Archive for 3 June, 2009
Live Nation has launched a promotion every Wednesday that eliminates some ticket fees.
”We know people hate fees,” Live Nation’s chief executive of global music, Jason Garner said.
“Live Nation is scrapping fees for U.S. amphitheater lawn seats this summer in a 24-hour sale on its Web site … on Wednesday. Fans will save around $9 to $12 on a ticket that typically costs $20 to $25.” HOW MUCH? That’s nearly 50%!! No sh%$ sherlock, no wonder those pesky people hate fees!
This is just a thinly veiled PR stunt to portray Live Nation as the good guys for cutting fees. But we know what the proposed merger of the largest ticket-seller and largest concert promoter is just going to mean that they will imbed the margin of fees inside the ticket price. It is no surprise that it attracted anti-trust regulatory attention. Let’s hope that Obama says NO, this time.
“Ticketmaster experimented with its own kind of no-fee tickets starting last year when it baked the surcharges into the price of tickets for Eagles concerts.” This wondrous innovation was called “all-in-pricing”.
Artificially pumping prices up by embedding fees on the inside seems in contradiction to Live Nation’s Rapino’s grand statements back in 2006.
“Seventy percent of people didn’t go to a concert last year, and even the average concert fan only attends about two shows a year,” Rapino said. “We can grow this industry by lowering prices.”
I am interested by Rapino’s assumption that lower prices will increase demand, that assumes a high price elasticity. This was back in 2006 before they left Ticketmaster (only to return in the mooted merger less than a year later). I think we have all learnt enough about entertainment to know that elasticity varies greatly across a diveristy of variables from artform to segment to time out from show to weather to . .. …