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Box-Office Giant Ticketmaster Recruits Pros For Secret Scalper Program (www.cbc.ca)

Box-office giant Ticketmaster is recruiting professional scalpers who cheat its own system to expand its resale business and squeeze more money out of fans, a CBC News/Toronto Star investigation reveals. The report adds: In July, the news outlets sent a pair of reporters undercover to Ticket Summit 2018, a ticketing and live entertainment convention at Caesars Palace in Las Vegas. Posing as scalpers and equipped with hidden cameras, the journalists were pitched on Ticketmaster's professional reseller program. Company representatives told them Ticketmaster's resale division turns a blind eye to scalpers who use ticket-buying bots and fake identities to snatch up tickets and then resell them on the site for inflated prices. Those pricey resale tickets include extra fees for Ticketmaster. "I have brokers that have literally a couple of hundred accounts," one sales representative said. "It's not something that we look at or report." CBC shared its findings with Alan Cross, a veteran music journalist and host of the radio program The Ongoing History of New Music, who suspects the ticket-buying public will be far from impressed: "This is going to be a public relations nightmare." He said there have been "whispers of this in the ticket-selling community, but it's never been outlined quite like this before."

26 of 143 comments (clear)

  1. Ticketmaster is like... by SuperKendall · · Score: 5, Insightful

    Ticketmaster is like the Devil fucked himself, had a child, and that child grew up without any toys reading only out of context Scrooge McDuck comic panels.

    If at all possible I try not to buy tickets from them, and don't go to many concerts any more because that is becoming increasingly harder to avoid.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
  2. Assholes. by Rick+Schumann · · Score: 4, Interesting

    I suppose at the same time they're still busting non-company scalpers and insisting they're prosecuted to the fullest extent of the law?
    Seems to me that Ticketmaster should put in for a corporate name change to East India Company. Then they can call their payrolled scalpers 'privateers'.

    Isn't this that they're doing illegal? If not it should be. I hope they go bankrupt over this.

  3. F Them by Anonymous Coward · · Score: 4, Insightful

    Ticketmaster is the reason I never go to concerts.

    1. Re:F Them by David_Hart · · Score: 2

      Ticketmaster is the reason I never go to concerts.

      Ticketmaster and scalpers... You know that if a large concert is sold out within an hour that the scalpers have figured out how to game the system. Now we find out that some scalpers are officially given an inside track by Ticketmaster. I guess that no one should be surprised by the corporate greed on display, but the fact that this is legal is what bugs me the most.

    2. Re:F Them by rahvin112 · · Score: 3, Informative

      Based on the article you shouldn't be differentiating the scalpers and ticketmaster because according to the article they are working together.

  4. Does this surprise anyone? by Anonymous Coward · · Score: 2, Insightful

    Ticketmaster is an evil monopoly just *begging* to be regulated or broken up.

    That they create and monetize the secondary market is hardly surprising.

    1. Re:Does this surprise anyone? by Rick+Zeman · · Score: 3, Interesting

      Yet the regulators had no problem with them and Live Nation (another spawn of the devil) merging. Who didn't see this coming with no competition?

  5. Another PR nightmare that doesn't matter by dirk · · Score: 5, Insightful

    Yes, the public will not be happy, but what are we going to do? TicketBastard pretty much has a monopoly on concert tickets. It's not like I can go to another ticket vendor to get tickets, if they are selling them they are the only one selling them. And it's not like bands have a lot of options because so many venues are owned by TicketBastard. Unless the government steps in and starts regulating shitty, scammy business practices (not likely, especially not with this administration) there is no consequences to being a shitty company.

    --

    "Information wants to be expensive" - Stewart Brand, the same guy who said "Information wants to be free"
    1. Re:Another PR nightmare that doesn't matter by phalse+phace · · Score: 3, Interesting

      Maybe Amazon will one day getting into the ticket business.

      Watch Out Ticketmaster: Amazon In Talks To Offer Event Ticketing In US

    2. Re:Another PR nightmare that doesn't matter by phalse+phace · · Score: 2

      They'll be fined $millions, then ticket prices will triple.

