alt Hacker NewsThe horizontal control of venues is only one issue. A perhaps bigger issue is the vertical integration (if that's the right term) of first-party ticket sales and resale in one company. Ticketmaster has no real incentive to try to prevent resellers from buying up all the tickets on first sale, because it gets to charge fees on all the resales through its platform. The more times a ticket is resold, the better.
I don't believe a court would ever mandate this, but I'd like to see tickets sold by dutch auction: All tickets start off for sale at some very high price, like $10000, and the price declines by some amount every day until it reaches a reserve price on the day of the concert. Buyers can purchase as many tickets as they want, but professional resellers would have to guess the price that would let them clear their inventory at a profit. Under a system like this the best seats would go earliest (at the highest prices) while the nosebleed seats might still be available on day of the show, or not depending on demand.
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I'm always annoyed by this kind of news. The problem has existed for a long time, and finally, FINALLY, a court weighs in on some very narrow sliver of the problem, meanwhile things keep getting worse.
It always feels like the scene in Lord Of The Rings where they're waiting for the Ents to deliberate on the big war that's going on, and then after an agonizing amount of time they announce that they just said Good Morning and decided their guests weren't Orcs.
Like jeez can justice move any slower?
It should also be said that they could do anything at all to prevent these professional scalpers from scooping up all the tickets at once, including even merely closing those APIs entirely but they continue to do nothing about it.
The verified re-sale thing as you have correctly pointed out just allowed them to pretend like something was being done about scalping while it actually just let them make more money on the resale fees.
Having produced, performed in, and engineered a number of shows and festivals, this is a terrible idea for a pricing strategy.
Consider portajohns for an outdoor festival- incentivizing folks to wait until the last possible minute makes it impossible to determine what the needs are there, so how do you plan for how many shitters you need to bring and maintain for, say, a 3-day festival?
Consider that "festivals discount early sales" might be a kind of Chesterton's Fence, and you might question why they do that...
Ticketmaster actually experimented with this https://www.aeaweb.org/articles?id=10.1257/mic.20180230
> A perhaps bigger issue is the vertical integration (if that's the right term) of first-party ticket sales and resale in one company.
The monopoly findings were about vertical integration, but the resale issue wasn't. I think, if you do some research, you discover that the vertical integration issues they were concerned about are actually a bigger part of the problem.
> Ticketmaster has no real incentive to try to prevent resellers from buying up all the tickets on first sale, because it gets to charge fees on all the resales through its platform.
The incentives for to prevent abuse of the primary ticket sale is that the venues, who actually decide how tickets are sold, don't like it. If Ticketmaster doesn't make them happy, they go elsewhere and lose out on the primary market. Perhaps ironically, they are often less concerned about abuse if they still have control over the ticket resale as well, which they often do when the resale happens on Ticketmaster. In practice though, most of the resale doesn't happen on Ticketmaster; this gives both the venues and Ticketmaster plenty of incentive to combat abuse.
> I'd like to see tickets sold by dutch auction.
Pretty much everyone who first enters the ticketing industry thinks auctions are a better way to sell tickets until they learn how the industry works. Interestingly, Ticketmaster offers auction-based ticket sales. You wouldn't know this, because venues don't want to use it. You might think a dutch auction for tickets would be great, but people who experience the reality often don't. Dutch auctions work when you're selling a commodity where each item is effectively the same as the other. Often people value each seat for an event differently. Dutch auctions, by their very nature, require the a fixed time window for the auction, which makes them difficult to fit the outcome you're describing... that would more be handled by some form of yield management where venues release blocks of tickets for sale at specific time windows, which is something that already happens in the live event business.
There's all kinds of dark aspects to the live event business, but it's generally completely different from the perception of the general public.
AFAIK Ticketmaster doesn't decide, they are a service provider with a variety of options for their customers (the performers).
The customer picks an option (no resale, limited or not resale price, etc...) and Ticketmaster does it, taking a commission in the process. Maybe the commission changes depending on the formula, but really, they don't care about the details, they are getting the money no matter what.
The problem is not the situation about resale and all that, I would say that part is the customer fault, not Ticketmaster, they are the ones who picked a formula. The problem is that by being in a monopoly position, they can charge high fees, making the tickets more expensive. And by more expensive, I mean something like 30% more expensive, not 300% more expensive.
I don't think Ticketmaster offers a dutch auction, but I guess that if you are big enough and if that's what you want and if you can pay, they can deliver.
Starting in the late '70s, and by the '90s it was entrenched with economists that could affect policy that vertical integration is good for consumers. In theory, this shouldn't matter, since there were laws against it, but in reality this created a large precedent of judicial decisions saying that there's no problem with vertical integration.
> Ticketmaster has no real incentive to try to prevent resellers from buying up all the tickets on first sale
Why should it have such incentive? And even more so, why it should be a concern for the court that it should have it?
I disagree whole heartedly. The organizations should absolutely have the choice to price tickets to their events however much they choose. And they should have recourse for people who choose to ignore their wishes.
Its their product. Why would you want to take that choice away from them?
An example, I spent some time working for an organization who felt strongly that retirees living on a fixed income should always be able to afford tickets to their events. They would bring in big name musicians to perform and charge a fair price specifically so those people could afford it. Why would you want to take that choice away from that organization and force them to price out the elder community members they were trying to serve?
Its the organizations event, they should always have the choice to charge whatever they want.
The reselling seems fine to me as long as other resellers can compete. It's a classic market.
This proposed economic model creates a dystopian situation: whoever has the most capital has the right of first refusal to consume art.
Current primary and secondary ticketing markets are not ideal, but this proposition disenfranchises whole market segments from consuming art as experience based on economic factors. That's bad for art, it's bad for artists, and it's bad for consumers.
Here in Western Australia, resale prices are capped at face-value plus 10%. IIRC the reseller platforms can still charge a fee on top, but IMHO it seems to have had the desired effect on ticket sales.
Unless it's something really, really popular, you don't have to be waiting the morning they go on sale. In fact you can usually pick up tickets for events a few weeks after they go on sale, or even longer. If they run out, there's often a small amount of resale tickets available for a bit more cash but not multiples.
Having come from the UK where you'd damn well better be online in the first 30 seconds or you're out of luck, and reseller sites fill up with tickets at high multiples of face value within minutes, it's a breath of fresh air. (I understand the UK is introducing similar resale price-caps soon)
Of course it may partly be that Perth people just don't go out that much. Either way it's really nice.
> Ticketmaster has no real incentive to try to prevent resellers from buying up all the tickets on first sale
The incentive would be to jack up the prices themselves and take any profit which would have gone to scammers. Supply and demand.
> A perhaps bigger issue is the vertical integration (if that's the right term) of first-party ticket sales and resale in one company.
Similar problem with "healthcare" insurance companies in the US.
We need a global crackdown on the breadth of markets a company can be involved in - somehow.
What I'd like to see is the banning of real time dynamic pricing of any kind in all industries.
Why not just ban the transfer of tickets and allow refunds? You buy a ticket, you show your ID at the door. Early refunded tickets get resold online and late refunds are sold at the venue. All seats, including the best seats, go to actual fans instead of scalpers just hoping to make a profit while providing zero value. First choice in seats goes to the most passionate and attentive fans.