(Hypebot) — A study by “data-analytics firm” Automatiq for self-proclaimed “consumer advocacy group” Protest Ticket Rights claims that fans saved $414 million last year. They saved this amount by buying tickets on resale marketplaces.
$194 million, or 47% of the reported savings, came from music concerts. At these concerts, 4.4 million tickets were sold under face value, according to the study. While no good stats exist on total US concert sales, Live Nation and Ticketmaster alone sold 638 million tickets last year.
“Transferability is the safeguard that lets fans comparison-shop,” according to the study. “Because tickets can change hands freely, they don’t go to waste. Venues fill seats, and fans keep cash in their pockets.”
Pulling Back The Curtain
The way in which the 2024 Ticket Resale Savings Report was released masked the identity of the organizations behind it. It also hid how their interests and funding may have influenced the results.
While Protest Ticket Rights is billed as a “fans-focused initiative that helps ticketholders defend their rights,” it is actually an arm of the National Association of Ticket Brokers. The NATB is a trade group representing and funded by ticket resellers and the technology companies that serve them. In 2024, the NATB reported revenue of $1,457,642.
“Data-analytics firm” Automatiq, who provided the data and crunched the numbers, openly bills itself as the “#1 automation platform powering ticket resale.” It’s services include “customizable tools for pricing, distribution, analytics, and more.” Automatiq is also listed as an NATB sponsor.
Study Based On Selective Ticket Data
The data used for the Ticket Resale Savings Report was chosen selectively. According to its methodology, rather than using the price of all resale tickets, the report includes only “the total number of tickets sold below cost, the total amount saved by fans, and the average savings per ticket.”
While scalpers and even promoters occasionally make unsold tickets available below face value, the vast majority of tickets sold on resale marketplaces are offered at above face value.
“an average cumulative profit of $41,000 per show”
A study by the National Independent Talent Organization (NITO) showed that concert tickets are often sold at double. They can even be sold at as much as 10 times the original price. In one instance, a ticket with a face value of $79.55 was resold for over $1,000. The NITO study also identified a single show. At this show resellers collectively earned an estimated $365,000 in gross profit. They did this by selling 2,491 tickets at an average resale price of $210 per ticket, while the original average face value was around $65.
The study focused on tickets for artists represented by NITO members. It involved venues with capacities ranging from 1,500 to 20,000. In the analysis, ticket resellers earned an average cumulative profit of $41,000 per show.
Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, a Berklee College Of Music professor and founder of the Skyline Artists Agency
