Ticketmaster is one of the largest ticket sales and distribution companies in the world. It sells tickets for concerts, sporting events, theater productions and more. However, Ticketmaster has faced a lot of criticism and controversy over its business practices. Here is an overview of some of the main reasons why Ticketmaster is seen as a controversial company.
Service fees
One of the biggest complaints about Ticketmaster is their service fees. These are additional fees charged to ticket buyers on top of the base ticket price. Ticketmaster service fees can range from $5-$30 per ticket depending on the event. Many customers feel these fees are excessive and represent a way for Ticketmaster to squeeze more money out of consumers.
Ticketmaster defends its fees by saying they help cover the costs of running its platform and that the fees are clearly disclosed during the ticket buying process. However, some critics argue the fees are excessive for a digital ticketing service and are an easy profit source for Ticketmaster without offering much tangible value to consumers.
Dynamic pricing
Ticketmaster utilizes variable or dynamic pricing, where ticket prices can fluctuate over time based on demand. This is different from a fixed ticket pricing model. Ticketmaster argues dynamic pricing helps accurately reflect the fair market value of tickets. However, many customers dislike seeing ticket prices rise as an event date nears and feel it is an unfair practice.
Critics argue dynamic pricing takes advantage of passionate fans willing to pay higher prices as an event sells out. Again, Ticketmaster claims dynamic pricing helps manage inventory and expand options for budget-conscious consumers who can access cheaper tickets early on.
Date | Ticket Price |
---|---|
January 1 | $50 |
February 1 | $75 |
March 1 | $100 |
Day of event | $200 |
As you can see in the table above, ticket prices for an event can rise significantly as the event date approaches when dynamic pricing is used. This frustrates many customers who feel like they are being taken advantage of under this model.
Hidden fees
There is also frustration amongst customers over the hidden fees Ticketmaster charges. These are fees that are only revealed at the end of the ticket purchasing process. Examples include order processing fees, facility fees, etc. Customers dislike these unpredictable fees that only appear after they have decided to buy tickets.
Ticketmaster has countered that these fees are quite standard in many e-commerce purchases. They claim the fees are presented consistently during the checkout process. However, consumer advocates argue more transparency is needed earlier in the ticket buying experience.
Lack of competition
Another common criticism is that Ticketmaster’s dominant position in the ticket sales market limits competition. Ticketmaster has exclusive ticketing agreements with many major venues and promoters. This makes it difficult for competitors to challenge Ticketmaster’s position and gives them enormous influence over the ticketing landscape.
Ticketing activists argue the lack of competition leads to the high fees and lack of innovation that many see as inherent problems with Ticketmaster. They want to see more rivals in the space to give consumers more choices and better ticket prices. Ticketmaster claims their market position is earned by providing a superior service.
Re-sellers and bots
There is also significant criticism that Ticketmaster does not do enough to limit ticket re-sellers and bot attacks that rapidly purchase huge amounts of tickets. Many see primary ticket sales being dominated by large scale re-sellers who then jack up prices to make a profit on secondary markets.
Ticketmaster says it deploys technology to fight bots and re-sellers but concedes it is an ongoing battle. Critics contend Ticketmaster could do much more to keep ticket prices fair for the average consumer.
Conclusion
In summary, Ticketmaster is considered a controversial company because of perceptions that it charges excessive fees that hurt consumers, utilizes variable ticket pricing that is seen as unfair, lacks transparency on hidden costs, lacks competition in the ticketing market, and enables ticket re-sellers and bots to thrive. While Ticketmaster defends its practices as standard for the industry, many feel they take advantage of consumers’ passion for live events and price tickets based on profit rather than fairness.
Ongoing frustration with Ticketmaster has led some bands and artists, such as Pearl Jam, to try and find ways to sell tickets without using Ticketmaster. Consumer advocates argue for more regulation and oversight of the company. However, with its dominant position in the ticketing industry established over decades, Ticketmaster remains a lightning rod for controversy and complaints from many event goers.
Some key facts and figures on Ticketmaster:
- Ticketmaster sells over 400 million tickets per year
- It has ticket contracts with over 200 venues and promoters
- The company merged with Live Nation in 2010 to become the world’s largest live entertainment company
- Ticketmaster takes a share of up to 25% of the ticket face value as their fee
- Total Ticketmaster fees on an average ticket are estimated at 25-30% of ticket price
- Tickets listed on Ticketmaster range from $10-$10,000 depending on the event
- Estimates suggest up to 60% of all event tickets are sold through Ticketmaster
Despite the controversies around fees, pricing and other issues, Ticketmaster continues to dominate the primary ticket sales market across concerts, sports and other live entertainment. It will likely take greater competition, regulation or consumer pressure to change many of Ticketmaster’s core ticketing business practices that irritate so many customers.
For now, high fees and ticket prices remain the norm for Ticketmaster tickets. Consumers who want to attend popular live events that partner with Ticketmaster have little option but to pay the premium that comes with using their service. With rising concert and sports ticket prices, expect the cries for more ticketing options and alternatives to Ticketmaster to continue growing in the years ahead.
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