Concert Prices Soar as Fans Pay Top Dollar for Big Artists
The cost of attending a concert for your favorite big artist is not a new concept, but it seems that prices have reached a new level. Fans of Bruce Springsteen are paying upwards of £120 for “rear pitch” standing tickets for his May 2024 tour, while some were disappointed by the £145 price tag for standing tickets for Billie Eilish’s 2025 UK leg. Even tickets for popular artists like Beyonce and Taylor Swift, which initially started at £50, quickly sold out and were soon being resold for upwards of £300. So what is causing this rise in ticket prices?
According to booking agent and operations director at Runway, Matt Hanner, the increase in ticket prices is partly due to the growing demand for big spectacles. “We’re seeing a lot more stadium shows, greenfield, outdoor festival-type shows which are now a staple of towns around the country,” he said. “There’s a growing number of people that are happy to spend a large chunk of their disposable income on going to a major music event.”
The cost of putting on these big spectacles has also contributed to the rise in ticket prices. Expenses such as staffing, venue fees, transportation, artist requirements, insurance, and more have all increased due to inflation. Jon Collins, chief executive of LIVE, the trade body representing the UK’s live music industry, explained that venue hire costs have significantly increased in the past couple of years due to rising electricity and gas prices. “You’ve got a couple of different factors – you’ve got the spectacle of the show and the production cost and everything that goes into the ticket price. But then you’ve also got the fundamentals,” he said. “You’ve got the increase in the cost of people very justifiable costs like increases in minimum wage and living wage. At every stage of the process we’ve got these cost increases that will all push through the pressure on the ticket price.”
Some may question if artists themselves are being greedy and taking a large cut of the ticket sales. However, industry professionals say it’s not that simple. The Guardian reported in 2017 that between 50-70% of gross earnings go to promoters and artists, with the promoter taking 15% of what is left and the act receiving 85%. The exact split depends on the artist’s caliber and the amount of effort the promoter had to put into selling the show. Ultimately, the promoter sets the ticket price, but the artist and their team do have some say, especially for bigger acts like Taylor Swift. Forbes reported that Swift personally earns between $10m and $13m (£8m – £10.5m) on every stop of her Eras Tour and takes home 85% of all revenue.
Some artists have been critical of the high ticket prices being demanded by others. Singer-songwriter Tom Grennan spoke out against expensive tickets, stating that he wanted fans to be able to enjoy shows without worrying about their financial situation. Paul Heaton, who capped ticket prices for his tour at £30, also hopes to tackle music industry “greed” and help fans during the cost of living. British star Yungblud recently announced his own music festival, Bludfest, stating that the industry is too expensive and needs to be “shaken up.”
In addition to dynamic pricing, which increases ticket prices based on demand, “sneaky” fees by online ticket sites are also contributing to the high cost of concert tickets. A report by consumer champion Which? found that an array of hidden fees at checkout can add up to 20% to the cost of concert and festival tickets. The Cure lead singer Robert Smith even tweeted about fans being “sickened” by processing fees on Ticketmaster that ended up being more than the ticket itself in some cases. Ticketmaster responded by stating that fees are typically set and shared with their clients and that they support legislation for all-in pricing.
The rise in ticket prices has not gone unnoticed by the US government, which is now suing Ticketmaster owner Live Nation for allegedly monopolizing the live events industry. The lawsuit claims that Live Nation controls around 70% of primary ticketing for concerts in America and uses lengthy contracts to prevent venues from choosing rival ticket companies, block venues from using multiple ticket sellers, and threaten venues with financial consequences if Ticketmaster is not the chosen seller. Live Nation has denied these claims and stated that the suit reflects a populist urge that rejects how antitrust law works.
In the UK, another major factor in the high cost of concert tickets is VAT (value added tax), which is currently at 20%. While it was lowered to 5% and then 12.5% during the COVID-19 pandemic, it has since returned to its pre-pandemic level. This tax puts the UK “out of step” with other countries, according to Jon Collins