Have you noticed that the price of a concert ticket has been getting more and more ridiculous over the years?
It's not just because of inflation over time; the BBC found that average ticket prices for big arena gigs have more than doubled since the late 90s.
Companies like Time and Billboard have looked into the problem and found that there are several reasons why it's hard to find a well-priced ticket in today's music business.
The reasons are pretty straightforward, so let's discuss a few of the culprits for this issue!
Ever since music streaming has come into play, the amount of income that artists and performers receive from their songs has plummeted a lot.
Creators are scrapping for pennies from the royalty payments that don't quite hit the same as CD sales used to back in the day.
Because of this loss of revenue, artists, and musicians have to really push when it comes to gigs, concerts, and ticket pricing.
It's not like the artists are trying to take advantage of you; they are just trying to make a decent amount of income for all the hard work they've put in!
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The costs associated with putting on a great show have gone up a lot as well over the years.
According to promoter Paul Hutton, costs for all that goes on behind the scenes are rising, and the music industry has become more regulated, with taxes and other costs causing an increase in spending.
With the recent pandemic, prices of production have risen significantly.
Production-related companies and music artists alike are charging a bit more for their products and services to make up for the lack of sales that went on for years due to lockdowns.
The way that profits from ticket sales are split has changed over the years, giving promoters less income since artists are demanding more to make up for the loss in music and merch sales.
As the music artists demand more, the promoters wind up making less.
With this problem, promoters can decide to add a bunch of random fees during the checkout process, like processing fees, convenience fees, service fees, and the like. Once you add all the fees up, it can seem like it totals the amount of the ticket price itself.
Hidden costs that you may not even consider at the venue, like parking and overpriced food/drink, can also make it feel like the overall concert-going experience is getting way more expensive lately.
Resellers are plaguing many item sales, from concerts and sporting events to sneakers and accessories.
They often buy tickets in bulk from sellers like Ticketmaster and then charge hefty prices when they resell so that they can take a chunk of profit for themselves.
Over time, in comparison to ticket sales back in the day, reselling individuals and companies are taking up a much larger chunk of ticket sales and forcing music fans to buy from third parties instead of more affordable and direct ways.
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Resellers, the push for live entertainment after the peak of COVID, and the general high demand for concert tickets allow for them to be sold for higher prices. When demand goes up, prices go up so that seats can still get filled appropriately.
If the ticket prices stayed a bit lower, but the demand continued to rise, tickets would sell out too fast, and profits would remain the same. But when you increase the prices, tickets go a bit more slowly, and everyone involved with the production can make more.
With all of these influences on the prices of concert tickets, inflation itself still makes it all the more dramatic when you break it down by the numbers.
What was worth $1 in 1999 is currently worth $1.79 today, which is nearly doubling ticket sales price.
Once you put all the other effects on ticket pricing into consideration on top of inflation, you could be looking at tickets that are three or four times as high as they used to be back in the late 90s.
But the tiny amount of income increase we've earned at our jobs and set aside for this type of entertainment is not able to compete!
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In conclusion, the rising prices of concert tickets are caused by several factors that affect the music industry as a whole. Artists and musicians rely heavily on live performance income due to the decline in music streaming profits.
Additionally, increased production costs, added fees, resellers, high demand, and inflation all contribute to the rising prices of concert tickets. These factors make it difficult to find well-priced tickets for music fans, leading to frustration and disappointment.
However, it's important to remember that the artists and musicians are not trying to take advantage of fans; they are simply trying to make a decent income for their hard work in light of new (lower) income models with streaming.
While there may not be an immediate solution to this problem, it's crucial for the music industry to find a way to make live music accessible and affordable for everyone.
In the meantime, we can support our favorite artists and musicians by attending their concerts and purchasing their merchandise. I prefer using Stubhub.
As a session singer, writer, and producer that has worked with over 300 clients to provide high-quality jingles, singles, and features, Yona spends her time creating and marketing new music and helpful resources for creators. Check out Yona’s latest releases on her Spotify, her Youtube and share if you like it!
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