- Artists and promoters control the face value of concert tickets, and they may charge more to make up for production costs, marketing, and lost revenue from streaming.
- Venues charge facility fees to cover the cost of renting out the venue, and may have higher prices if they have exclusive deals with promoters.
- Ticketing services charge fees for ordering online, delivering tickets, and processing orders. Resellers buy high-demand tickets quickly and sell them at higher prices.
Reasons for High Concert Ticket Prices
Artists are setting higher ticket prices. As artists get more popular and develop a large fan base, they have the option to choose where they’re performing and how much to charge for their tickets. Because they only see a fraction of the ticket’s face value price, they may raise the prices to earn more money for each ticket they sell. Smaller artists who are just starting off don’t have as much control over ticket prices because they don’t have a huge fan base. Musical artists only make a fraction of a cent when you listen to their music on Spotify, Apple Music, or other streaming sites. To make up for the lost revenue, musicians may increase the prices for their concerts. Larger artists are creating more theatrical shows with special effects, stage production, and light shows, so they may charge extra to cover the cost of sound and lighting engineers.
Promoters are taking a cut of the ticket price. Promoters help book venues and market concerts, but they make most of their money through selling tickets. Promoters may take around 15% of the ticket sales while the artists take 85%, so they may increase the ticket prices to get paid even more. Promoters also take into account marketing costs to let people know about the concert, so they may spike ticket prices.
Venues are tacking on additional facility fees. Music venues typically charge facility fees for each ticket sold, which helps cover the cost of renting out the venue. The facility fees depend on the size of the venue, and they may change over time. Some venues also have exclusive deals with promoters, so they may charge higher prices to help the promoters make more money. Venues may also charge higher facility fees for concerts if they have state-of-art sound systems or lights.
Ticketing companies are adding convenience and service fees. Large companies like Ticketmaster and AXS handle many of the concerts and venues around the country because they’ve cornered the market from other competitors. When you buy tickets using any of these sites, they add extra fees for things like processing orders and delivering the ticket. These companies used to hide the fees until the very end of the transaction, but now they are required to disclose the entire cost upfront. Service fees, or convenience charges, are added when you buy online and can vary depending on the artist or venue. Service fees are charged for each individual ticket. Order processing fees is charged once per online ticket order, and it helps to cover the ticketing company’s upkeep costs. This fee may also be shared with venues and artists. Delivery fees cover the cost of getting the ticket to you, whether that’s printing it at home, having it mailed to you, or picking it up at the venue. Live Nation owns Ticketmaster, and they represent multiple venues and artists. Live Nation has nearly a 70% share monopoly on live ticketed events, so they are able to inflate their prices without worrying about competition undercutting them. Some sites use “dynamic pricing” which can make ticket prices rise even more when there’s high demand for them.
Resellers are charging more than face value for tickets. When concert tickets go on sale, ticket brokers or bots purchase some of the best seats to make the event sell out. Now that people are desperate and looking for concert tickets, the resellers set a new higher price for the ticket in hopes to make a profit. Resale sites like Stubhub and SeatGeek don’t set limits on how much resellers can charge, so they may list concert tickets for hundreds or thousands of dollars. Some promoters distribute tickets specifically for brokers to purchase to make additional money on sales without raising overall ticket prices.
Finding Cheaper Concert Tickets
Join an artist fan club for cheaper tickets. Many artists have fan clubs that offer presale discounts to people who follow them on social media or music streaming sites. Look up the name of the artist plus the words “fan club” or “presale” to see if there are any offers available. When concert tickets go on sale, you’ll get notified and receive a presale code to access the tickets early before resellers have a chance to buy them. Some credit card companies also offer presale incentives, so watch for any promotional emails from your credit card provider.
Wait for another block of tickets to release instead of paying resellers. If tickets sell out quickly and only expensive resale options are available, be patient and avoid paying the higher fees. Promoters and venues may release additional tickets after the first batch has sold out, so sign up for email notifications for when they go back on sale.
Check the ticket prices in nearby cities. Check the prices for each of the venues where the musical artist is performing that you can easily get too. Artists will usually charge more money when they’re playing in a more populated area, but you may be able to find a deal if they’re playing at a smaller venue nearby.
See the artist at a bigger venue. If a really popular artist is playing at a venue that has a low capacity, expect the ticket prices to be higher because it’s a more intimate experience. When there’s a larger venue, tickets are usually a little bit cheaper because there are more seats available.
Buy tickets from the venue box office. If you live close to the venue, visit the box office and try to buy a ticket in person. Typically, you’ll save money on the actual ticket price because you won’t have to pay for service or delivery fees. Promoters may give leftover tickets they didn’t sell to the venue box office on the day of the concert if they didn’t sell out completely. Call or visit the venue early on the day of the concert to see if they have any tickets available.
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