Ticketmaster is the largest ticket sales and distribution company in the world, selling millions of tickets each year to concerts, sports events, theater shows and more. As the dominant player in the ticket resale industry, Ticketmaster has enormous control over ticket availability and pricing. This had led some to accuse Ticketmaster of anti-competitive behavior and artificially inflating prices.
One of the most controversial Ticketmaster practices is cancelling general ticket sales to the public in favor of pre-sales and VIP packages. This means that the average fan can miss out on buying tickets at face value. So has Ticketmaster ever cancelled a full general sale to force buyers into other higher-priced sales channels? Let’s investigate.
What are the different Ticketmaster sales?
Ticketmaster facilitates several different types of ticket sales:
General public on-sale
This is the standard sale open to all members of the public. Tickets are first come, first served at set ticket prices. This was historically the main way events sold tickets.
Pre-sales
Pre-sales occur before the general on-sale and are open only to certain groups like fan club members or credit card holders. This gives these select groups the first chance at tickets.
VIP packages
These bundles include tickets plus added perks like meet and greets, parking, and merchandise. They are sold at significant markups over standard tickets.
Platinum seats
Ticketmaster uses algorithms to price certain seats higher based on expected demand. This leads to rapidly fluctuating prices rather than fixed face-value pricing.
Notable Ticketmaster cancellations
There are several high-profile instances of Ticketmaster cancelling general public on-sales in recent years:
Taylor Swift, The Eras Tour
For Taylor Swift’s upcoming 2023 tour, Ticketmaster cancelled the planned general sale date of November 18. This followed massive demand during pre-sales on November 15 that caused the site to crash. Only VIP packages and official platinum seats were made available. Fans accused Ticketmaster of prioritizing high-priced sales over fair access.
Harry Styles, Love on Tour
In 2021, Ticketmaster did not hold a public on-sale for Harry Styles’ tour. Tickets were primarily sold through Verified Fan pre-sales. Again, platinum seats were the main option made widely available, costing over $1000 in some venues.
Adele, Weekends with Adele
For Adele’s 2022 Las Vegas residency, Ticketmaster cancelled the general sale planned for December 2021 after pre-sales caused website issues. Only fans who received special codes after registering could buy standard price tickets. Resale prices soared, with seats reselling for upwards of $15,000.
Why does Ticketmaster cancel general sales?
There are a few key reasons why Ticketmaster abandons general public on-sales:
Drive demand to higher-priced tickets
Restricting supply for general tickets increases scarcity and drives more sales towards platinum seats and packages with higher profit margins.
Reward loyal fans
Pre-sales reward groups like fan club members who are core supporters of the artist. However, these are also captive audiences that Ticketmaster can monetize.
Control volume
Massive demand for hot shows crashes Ticketmaster’s systems. Eliminating general sales allows them to manage traffic spikes by staggering sales over pre-sales.
Obscure total ticket volume
With no general on-sale, Ticketmaster does not have to reveal the total number of seats. This prevents scrutiny of how tickets are allocated and whether platinum prices are justified.
Is Ticketmaster transparent about cancellations?
Ticketmaster has been widely criticized for a lack of transparency when sales plans change. Key complaints include:
Last minute announcements
Sales are often cancelled or switched to pre-sales with little advance notice. This leaves fans unable to plan around sales dates.
No statement on total tickets
Without a general sale, there is no disclosure of how many tickets are made available or go to various sales channels.
Confusing messaging
Language around pre-sales and on-sales is vague, allowing Ticketmaster leeway to adjust plans. Press releases also downplay cancellations as “postponements”.
Unclear reasons
Ticketmaster rarely explains sales cancellations beyond generic “high demand” statements. Some fans suspect more calculating financial motives.
Impact on fans
Ticketmaster’s opaque processes and selective sales increasingly anger consumers. Impacts include:
Higher prices
With platinum seats as the main option, average fans can rarely buy at face value. Secondary prices also see massive inflation.
Less choice
By eliminating standard sales, fans have fewer options to get tickets at a reasonable cost. Pre-sales also reward insiders.
Longer queues
Consumers must join multiple waiting rooms for pre-sales, VIP packages, and any scarce general tickets. This requires significant time investment.
No recourse
With sales framed as “postponed” rather than “cancelled”, Ticketmaster faces minimal accountability or obligation to handle demand.
Does Ticketmaster have monopolistic power?
Ticketmaster controls 70% of the primary ticket sales market and 80% of major concert venues. This amount of dominance raises monopoly concerns:
Barriers to entry
New players lack the exclusive venue contracts needed to challenge Ticketmaster’s position. Their scale also creates operational advantages.
Price inflation
Without competition, Ticketmaster can hike service fees and manipulate supply without risk. Captive fans have limited choices to buy elsewhere.
Suppression of rivals
Ticketmaster has acquired smaller companies like TicketsNow and restricted ticket sharing with competitors. This further solidifies their control.
Political influence
Ticketmaster spent over $100k on lobbying in 2021. Weak event ticketing regulations help protect their model.
Year | Ticketmaster Revenue | Ticketing Market Share |
---|---|---|
2010 | $1.2 billion | 70% |
2019 | $1.6 billion | 80% |
2022 | $2.1 billion | 70% |
This table shows how as Ticketmaster’s revenues have grown 60% over the past decade, their market stranglehold has persisted unchallenged.
Government scrutiny of Ticketmaster
In recent years, Ticketmaster’s dominance and sales practices have faced greater political scrutiny:
DOJ investigation
In 2021, the U.S. Department of Justice opened an antitrust investigation into Live Nation’s control of ticket sales through Ticketmaster. This review is ongoing.
Senate hearing
After the chaotic Taylor Swift on-sale, the Chair of the Senate Judiciary Committee wrote an open letter to Ticketmaster. He stated the episode “raises serious concerns about the state of competition in the ticketing industry.”
Class action lawsuits
Ticketmaster faces numerous class action suits from consumers alleging anticompetitive conduct through restricting ticket supply and inflating fees.
Activist petitions
Petitions like #BreakUpTicketmaster have over 100k signatures demanding government action to increase industry competition and transparency.
Conclusion
Ticketmaster has clearly engaged in cancelling general ticket sales to the public in favor of pre-sales and high-margin products like platinum tickets. This restricts supply of affordable seats while increasing prices and profitability. Along with their dominant market share, this has led to widespread criticism of monopolistic, anti-consumer tactics. While Ticketmaster maintains they respond appropriately to fan demand, legal action and government reform may be required to increase competition, transparency, and fairness in live event ticketing.