Insight of the Day: Entertainment industry accused of fleecing fans as UK ticket mark-ups reach 41%

Detailed Findings:

1. Rising Ticket Fees:

   • Ticket fees for live events in the UK have surged, with mark-ups as high as 41% over face value. For instance, Dylan's February concert at O2 Academy Bournemouth featured fees totaling £8.25 on a £20 ticket.

   • Average mark-ups include 25% for Ticketmaster, 30% for Eventim, and 17% for Dice (which shows fees upfront).

2. Artists’ Challenges:

   • Artists receive 70-90% of the face value of tickets but must cover the costs of staging performances, leaving little profit.

   • Singer Kate Nash highlighted the "cost-of-touring crisis," stating she earns more through alternative ventures (e.g., OnlyFans) than from live performances.

3. Monopolization by Major Companies:

   • Companies like Live Nation and AEG dominate the industry, controlling venues, ticket platforms, and promotions. Exclusive deals between these entities and venues restrict competition and contribute to rising fees.

4. Dynamic Pricing and Consumer Protection:

   • Ticketmaster is under investigation for dynamic pricing practices, such as fluctuating prices for high-demand events like the Oasis reunion tour.

   • New consumer laws, effective from April 2025, require companies to display upfront prices to combat "drip pricing."

Trend Reflected in the Article:

• Commercialization of Live Entertainment:

  • The live entertainment industry increasingly relies on ticket fees and dynamic pricing, prioritizing profit over accessibility. This trend affects music, sports, and theater alike.

Consumer Motivation:

1. Emotional Value:

   • Fans are willing to pay high prices to see their favorite artists live, driven by emotional connections to the performers.

2. Limited Options:

   • Monopolization limits competition, leaving fans with few alternatives and forcing them to accept high fees.

3. FOMO (Fear of Missing Out):

   • High-demand events, such as iconic reunions or exclusive tours, amplify the urgency to purchase tickets regardless of price.

Big Social Drive Reflected by the Trend:

• Demand for Transparency:

  • Growing frustration with "sneaky" fees and monopolistic practices has led to increased calls for transparent pricing and fair competition.

• Support for Artists:

  • Fans are becoming more aware of the financial struggles artists face, advocating for fairer distribution of ticket revenues to support performers.

Big Social Trend:

• Monetization and Consumer Backlash:

  • The aggressive monetization of live entertainment through high fees, dynamic pricing, and monopolization has fueled consumer dissatisfaction, driving demand for regulation and fairer practices.

Strategy to Follow by Brands:

1. Adopt Transparent Pricing:

   • Clearly display all fees upfront to build trust with consumers and comply with new consumer protection laws.

2. Innovate Ticketing Models:

   • Explore flexible or tiered ticket pricing to accommodate a broader audience while maximizing revenue.

3. Support Artists Directly:

   • Develop initiatives that channel more revenue to artists, such as merchandise bundles or revenue-sharing models.

4. Enhance Consumer Experience:

   • Invest in anti-bot technologies, improve customer service, and offer unique value (e.g., meet-and-greets or exclusive content) to justify higher fees.

5. Foster Competition:

   • Work with independent ticketing firms to provide consumers with more choices and reduce monopolistic practices.

By addressing these issues, the entertainment industry can rebuild trust with fans while maintaining profitability and supporting artists.

Source: https://www.theguardian.com/money/2024/dec/01/entertainment-industry-accused-of-fleecing-fans-as-uk-ticket-mark-ups-reach-41