Ticketing’s Free Market Status Jeopardized in Some States

By Alfred Branch Jr.

Despite the legislative gains made in the past year in the secondary ticket market, several states are beginning to reexamine those free markets, which may lead to national ticketing regulations, a panel of experts said today, Jan. 31, in Chicago at the International Ticketing Association’s annual conference.

According to Dustin Brighton, senior manager of State Government Relations for eBay, currently there are 25 active bills being discussed by state legislators in gaggle of states, including Missouri, Florida, Massachusetts, Nebraska, Colorado and Tennessee. Many are considering new price caps on how much brokers can charge for resold tickets; prohibiting the use of “bots” or software programs that snap up large blocks of tickets instantly; or in Florida’s case, a law to force venues and live music promoters to fully disclose the number of tickets that are being withheld from the public when shows initially go on sale.

“It’s a very turbulent environment legislatively,” said Joseph Freeman, senior vice president of Corporate Communications for Ticketmaster. Among audience members, the overwhelming response to the Florida proposal was negative because the venue and box office operators would be forced divulge too many trade secrets.

Thank a 15-year-old singing sensation for that. If one thing is certain, the Hannah Montana/Miley Cyrus tour, which was the subject of months of controversy, helped galvanize the movement to reexamine ticketing laws, a movement that renowned economics professor Stephen Happel, of the W. P. Carey School of Business at Arizona State University, abhors.

Happel is a staunch free market advocate concerning ticket sales, and he told the crowd of mostly venue and box office operators that the high prices at which tickets resell on the secondary market are primarily due to faulty advance research on the promoters and venues part. “The fundamental problem is that tickets are mispriced at the beginning,” he said.

“I was raised to believe that scalping tickets was akin to mass murder,” Happel joked, adding that he came to realize that the problem of high prices didn’t lie with brokers but those responsible for initially issuing the tickets. “As long as you give people choice, I’m happy.”

In the name of choice, Happel said, the National Football League will allow ticket scalping at Sunday’s Super Bowl, in part because Glendale, AZ, where the game will be played, allows for unfettered, open street scalping in a designated area, and the NFL is sending representatives to that area to ensure people are buying legitimate tickets.

The move flies in the face of what some sports teams are doing, namely the New England Patriots, which have threatened to cancel the season tickets of customers who resell them. “Teams want their cake and to eat it, too,” Happel said.

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Anonymous's picture
 

Ticketwood's picture
Ticketwood (not verified)

it is only talk the secondary ticket market can only get bigger and bigger it is very simple: growth in population vs constant # of venues

Brian's picture
Brian (not verified)

Why would you want a ticket cap in florida? They just passed a bill 3 years back that their were no selling regulations at all... now they want to reverse it??? What kind of cap... I don't see how they could come up with something to make it stick. Take the 1 dollar over face crap they attempt to pull in SC. Works real great when no one follows it.

Ali's picture
Ali (not verified)

What complete rubbish that ticket resellers don't add anything to the marketplace except inflation. They add a critical component called CHOICE. If you've ever bought tickets on ticketmaster (general admission aside) you might know that the first "best available" seats you are offered to buy are not usually the best seats available. Many, many times I've gone to purchase tickets and found that if I refreshed my screen a few times I am offered tickets that are considerably better than the tickets I was originally offered. Not to mention my idea of best seating and a computer's program of best seating are not necessarily the same. Maybe instead of 5th row section 103 I'd like 1st row section 104? I don't get to pick my seats, I get what I get.
So if an event is important to me, I might just pay extra to get to choose where I want to be seated, to me the cost of that opportunity is worth it.
Not to mention I'd like the option to see a sold out event even if I didn't get in line at 4am to get seats (or sit in front of a computer while I"m busy with other, more pressing, concerns). I don't mind paying a price for someone else to have gone through the trouble of securing a ticket for me.

Maybe people need to change their mindset. Ticket resellers aren't offering a product at an inflated price, they're offering a service, a convenience. If they are regulated, so should grocery delivery services, personal shoppers and newspaper delivery boys. After all, they all secure a product and then resell it to you for a profit. And ticket resellers don't even expect a tip!

Cagey's picture
Cagey (not verified)

Ticket resellers are like any other industry, when greed takes over, regulation comes forward. Resellers add nothing to our economy except inflation, at these those originally selling the tickets produce a product.

The New England Patriots are exactly right, it's their stadium and their seats. Rather pay them more money and have them resign Randy Moss than give the money to some scalping agency!

States, crack down on scalpers!

CL

Anonymous's picture
Anonymous (not verified)

You are an idiot. The New England Patriots make money without even selling a ticket. If anyone is being greedy it is the teams and promoters who overcharge initially for their tickets. Brokers provide a valuable service. No one forces you to buy from a broker. It is your CHOICE. If there are unenforceable laws to regulate prices the consumer will pay MORE in the long run. Think about it.

Proud Broker/Scalper's picture
Proud Broker/Scalper (not verified)

CL, let the free market reign! Maybe you should wake up at 10AM just like everyone else and try to buy tickets for yourself.

Now that ticketmaster is buying ticketsnow, regulation on ticket scalping will begin to cease. TM has deep pockets. I guess time will tell.

Hannah Montana wannabe's picture
Hannah Montana wannabe (not verified)

yeah, instead of ticket brokers scalping tickets it will be ticketmaster. The new face value will be $200 instead of $50.

Anonymous's picture
Anonymous (not verified)

If ticketmaster joins the secondary market, we, ticket buyers, are screwed because the price per ticket would be so high that we could no longer afford to buy tickets. We, the ticket buyers, are doomed. I guess it's cheaper to watch live shows on DVD; this is probably the next market of live entertainment.

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