: Bring it on!
[ link to this | view in thread ]
Don't blame Charley or Snake because the people who set the prices grossly underprice them.
With the technology we have today, I don't understand why tickets even have fixed prices any more instead of being sold auction-style.
[ link to this | view in thread ]
Find other venues
Granted, you won't get fireworks, lipsyncing, and near-nudity, but maybe you'll find a new group you do like.
[ link to this | view in thread ]
Re:
[ link to this | view in thread ]
Re:
With the technology we have today, I don't understand why tickets even have fixed prices any more instead of being sold auction-style."
That SHOULD make sense, except that you're missing an important part of the equation which is that in many cases the initial ticket providers have some degree of a relationship with the "scalpers" as a way to provide a kind of plausible deniability.
As an example, it's fairly well-known that the Chicago Cubs own a couple of the largest brokers, or "scalpers". They "sell" their tickets to themselves at face value, and then the brokers resell them at 200%-400% face value. This way it doesn't look like the Cubs are raping their less affluent fans, even though they clearly are.
[ link to this | view in thread ]
Re:
[ link to this | view in thread ]
[ link to this | view in thread ]
Do not buy on the secondary market
I play that way for everything else as well, my family wanted a Wii when they first came out, no way in hell was I paying $350 for something worth $250, so it took a while but we did get it.
The scalping problem is the ticket agencies with their corporate clientelle that are willing to pay the added cost because they are not the onse paying for them.
[ link to this | view in thread ]
Not such a bad idea IMO
Weird Al comes to a town, when playing at a ticket master location, his show is sold out but the place ends up only half full. Now hes just lost new fans to buy his CDs because the cost of seeing him live was to high. Even worse he cant invite people in or resell empty seats as people who cant get tickets wont show up.
Next he plays at a "collect at the door" location, and gets a total sell out and a few people cant get in. Those who cant get in get a free CD and shirt and the location is completely full.
TicketMaster changing how its doing it is aright, but it could be better, If at the purchase time you were able to select "Gift" it should ask the first and last name of who your giving it to. (joe smith + guest for instance) Then require picture ID to get in with the ticket. This additional flexibility is needed or else we get the "sold out half full locations" problem above.
Scalpers suck, Ticketmaster is just a broker and like it or not, there are costs to selling 20k tickets to an event. There are most costs to sell 500k tickets a day to different events.
One last thing everyone talks about is refunds for not going, why cant ticketmaster just buy back tickets?
[ link to this | view in thread ]
Re: I like this move! (non-sarcastically)
[ link to this | view in thread ]
Re: Re:
Um, because you live in a capitalist society?
And the only reason the "face value" of the ticket is so low is because it is artificially low. It is intentionally set below market value. And that's exactly why scalping exists. They buy low and sell high. If the tickets were set at the high market price, scalpers would be out of business.
"Sounds to me like you're pushing an elitist society..."
If having an understanding of basic economic principles is somehow "elitist", I guess I am. But to me confusing an understanding of such principles with elitism makes you an idiot.
"I've got the money, so it sucks to be you"
I certainly could not afford the true market value of a concert ticket for a major touring act.
[ link to this | view in thread ]
Re: Re:
Yep, the exact same is true of cars made by BMW and Lexus, watches made of real gold, and diamond encrusted iPods. When there is a high demand for something exclusive, prices rise and some people are left unable to buy. That's life. Get used to it.
"This limits an artists outreach severely."
If the artist feels so bad about the high cost of his or her ticket prices, he could decrease demand by increasing the supply. I.e., tour more often. Heck, tour all the fricken time. Eventually people would get so sick of seeing him he'd be unable to even give away his tickets for free.
[ link to this | view in thread ]
Re:
[ link to this | view in thread ]
Better idea...
I think the problem is that the scalpers tend to purchase huge blocks of tickets in an automated fashion that prevents actual people from being able to buy... Or, they could limit the best seats to purchases made *in person* and limit sales to 2 per customer... making other seating available online. This way fans who want the best seats have a chance, and the rest can go hog wild. There are a lot of options here beyond limiting resale.
[ link to this | view in thread ]
oh ye of little involvement, and as such, understanding
I firmly believe TM opens up blocs before tickets officially go on sale to sell to the secondary market (aka scalpers) I don't know if they get a cut or charge a fee or what, but they're making money off of it. There's plenty of evidence to support the claim -> During the last RR Phish run some phishy fanatic (and there are a lot of them) was checking three times a day every day on the TM site even though he knew they wouldn't be on sale.
But lo and behold, one day he entered an the tickets were available! Over a week before scheduled to go onsale! The word spread like wildfire in the tight knit phish community and thousands of tickets ended up being sold > TM nullified all the tickets and gave everyone a $50 "Sorry" gift certificate. Hush money.
As for increasing prices to match demand, what a crock of shi**. This isn't the free market capitalism, this is the world of art. 98% of artists don't want their fans having to pay an arm and a leg to see their shows... weird i know, it's not ALL ABOUT MAKING AS MUCH MONEY AS POSSIBLE.
