Management expenses, segregated capacity and dynamic prices: Why are concert tickets so expensive? | The weekly country

Live music is a territory set on fire by public complaints as ticket prices for major performances have skyrocketed. The cost of the production process, high demand, management costs, dynamic prices, segregated capacity and the consolidation of the VIP culture are some of the factors that explain this situation. Some concerts like Bruce Springsteen’s in Barcelona on April 28 and 30 have been under scrutiny for all this. His tickets have ranged between 65 and 400 euros. Metallica will play on July 12 and 14 at the Wanda Metropolitano in Madrid and tickets will range between 76.5 and 272 euros, but there are different VIP packages that can reach 3,100 euros for many two days.

Expensiveness of the production process.

Many listeners believe that live music on the front lines of pop has become a feast for speculation. However, the promoters allege that life has become more expensive and has also affected the production process of a concert. “Prices have risen in all sectors and industries (food, transport, hospitality, energy…). We are experiencing a stage of inflation and circumstances that are making raw materials, transportation… in large productions more expensive”, explicitly Albert Salmerón, president of the Association of Musical Promoters (APM).

Neo Sala, CEO and founder of the promoter Doctor Music, indicates that the caches of stars have risen in recent years and highlights another factor: the imbalance between the great demand of the public and the supply after the two-year break. “Attending a concert is one of the main leisure preferences for a majority of Spaniards. But the number of them that almost all artists can give per year is exactly the same. Clearly, the demand has risen much more than the supply”.

Many complaints are about ticket management fees, a surcharge that may vary depending on the ticket prize. Those responsible say that the maintenance of its technology and its infrastructure has a cost that causes, in reality, the percentage of its benefit to be very tight. In this sense, it should be remembered that Ticketmaster, the largest ticket sales company in the world, is currently under federal investigation in the US after the scandal that affected the sale of Taylor Swift’s tour tickets. The investigation also includes Live Nation, the world’s largest concert promoter, which has merged with Ticketmaster. A possible market monopoly is investigated.

Currently, the scene has been especially set on fire by what are known as dynamic prices. You can expect a variety of on-demand features where an algorithm will change the import of tickets based on real-time requests from the digital sale. The most controversial case was carried out last summer by Bruce Springsteen in the announcement of his latest tour of the United States: his tickets reached up to 5,000 euros in a matter of minutes due to high demand. The companies in the sector ensure that this system is always applied with the agreement of the artists. In this way, its use is defined. “It is a system that has other sectors that are normal, especially for tourism. Airlines and hotels have been using it for decades. I am surprised that the application of this method causes so much mistrust”, says the CEO of Doctor Music, the promoting company in charge of the Bruce Springsteen concerts in Barcelona on April 28 and 30. The consequence is that the ticket price can be multiplied by 10. The promoters assure that these prices do not apply beyond 10% of the total capacity and that it is a legal way that helps combat resale.

Prices skyrocket especially in VIP packages. In this way, the big concerts have become a segregated capacity park. The example of Madonna is illustrated: the Immaculate Vip Pass for 1,020 euros, the Iconic Vip Pass for 680 euros, the Puedes Bailar Premium Pass for 510 euros or the Let’s Go Party Pass for 350 euros. In the words of Neo Sala: “The public has not only accepted the existence of products or services, but it is the consumers themselves who demand it more and more, for greater comfort and more experience. It doesn’t just happen at concerts. In the amusement parks, VIP tickets are sold that make it easier for their buyers to queue less, and in the world of sports packages vip are the order of the day”. In Spain, the band Lori Meyers decided to put an end to this type of exclusive tickets in the face of complaints from their fans on social networks.