Monday, June 24, 2024

The high cost of concert tickets in the U.S.

Why U.S. concert tickets are so expensive: Factors contributing to the high prices

The rising cost of concert tickets in the United States has been a hot topic of discussion among music fans and industry insiders alike. The U.S. Justice Department recently made a significant move by taking legal action against Live Nation Entertainment, alleging that the concert promoter and its Ticketmaster unit have been inflating ticket prices illegally, to the detriment of both artists and their fans.

According to reports from the live music trade publication Pollstar, the average ticket price for top concert tours soared to $122.84 in the past year, up from $91.86 in 2019. This increase has left many fans feeling the pinch, especially when considering the additional costs they may face on the secondary market.

One of the key factors contributing to the high cost of concert tickets are the numerous fees imposed by Ticketmaster. Attorney General Merrick Garland highlighted the long list of fees that fans may encounter, including ticketing fees, service fees, convenience fees, platinum fees, and more. These fees can significantly add up, making attending live concerts in the U.S. far more expensive compared to other parts of the world.

Another factor driving up ticket prices are pre-sales, where tickets are often sold in advance to fan clubs and other exclusive groups. However, the DOJ’s lawsuit alleges that Ticketmaster’s exclusivity provisions may prevent artists from selling tickets directly to die-hard fans, leading to inflated prices from third parties.

Professional resellers are also a major player in the high cost of concert tickets, as they actively buy up tickets to popular shows and resell them at inflated prices. The lawsuit further points out that Live Nation’s significant market power, with control over a large share of concert promotions and ticketing, allows them to charge higher prices and impose excessive fees.

Overall, the ongoing legal battle between the U.S. Justice Department and Live Nation Entertainment sheds light on the complex factors contributing to the expensive nature of concert tickets in the country. As fans continue to feel the financial strain of attending live events, it remains to be seen how these legal developments will impact the industry as a whole.

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