Concert ticket prices have been steadily rising over the past few decades. For top artists, tickets that used to cost $20 in the 80s might now cost $200 or more. Fans complain about these high ticket prices, but what’s really behind the increases? There are several factors that contribute to the high price of concert tickets.
The Rise of the Superstar Artist
Today’s music industry is dominated by a handful of superstar artists like Beyonce, Taylor Swift, and Ed Sheeran. These artists can charge more for tickets because they can guarantee sold-out stadiums and arenas. The biggest acts only do short tours or residencies now, which also drives up demand. Fans are willing to pay higher prices to see these famous acts.
Artist | Average 2018 Ticket Price |
---|---|
Ed Sheeran | $86 |
Taylor Swift | $122 |
Jay-Z and Beyonce | $155 |
Fewer Seats, Higher Demand
Many major artists are now performing in arenas instead of large stadiums, which reduces the number of tickets available. There are fewer seats to go around, but demand is higher than ever due to the artists’ fame. Scarcity drives up prices. Stadiums can seat around 50,000 fans, while arenas top out around 20,000. Smaller theater shows are also popular now, further limiting supply.
Dynamic and Variable Pricing
In response to high demand, concert promoters now use dynamic pricing models – similar to how airplane tickets and hotel rooms are priced. The first tickets go on sale at lower introductory prices, but remaining tickets increase in price as the event date approaches and fewer seats are left. For very popular shows, promoters test the market’s willingness to pay higher prices by adding premium VIP packages or “platinum seats” that can cost 5-10x a regular ticket. Fans who want to get in pay the price.
The Secondary Market
Another factor driving up prices is thatTickets being resold on secondary markets like StubHub for well above face value also raises the perception of a ticket’s value. Fans see $400 tickets selling on StubHub and assume that must be the true market price. In some cases, artists even partner with secondary sellers to capture more revenue from these premium resale prices. Scalpers with bots can buy up tickets quickly and relist them for higher prices.
Service Fees
There are many extra fees tacked on to ticket prices that act as hidden costs for fans. Services fees for online ticket sellers like Ticketmaster can add 15-20% to the base ticket price. Facility fees, parking fees, and other nickle-and-diming tacks on more costs. These extra fees have become an expected revenue stream for promoters.
Promoters Taking a Larger Cut
As the live music industry has consolidated, a few large promoters like LiveNation and AEG Live have gained outsized market power. With this leverage, promoters claim a larger percentage of revenue from ticket sales. Their profits have tripled over the past decade while artists’ take has stayed flat. Promoters can dictate higher costs to fans to boost their own bottom lines.
Why Fans Pay The Prices
Despite constant complaints about costs, fans continue paying the higher ticket prices. Here are some reasons why:
Seeing Your Favorite Artist is Priceless
For hardcore fans, the memory and experience of seeing their favorite artist live is worth the price. It’s a bucket list item they will cherish forever. These fans are the primary target market who will swallow higher costs.
Fear of Missing Out
There is often fear that if you don’t buy tickets the moment they go on sale, you’ll miss your chance. This panic buying behavior supports high initial pricing. Fans worry the show will sell out instantly if they don’t act fast, even at higher expense.
Social Status
Attending a hot concert is a status symbol for some fans. Being able to say “I was there” and post pics on social media carries a premium. Some are willing to pay more for VIP amenities like exclusive lounge access too.
Making a Whole Event Out of It
For big concerts, fans often travel to other cities and make a whole trip and weekend out of it. They budget hundreds or thousands of dollars for hotels, dining, drinks, etc. When looked at this way, the ticket is only part of the total expense.
Compared to Other Entertainment
Concerts can seem reasonably priced compared to other live events like sports. The average cost to attend the Super Bowl is over $5,000. In that context, $500 for a special concert experience is a deal.
When Lower Prices Make Sense
While fans grumble, the truth is that for superstar artists the market will bear higher ticket prices. Promoters charge what supply and demand dictates. However, there are certain situations where lower pricing does make more sense:
Unknown Artists
Less popular artists who can’t sell out arenas have to keep prices affordable to attract fans, grow their base, and boost merchandise sales at shows. Newer bands trying to break through especially need low ticket prices.
Weekday or Daytime Shows
Concerts on lower-demand days and times like Tuesdays or weekday afternoons can’t charge a premium. Lower prices help fill up the venue.
Bands Reuniting or on Farewell Tours
Bands often lower prices when playing a venue for the first time in decades or on a farewell tour. They do this more for longtime fans rather than maximizing revenue. Special memories and moments matter more than high prices.
Shows in Smaller/Secondary Markets
Concerts in small markets and cities away from the major coastal hubs also tend to have lower pricing. Fans in places like Tennessee or Idaho aren’t used to paying hundreds per ticket. Price sensitivity is higher.
Shows at Casinos and Fairs
Venues like casinos and state fairs attract fans with package deals, discounts on rooms, and lower ticket costs overall. Drawing a big crowd matters more than profit per head.
Bands with Younger Fans
Artists with younger fans (teens, college students) have to account for less disposable income. Bands like 5 Seconds of Summer or One Direction keep things affordable for students on budgets.
Local/Regional Acts
Smaller local and regional bands don’t have the draw to justify high costs. Fan bases are limited by geography. To attract hometown fans rather than die-hards, ticket prices stay low.
The Future of Concert Ticket Prices
What’s the future outlook for concert ticket pricing? Here are some predictions:
Overall Prices Will Remain High
For established artists at their peak, prices will stay high as long as fans keep paying the premium. Promoters will charge as much as the market will bear. Big concerts are seen as a luxury experience.
More Dynamic and Variable Pricing
Demand-based pricing will continue expanding across concerts at all levels. Market price for seats will keep adjusting upward over the sales cycle rather than staying flat. Certain blocks of seats will be designated as premium.
Higher Low-End Prices
The baseline price even for cheap seats will gradually increase across the industry. The days of getting into a major concert for under $20 are probably over. The low-end will be more like $60-$90 for nosebleed sections.
Smaller, Intimate Shows at Higher Costs
Arena and stadium spectaculars will remain expensive. But fans will pay increasing premiums for small, exclusive shows and residencies by top artists in intimate venues. Think a club show by Beyonce charging $500+ per ticket.
More Packages and Upsells
Rather than just tickets, future pricing models will focus on packages with perks like VIP areas, exclusive merchandise, after-parties, meet-and-greets, and other special experiences that justify higher costs.
Possible Backlash if Prices Become Unsustainable
If prices for top acts balloon to $500+ on average, there could be pushback even from dedicated fans. At some point prices become simply unsustainable for most people. Artists and promoters will have to strike the right balance.
Conclusion
In summary, concert ticket prices have risen steeply in recent decades due to factors like the power of superstar artists, consolidation among promoters, and dynamic demand-based pricing. Fans complain but continue paying, valuing the live experience and fearing sellouts. For top artists, prices will remain high as long as demand supports it. For lesser-known acts, affordable pricing remains important for building fan bases. The live music industry will continue experimenting with new premium seating and experiences. But if prices become truly out of reach, there may be pushback. Promoters must walk the line between maximizing profits and keeping concerts accessible to average fans.