(Hypebot) — A graphic posted by the Wall Street Journal as part of its coverage of the U.S. Department of Justice’s Live Nation-Ticketmaster antitrust lawsuit shows 98% of ticket revenue going to artists.
“The spoils of a concert ticket are shared by many parties,” reads the accompanying WSJ narrative, “including the performer, concert promoter, ticketed, and venue.
Some recent media accounts put ticket revenue to artists slightly lower at 90%.
How much do artists earn?
The WSJ and other media outlets fail to explain that venues and promoters typically withhold 50% – 60% of ticket revenue to cover show expenses, including staffing, sound, lights, fees to PROs, and rent or mortgage payments. In some cases, these venues are owned by Live Nation.
In addition to deductions from ticket revenue retained by venues and promoters, artists usually pay fees to their booking agent (10%), manager (10 – 15%), and business manager (5%). Artists are also responsible for travel costs, hotels, crew salaries, equipment, insurance, etc.
Who profits from high ticket fees?
Many media accounts of the antitrust suit and pending state and federal ticket legislation also imply that artists profit from ticket fees.
While that may be true for a few top-tier artists, 99% of artists do not control or profit from the ticket fees set by the venue, promoter, and ticketing company. Instead, many artists are concerned that high fees make it more difficult for fans to afford tickets to their shows.
The Bottom Line
As the courts decide Live Nation-Ticketmaster’s future and legislation to regulate secondary ticketing moves forward, the media and the industry must be careful not to falsely implicate the 99% of touring musicians struggling with rising costs and increased competition.
Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Agency, and a Berklee College Of Music professor.
