I saw the announcement of Live Nation’s support for a “Fair Ticketing Act” this evening.
The first mention I heard of it was in Bob Lefsetz’s newsletter with his analysis which he mentions even makes him sound like he is supporting the man. But Bob clarifies that he is actually pro-artist.
Bob’s analysis got my attention and I wanted to drop a few thoughts down while the idea was still fresh in my mind.
On the Surface, Not Much You Can Disagree With:
- Artists set the resale limits: You have a strong brand and don’t want resale…fair.
- Cut out speculative tickets: This could be slightly more complicated than straight speculative tickets, but sure.
- Stronger BOTS act: Tough to really legislate effectively, but okay.
- Crackdown on resale sites that are safe havens for scalpers: Again, how do you actually legislate for this…but on the surface, sounds fine.
- Mandate all-in pricing nationally: Sure.
All of this stuff sounds pretty fine if your starting point is the fan.
Obviously, it is pretty complex and professional brokers are not going to buy into this one bit, but on the surface this doesn’t seem too offensive and will likely come across as somewhat common sense to a lot of people.
Will This Stem the Tide of Anti-Live Nation/Ticketmaster Sentiment?
Highly unlikely.
The situation that we are seeing right now is coming about because of a merger of events:
- Stronger antitrust scrutiny than we’ve seen in the US in over 40 years.
- High profile stories of practices that seem and feel unfair/unethical/unbelievable even if they can be explained as the response to “overwhelming demand” or “too little supply”.
- A lack of attention to the building negative sentiment around the business. This frustration from fans and artists isn’t new, but it has become louder and more persistent.
Are any of these fair?
Maybe. Maybe not.
As I’ve mentioned on many occassions, being big or a monopoly isn’t a crime. Acting with anticompetitive behavior is.
Are those behaviors on display now?
I’ve heard over and over again that it is hard to get people to go public with any of their concerns which makes any allegations challenging to weigh.
What about the brokers?
The ticket business right now is at a weird spot.
Are there bad actors in the business?
Yes.
Are there good players that provide real service to customers, operate above board, and add value?
Yes.
Like the situation with Live Nation, what do you hear about?
Only the bad stuff, mostly.
The secondary market is a much different beast than it was than when I started in 2004.
Every major broker knew every other major broker.
The boards and platforms were just starting to come online when I got started.
It was still a relationship driven business.
In some corners of the business, it still is. But those places are fewer and further apart.
The business now is driven by technology:
- Bots
- Pricing algorithms
- Pullers
- Harvesting codes
- Etc.
What does this mean?
It means that there is more room for bad actors to operate in bad faith and to do harm to both sides of the market: the primary and the secondary.
Are there fan-to-fan platforms?
Yes.
Have these taken hold?
Not really.
Why?
50 states/50 laws is one explanation.
Another is that there just haven’t been enough shows with strong enough demand to drive the real power of a peer to peer platform.
When you can spend $5 for a ticket to most shows or games, why bother with the P2P?
A few notes on the secondary market:
- In my experience, 99% of the folks on the secondary market are totally above board.
- Over 50% of tickets are sold below face value.
- There are many shows and tours that wouldn’t have survived or gone off without the investment of the resale market.
- As tickets go on sale 6-12-18 months in advance, it is harder for fans to justify buying tickets that far in advance.
What about the fans? Ticket buyers?
I come down from the POV of the fan, the customer.
Like Bob Lefsetz talks about Garth Brooks, my starting point is being that kid that was always trying to get into the game/show/event.
Then realizing that it was a job.
I’ve talked about the POV of the industry that the fans will buy the tickets at the time and place that the industry wants to sell them to the fan and like it…
That works if you are a superstar like Taylor Swift, Beyonce, or Garth Brooks.
That period doesn’t last forever.
And, fans are frustrated.
Any solutions really need to begin with the customer:
- It is their money that pays the bills.
- It is their attention that gives folks a career.
- Without paying customers the whole economy of live events breaks down.
An empty building isn’t an appealing stage to play.
This opens a door to a bigger challenge, empty seats, but I’m just fleshing out where my head is right now…so I’ll turn it over to y’all. This is where I’m starting…
What do y’all think?