Ticketmaster has a complex and sometimes controversial history when it comes to allowing ticket resales on their platform. Here is a quick overview of Ticketmaster’s shifting policies on ticket resales:
The origins of Ticketmaster’s resale policies
When Ticketmaster first launched in the 1970s, it did not allow any ticket resales on its platform. Tickets were meant to be sold once by Ticketmaster to fans at face value prices set by event organizers. However, a secondary ticket market emerged in the 1980s and 1990s, with third-party brokers reselling tickets at marked-up prices. Ticketmaster saw this as lost revenue and wanted to capitalize on the secondary market.
Ticketmaster’s evolving stance on resales
In the early 2000s, Ticketmaster launched its own secondary ticket market platform to compete with third-party resellers. This enabled ticket holders to resell tickets they could no longer use. Ticketmaster would collect fees on both the initial sale and resale of tickets.
After some backlash, Ticketmaster adjusted its policies in the late 2000s and no longer allowed season ticket holders to sell their tickets above face value prices on Ticketmaster’s platform. Some individual ticket resales were still permitted.
Ticketmaster’s acquisition of TicketsNow
A major shift came in 2008 when Ticketmaster acquired TicketsNow, a large secondary ticket marketplace. After the acquisition, Ticketmaster more actively enabled ticket resales through TicketsNow, sometimes at very high markups above face value.
Legal issues and further policy changes
Ticketmaster faced lawsuits in the late 2000s over supposed concert ticket shortages that drove up resale values. As a result, Ticketmaster made adjustments like waiting longer before releasing tickets to TicketsNow.
More recently, Ticketmaster has focused on having tickets be transferable from one fan to another but restricts reselling tickets at higher prices without permission from event organizers.
Ticketmaster’s current resale policies
Currently, Ticketmaster continues to allow some ticket resales but the specific policies can vary:
- Season ticket holders may be prohibited from reselling tickets outside of Ticketmaster’s transfer system.
- For high-demand events, any ticket transfers may be restricted for a period after the initial sale.
- Ticket resale prices are often capped based on the initial face value price.
- Excessive resales can result in account restrictions or cancellations.
In summary, Ticketmaster has gone back and forth over the decades when it comes to allowing ticket resales. It now takes a cautious approach, enabling limited resales but prohibiting exploitation of the secondary market.
Why Ticketmaster continues to allow some resales
There are a few key reasons why Ticketmaster maintains a resale market despite past controversy:
- Profit motive – Ticketmaster generates fees on both the initial ticket sale and any resales.
- Market demand – There is clear demand from fans looking to resell or buy tickets on a secondary market.
- Artist preferences – Some event organizers and artists prefer having a controlled resale market through Ticketmaster.
- Guaranteed tickets – The resale market guarantees fans can get tickets even if events initially sell-out.
While Ticketmaster could eliminate resales entirely, the company sees it as an opportunity to provide a controlled resale service rather than losing out to unauthorized third-party brokers.
The pros and cons of Ticketmaster’s resale policies
There are reasonable debates around the pros and cons of Ticketmaster enabling ticket resales:
Potential pros
- Helps fans get tickets even if events initially sell out.
- Gives ticket holders a way to safely transfer or resell tickets at fair market value.
- Generates more revenue for Ticketmaster and event organizers.
- Cuts down on unauthorized brokers and black market sales.
Potential cons
- Can dramatically drive up ticket prices for fans, pricing some out.
- Rewards scalpers who buy up tickets only to resell at a profit.
- Artificially creates ticket scarcity by diverting inventory to resale market.
- Enables Ticketmaster to earn fees twice on the same ticket.
The future of Ticketmaster’s resale policies
Looking ahead, it seems likely that Ticketmaster will continue operating a controlled secondary ticket marketplace given the profits and fan demand involved. However, there may be some evolution in policies to find the right balance between enabling transfers and restricting exploitation. Pressure from lawmakers and consumer advocacy groups could also impact Ticketmaster’s approach. Rules around ticket resales will likely remain a hotly debated topic as live events continue surging in popularity.
Conclusion
Ticketmaster has shifted policies over its history when it comes to enabling ticket resales. It now runs a restricted secondary marketplace that generates significant revenue yet also faces ongoing criticism. Ticket resales allow fans to access high-demand tickets but can spark accusations of price gouging. Debates around Ticketmaster’s resale policies seem poised to continue as fans, artists, regulators, and Ticketmaster itself grapple with finding the right equilibrium on this complex issue.