More Ticket Prices and Downloads

Written by Eric Olsen
Published October 18, 2002
page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9

The $3.25 facility fee goes to Clear Channel to cover building maintenance, debt payments and profit. "It's one of the revenue streams that keeps these multimillion-dollar facilities up and operating," Eckerman said.

The $3.50-per-order handling charge generates additional profit for Ticketmaster and covers the cost of mailing and processing the tickets.

Clear Channel also adds a $3.50 parking fee to the price of each ticket instead of charging for each car arriving to a venue parking lot. In most cases, Eckerman said, the company doesn't disclose that fee to the ticket buyer.

"Is there a reason it's not broken out? No. It's just simplifying the process," he said.

Eckerman said having each ticket holder pay a slightly lower fee than the one assessed to each car "works out to the same economics." Customers who purchase a ticket and then decide to park at a venue's VIP lots essentially are paying for parking twice.

"You're paying to upgrade your parking, is how I would put it," Eckerman said.

The extra fees are imposed on all tickets purchased by telephone or on the Internet. Lower fees are assessed on tickets purchased in person at Ticketmaster outlets, where the $20-face-value ticket is sold for $31.35. Customers can avoid Ticketmaster charges by visiting the amphitheater box office, where Clear Channel charges a $3.50 fee. But the box office is open only on the first day of sales and the day of the show.

Before Clear Channel began buying up promoters and concert venues in dozens of media markets, it was common practice for bands to compare the pricing practices and pay offered by competing promoters in each market. Some agents and managers fear that Clear Channel's consolidation will lead to even higher fees on the price of each ticket.

This is not the first time concerns have been raised about monopolistic practices within the concert industry. In 1995, the Justice Department considered filing antitrust charges against Ticketmaster. Seattle rock band Pearl Jam had filed a memorandum accusing the company of maintaining a monopoly on ticket distribution by locking up the nation's venues under exclusive contracts. The department's antitrust division decided to take no action.

Stephen Brobeck, executive director of the Washington-based Consumer Federation of America, said the decision amounted to a green light to jack up surcharges. The increase in Ticketmaster fees, Brobeck said, is "the inevitable result of an unregulated monopoly. It's an instance of consumers being nickel-and-dimed to death."

Ticketmaster's service fee, which typically added $5 or $6 to the price of a ticket back then, now is often $9 to $11 for popular acts. And the facility fee charged by venue owners has risen just as sharply, from $1 or $2 up to $4.

Artists attempting to hold down the price of tickets to their concerts can haggle with promoters over certain fees. But given Clear Channel's size and clout, some artist managers say the choice is often to accept the promoter's decision or stay home.

page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9
Career media professional Eric Olsen is honored to be the founder and publisher of Blogcritics.org, which, quite frankly, rules - as do his wife and four children.
Keep reading for information and comments on this article, and add some feedback of your own!
More Ticket Prices and Downloads
Published: October 18, 2002
Type:
Section: Music
Filed Under: Music: News
Writer: Eric Olsen
Eric Olsen's BC Writer page
Eric Olsen's personal site
Spread the Word
Like this article?
Email this
Submit to del.icio.us Save to del.icio.us
RSS Feeds
All RSS Feeds (240+)
Comments on this article
BC articles by Eric Olsen
Music: News
All Music Articles
Eric Olsen's personal weblog
All BC articles
All BC Comments

Comments

#1 — October 18, 2002 @ 11:37AM — Jim S [URL]

Do you think that the "35% of those surveyed who reported downloading more than 20 songs a month also reported buying less music as a result" could be because the "try and buy" concept turned into "try and find out it sucks, so don't buy"?

I'm figuring that there is a rational explanation, other than just saying that these potential consumers downloaded it and have it, so they didn't buy it.

In my case in particular, if I download something and like it, I buy it. If I don't like it, I don't buy it.

just a thought.

#2 — May 31, 2006 @ 16:50PM — Cindy Owens [URL]

I just went online to purchase two tickets to see Carl Palmer, playing at Toad's Place in New Haven, CT tomorrow night, June 1st. Imagine my surprise when, after noting the stated price of $22.50 per ticket, etix.com charges an additional $5.08 PER ticket for the privilege of printing out my own tickets! That is an astonishing 25% markup for the cost of these tickets.
If we do not fight this ridiculous practice, we will soon no longer be able to afford to go to ANY concert. I do not live close to the venue or I would have gladly gone there to pick up the tickets in person.
We really need to band together, contact our State Attorney Generals and make formal complaints about this practice. Perhaps if they get enough complaints from us consumers and concert-goers, they will at least TRY to combat this excessive misuse of power by these companies.
If you do not formally complain, you should not complain in public, as you've made no attempt to seek justice. I, for one am going to file my own complaint with CT Attorney General Richard Blumenthal.

Want comments emailed to you? No spam, promise! Address:

Add your comment, speak your mind

(Or ping: http://blogcritics.org/mt/tb/1366)

Personal attacks are not allowed. Please read our comment policy.





Remember Name/URL?

Please preview your comment!

Fresh
Articles
Fresh
Comments