May 5, 2006
Thoughts on Ticketmaster and Price Sensitivity
I just tried and failed to buy Radiohead tickets for Kane.
So then, to see how I could improve my “Ticketmaster skills” I did a blogsearch on Google for “Ticketmaster.” Instead of getting tips on how to successfully buy high-demand tickets, I just found a lot of hatred and anger towards Ticketmaster.
Despite fans’ rabid hatred, though, it seems like people use Ticketmaster anyway. They have no alternative! It looks like Ticketmaster will mark up fees 60%+ for concerts. How can they do that? Why do they have the power to do so?
It seems to me whenever there are multiple parties between and different motivations of decision makers, egregious pricing can result.
Ticketmaster has contracts with concert facilities, who negotiate the convenience fee the fans pay. Since the facility isn’t paying the fee, they are less incented to reduce the fees. In fact, it seems they have incentives for the fees to be higher (they are getting a cut I think.) (more…)
