Ticketmaster is the largest ticket sales and distribution company in the United States. They sell tickets for concert, sports, and theater events on behalf of venues and event organizers. This allows Ticketmaster to charge service fees on top of the ticket’s face value that is split between them and their partners. There has been ongoing controversy over how much Ticketmaster charges in fees and what portion actually goes to the artists performing at these events.
How Ticketmaster’s Fees Work
For each ticket sold on Ticketmaster, there are a number of different fees charged on top of the ticket’s face value set by the event organizer. These fees can include:
- Service fee – This goes to Ticketmaster for providing the ticket sales services
- Facility charge – This goes to the venue hosting the event
- Order processing fee – Another fee for Ticketmaster’s services
- Shipping fee – For physical ticket delivery and tracking
- Taxes – Local jurisdiction taxes like sales tax
The amount of fees can quickly add up. A $100 ticket could easily have $40 or more in additional fees tacked onto it. Ticketmaster claims these fees cover the costs of operating their platform and services like online ticket sales and mobile ticket access. However, many consumers feel these fees are excessive.
How Much Goes to the Performing Artist?
Very little of Ticketmaster’s fees actually go directly to the artists, musicians, performers, or teams that fans are paying to see. Instead, Ticketmaster splits the revenue from the fees with the event venues. According to multiple reports, Ticketmaster keeps around 20-25% of the total service fees charged.
The remaining 75-80% of the fees goes to the venue hosting the event. The venue may then pass some portion of their share onto the performers, but that amount varies greatly depending on the event, performers’ contracts, and individual deals with the venue. Industry reports indicate venues end up paying 5-20% of the total ticket fees to the artists/performers. Top artists playing large stadium concerts may be able to negotiate a larger percentage.
Examples of Fee Breakdowns
Here are some examples to illustrate how the fees are typically split on a $100 ticket:
Fee Type | Fee Amount | Portion to Ticketmaster | Portion to Venue |
---|---|---|---|
Service fee | $20 | $5 (25%) | $15 (75%) |
Facility charge | $15 | $0 | $15 (100%) |
Order processing | $5 | $5 (100%) | $0 |
Taxes | $10 | $0 | $10 (100%) |
Total Fees | $50 | $10 (20% of $50) | $40 (80% of $50) |
In this example, Ticketmaster would take 20% of the fees collected, or $10. The venue gets the remaining $40 of the fees. If the venue then pays 10% of the ticket fees to the artist, the artist gets 10% of $40, which is $4.
That means on a $100 ticket with $50 in fees, the performing artist only receives $4. Just 4% of the total amount paid by the fan gets to the people they came to see. The rest is split between Ticketmaster and the venue.
Other Factor Impacting Artists’ Revenue
In addition to the small portion of fees that actually go to performers, there are other factors that impact how much money touring artists make:
- Who owns the venue – Artists will likely negotiate a bigger percentage of fees when playing their own concerts in amphitheaters or venues they own themselves.
- Artist popularity – Top performers have more leverage to negotiate higher percentages. Established artists typically take home a bigger portion of fees than up-and-coming acts.
- Tour sponsors – Big tours may involve corporate sponsorships for naming rights, merchandise, or artist promotions. This provides additional revenue for artists outside of ticket sales.
- Record deals – For some arena concerts, a portion of ticket fees may go back to the record label to help recoup costs of promotion, production, or past advances paid to the artist.
However, in most cases the bulk of the fees still go back to the venue and Ticketmaster. While top artists certainly make significant money from live performances, Ticketmaster’s high fees limit how much actual ticket revenue trickles down to the talent.
Examples of Artist Tour Revenue Percentages
Looking at some real world examples can help illustrate artists’ potential concert revenues compared to Ticketmaster’s take:
Artist | Tour | Average Ticket Price | Estimated Fee % to Artist |
---|---|---|---|
Beyonce | Formation World Tour | $100 | 10% |
Ed Sheeran | Divide Tour | $85 | 12% |
Taylor Swift | Reputation Tour | $150 | 15% |
Drake | Aubrey & The Three Amigos Tour | $75 | 7% |
These numbers exemplify how even hugely successful artists are making less than 20% of Ticketmaster’s fees, while Ticketmaster takes 20-25% off the top. Artists have publicly complained about Ticketmaster’s practices and how little revenue ever reaches the talent.
Criticisms of Ticketmaster’s Fees
Ticketmaster has faced ongoing criticism over the years regarding their service fees. Here are some of the common complaints about their practices:
- Fees are exceptionally high compared to the cost of providing services like online ticket sales.
- Lack of transparency about where all the fees actually go.
- Misleading “facility” fees that don’t actually represent venue costs.
- “Dynamic pricing” raises prices for in-demand tickets.
- Venues locked into Ticktemaster contracts lack bargaining power.
- Fees disproportionately impact fans and prevent performers from fair compensation.
Many consumers, artists, and even political leaders have called for reforms to Ticketmaster’s business model and levying of service fees. There have been numerous lawsuits and legal actions taken trying to limit their fees or require more transparent disclosure.
U.S. Political Efforts Against Ticketmaster Fees
The criticism against Ticketmaster’s fees and lack of competition has reached all the way to the halls of Congress. Here are some efforts at the federal level to regulate event ticketing markets:
- Better Oversight of Secondary Sales and Accountability in Concert Ticketing (BOSS ACT) Act – Proposed legislation that would crack down on speculative ticket resales and lack of fee disclosures.
- Trust in Ticketing Act – Would require ticket sellers to disclose the full breakdown of ticket fees and prohibit deceptive practices.
- 2019 FTC Workshop – The Federal Trade Commission held a workshop examining consumer protection issues related to event ticketing.
Despite public outcry, proposed regulations, and government hearings, there has been little actual change in Ticketmaster’s operations or fee structures to benefit consumers and artists.
Alternatives for Artists to Bypass High Fees
While Ticketmaster still dominates the primary ticket sales market, artists do have some options to avoid the high fees and gain more control and revenue from live performances. Strategies include:
- Negotiating a higher percentage fee split for their shows at major venues.
- Booking concerts at smaller clubs and theaters that don’t require Ticketmaster.
- Selling VIP packages directly through the artist’s own website.
- Providing fan club or email presales before general ticket sales open to the public.
- Partnering with other ticket vendors like AXS or Ticketfly for select shows.
Still, it’s nearly impossible for big acts to tour large venues across the U.S. without dealing with Ticketmaster and their fees taking a huge cut. Fans bear the brunt through exorbitant service charges tacked onto ticket prices. And artists continue losing out on substantial revenue that instead flows to Ticketmaster and their contracted venues.
Conclusion
On average, musical artists may receive 5-15% of the total service fees Ticketmaster charges on their events. Top artists with more leverage may negotiate 20% or more of the fees. However, Ticketmaster keeps around 20-25% of each fee, and venues take the bulk of the remainder.
This business model results in artists forfeiting substantial potential revenue from touring and live performances. Fans pay inflated prices because of the high fees. Meanwhile, Ticketmaster earns billions annually providing ticketing services and acting as an intermediary between artists, promoters, and fans.
Increased competition, transparency, and regulatory oversight of the ticketing industry would help shift more compensation to the performers that fans pay to see. But for now, Ticketmaster remains entrenched as the leading ticket sales platform while taking a large share of fees for itself that could otherwise go to support artists.