Ticketmaster is one of the largest ticket sales and distribution companies in the world. They sell tickets for concerts, sports events, theater shows and more. However, Ticketmaster has also developed a reputation for high fees and service charges that can add a significant cost to tickets purchased through their platform.
What are Ticketmaster’s Fees?
When you purchase tickets through Ticketmaster, there are a variety of different fees that may be added to your order:
- Service Fee – This fee goes to Ticketmaster for using their platform. It is typically around 25% of the ticket price.
- Order Processing Fee – This fee covers the costs of processing the ticket order. It is usually around $5-$10 per ticket.
- Delivery Fee – If you have your tickets shipped or choose electronic delivery, there is a fee to cover that cost. E-delivery is usually around $2.
- Facility Charge – This is a fee added by the venue to cover their operating costs.
- Convenience Charges – Fees for choosing to pay with a credit card or other information delivery options.
All of these fees can add a substantial amount to the base price of the original tickets. Ticketmaster states the fees help cover the costs of operating their platform, but many consumers feel they are excessive.
Ticketmaster Fees vs Face Value
To illustrate just how much fees can add to Ticketmaster orders, let’s look at some examples:
Event | Face Price | Fees | Total Price |
---|---|---|---|
Concert Ticket | $50.00 | $20.45 | $70.45 |
Sports Ticket | $75.00 | $25.75 | $100.75 |
Theater Ticket | $40.00 | $15.45 | $55.45 |
As you can see from the table, Ticketmaster fees can add 40% or more to the base price. A $50 concert ticket ends up costing $70.45 after fees. This dramatic increase in costs is one factor that causes frustration for many Ticketmaster customers.
Are Ticketmaster’s Fees Higher than Other Ticket Sellers?
The fees associated with Ticketmaster tend to be higher compared to some other major ticket companies. Here’s a look at how their fees stack up against two competitors:
Company | Base Ticket Price | Fees | Total Cost |
---|---|---|---|
Ticketmaster | $50 | $20.45 | $70.45 |
AXS | $50 | $10.95 | $60.95 |
VividSeats | $50 | $12.49 | $62.49 |
In this scenario, the fees charged by Ticketmaster are almost double those of some competitors for a similar event ticket. It demonstrates that cheaper options may exist in many cases.
Reasons for High Ticketmaster Fees
Why does Ticketmaster charge such high fees compared to other ticket sellers? There are a few key reasons:
- They have exclusivity deals with many major venues, teams and artists which limits competition.
- As the largest provider, they can leverage their size and brand power to charge higher fees.
- They justify fees as covering the costs of providing their services and generating profits.
- The fees are not transparent upfront and only seen late in the ordering process.
Essentially, Ticketmaster takes advantage of being the dominant player in an industry with limited options for fans to purchase tickets. This lack of competition allows them to get away with much higher fees.
Ways to Avoid High Ticketmaster Fees
If you want to avoid paying Ticketmaster’s high fees, here are some suggestions:
- Purchase directly through the box office of the venue if available.
- Check alternate ticketing platforms like AXS or VividSeats.
- Join fan clubs or ticket pre-sales where the fees may be cheaper.
- Use a ticket reseller exchange like StubHub where prices often include fees upfront.
- Consider season or group packages that may offer bundled savings.
It takes a bit more effort, but finding ways around Ticketmaster can potentially save 20% or more compared to just paying their fees directly. Going through an alternate seller, buying direct from the venue or source, and checking resale marketplaces are good options.
Is Ticketmaster a Monopoly?
With their dominant position and widely-criticized fees, some have accused Ticketmaster of having a monopoly in the ticketing industry. But does Ticketmaster truly have an illegal monopoly?
By definition, a monopoly implies a single seller that lacks competition and can manipulate prices. While Ticketmaster does have advantages through exclusivity deals and scale, there are technically other primary and secondary ticket sellers that provide alternatives.
However, Ticketmaster does have monopoly-like power in many situations where they are the exclusive ticketer. The lack of competition means they can charge above-market fees without repercussions. But the presence of some competition and alternatives likely means their business practices do not qualify as a true monopoly.
Ongoing Legal Issues
There have been legal challenges aimed at Ticketmaster over anti-competitive practices. Some notable cases include:
- Pearl Jam sued Ticketmaster in 1994 over monopolistic practices but lost their case.
- In 2019, the US Department of Justice launched an investigation into Live Nation and Ticketmaster for potential antitrust issues. This is still an open case.
- Numerous venues, teams and artists have sued Ticketmaster over the years to void exclusivity contracts and enable more competition.
So while Ticketmaster has not been found guilty of being an outright monopoly, there are still ongoing investigations and questions about anti-competitive behavior and excessive fees enabled by their dominant position.
The Future of Ticketmaster
It seems unlikely Ticketmaster will make any moves to voluntarily lower or remove their controversial fees and charges. They generate significant revenues from all the add-on costs and have little incentive to change.
However, if the Live Nation/Ticketmaster antitrust investigation progresses, it could impose requirements around opening up fair competition in ticketing markets. This could eventually lead to somewhat lower fees industry-wide.
There is also a chance that upstart competitors could gain some traction by offering lower fees, transparency about costs, and modern purchasing experiences. But Ticketmaster’s entrenched position with venues, promoters and fans will be very difficult to disrupt.
For the foreseeable future, expect Ticketmaster to continue dominating the primary ticket sales market while charging the high fees that consumers love to hate. Unless forced by regulators or disrupted by innovation, Ticketmaster’s business model will likely remain highly profitable at the expense of customers.
Conclusion
In conclusion, Ticketmaster does charge noticeably higher fees compared to many other ticket sellers. Their dominant position in the industry enables them to get away with fees that can add up to 40% or more to the base price of tickets. While Ticketmaster doesn’t have a true monopoly, they use exclusivity deals to limit competition, charge above-market fees, and frustrate customers.
Fans can save money by avoiding Ticketmaster when possible and using alternate primary or secondary ticket sellers instead. But expect Ticketmaster to continue their controversial fee practices for the foreseeable future, or until regulators or competitors force them to make changes.