Ticketmaster is one of the largest primary ticket outlets for large-scale events in the United States and worldwide. As the predominant ticketing service for concerts, sports competitions, theater shows, and more, millions of people use Ticketmaster each year to purchase tickets to highly sought-after events.
However, Ticketmaster has also received its fair share of criticism over the years for things like exorbitant service fees and accusations of monopolizing the ticketing industry. This has left many wondering – is Ticketmaster really a trustworthy company to buy tickets from?
The History and Reputation of Ticketmaster
Ticketmaster was founded in 1976 as a means for venues to outsource their ticketing operations. In its early days, the company gained a foothold in the industry by acquiring several of its competitors, allowing it to corner the market. By the mid 2000s, Ticketmaster had become the undisputed leader in event ticketing.
Over the years, Ticketmaster developed a reputation for high service charges. The fees, which can sometimes exceed the base price of the ticket itself, help Ticketmaster generate massive revenues. However, these fees have also led to consumer dissatisfaction and accusations that Ticketmaster is running a monopoly.
Ticketmaster has also received criticism for making it difficult for competitors to challenge its dominance. The company has been accused of pressuring venues into exclusive contracts that shut out other ticketing services. While Ticketmaster maintains that their market position is due to superior products and services, many see their tactics as anti-competitive.
Are There Hidden Fees?
One of the biggest complaints about Ticketmaster is the abundance of fees added during the checkout process. These fees include:
- Service Fee – This fee goes to Ticketmaster for using their service.
- Facility Fee – This helps venues cover their operating costs.
- Order Processing Fee – Covers the costs of processing orders.
- Shipping/Will Call Fees – For delivery or holding tickets at the box office.
While Ticketmaster does disclose these fees upfront if you read through the fine print, the various charges can quickly make the final ticket price much higher than expected. Some event-goers accuse Ticketmaster of engaging in “drip pricing” by adding incremental fees throughout the checkout process.
Are the Tickets Real?
While the extra fees are frustrating, there should be no doubt that tickets purchased through Ticketmaster are authentic and will grant entry to events. As an authorized primary ticket outlet, Ticketmaster obtains inventory directly from promoters, sports leagues, theaters, and other organizers of events.
Tickets purchased through Ticketmaster will have barcodes that can be scanned at the venue for admission. If any problems or issues come up, Ticketmaster’s customer service channels can help resolve matters. Fake tickets are only a risk if buying from unauthorized resellers.
Is Ticketmaster the Official Source?
In most cases, Ticketmaster is the official primary ticket seller for major concerts, sporting events, and other popular attractions. Venues, sports teams, and event organizers typically contract with Ticketmaster to handle all their primary ticket sales.
Being an official outlet gives Ticketmaster direct access to the event inventory. This contrasts with secondary marketplaces like StubHub that re-sell tickets purchased from Ticketmaster and other sources. If buying directly from the source is important, Ticketmaster will be the official provider in most cases.
Ticketmaster’s Pluses
While Ticketmaster draws ire for its fees and dominance, the service does have some benefits that have helped it maintain its leading position:
- Massive inventory – As the primary ticket seller, they have access to millions of seats and tickets.
- Wide event selection – From small clubs to huge stadiums, Ticketmaster offers tickets to concerts, sports, theater and more.
- Reliable verification – Ticketmaster has technical safeguards and customer service to help avoid fake or void tickets.
- Refunds/exchanges – Unused tickets can be exchanged or refunded under set terms and conditions.
- Consumer protections – Services like Ticketmaster’s Verified Fan combat bots and ensure fair access to tickets.
Alternatives to Ticketmaster
While Ticketmaster may be the dominant player, it’s not necessarily the only option for getting tickets. Here are some alternatives to consider:
Buy Directly from the Venue Box Office
If the event is taking place at a local arena, theater, or stadium, buying tickets directly from the venue’s box office either online or in person is one way to potentially avoid fees. Supply can be more limited, but some tickets are usually held back for box office sales.
Artist and Team Presales
To give their biggest fans first access, many artists and sports teams will hold special presales before the general on-sale date. These presales typically require a code or password that fans can try to obtain through fan clubs or other means. Presales frequently sell through Ticketmaster but may have allotments of better seats set aside.
