Ticket giants, under pressure from Biden, promise transparency on fees
Under pressure from the Biden administration, some of the largest companies that handle tickets for concerts and other live events announced Thursday that they will make it easier for consumers to see the full price of tickets they want to buy, including the fees that are often can be paid. add more than 30 percent to the total cost of an order.
Live Nation, the world’s largest concert company, said it would begin introducing “all-in pricing” — showing consumers the full price up front — at the venues it manages, including more than 200 amphitheaters, clubs and other areas in the United States. . Ticketmaster, which is owned by Live Nation, said it would make this tool available to other venues and promoters as well. Those changes are expected from September.
SeatGeek, a major ticket retailer that also works for major venues and sports teams like the Dallas Cowboys, said it would also be introducing a feature that would reveal the full price of a ticket to consumers.
Those changes come as the Biden administration has stepped up its pressure on the entertainment and travel industries to curb what it calls “junk fees.” During his State of the Union address in February, President Biden said he wanted to ban “surprising resort fees that hotels charge to your bill,” adding: “We can stop service fees on tickets for concerts and sporting events and companies disclose the costs in advance.”
The White House is convening a panel on Thursday to address these issues, with representatives from Live Nation, SeatGeek and other companies including Airbnb, TickPick, Dice and the Newport Festivals Foundation.
“President Biden has been working to reduce costs for hard-working families by lowering inflation, limiting insulin prices for seniors and eliminating hidden junk costs,” Lael Brainard, the director of the National Economic Council, said in a statement. “More companies are heeding the president’s call, so Americans know in advance what they are paying for and save money as a result.”
Ticket sales, and issues of competition and consumer fairness in the entertainment industry, became hot-button issues in Washington after a failed November pre-sale for Taylor Swift’s Eras Tour. Ticketmaster’s system became overrun with bots and many fans reported that the tickets they had selected disappeared from their online shopping maps.
During a Senate Judiciary hearing in January, Live Nation came under harsh, bipartisan attacks, with senators openly calling the company a monopoly. The Justice Department has separately investigated Live Nation for possible violations of the consent decree that was a condition of the company’s 2010 merger with Ticketmaster; one of the terms of that agreement was that Live Nation cannot threaten venues with retaliation for not using Ticketmaster as their official ticket seller.
But to what extent Live Nation and SeatGeek’s latest promises would substantially change the ticket market is unclear. The concert industry is complex, with prices and fees controlled by various parties who have little incentive to reduce their take-up – especially with live music reviving after nearly disappearing during the Covid-19 pandemic, and ticket sales now reaching record highs.
The changes by Live Nation and SeatGeek do not imply lower prices or a commitment to reduce fees, which are often determined by locations; those companies simply promise to disclose fees as part of the total cost of a ticket.
Following Mr. Biden’s State of the Union address, Live Nation proposed federal legislation that would, among other things, mandate all-inclusive pricing. Without all competitors adhering to the same standard, many ticketing executives say, those who voluntarily comply would be placed at a competitive disadvantage, as other venues and ticketing services could entice customers by advertising lower prices, then charge to be revealed as soon as a customer completes a transaction.