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Friday, May 06, 2005

Rescuing kitties from ticket surcharges

Posted by: Hammer / 2:23 PM

KARE 11 specializes in reporting on adorable kittens in need of rescue -- caught in a tree, swept away by flood, or falling through thin ice. Once in a while, however, they do a news story. They even managed to do this story on Ticketmaster fairly well:
If you've shelled out money for a concert, sporting event, theater or family-event lately, chances are good you bought your tickets through Ticketmaster.

They are the undisputed king of tickets, selling more than $5 billion worth of tickets last year alone.

The average price for a top concert tour last year was $52.39 -- twice what you were paying in 1995. The add-on fees for tickets are multiplying too.

Those convenience fees are Ticketmaster's profit base. Other add-ons include an order processing fee, a tax on those fees and a facility fee. ...

Even if you want to print tickets yourself, on your own computer, with your own ink, they want $2.50 per ticket.

Depending on the base price, it's been reported that Ticketmaster fees can add up to 50% to the price of a ticket -- 20-30% is more common. It's still a lot. ...

Ticketmaster makes that money, by getting bigger and charging you more. Their combined fees for convenience and processing are up an average of 10% annually since 1999. ...

Ticketworks is a local ticket company serving smaller often non-profit venues like the Basilica Block Party. He says it used to be that a venue would hire someone to sell tickets for them, but he claims Ticketmaster turned that around by paying the venue and making its money off of concert-goers.

I really don't like Ticketmaster, but the story reminded me of a couple of important facts. First, Ticketmaster is selling convenience. I can go to the box office. I've just always decided it's easier to pay Ticketmaster than to actually go to the box office. It's not Ticketmaster's fault I'm not as cheap as I am lazy. Second, I shouldn't blame Ticketmaster. I should blame the venues. If the venues weren't so damn lazy, they could sell their own tickets over the Internets (or by phone, or by hiring a door to door sales force).

There are two squeal points at work. The first is when I'll get off my butt and go to the box office. The second is when the venue will get off its butt and decide they can sell tickets with a $5 service charge (instead of Ticketmaster's $7.69 average) rather than settling for whatever Ticketmaster pays for the privilege of selling tickets.

2 Comments:

I went to a show not too long ago, tix were 25, fees were like 10 bucks xtra.

I could have gone to the venue and bought them, hell I was right up there one day, but I am WAY TOO LAZY.

ticketmaster stays in business cause people are lazy. which means they will stay in business 4 evar

By Anonymous Anonymous, at 3:04 PM  

I know. You're right. Ticketmaster fees will go up until people decide they'd rather leave the house and get tickets themselves.

By Blogger Hammer, at 3:43 PM  

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