Ticket Resale Marketplaces
Sites like StubHub and Vivid Seats are alternatives for buying tickets secondhand from other fans and resellers. Prices are generally higher than face value, but some find better deals if buying last minute. Buyer protections help avoid counterfeits.
Ticket Lotteries and Giveaways
For very popular shows or games, contests that give away tickets are a way some lucky fans gain admission by winning free tickets through radio call-ins, social media giveaways, or entering lotteries for the chance to purchase tickets.
Fan Ticket Exchanges
Online fan communities like Facebook groups and Reddit allow fans to buy and exchange extra tickets with one another privately. This takes some trust and coordination but can yield deals.
Is Ticketmaster a Monopoly?
There have been numerous accusations and some consumer class action lawsuits alleging that Ticketmaster has monopolized the primary event ticketing industry through anti-competitive practices. However, the charges have gained little legal traction for the following reasons:
- No outright monopolization – Ticketmaster has huge market share but there are other primary and secondary ticket sellers.
- Venue choice – Agreements between venues and Ticketmaster are voluntary business arrangements, not coercion.
- No consumer harm – While fees are unpopular, they don’t violate anti-trust laws.
- Regulated industry – The ticketing market is already regulated to foster competition and fair practices.
While Ticketmaster’s dominance and fees raise questions, the ticketing market still allows for competition and consumer choice. Venues, promoters, and event organizers also benefit from the services and reach Ticketmaster provides.
Is Ticketmaster Too Big?
Many consumers feel Ticketmaster wields too much power and influence in the live events industry. However, becoming the dominant ticketing service took considerable innovation and investment over decades. Key factors that have allowed Ticketmaster to thrive while competitors faded include:
- First mover advantage – Acquired competitors early and became entrenched before the internet.
- Network effects – As more venues/events joined, Ticketmaster offered more inventory and convenience.
- Investment – Developed leading venue management software and analytics.
- Brand power – Venues trust and rely on the Ticketmaster name and systems.
- Consumer inertia – Once users get accustomed to a service, they rarely switch.
Additionally, running a global mass-volume ticketing operation requires operational capabilities beyond what many startups can readily replicate. While frustrating for some consumers, Ticketmaster’s size arguably helps it process the immense data and traffic volumes involved in on-sale surges.
Is Ticketmaster Too Profitable?
In 2021, Ticketmaster’s parent company Live Nation reported $1.6 billion in fee revenue, which made up over 30% of their total revenue. Given the high profits, critics argue Ticketmaster could lower fees without threatening the viability of its business. However, Ticketmaster contends the economics are justified based on factors like:
- High costs – Operating ticketing systems and servicing customers requires major overhead.
- Margin squeeze – As promoters take a bigger revenue share, fees help Ticketmaster retain margins.
- Market dynamics – High demand for limited tickets enables fees without eroding sales.
- Negotiation power – Contracts favor Ticketmaster more as its dominance increases.
- Consumer willingness – Despite complaints, customers still pay the fees when hot tickets arise.
While customers may not like the fees, shareholders of Live Nation/Ticketmaster are satisfied with the high revenues and margins they enable.
Does Ticketmaster Have Predatory Contracts?
Some critics argue that Ticketmaster maintains its position through coercive contracting practices that stifle competition. Common claims include:
- Multi-year agreements – Long-term exclusive deals make venues dependent and unable to defect.
- Revenue clawbacks – Penalties discourage venues from adding competing ticketing systems.
- “Most favored nation” status – Contract terms guarantee Ticketmaster the best products, prices and access the venue offers.
- Bundling – Services like data analytics are bundled to compel venues to keep using Ticketmaster.
However, Ticketmaster contends their agreements are standard fair business contracts that venues and promoters voluntarily accept to access Ticketmaster’s systems and customers. The live events industry relies heavily on Ticketmaster’s technologies and expertise to operate efficiently.
Ultimately, climbing to the top of an industry often leads to contracting terms that favor the dominant player. As long as both parties continue actively agreeing to the terms, regulators have found little recourse under antitrust law.
Should Ticket Fees Be Made Illegal?
Some activist groups have lobbied for laws capping or banning fees from companies like Ticketmaster. But enforcing such legislation would face challenges:
- Constitutionality – Fee caps could violate free commerce and contract rights.
