AEG Presents President Rick Mueller Talks Ticket Sales at Canadian Music Week | Billboard

He cites the recent sale of K-pop boy band BTS. “They couldn’t be hotter. Blew out four shows at the Staples Center [in Los Angeles] in 10 minutes, but the attacks that we would see on the ticketing system from malicious bots, and people who are just trying to manipulate that in the secondary market, is such a head-scratcher right now, how you handle it and how you keep up with it.”

Lefsetz, surprised to learn the top ticket price is $250 and that scalpers are still buying them, was met with this hard-and-fast rule from Mueller: “If you can sell out four shows at Staples Center in 10 minutes, you’re underpriced. If you sell out any show the first day, you’re underpriced.”

Lefsetz then moved on to “flex pricing,” flexible or dynamic pricing, which allows the artists and venues to adjust the price in real time, based on demand. “That’s been a big thing in the press in the last six months, the sea change in price,” he said, citing The Rolling Stones, an AEG-promoted act.

“I think almost every arena show, we do have flex pricing,” Mueller said, explaining, “There’s probably two differences between flex pricing and dynamic pricing, so typically flexing in arenas have been if you have had a price level 1 or price level 2, you hold seats in between those sections and you decide what that’s going to be, depending on how hot your on-sale is or you’re going to go up with more, you’re gonna take a lower price.

“The dynamic price is really to try and mirror what market pricing is. We touched briefly on this one when I did your podcast a few months ago. Neil Young did a theater tour several years ago. It’s the first time we did a solo acoustic theater tour in a long time. Tickets came out. He was charging $275, I think, and people were in a bit of an uproar at the time because those were some pretty aggressive prices because the fan felt entitled to see Neil for $50, or whatever they felt the appropriate price was.

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AEG Presents President Rick Mueller Talks Ticket Sales at Canadian Music Week | Billboard.