Ticket prices for concerts have escalated to a national concern, prompting the Department of Justice to file a lawsuit aimed at breaking up Live Nation, which owns Ticketmaster.
In response, twenty-seven state attorneys general are initiating legal actions to separate the two companies.
This situation feels overwhelming.
There is a straightforward fix, but understanding it requires examining the root of the issue first.
I’ve been diving into this since my early days in the music industry, and now I assist numerous clients in navigating financial challenges within it.
The proposed separation of Live Nation, which manages many concert venues, from Ticketmaster, the primary ticketing service, seems like a typical antitrust measure against monopolistic practices.
However, effectively separating them now appears extremely complicated.
Live Nation earns only a small portion from concert promotions; this share is negotiable, but the bulk of ticket sales revenue usually goes to the venue and the artists.
If you check their financial reports online, you may be surprised to find they have recorded losses from concerts in two of the last three years.
Moreover, Live Nation holds a substantial share of the promoter market, which, oddly enough, might not be the worst scenario for audiences. Just recently, concert promotion has often been left in the hands of dubious individuals.
I experienced this firsthand nearly 50 years ago, as a record label controller and tour accountant for what was then the world’s largest tour. We received a hefty cashier’s check from a Detroit concert promoter ahead of the show; unfortunately, it turned out to be counterfeit.
This type of unprofessionalism has lingered in the industry for years, but Live Nation has worked to clean up that aspect.
Interestingly, the price hikes we’re witnessing aren’t merely driven by companies. The real culprits are the artists themselves.
With dwindling album sales, live performances have morphed into a crucial income stream for artists. They rely on earnings from music streaming platforms like Spotify and Tidal now. Despite Spotify offering sizable royalty payments, the actual amount that reaches artists is relatively small.
Organizations like ASCAP and BMI still manage royalty collections from radio and live venues, but it’s simply insufficient for the artists who create the music we cherish.
In essence, artists thrive when we pay to see them live. Once, concerts were a means to promote album sales; now, they’re essential for financial survival.
I was taken aback by ticket prices recently. I witnessed a snippet of Elton John at the Troubadour and Bruce Springsteen at the Roxy ages ago, and it was truly an experience.
Now, with Bruno Mars making his debut at the Intuit Dome, our family’s ticket bill would add up to $1,750 for four tickets. Wow.
And Paul Simon’s Farewell Tour from years past—he’s returning to the Hollywood Bowl this summer, and I couldn’t believe the ticket price.
The anticipated box office revenue for that solo show? Over $2.5 million. It doesn’t require a degree in math to see why he can still perform at 84.
Many industry insiders are baffled by who can afford these exorbitant tickets. One mentioned that those who splurge over $2,000 for a Taylor Swift concert tend to skip dining out or attending smaller concerts.
It’s a curious dynamic; smaller bands are being squeezed as demand for big names persists, pulling most of the concert revenue.
When tickets hit the secondary market, artists get frustrated over resellers profiting. This has led to inflated initial ticket prices, as artists and promoters feel they deserve the earnings rather than middlemen profiting without contributing.
So, what’s my proposed solution? It’s simple: stop buying tickets.
This situation resembles a flea market. If we collectively refuse to pay current prices, the industry will have to adjust accordingly. We each decide where to invest our hard-earned money.
While drafting this, a young friend reached out, having independently reached a similar conclusion. He aspired to meet Bruce Springsteen on tour in Austin, Texas but was taken aback by the ticket prices, deeming them unaffordable.
He also wanted to treat his daughters to see Bruno, but upon checking the prices, he felt it was better to let them wait.
Thus, the remedy for rising prices isn’t more lawsuits.
It’s about halting concert attendance until ticket prices decrease.
The power to change this situation lies with us. Supply and demand—it’s basic economics.
Bruce Bialosky, a two-time presidential appointee, is a certified public accountant specializing in taxation.
