LOS ANGELES (VIP-BOOKING) – Live Nation CEO Michael Rapino defended the practice of charging higher ticket prices for concerts during an appearance on The Bob Lefsetz Podcast.
During the conversation, Rapino also delved into the nitty-gritty of ticket pricing and service fees. He emphasized that Live Nation doesn’t set ticket prices and that the artists themselves determine the prices for their shows. He also claimed that, on average, 80% of service fees go to the venue and not Ticketmaster.
While he acknowledged the importance of making concerts accessible to fans, he argued that concerts are a special and rare experience that people are willing to pay for.
“This is a business where we can charge a bit more,” Rapino said. “I’m not saying excessively, but it’s a great two-hour performance of a lifetime, that happens once every three, four years in that market. You don’t have to underprice yourself — low to middle-income [people] will make their way to that arena for that special night.”
Moreover, Rapino noted that ticket prices have gone up by 19% compared to 2019 due to inflation. This increase is attributed to the rise in the cost of gas, labor, lighting, and transportation.
The podcast also touched upon the recent controversy surrounding The Cure’s ticket sales for their North American tour. The band restricted ticket transfers and opted out of Ticketmaster’s “platinum” and “dynamically priced” ticket options. Despite these efforts, tickets still ended up on the secondary market, and fans who managed to purchase tickets complained about excessive transaction fees.
In response, frontman Robert Smith compelled Ticketmaster to reimburse fans $5-10, which Live Nation covered. Rapino affirmed that Live Nation worked hard to ensure that tickets were non-transferable, verified, and at face value.
Overall, the conversation highlighted the complex and nuanced issues surrounding ticket pricing and service fees for concerts, with Rapino defending the industry`s practices while acknowledging the importance of making concerts accessible to fans.
