Taylor Swift’s Eras Tour presale was set to begin on November 15, 2022 for fans who had pre-registered. However, there was some controversy around Ticketmaster’s use of “dynamic pricing” for the tour tickets. This led to speculation that Swift herself had opted out of dynamic pricing for her concerts.
What is dynamic pricing?
Dynamic pricing, also known as surge pricing or demand-based pricing, is a pricing strategy used by ticket sellers like Ticketmaster. Prices fluctuate based on current demand for tickets. Highly coveted tickets for popular events can increase in price, sometimes dramatically, compared to the initial list price.
The goal of dynamic pricing is to maximize revenue. When demand for tickets is very high, prices go up. When demand is lower, prices decrease. The system uses algorithms to determine the highest price the market will allow at any given time.
Why do ticket sellers use dynamic pricing?
There are a few key reasons why dynamic pricing has become more commonly used for major concerts and events:
- Maximizes revenue – By adjusting prices based on market demand, sellers can find the optimal price to sell out events and maximize revenue.
- Captures full value – Popular artists like Swift can often charge more for tickets, which dynamic pricing allows. Fixed pricing may undervalue tickets.
- Discourages scalping – High secondary market prices often indicate that initial ticket prices were too low. Dynamic pricing aims to reduce this gap.
- Provides flexibility – Prices can be adapted closer to the event based on changing demand.
However, the practice has also received criticism from some fans who argue it makes getting affordable access to concerts even harder.
What happened with Taylor Swift’s tour tickets?
There were a few key events around Swift’s Eras Tour tickets:
- Pre-sales began November 15 for Verified Fans who had signed up in advance. Huge demand overwhelmed the system and caused it to crash.
- Once sales opened, some fans reported seeing $2000+ ticket prices, much higher than typical Swift prices.
- Ticketmaster acknowledged they used “dynamic pricing” for Swift’s tour, adjusting prices based on demand.
- After the backlash, Ticketmaster claimed that Swift had not set the ticket prices and said pricing got as high as it did to discourage scalpers.
Did Swift opt out of dynamic pricing?
Swift did not make any direct public statement about whether or not she opted out of dynamic pricing for her shows. However, there are a few indications that suggest she did:
- In a statement, Ticketmaster said “Taylor Swift’s ticket prices are determined by Taylor Swift.” This implies she had control over final pricing.
- Ticket prices started out very high during the pre-sales, rather than rising over time based on demand. This indicates pricing was not truly “dynamic.”
- After the initial sales debacle, Ticketmaster cancelled the general public sale scheduled for November 18. No more tickets were released, even though shows did not sell out at the high prices.
- Reports indicated Swift’s team was “livid” over the dynamic pricing and blamed Ticketmaster.
Based on these clues, it seems plausible that Swift did opt out of dynamic pricing and withdrew her tickets after seeing the initial high prices. While not confirmed, her level of control over the situation indicates she likely intervened to stop Ticketmaster’s pricing practices.
What incentive does Swift have to opt out?
Here are a few reasons why Swift may have wanted to avoid dynamic pricing for her tickets:
- Fan relationships – Swift has cultivated an extremely loyal fanbase. Surprising them with exorbitantly high prices risks damaging those relationships.
- Public backlash – The outrage over Eras Tour pricing spread rapidly across social media. Swift possibly wanted to avoid further fan frustration.
- Reputation – As a self-branded artist, Swift cares about her image. Price gouging fans could hurt her reputation.
- Goodwill – Generous pricing would build Swift more goodwill and fan loyalty, important factors for her brand.
While dynamic pricing aims to maximize revenue, Swift likely values her principle of fair access for fans higher than absolute maximum profit per ticket. Her goodwill with fans is worth more long-term.
How common is it for artists to opt out of dynamic pricing?
It’s relatively uncommon for artists to opt out entirely of the dynamic pricing model for major tours. Some of the reasons it may be rare include:
- Lack of control – The ticketing platform, promoter and venue often drive pricing rather than the artist.
- Higher revenue – Dynamic pricing typically earns substantially more money, which benefits both artists and promoters.
- Prevalence of practice – Most major concerts now use some degree of variable or surge pricing based on demand.
However, artists can negotiate limits or caps on dynamic price ranges. Some high-profile examples of artists who pushed back include:
- Bruce Springsteen – Set limits on his 2023 tour ticket prices to avoid exorbitant premiums.
- The Weeknd – Had a fan uproar over high prices and reportedly vowed to reduce prices for next tour.
- Harry Styles – Required his Love on Tour prices stay “low” to help younger fans afford them.
While Swift may be one of the few to outright reject dynamic pricing, other artists have exerted control to make pricing fairer for fans.
Will this impact the live music industry?
Swift opting out of dynamic pricing, if true, could have some important implications for the live music business:
- It may give other artists more leverage to negotiate pricing systems with Ticketmaster/LiveNation.
- Fans may come to expect fairer pricing models and reject shows with egregious premiums.
- Regulators may more closely scrutinize Ticketmaster’s practices and market control.
- There could be downward pressure on prices, reducing the prevalence of $1,000+ tickets.
- Alternate ticketing platforms like SeatGeek or AXS could benefit from fan mistrust of Ticketmaster.
However, it’s unlikely dynamic pricing will go away altogether, as it remains highly profitable. But an A-list star like Swift taking a stand could promote more reasonable price ceilings industry-wide.
Conclusion
Taylor Swift likely did opt out of Ticketmaster’s official dynamic pricing for her Eras Tour tickets. This unprecedented move may reflect her prioritization of fan relationships over maximizing per ticket revenue. While not confirmed, Swift’s apparent rejection of surge pricing could embolden other artists to push back against ticketing industry practices. However, it remains to be seen if this sparks far-reaching changes or just an isolated stand by one megastar. Going forward, fans will watch eagerly to see how Swift’s principles guide her ticketing policies.