Are you a die-hard music fan that loves going to concerts but cannot fulfill their wish due to the rising prices of concert tickets? “Why are Concert Tickets So Expensive?”, we can certainly sense the frustration behind this particular question. In addition, this claim is certainly valid that concert tickets can cost you a fortune; sometimes, they may even cost as much as a mini-vacation. Over time, a persistent increase has been administered in the prices of concert tickets, and this increase has always been in double digits. This price high seems so unfair because these rates are far from the inflation rates. However, before we grieve over these high prices, let’s ponder the factors that might trigger this rapid rise in prices. Even though the prices of tickets are touching the sky, people are still determined to buy tickets hence;, this is one of the foremost reasons for the boost in demands and, consequently, prices.
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Why are Concert Tickets so Expensive: The Reasons Are Here?
The following reasons contribute significantly to the price increase of concert tickets:
There is a Big Change to the Music Industry
In the current fast-evolving world, everything is changing; similarly, the dynamics of the music industry are also changing drastically. While answering the question, why concert tickets are so expensive, this factor plays a focal role. Do you ever wonder that how these celebrities and singers are able to earn millions? Well, they earn it by selling their concert tickets to you. Nevertheless, the music industry scenario has taken a shift from selling records to a more economical option of downloading the soundtracks. Downloading songs from online music streaming service providers like Spotify has declined the returns from the sale or download of songs.
One of the ramifications of this shift in the music industry is that the artists are not earning much, making concert tickets their primary source of income. This influx in music downloads has also aggravated the implications of renowned artists like The Weekend and Taylor Swift. To bring in some real cash, these artists have shifted to tours; and the concerts on these tours are a great success for these stars, and they are able to earn a handsome sum of money. Not only is the sale of concert tickets their sole source of income, but the sale of merchandise also contributes greatly to the earnings of the artists.
Concert Production Become More Bigger and Better
Another underlying reason for the increase in the prices of concert tickets is that over the years, the trends have evolved to a great extent. Therefore the overall costs of the props and the settings of the concert sites and sets have spiked up drastically, robbing the artists of a hefty amount. Further, given the competition in the music industry, the artists or bands with the most expensive and elaborate show sell the most tickets, generating the highest revenue.
The nature of the shows has changed, which has created the need to expand the budget for the shows. This births the need to increase the tickets’ prices and make them as expensive as a mini vacation. The show’s props, including logistics, premises, management, and promotion, can take up a large percent of total revenue. This is another point that answers the question of why concert tickets are so expensive. Let’s compare the concerts in the previous decade. We can notice an imminent change in the overall outlook of the concerts. Thus, this reason for an increase in the prices of concert tickets is self-explanatory. As the artists or the concert organizers cannot bear all these costs themselves, they pass the burden of these expenses down to the customers to raise ticket prices. Moreover, it would be wrong not to consider the rising demands of customers for the decoration and making of the stages. These demands also add up to the expenses, further raising the concert ticket prices.
Pricey Ticket Packages
Remember those old days when you used to get the opportunity to meet your favorite stars backstage? Those days are gone now, and you can get the opportunity to meet the stars on various occasions after the music industry’s evolution, such as meet and greet, etc. The chances of meeting your favorite stars have expanded over time. The spread of social media platforms has also allowed the fans to engage more with celebrities. In addition, the spike in the prices of tickets is due to these additional services that it offers alongside concerts. This wholesome package, therefore, the overall prices of the concert tickets have increased to such a great extent.
The basic reason for this particular factor is that the fans are demanding more and more star meetups; hence, the overall ticket packages have spiked in prices. The super fans can also buy the VIP packages that give them access to many things, including pictures with their favorite artists, merchandise, etc.
Staging is More Extravagant Than Ever
With the enhanced overall outlook of the show over the years, the budget for staging and overall décor has also amplified. Hence, it is essential to consider all these expenses while setting the prices for concert tickets. By considering the current scenario of the music world, we can conclude that if you want to experience a newfound realm of enjoyment then, you have to pay a huge sum for concert tickets. The concerts of Lady Gaga, Taylor Swift, Coldplay, etc., are the perfect embodiment of immensely extravagant staging, where they use freakishly expensive lightings, props, and clothing. And this, in turn, leads to higher costs and expensive concert tickets.
Further, a plethora of new companies have resurfaced that deal with the decoration of the sets and stages; these companies, then, charge a high amount from the stars and their sponsors to set up the best stage to provide the audience with the best experience of their lives. The main reason for the high ticket prices is all the expenses that we include in the total. All these experiences add up to high costs, and these high costs are covered by charging a high price for concert tickets.
Booking Fees are Silent
“Booking fees are part of our concert tickets?!!”, Well, we can sense the element of surprise in this thought of yours. However, this is the brutal truth that despite the fact that it may seem like concert tickets are free of the booking fee, but the vendor who sells the tickets charges you a higher price, as they include a higher booking fee. On the contrary, as far as the online vendors are concerned, they charge a rather lower price. As per the main stakeholders and parties in the music industry, it is illegal to charge immensely high prices or excessive fees; and we call this propaganda monopoly power that exploits the music fans.
The officials in the ticket sales industry have proposed that transparency about the charges of tickets can ensure fairer charges on the consumers. Back in 2013, a policy to implement all-in pricing was introduced. The final price was quoted to the customers; this price was immensely high as it was an amalgam of all the expense charges and booking fees, etc. This strategy made the concert tickets expensive.
Scalpers Aren’t Going Anywhere
Scalpers are just like speculators who resell shares, ticket in this case, for a larger profit. This trend has exploited the market a lot. These scalpers sell tickets at a higher rate to the fans. This is why people assume that the overall prices of concert tickets have reached a certain bar, which is immensely high. This secondary market dealing has robbed the ticket selling industry of millions of dollars. They have exploited the fans.
These black markets have proven to be very deadly for the ticket industry. To control the rapid growth of this industry, many artists have taken initiatives. For example, some of the artists took precautionary measures by blacking thousands of sites indulged in the sale and purchase of concert tickets for higher profits. Henceforth, these actions regulated the natural flow of the sales of concert tickets. But, over the years, the prices of tickets in the secondary markets have gone down, making these secondary markets a better option for customers and maybe a ray of hope for customers who want to buy tickets at economical rates. However, it must be noted that this issue of scalpers has also contributed to increasing the prices of concert tickets to such high levels.
Lower Tickets Could be on The Horizon
Every music lover fantasizes about cheap tickets, but is it possible? Well, here is the good news: you can buy cheap tickets at the last minute! There are certain ways through which you can get your hands on cheaper tickets. For instance, try purchasing tickets for your credit card to avail of any pre-sale on the tickets. The venues can make a huge difference here; the higher the venue, the higher the prices of tickets. You can also enjoy buying cheap tickets by trying your chance in the secondary market at the eleventh hour so that you can bargain a fair rate for the ticket.
Nevertheless, the bad news here is that the overall ticket system’s rapid scope has taken a new dimension with the rapid scope of technology. Online selling has increased, and the all-in pricing policy has eliminated the separate booking fee. These factors have played a pivotal role in making the prices of concert tickets to rising. On the other hand, there are so many predictions that the secondary markets are soaring out, and the ticket prices will soon stabilize.
The Bottom Line
As per the reasons mentioned above, we could conclude that the question of “why are concert tickets so expensive?” can be a really tough one, as myriads of reasons can contribute to this issue. Worldwide, technological improvement has opened new options for the fans, artists, and ticketing industry. All these stakeholders are interested in their gains. Hence, the prices of concert tickets are set to be higher in recent years to satiate the demands of all these stakeholders.