The U.S. Department of Justice filed a lawsuit on Thursday (23) to break up Live Nation Entertainment, stating that the major concert promoter and its Ticketmaster unit have illegally inflated ticket prices, harming artists and their fans.
The average ticket price for major American tours reached $122.84 last year, up from $91.86 in 2019, according to the live music trade publication Pollstar. Some fans pay considerably more on the secondary market.
Here are several factors why ticket prices are so high.
Fees
In announcing the lawsuit, Attorney General Merrick Garland said, “Ticketmaster can impose an apparently endless list of fees on fans. These include ticket fees, service fees, convenience fees, platinum fees, master pricing fees, order fees, handling fees, and payment processing fees.”
The fees paid to attend a live concert in the U.S. far exceed those in other comparable parts of the world, the complaint notes. A 2018 report from the Government Accountability Office estimated that these fees increased ticket prices by an average of 27%.
Pre-sales
Tickets for high-profile shows, such as Taylor Swift’s Eras Tour or Beyoncé’s Renaissance World Tour, are often sold in advance to members of the artist’s fan club or reserved for agents, promoters, and others. But the DOJ stated that Ticketmaster’s exclusivity provisions prevent artists from selling tickets directly to dedicated fans and fan clubs through pre-sale windows. Third parties often charge less than Ticketmaster.
Resellers
Professional resellers buy tickets for the most sought-after shows and mark up the prices. A report from 404 Media found that professional ticket buyers set up multiple accounts linked to different email addresses and credit cards, and even use specialized browsers to purchase tickets through pre-sales and circumvent the safeguards that Ticketmaster has implemented to frustrate scalpers.
Market Power
The Department of Justice’s lawsuit states that Live Nation directly manages over 400 musical artists and controls about 60% of show promotions at major venues. It owns or controls over 265 concert halls in North America and, through Ticketmaster, controls about 80% or more of primary ticket sales for shows in large venues.