3 ms·
I think you need to use basic supply/demand economics; the original sales price needs to be near the limit people are willing to pay scalpers. There's no second
by ticmasta 8y ago
I think you need to use basic supply/demand economics; the original sales price needs to be near the limit people are willing to pay scalpers. There's no secondary market if the scalper needs to pay near the maximum value of the seat. The entire legit reseller market is just TicketMaster trying to get a piece of the pie that the promoter left on the table.
There's a misalignment of incentives for most events. The performer gets paid for the show regardless if there's one attendee or it's a sell-out (some acts do share in gate and/or merch). They want the lowest ticket prices. The promoter is on the hook for a lot of fixed costs so they need to sell enough tickets to break-even; everything beyond that is profit from selling more tickets or higher prices. The venue gets rented but then TM "offers" them a per-seat fee in exchange for exclusivity. Then TM gets big processing and assorted fees for every act. Then resellers, legit or not, buy blocks of tickets that they resell in a dynamic market, prices floating based on demand and timing. Now we have TM coming back and saying "we'll offer you a marketplace and make it easier for you to secure supply (via bots and other shady processes)".