Discover How Ticketmaster and Live Nation Secretly Extract Billions from Fans

Recently, the Federal Trade Commission (FTC), alongside the state of Utah and six other states, filed a significant lawsuit against Live Nation and its subsidiary Ticketmaster. The lawsuit alleges that the companies used questionable practices to capitalize on the fervor of music and sports fans, extracting illegitimate revenue that exploited consumer trust.

Key Allegations Against Ticketmaster and Live Nation

The lawsuit claims that Ticketmaster engaged in deceptive pricing practices. Many fans are often shocked to discover additional fees added at the final checkout stage. Attorney General Derek Brown of Utah emphasized that this tactic violates state law against deceptive acts.

Ticketmaster’s alleged tactics include A/B testing on purchase screens. This resulted in an annual revenue increase of approximately $50 million by keeping ticket prices hidden until the transaction’s end.

Hidden Fees and Their Impact

• Ticketmaster charges between 24% and 44% in fees per ticket.
• Other major competitors, including SeatGeek, StubHub, and Vivid Seats, charge similar fees of around 10-15%.
• Handshake Tickets reported that fees for major ticket companies range from 13.7% to 46.5%, depending on the event.

Each of these companies impacts fans significantly, as ticket fees often go unnoticed until the final payment stage. A recent analysis indicated that Ticketmaster had the lowest average buyer fees at around 20% during 100 different ticket events.

The Cycle of Profit in Ticket Sales

Ticket resale appears to be a lucrative avenue for these companies. The lawsuit estimates that from 2019 to 2024, Ticketmaster generated over $16 billion in fees. This figure includes:

• $11 billion from initial ticket buyers.
• $987 million in seller fees.
• $3.7 billion in secondary market ticket buyer fees.

Moreover, Ticketmaster allegedly profited an additional $187 million from artificial price markups on low-listed tickets.

Collaboration with Ticket Brokers

The lawsuit also highlights the troubling collaboration between Ticketmaster and ticket brokers. While general ticket purchases are often restricted to a small number per person, brokers exploit loopholes. For instance, one broker reportedly acquired over 9,000 tickets for a single concert event despite the eight-ticket limit.

Some ticket purchasing activities are facilitated through individuals hired to bypass limits, raising concerns about the ethicality of these practices.

Responses and Potential Solutions

The state of Utah’s actions, along with those of the FTC, aim to address the exploitative practices in the ticketing industry. Current FTC rules improving price transparency are steps toward consumer protection, but experts indicate that broader governmental intervention is necessary.

International Approaches to Ticket Scalping

Several countries, such as Belgium, Italy, and Japan, have implemented strict prohibitions against ticket scalping. These regulations help protect consumers while ensuring tickets are sold at fair prices. For example:

• In Australia, a resale price cap is set at 10%.
• France imposes fines for unauthorized reselling.

Such measures have slowed down the scalping issues faced in the U.S. market. By looking toward these international practices, lawmakers in the United States could better protect consumers from exploitative tactics employed by companies like Ticketmaster.

Voices across America are calling for reforms, with a notable majority supporting measures to break up the Ticketmaster and Live Nation merger. As debates continue, it is essential to create a marketplace that genuinely benefits fans, helping them enjoy events without financial strain.