NEW YORK (Hypebot) –
As the Live Nation Ticketmaster merger winds its way through the approval process both in the U.S. and Europe, two very dirty little secrets are coming to light that music industry insiders have known for years, but have chosen to ignore.
1. KICK BACKS – A large percentage of the heinous fees that Ticketmaster adds to each ticket does not go to pay the company's overhead. It is paid as a kickback to the promoter, the venue or both. In exchange for signing with Ticketmaster exclusively, the promoter and venue get $1-$3 of each ticket.
2. FANS NEVER GET THE BEST SEATS – 15 – 20% of the best tickets are withheld by the venue or promoter for insiders and to be re-sold on the secondary market on sites like StubHub. If the show is hot, the percentages can be even higher. And with the purchase of reseller TicketsNow, Ticketmaster is both encouraging and promoting the practice.
These two facts of ticketing life were mentioned in passing at the recent Congressional hearings but no one, even those that question the merger, seems ready to address them.
