Why are concert ticket prices so high?
Friday, December 11th, 2009
David Boitano the founder of TICKETFINDER.com who sells concert, sports and theatre tickets for more than 20 years says the most asked question we get is: “Why are concert ticket prices so high?. “
The answer is a little complicated but the main reason is simple. Ever since the public started taking free music downloads on line the artist and their partners’ income has dropped substantially so they try and make it up by charging more for their live concert tickets.
Most contracts that artists have with their record company don’t pay them a lot of money. Example is a new artist desperate to get their music out might sign a long term contract that pays them $.50 - $1.00 per CD sold and just pennies for downloads like iTunes. An established artist like the Rolling Stones might be getting $2.00 to $3.00 dollar per CD sold but that does not add up to the millions they get when they tour. And the artist money is only paid out after all the costs for recording or any advances have been covered. Sure there are a few artists who have sold millions of records and CD’s over their 40 years but they are far and few between and even they get ripped off from time to time as was the case with both Elton John and Billy Joel who after many years found that their management was not being honest with them.
Today you will find many artist like Jimmy Buffett, The Eagles and Prince setting up their own record company and distributing their recordings though contracts with Best Buy, Wal-Mart or the like which they have discovered pays them more in the $5.00 - $6.00 per CD sold. Recently Jimmy Buffett made a statement in an interview in Rolling Stone “So that how much we were being ripped off by the record companies before”
In recent years performers have found that touring is the one way to make real money so if they have a hit recording or a good fan base they tour and charge what the market will pay. In some cases the ticket price can run from $125 per ticket up to as high as $2,000 per seat and they don’t have to share that money with anyone except their touring costs which can be substantial. Most of the bigger artists get a guarantee from a promoter who may secure a huge sponsor to cover most or all of the fixed costs. The promoter then tries to make a profit on merchandise and concession sales which can equal or surpass the average ticket price per person.
So if you’re concerned about high ticket prices stop getting free downloads and pay the recording artist what they are do and also stop going to the shows. Only then will the law of supply and demand take over and prices will come down.
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