- Loophole exploitation – Sellers could just raise base prices if unable to charge fees.
- Cost absorption – Services could degrade if Ticketmaster had to operate at a loss.
- Market flight – Large players could abandon regulated markets that limit profitability.
- Black market rise – Capping fees above face value could drive more business to scalpers who charge even more.
- Artistic losses – Budget touring could decline if promoters make less revenue from ancillary fees.
Grassroots campaigns to boycott Ticketmaster have occasionally sprung up among music fans, but have failed to gain critical mass. For now, consumer pressure hasn’t overridden Ticketmaster’s entrenched role in the live events business.
Is Ticketmaster Overcharging?
Economists actually have mixed views on whether Ticketmaster’s fees should be considered overcharging within the context of market dynamics:
- Captive audience – Ticketmaster often has exclusive access to must-have tickets, limiting consumer choice.
- Price insensitivity – Fans will pay almost anything for the hottest events, allowing high markups.
- High demand events – Limited supply lets Ticketmaster maximize revenue extraction.
- Price discrimination – Obscure fees hide the full costs and allow segmented pricing.
But other perspectives disagree:
- Willingness to pay – Consumers willingly pay the prices when hot events go on sale.
- Avoidable fees – Convenience fees can be bypassed by waiting in box office lines.
- Progressive pricing – Fees allow high rollers to subsidize access for lower-income fans.
- Reasonable return – Profits must be high to justify the enormous infrastructure costs.
- Benefits venues – High Ticketmaster revenues incent more events to take place.
Despite complaints, Ticketmaster continues to thrive because consumers focus more on getting tickets than opposing fees in the heat of on-sale buying frenzies.
Does Ticketmaster Have Hidden Scalping Programs?
Investigative reporting has uncovered that Ticketmaster has potentials profited from reseller activity, further angering consumers. This includes:
- TradeDesk – A Ticketmaster tool for professional scalpers to buy bulk tickets faster for resale.
- Scalper kickbacks – Rebate payments to scalpers in exchange for hitting ticket sale minimums.
- Whitewashing – Turning a blind eye to account abuse and potential scalping by heavy buyers.
While Ticketmaster has denied condoning scalping, they appear willing to profit from power resellers when possible. This clashes with Ticketmaster’s public consumer-friendly stance.
Does Ticketmaster Have Unfair Advantages?
Beyond sheer size, Ticketmaster uses technological and legal methods some call unfair:
- Captcha barriers – Requiring users solve captcha puzzles slows automated bots used by competitors.
- Subdomain bans – Blocking competitors’ IP addresses and sabotaging links/redirects.
- Frivolous lawsuits – Suing rivals for insignificant copyright violations and technology claims.
- API access limits – Restricting inventory availability through ticket API platforms.
Ticketmaster justifies these as necessary security measures in the fast-moving world of online ticket sales. But critics argue Ticketmaster’s tech tactics make it hard for new entrants to get a foothold in the industry.
Conclusion
In the end, most ticket buyers are willing to tolerate Ticketmaster given the convenience it provides as the dominant ticketing service. The numerous fees attached to each transaction remain frustrating for many consumers, especially as Ticketmaster sees major revenue growth.
While Ticketmaster does appear to engage in some questionable practices, they seem to operate largely within the boundaries of antitrust and anti-competition laws. However, calls for regulators to take a closer look at Ticketmaster’s power remain.
For the time being, fans have little choice but to make peace with Ticketmaster if they want guaranteed access to the most popular events. Until consumer tolerance reaches a breaking point, Ticketmaster will remain the dominant force in event ticketing.
Pros of Using Ticketmaster | Cons of Using Ticketmaster |
---|---|
– Huge selection of tickets | – Expensive fees that add up |
– Official source for events | – Accused of monopolistic practices |
– Reliable order verification | – Fees lack transparency |
– Refunds and exchanges available | – Used by scalpers to resell |
– Convenient one-stop shop | – Locks in venues through contracts |
Ticketmaster Fee Types
Fee Name | Description |
---|---|
Service fee | Covers costs of Ticketmaster services |
Processing fee | For ticket order processing |
Delivery fee | For delivery of printed or mobile tickets |
Facility charge | Portion passed along to the event venue |