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Live Nation ticket scandal shows musicians can learn from Taylor Swift | Quartzy

How ticket resales work
Imagine tickets for a Beyonce show with face value of $100, and a scalper bought 10 tickets online, which eventually sold for $500 each on StubHub. The scalper would have made $4,000 on those 10 tickets, while Beyonce’s organization would have received just $1,000. In an actual recent case, the band Bikini Kill sold tickets to their show for about $40, but soon after the cheapest tickets on the secondary market went for three or four times that price (depending on the city).

So then what’s the problem with artists going directly to resale? There are two important issues. The first one is deception. A popular artist may choose to only sell tickets for $50 in order generate good will from fans, who will believe their performer is not trying to gouge them.  But if the artists are actually selling a lot of those tickets on resale, that’s kind of a lie. The other issue: Some of the tickets put on resale would have been purchased by real fans if sold at face value. Those tickets sold above face value are costing fans serious money.

Taylor Swift has a better way
The concert industry seems to be figuring out better pricing policies, with Taylor Swift leading the way. After a 2015 tour in which she lost about $150 million by selling her tickets below market value, according to an analysis by the Financial Times (paywall), Swift decided that she would no longer fight the law of supply and demand.

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Live Nation ticket scandal shows musicians can learn from Taylor Swift — Quartzy.

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