      They'll be fined and customers will be given worthless discounts on future ticket purchases. And Ticketmaster wins again.

  6. TM is the perfect example of the dark side by bjdevil66 · · Score: 4, Interesting

    ..of free markets, corporate greed and (most importantly) lack of accountability.

    I wonder what would happen if the Sherman Anti-trust Act was aimed at Ticketmaster. They have a virtual monopoly on their business model.

    1. Re:TM is the perfect example of the dark side by Anonymous Coward · · Score: 5, Insightful

      TM is the perfect example of a monopoly, and what happens once one is allowed to exist. It is most definitely NOT an example of a free market. A market that is dominated by a monopoly is the opposite of a free market. In order for a market to qualify as free, there must be no barriers to entry. A market owned by a monopoly has impenetrable barriers to entry.

      So, there is your lesson in economic for the day.

      Forcing a breakup of TM would go a long way to making that specific market free again.

    2. Re:TM is the perfect example of the dark side by magarity · · Score: 4, Interesting

      In addition to what the AC said about barriers to entry, a free market also requires (reasonably) equal information available to all parties. The existence of a secret scalpers' support program was not known by the end customers.

    3. Re:TM is the perfect example of the dark side by Hasaf · · Score: 5, Insightful

      You wrote all that without even once using the phrase "Market Failure." However, neither side in our dual party has any interest in imposing regulations or forcing competition (forcing competition is little more than creating market conditions that allow competitors to arise, thus promoting a free market; not being in opposition to it).

      One side feels that the magic of the market is all that is needed. The other side sees these tickets as nothing more than a luxury item, in no need of being addressed. Applying the sacrificial lamb principal, someone will have to die before it is on the screen of anyone in a position to address it. Frankly, I don't see that happening soon, after all, they are just concert tickets.

    4. Re: TM is the perfect example of the dark side by organgtool · · Score: 2

      I never said that free markets were the only source of monopolies. Regulating markets is a lot like regulating vitamins in your diet: too little or too much tend to produce very similar symptoms.

    5. Re:TM is the perfect example of the dark side by Applehu+Akbar · · Score: 4, Insightful

      ...The other side sees these tickets as nothing more than a luxury item, in no need of being addressed.

      And also, the entertainment industry is an important contributor to the party, equivalent to what oil and military contractors are to the Republicans. That's why Ticketmaster, RIAA and copyright unto the heat death of the universe get so much love from the Party Of The People.

    6. Re:TM is the perfect example of the dark side by dryeo · · Score: 2

      The latest copyright updates were just passed unanimously by Congress. The Republicans are pushing copyright (and patents) in NAFTA and wishing they'd stuck with the TPP. I'd say both your parties are in thrall to the entertainment industry.

      --
      https://en.wikipedia.org/wiki/Inverted_totalitarianism
  7. Convert to Auction by Anonymous Coward · · Score: 4, Insightful

    1. Open bidding
    2. Everybody bids what they are willing to pay for tickets
    3. Close bidding
    4. Starting with highest bid, in descending order:
    4a. Collect bid amount
    4b. Allow bidder to choose seat or request bid refund
    5. Repeat from 4 until all seats are sold

    Scalpers? Everybody already bid what they would have paid. By bidding higher, the scalper is pricing themselves out of their own market.
    Bots? It's either useless scalping (see previous line), or uselessly holding a spot only to request a bid refund.

    1. Re:Convert to Auction by whoever57 · · Score: 3, Interesting

      Actually, I think there is a more appropriate auction style for concert tickets -- the "Dutch" auction style.

      --
      The real "Libtards" are the Libertarians!
    2. Re:Convert to Auction by swb · · Score: 2

      An auction style process for selling tickets makes the most sense, keeping the price very high initially and only dropping prices once demand falls below some threshold.

      The real market failure here is that ticket face values are too cheap, the actual price many people are willing too pay is much higher than what the face value says. Scalping and resale markets wouldn't exist if the face value was the market equilibrium price.

