2/3 of people use Ticketmaster in dynamic pricing scandal

The entertainment company was used by 63% of people in September 2024 , when the Consumer Market Authority launched an investigation into their use of dynamic pricing.

Alison Canham Archive, taken at Victorious Festival, Portsmouth.

The investigation

The CMA (Consumer and Markets Authority) is a government department which observes commercial practises and protects consumers from unfair practices.

They launched an investigation into Ticketmaster on 5 September 2024, after users complained that they were not properly informed about the use of dynamic pricing for Oasis concert tickets. 

Dynamic pricing is when prices are changed in line with the conditions of the market and so prices are increased when there is more demand.

Consumer law doesn’t prohibit the use of dynamic pricing however businesses that use it are required to be fair and transparent about it.

Users reported feeling pressured to buy tickets quickly and at a higher price than they initially thought they would have to pay. 

Some fans ended up paying £361 for tickets that they originally saw advertised for £135. When buying four tickets customers ended up paying £74 in service fees.

The Department for Culture, Media and Sport is “concerned to see vastly inflated prices excluding many ordinary fans from having the opportunity to enjoy their favourite musicians.

“Fans should be kept at the heart of live events.

“We recognise that this is a complex area, and will work with artists, industry and fans to create a fairer system.”

Ticketmaster outranked all of its competitors in September with its quantity of users. This is shocking considering there were so many complaints to the CMA.

Who cares?

Ticketmaster customers are typically most concerned with rising prices and inflation, per the graph below.

20% of the brand’s users are from a lower-class background. It is likely that only a small portion of its users are from a lower-class background because the prices are not affordable for everyone.

The push for lower prices and fairer practices comes from people wanting concerts and other events to be accessible to everyone.

Emma Whatley, a music enthusiast from Hertfordshire, says that the costs are “insane”. 

“It’s so incredibly stressful and a lot of the time you don’t end up succeeding.”

Concert-goers are becoming increasingly annoyed with high ticket prices and intense queuing on the site. 

The “monopoly”

Live nation, which merged with Ticketmaster in 2010, owns upwards of 380 venues worldwide. This gives the company an opportunity for exclusive deals and contracts with artists.

Adam Stevens, 19-year-old singer/ songwriter from Kent, thinks this is unfair and it forces prices up. 

“Making people pay more simply because tickets are more scarce just feels unfair.

“Monopoly of any kind is dangerous,” he says and Ticketmaster should “absolutely not,”be able to continue with these practices.

Laura Blyghton, a Business and Finance student in London, says that their practices “cuts out a large number of customers who cannot justify the price.”

She says that although Ticketmaster will lose customers from this they will still make a profit. This is because they are only selling to people who can really justify the higher costs which increases their revenue.

This helps explain why so many people continued to use their services in September even if they were not happy with their conduct.

Revenue

Ticketmaster’s revenue has shown a continuous trend of growth, other than a dip in 2022 due to Covid restrictions.

The site is able to process 200,000 sales every minute which is a key reason that people still use it.

Blyghton says that Ticketmaster will continue benefitting from its monopoly “even though this structure often leaves consumers dissatisfied.”

Is there a solution?

The above data shows that although people are not happy with Ticketmaster they still use them because no other company comes close to their user stats.

Marcie Lovett, a drummer and performer from Kent, says that we need to shift towards using independent venues because it would make concerts reachable for low-income, true fans.

Using independent venues more would take away some of Ticketmaster’s commercial power because the venues that they own and have contracts with would have less business.

Independent venues often offer a more intimate concert experience because they are not as big. This would make concert tickets more accessible to true fans who are not buying tickets just because they have the money to do so.

It would allow artists to tour more places the country instead of staying multiple nights in major cities. It would make concerts more experiences more accessible georgraphically and for people on a lower-income.

Marcie Lovett Archives.

“Artists promoting their own music would definitely have the audience’s interests at heart,” she says.

She says that dynamic pricing and Ticketmaster’s commercial practices are an “absolute disgrace” and “it goes against everything music should stand for.”

What now?

When the investigation was first launched the CMA appealed to the public for information about their experiences.

Applications for evidence closed on the 18th September and this material is currently still being reviewed by the Authority.

The Oasis scandal has exposed Ticketmaster to harsh judgement from customers, musicians and now the government.

When the CMA reaches a conclusion we can expect tighter restrictions on the notice needed for a business to use dynamic pricing. Although this investigation is into Ticketmaster changes will be made to the entire market which will affect concerts, sports events and other events.