Ticket Master is the devil. If they make any move at all you can bet it's been planned out as a money grubbing scheme in a diabolical fashion. They don't even DO ANYTHING. They just ride the coattails of the artists who are usually forced to go through their outlets due to venue contractual obligations and such. They're leeches, and they're very good at it.
[ link to this | view in thread ]
You missed another part Mike
Stub Hub and other companies are already closely tied or run by TicketBastard as well.
In pseudo-defense of the fees, many of those are required by the artist or venue (as reported by TicketBastard). It makes it seem as if TM(TB) has agreed to be the "bad guy" on this situation and then gets compensated nicely for it despite taking a PR hit.
[ link to this | view in thread ]
Re: Re: Re:
As I wrote, if a major artist really wanted to connect with all of his fans, the rich and the poor alike, I suggested he tour more. That'd certainly work. I did some figuring.
The artist could stick with the top 20 cites in the US and play ten times in each city each year in the largest arena available. That's only 200 days, leaving him 165 days to tour the rest of the world. Football stadium usually hold about 80,0000 people in concert situations, i.e., when the ground is used.
Playing such an area 10 times would be a whopping 800,000 tickets for each city.
I think it's pretty easy to guess that even Bruce Springsteen could not sell out 800,000 tickets in an area the size of Detroit, Chicago, LA, etc. Accordingly, plenty of those tickets would go unused. Thus, their market value would be zero. Thus, the very poor would be allowed to attend.
Problem solved.
[ link to this | view in thread ]
Re: Better idea...
We got there way early, were about 150th in line (for a 16000 seat stadium), and were the LAST ones to get tickets. The people behind us didn't get them, because of the line-cutters. There were a couple fights and no security or police to be found.
I was very glad when it went to phones and internet instead. A lot less violent that way (and no hour-long drive to LA).
[ link to this | view in thread ]
Buy but give away
I just don't like the idea of locking things out like this.
[ link to this | view in thread ]
Risk
The call should be to Ticketmaster to provide more flexible ways to buy tickets as long as something identifys a person going. They should sell things like 4 packs with one or more name attached so that you get situations where Joe Blow or Jane Smith have to go but they can take up to 3 friends (who may not have to be named)
OR we could pass anti scalping laws with more teeth, and go after people who do it by issuing special credit cards, doing charge backs on them when cops buy the tickets and arresting the scalper. (flag the card in the system for being used by law enforcement) More would take his place and we could lock up a whole ton of people. (Im only half joking)
[ link to this | view in thread ]
Re: Re:
Complete hogwash. A 'true' or 'real' fan will save up money to see their favorite artist live. Do you really think that it is people in business suits buying tickets from scalpers?
[ link to this | view in thread ]
Re: Re: Bring it on!
If a buyer and seller voluntarily agree to a price, how is it a rip-off?
[ link to this | view in thread ]
Re: I like this move! (non-sarcastically)
But your are correct that the system is broke, but not for the reasons you believe. It's broken because ticket pricing does not follow the laws of supply and demand.
Most concerts I've been to, have minimal tiered pricing. A floor seat is the same price regardless if you are in the front row or 100 feet away. In essence, those farthest from the stage are subsidizing those closet to the stage.
[ link to this | view in thread ]
Re: Risk
[ link to this | view in thread ]
Re: Better idea...
Scalpers simply hire people to wait in line for them. Or they hire people in India to buy tickets online.
Scalping is a clear market signal that tickets - or certain tickets - are underpriced. The simple (and cheapest) solution is to auction off tickets.
The complex (and most expensive) solution is to introduce laws that ban scalping (which means a redirection of limited enforcement resources), systems that require ID and a credit card as proof of entry, or an exchange system that requires yet another payment to simply 'transfer' a ticket to another individual.
And we all know how those complex solutions work out. Ask all the people that purchased music with DRM that no longer plays because the DRM server is dead. Or people who couldn't play a legally-purchased CD on their computer. And so on.
[ link to this | view in thread ]
Ticket Scalpers have become Ticket Speculators
So not only did this 'scalper' expect to make over a %100 markup, they didn't even bother to provide the tickets that they had agreed to sell me (and there was NO communication until I told them to void the sale and refund my money, one automated 3-mail, then the 3 tickets and receipt in a fed ex envelope with no other material). I canceled the order and got my tickets directly from the venue, but this is just one example of how worthless these 'middlemen' are. They can't even put 4 tickets in an envelope when they are expecting to get paid over $200 for it..... (the original order cost me $426 for $208 worth of tickets...)
[ link to this | view in thread ]
Re: Not such a bad idea IMO
The real card holder complains, police come checking, you say you gave the money to somebody else to buy and the police aren't interested any more. Or at least in England they're not.
[ link to this | view in thread ]
Ticketmaster ARE Scalpers
If I were Ticketmaster, I'd be careful. They're going to inadvertently illegalise themselves.
[ link to this | view in thread ]