      What I don't understand is why *artists* let this happen and give away much of the profit to scalpers or ticketmaster.

      If you're Taylor Swift and you sell out 2 shows in an hour, why not add shows until you wind up with a non-sellout? If the last show doesn't meet your touring costs, cancel it. The artist will make more money doing this. Raise supply to meet demand.

      I know raising ticket prices isn't popular and people are pissed that "real fans" can't see a concert for the price they want to pay, but unless you raise prices or increase supply you will have scalping.

      There's only two reasons I see why artists won't increase supply (perform more). One is they're just lazy and don't want to perform more. Touring sounds grueling generally, so maybe that's true but I'm guessing that doing 25% more shows or whatever isn't going to kill them. They can space out dates, lengthen the tour, etc, to make it less demanding. Touring isn't *that* grueling for top-tier acts with access to luxury hotels, private planes, and assistants who keep them supplied with anything they want.

      The other is manufacturing demand -- the artist is only "popular" because ZOMG TICKETS ARE SOLD OUT. They intentionally limit supply to generate demand. The cynic in me thinks this is probably the case, although I question if this dynamic really works as well as they think given how much outrage there is over ticket prices, scalping, etc. All those problems go away AND the artist makes more money if they play more shows.

      I'm sure there's some kind of argument against more shows based on venue availability, but given that so many tour dates are announced months in advance it sounds like they'd have no problem picking slots with facility availability.

  8. And how many will go to jail? by WindBourne · · Score: 4, Insightful

    Many of the scalpers will likely go to jail, BUT, this was a program being admined by Ticketmaster itself. Nearly all states have anti-scalping laws on the books. As such, Ticketmaster employees that KNEW about this should be going to prison (aiding/abetting or participating). BUT, I am guessing that not a ONE will see prison, esp the executives, even though they were almost certainly in on it.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  9. They have a convention? by damn_registrars · · Score: 2

    Why does Ticketmaster have a convention? They control something north of 90% of the ticket market in the US; it is nearly impossible to go to a concert or professional sporting event anywhere in this country without them making money off of you. Who are they having a convention with?

    This sounds like just a charade they put on to try to convince people that there is competition in this market or that consumers have choice.

    --
    Damn_registrars has no butt-hole. Damn_registrars has no use for a butt-hole.
  10. And yet you people keep paying by known_coward_69 · · Score: 2, Insightful

    OMG, I better pay $300 a cheapo ticket to see some fat 50 year olds sing songs from my childhood

    these people were fun when my mom hated them, now they are just like all other old people

  11. All TicketMaster needs to do.... by forkfail · · Score: 2

    .... is rename themselves TicketParent, and all will be forgiven by us, the TicketChildren, I'm sure.

    --
    Check your premises.
  12. StubHub by Daetrin · · Score: 4, Interesting

    I tried reselling some tickets on Ticketmaster for a concert we couldn't make it to because it seemed easier to just do it through their website. They were up there for several weeks without selling. When i tried to drop the price of the tickets the week before the concert to try and get rid of them i discovered the Ticketmaster site wouldn't let me drop them below a certain amount (an amount that i believe was higher than what i'd initially paid for them.) Maybe there was some way to get around the artificial limit, but if so i couldn't figure out how. I'd say that maybe they wanted to insure a minimum level of fees for themselves, but if the ticket is priced too high to sell they're not going to get _any_ fee, so that seems counter-productive.

    So i canceled that offer and switched the tickets over to StubHub, which had a much better UI and let me lower the ticket prices to whatever i wanted. (I ended up managing to sell them about an hour before the concert for about $200 less than i originally paid for them after getting into a negative bidding war with someone else =P)

    I'd strongly recommend checking out StubHub and any other ticket resellers before resorting to TicketMaster, especially after hearing this news.

    --
    This Space Intentionally Left Blank
  13. Re:Ticketmaster is just responding to what you wan by AsylumWraith · · Score: 2

    AXS, Etix, Eventbrite, and especially Ticketfly. I rarely buy from Ticketmaster, (although, as mentioned above, I did recently buy tickets from them.)