“Scalping—I Hate That Word” A Frank Conversation With a Major Player in the Secondary Ticket Market – Warungku Terkini
Imagine if you couldn’t go on StubHub, Vivid Seats, SeatGeek, whatever and buy a ticket. It would be really horrific for consumers. The only restraint on Live Nation-Ticketmaster now is a free and open secondary market. I used to represent athletes and boxers, and so many people jump over a dollar to make a dime.
What about artists who are speaking out against reselling and high prices?
When I have seen people talk about trying to keep the price low so their fans can get a ticket, I have seen it almost invariably be baloney. In the few instances that I’ve seen where it is genuine, it still leads to really bad consequences. If someone is willing to pay 10 times what somebody else is, who’s the “true fan”?
The pop producer Jack Antonoff spoke at the Grammys about how many broke musicians there are, and pointed out that the industry people in that room were not broke. How is there room in the ecosystem for your members?
My members have as much skin in the game as anybody else. If you’re an artist and you charge a tremendous amount of money for your ticket, and then the fan can get that ticket later on for half the price, are you going to give them a refund?
How did the National Association of Ticket Brokers come to be?
When we started in 1994, there were probably 24 states that had restrictions on resale, whether it was a price cap or making it illegal. We understood that in order for the system to work, it has to be free of fraud and deceit. So the first thing we did was create a code of ethics and a consumer complaint process. Since that time, we’ve worked hard to keep our side of the street clean.
It’s amazing how much we agree with so many of the people on the other side about how ticketing should work. For example, we’ve created this Protect Ticket Rights initiative.
Can you explain what that is?
We have long supported anti-bot measures. Bots make it impossible for legitimate resellers to get tickets. It distorts the market when so many tickets are concentrated in the hands of one person. It’s a really bad Achilles’ heel for our industry.
Transparency is key. While we get blamed for fans not being able to get tickets—and Taylor Swift’s a great example—most times it’s because of holdbacks. So there’s gotta be transparency in holdbacks.
How does increasing transparency around holdbacks help average ticket buyers as opposed to just helping resellers?
Because the creation of scarcity creates a feeding frenzy and people end up paying not knowing that only a fraction of the tickets have been released. If they get a great demand, they’re gonna raise the prices as they release more tickets. Don’t you want to know how hard that ticket’s gonna be to get?
What are some of your other issues?
We are strong advocates for transferability of tickets. The promoter and the artist have a right to charge what they want to charge, but once they get that, they can’t restrict resale to their “authorized” site. By preventing transferability, they want you to force you to go to the box office to buy your ticket at their price. Or setting price floors, where you can’t resell a ticket for less than a certain amount. Can you imagine buying a car and then not being able to resell that car at whatever price you want?
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