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I think this is generally good but I always wonder why sale prices of tickets are much lower than online scalpers can still them for?

by raybb 10y ago

joezydeco 10y ago
This NPR Planet Money podcast covers a lot of the problems with ticket pricing: http://www.npr.org/sections/money/2013/06/25/195641030/episode-468-kid-rock-vs-the-scalpers http://www.npr.org/sections/money/2013/06/25/195641030/episo... The biggest problem is that artists don't want to appear greedy by pricing their tickets at full market value. But the artists also recognize the money that is being left on the table by pricing at a "normal" value. There are ways to recoup including adding more shows per city, onsite merchandise sales, higher-price "VIP" packages and box seats, and kickbacks from Ticketmaster in the form of "service charges".
zigzigzag 10y ago
It's generally bad and a good example of dumb over-regulation. I await stories about the unintended side effects of the BOTS Act in the coming years. Ticket scalping exists for two reasons: 1) The sorts of people who put on public entertainment in size-limited venues are generally left-leaning and do not like the idea of their audience consisting solely of very rich people. This sentiment is fine, but ... 2) As such events typically take place in big cities and modern populations are very large, demand for these entertainment events then radically outstrips supply, meaning the actual natural market price of the tickets rises very fast. The entertainers have a collective freakout and insist that the tickets are sold far below the correct price for social justice reasons, converting the sales of such tickets into a simple race. Having deliberately mispriced their tickets, the only way punters can distinguish themselves and get a ticket is by being faster than the other punters. And that's a contest machines will always win. There are lots of solutions that don't involve Congress. Like, tickets could be allocated through a lottery process where entering requires ID verification. That would make it obvious that getting a ticket is a random process.
- woodruffw 10y ago
  Both of your points are confabulated, which is unfortunate since I agree with your ultimate conclusion (i.e., that this act's intended goal could be accomplished without legislation). 1) Theater audiences consist largely of tourists, at least in New York. They're spending vacation money, but they're no wealthier than the average American on vacation. Taking out the tourist audience, the city subsidizes the theater district via public school trips (I was the recipient of more than one of these) and other public arts programs. 2) Demand doesn't "radically" outstrip supply, at least not for the vast majority of on-Broadway shows. For most, the two are about equal, and prices reflect this ($30-$50 if you buy at TKTS or reasonably in advance). The exception is blockbusters like Hamilton and The Book Of Mormon (if that's still the case) which are, again, boosted largely by tourist sales.
  - zigzigzag 10y ago
    I was talking about the general case where scalping happens, not particular shows in New York. If no scalping is happening for those shows, then I guess you're right that supply and demand balance there.
- FullMtlAlcoholc 10y ago
  > The sorts of people who put on public entertainment in size-limited venues are generally left-leaning and do not like the idea of their audience consisting solely of very rich people. You're completely exposing a bias here. First, public entertainment is by definition always going to be in a size-limited venue unless somehow different parts of matter start to be able to occupy the same space at the same time. Secondly, instead of immediately invoking politics, consider than the artists/talent generally prefer enthusiastic fans of their work over people who would look at the ticket as more of a prestige item: something to impress a prospective client with or just buying a ticket to be seen at some high profile event where you care more about putting pics up on instagram rather than actually appreciating the performance. The artists generally value an enthusiastic response and sincere appreciation of their work and you're shoehorning politics into a discussion that has nothing to do with it. Consider than humans are not rational, profit maximizing automatons and do place a nebulous, complex value on things that can not be transferred into currency. Everyone has some things in this world that they consider priceless.

I think this is generally good but I always wonder why sale prices of tickets are much lower than online scalpers can still them for?

by raybb 10y ago

I think this is generally good but I always wonder why sale prices of tickets are much lower than online scalpers can still them for?

joezydeco 10y ago

This NPR Planet Money podcast covers a lot of the problems with ticket pricing: http://www.npr.org/sections/money/2013/06/25/195641030/episode-468-kid-rock-vs-the-scalpers http://www.npr.org/sections/money/2013/06/25/195641030/episo... The biggest problem is that artists don't want to appear greedy by pricing their tickets at full market value. But the artists also recognize the money that is being left on the table by pricing at a "normal" value. There are ways to recoup including adding more shows per city, onsite merchandise sales, higher-price "VIP" packages and box seats, and kickbacks from Ticketmaster in the form of "service charges".

zigzigzag 10y ago

It's generally bad and a good example of dumb over-regulation. I await stories about the unintended side effects of the BOTS Act in the coming years. Ticket scalping exists for two reasons: 1) The sorts of people who put on public entertainment in size-limited venues are generally left-leaning and do not like the idea of their audience consisting solely of very rich people. This sentiment is fine, but ... 2) As such events typically take place in big cities and modern populations are very large, demand for these entertainment events then radically outstrips supply, meaning the actual natural market price of the tickets rises very fast. The entertainers have a collective freakout and insist that the tickets are sold far below the correct price for social justice reasons, converting the sales of such tickets into a simple race. Having deliberately mispriced their tickets, the only way punters can distinguish themselves and get a ticket is by being faster than the other punters. And that's a contest machines will always win. There are lots of solutions that don't involve Congress. Like, tickets could be allocated through a lottery process where entering requires ID verification. That would make it obvious that getting a ticket is a random process.

woodruffw 10y ago
Both of your points are confabulated, which is unfortunate since I agree with your ultimate conclusion (i.e., that this act's intended goal could be accomplished without legislation). 1) Theater audiences consist largely of tourists, at least in New York. They're spending vacation money, but they're no wealthier than the average American on vacation. Taking out the tourist audience, the city subsidizes the theater district via public school trips (I was the recipient of more than one of these) and other public arts programs. 2) Demand doesn't "radically" outstrip supply, at least not for the vast majority of on-Broadway shows. For most, the two are about equal, and prices reflect this ($30-$50 if you buy at TKTS or reasonably in advance). The exception is blockbusters like Hamilton and The Book Of Mormon (if that's still the case) which are, again, boosted largely by tourist sales.
- zigzigzag 10y ago
  I was talking about the general case where scalping happens, not particular shows in New York. If no scalping is happening for those shows, then I guess you're right that supply and demand balance there.
FullMtlAlcoholc 10y ago
> The sorts of people who put on public entertainment in size-limited venues are generally left-leaning and do not like the idea of their audience consisting solely of very rich people. You're completely exposing a bias here. First, public entertainment is by definition always going to be in a size-limited venue unless somehow different parts of matter start to be able to occupy the same space at the same time. Secondly, instead of immediately invoking politics, consider than the artists/talent generally prefer enthusiastic fans of their work over people who would look at the ticket as more of a prestige item: something to impress a prospective client with or just buying a ticket to be seen at some high profile event where you care more about putting pics up on instagram rather than actually appreciating the performance. The artists generally value an enthusiastic response and sincere appreciation of their work and you're shoehorning politics into a discussion that has nothing to do with it. Consider than humans are not rational, profit maximizing automatons and do place a nebulous, complex value on things that can not be transferred into currency. Everyone has some things in this world that they consider priceless.