TicketMaster strongly suggests that promoters use the auction service. They also knowingly have tickets held that are not sold. Look at Madonna - Ticketmaster auctions the tickets they then announce the show is sold out, customers then are forced to use the auctions, then tickets suddenly become available. I'd rather go to http://www.ticketliquidator.com/ or http://www.stubhub.com/
this was from ticketnews.com
http://www.ticketnews.com/Madonnatickets.html
Prime Madonna tickets available for less than half price on secondary sites
By CHRISTINE PALUF
TicketNews.com
May 22, 2006 - Madonna's "Confessions" tour debuted in Los Angeles yesterday. Initially the show was announced as "sold out" minutes after it went on sale. But there are plenty of seats that never went at all.
Front row seats to Tuesday's May 23rd "sold out" performance start at $2,200 a pop. Second row seats start at a $2,000 low bid on Ticketmaster's auction.
But secondary reseller sites such as TicketLiquidator.com have second row seats in the same section for only $950, less than half the price of the Ticketmaster auction.
So how can tickets still be available for a show that supposedly "sold out" the day tickets went on sale? And how can they be priced for less than face value?
"Customers ultimately get caught up in the hype when an artist claims a show is sold out," said Don Vaccaro, CEO of TicketLiquidator. "They bid on an auction, only to find out later that the show may not have been sold out. Because of perceived lack of supply, the artist can manipulate the price to higher than market value."
In the case of Madonna's tour, the auctions went on sale when the shows were claimed to be sold out and supply was limited. That gave the impression that the supply was lower than it really was, thus raising the equilibrium price of the tickets, according to Vaccaro.
"As close as I can tell, it's been going on for decades," said Dr. Stephen Happel, professor of economics at Arizona State University. "Any promoter or owner has 'holds' for themselves, the artist, fan clubs, etc. and it's their right to do with them as they wish.
"A couple of states have proposed laws where they would have to tell how many tickets they were holding and where those tickets were. I'm for transparency. Release that information to the general public, and let people respond accordingly."
Many of the tickets originally priced at $185 can be found for $100, and these discounts are pretty much available at most ticket levels. Now that it's apparent that tickets are still available, the price is beginning to reflect what the market determines they are worth.
"When artists scalp their own tickets through auctions, it makes a compelling reason to shop TicketLiquidator.com or any secondary market site to save money on tickets," Vaccaro said.
So buying tickets straight from the source isn't always the cheapest way to do it. Now the best seats in the house are up for grabs at a lower price than originally released. Whether they weren't purchased because of the high starting bid, or because this was simply the promoter's plan from the beginning, is up for debate. Madonna's promoter, LiveNation, did not respond to this inquiry.
In most auctions, the level of your bid determines where you sit, so the more money you spend, the closer to the stage you end up.
Ticketmaster's site claims that their auction product allows for a fair market price, and that the money stays in the 'right' hands: from the consumer to the venues, promoters and artists. The site also suggests that purchasers are getting a more secure, less fraudulent service than that found with other 'third party' resellers; a pricing system based on the fans' level of interest.
But if a fans' only interest is in getting a ticket, any ticket, and they think the show is sold out, they'll buy whatever they can get. Being forced to bid above what they normally
would have paid doesn't truly reflect their level of interest. It reflects their level of fear that they wouldn't get to see the performer.
Claiming no tickets are available when they actually are is misleading. It may be legal, but isn't it slightly unethical?
"It's clever, I'd do it myself if I were an event owner. Voluntary exchange benefits both parties," Happel said.
But will fans catch on? Crying wolf only works so many times. Will ticket buyers learn that when a show claims to be sold out, waiting longer will produce a new flood of available seats? And that fans can avoid the auction and save money by going to secondary sites first? It seems to be the logical place to land.
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TicketMaster strongly suggests that promoters use the auction service. They also knowingly have tickets held that are not sold. Look at Madonna - Ticketmaster auctions the tickets they then announce the show is sold out, customers then are forced to use the auctions, then tickets suddenly become available. I'd rather go to http://www.ticketliquidator.com/ or http://www.stubhub.com/
this was from ticketnews.com http://www.ticketnews.com/Madonnatickets.html Prime Madonna tickets available for less than half price on secondary sites By CHRISTINE PALUF TicketNews.com May 22, 2006 - Madonna's "Confessions" tour debuted in Los Angeles yesterday. Initially the show was announced as "sold out" minutes after it went on sale. But there are plenty of seats that never went at all. Front row seats to Tuesday's May 23rd "sold out" performance start at $2,200 a pop. Second row seats start at a $2,000 low bid on Ticketmaster's auction. But secondary reseller sites such as TicketLiquidator.com have second row seats in the same section for only $950, less than half the price of the Ticketmaster auction. So how can tickets still be available for a show that supposedly "sold out" the day tickets went on sale? And how can they be priced for less than face value? "Customers ultimately get caught up in the hype when an artist claims a show is sold out," said Don Vaccaro, CEO of TicketLiquidator. "They bid on an auction, only to find out later that the show may not have been sold out. Because of perceived lack of supply, the artist can manipulate the price to higher than market value." In the case of Madonna's tour, the auctions went on sale when the shows were claimed to be sold out and supply was limited. That gave the impression that the supply was lower than it really was, thus raising the equilibrium price of the tickets, according to Vaccaro. "As close as I can tell, it's been going on for decades," said Dr. Stephen Happel, professor of economics at Arizona State University. "Any promoter or owner has 'holds' for themselves, the artist, fan clubs, etc. and it's their right to do with them as they wish. "A couple of states have proposed laws where they would have to tell how many tickets they were holding and where those tickets were. I'm for transparency. Release that information to the general public, and let people respond accordingly." Many of the tickets originally priced at $185 can be found for $100, and these discounts are pretty much available at most ticket levels. Now that it's apparent that tickets are still available, the price is beginning to reflect what the market determines they are worth. "When artists scalp their own tickets through auctions, it makes a compelling reason to shop TicketLiquidator.com or any secondary market site to save money on tickets," Vaccaro said. So buying tickets straight from the source isn't always the cheapest way to do it. Now the best seats in the house are up for grabs at a lower price than originally released. Whether they weren't purchased because of the high starting bid, or because this was simply the promoter's plan from the beginning, is up for debate. Madonna's promoter, LiveNation, did not respond to this inquiry. In most auctions, the level of your bid determines where you sit, so the more money you spend, the closer to the stage you end up. Ticketmaster's site claims that their auction product allows for a fair market price, and that the money stays in the 'right' hands: from the consumer to the venues, promoters and artists. The site also suggests that purchasers are getting a more secure, less fraudulent service than that found with other 'third party' resellers; a pricing system based on the fans' level of interest. But if a fans' only interest is in getting a ticket, any ticket, and they think the show is sold out, they'll buy whatever they can get. Being forced to bid above what they normally would have paid doesn't truly reflect their level of interest. It reflects their level of fear that they wouldn't get to see the performer. Claiming no tickets are available when they actually are is misleading. It may be legal, but isn't it slightly unethical? "It's clever, I'd do it myself if I were an event owner. Voluntary exchange benefits both parties," Happel said. But will fans catch on? Crying wolf only works so many times. Will ticket buyers learn that when a show claims to be sold out, waiting longer will produce a new flood of available seats? And that fans can avoid the auction and save money by going to secondary sites first? It seems to be the logical place to land.