Concert ticket prices in Australia are significantly higher when purchased through major sellers Ticketek and Ticketmaster compared to independent agencies, according to new modelling released by a prominent music industry insider. The data reveals consumers can pay over double in added fees based purely on which ticketing company is used – costs which insiders say are inflated and unjustified.
Ticket Sales Data Shows Huge Fee Disparities
Figures provided to media outlets by Paul Sloan, a producer and promoter who has worked with major acts like Nick Cave and Bon Iver, compared hypothetical sales for the same touring act across three similarly-sized venues. The results were eye-opening.
For 1,000 ticket sales through a Ticketek-exclusive venue, consumers would pay a whopping $25.85 per ticket in added charges like transaction fees, booking fees, and credit card surcharges. The same tickets sold via Ticketmaster, which is owned by music giant Live Nation, attracted $21.73 in extra costs.
In stark contrast, using an independent local seller like Oztix resulted in just $8.10 in fees – less than a third of the Ticketek amount. Sloan, managing director of Supersonic Australasia, said the numbers demonstrate how venues with exclusive arrangements are driving up prices.
These high fees charged by Ticketmaster and Ticketek are not representative of the services offered, some of them are just made up.
– Paul Sloan, Supersonic Australasia
Calls for More Ticket Seller Competition
Industry figures argue that exclusive venue contracts mean the two dominant agencies, Ticketek and Ticketmaster, face little competitive pressure to keep costs down for consumers. Without rivals, they are free to layer on questionable charges.
Allowing promoters to choose from a range of ticketing options, Sloan contends, is key to fairer pricing. “In a free market where there’s no exclusive contracts, we would at least see ticket fees prices fall to current free market levels, which is half or less of the current Ticketmaster/Ticketek settings,” he stated.
Industry Body Defends Giants After TV Exposé
Sloan decided to go public with his data following a controversial Four Corners report on Live Nation’s market dominance and vertical integration. Industry peak body Live Performance Australia (LPA) subsequently released a statement defending the company, which holds executive positions in LPA.
That response dismayed many smaller operators who feel their concerns are being ignored. “There is clear evidence locally, nationally, and globally of problematic practices which ultimately push artificially inflated costs on to artists and ticket buyers,” one major festival director told media.
Ticketek, Ticketmaster Respond to Fee Concerns
Ticketek did not respond to requests for comment on its fee practices. Live Nation stated its “venues and ticketing practices are consistent and competitive with the rest of the industry,” adding that some fees are paid to venues to cover operational costs.
With Australian consumers bearing the brunt of the current arrangements, many are hoping for reforms to improve transparency and competition in the live event ticketing market. As one insider put it: “If we lose independent venue, promoter and ticket options, then… we all lose.”
In stark contrast, using an independent local seller like Oztix resulted in just $8.10 in fees – less than a third of the Ticketek amount. Sloan, managing director of Supersonic Australasia, said the numbers demonstrate how venues with exclusive arrangements are driving up prices.
These high fees charged by Ticketmaster and Ticketek are not representative of the services offered, some of them are just made up.
– Paul Sloan, Supersonic Australasia
Calls for More Ticket Seller Competition
Industry figures argue that exclusive venue contracts mean the two dominant agencies, Ticketek and Ticketmaster, face little competitive pressure to keep costs down for consumers. Without rivals, they are free to layer on questionable charges.
Allowing promoters to choose from a range of ticketing options, Sloan contends, is key to fairer pricing. “In a free market where there’s no exclusive contracts, we would at least see ticket fees prices fall to current free market levels, which is half or less of the current Ticketmaster/Ticketek settings,” he stated.
Industry Body Defends Giants After TV Exposé
Sloan decided to go public with his data following a controversial Four Corners report on Live Nation’s market dominance and vertical integration. Industry peak body Live Performance Australia (LPA) subsequently released a statement defending the company, which holds executive positions in LPA.
That response dismayed many smaller operators who feel their concerns are being ignored. “There is clear evidence locally, nationally, and globally of problematic practices which ultimately push artificially inflated costs on to artists and ticket buyers,” one major festival director told media.
Ticketek, Ticketmaster Respond to Fee Concerns
Ticketek did not respond to requests for comment on its fee practices. Live Nation stated its “venues and ticketing practices are consistent and competitive with the rest of the industry,” adding that some fees are paid to venues to cover operational costs.
With Australian consumers bearing the brunt of the current arrangements, many are hoping for reforms to improve transparency and competition in the live event ticketing market. As one insider put it: “If we lose independent venue, promoter and ticket options, then… we all lose.”
