Ticketing Giants Maintain Dynamic Pricing Models as Fans Seek Authentic Live Experiences
Andrew Mall of Northeastern University identifies a viable alternative for music lovers priced out of major stadium events, citing strong performance at smaller venues that avoid algorithmic pricing.
A spate of high-profile stadium tours by major artists, including Céline Dion, Taylor Swift and Oasis, has intensified scrutiny on the practice of dynamic ticket pricing. This model allows ticketing platforms to adjust prices in real-time based on demand, often resulting in significantly higher costs for high-demand events. Consequently, a significant number of fans report being unable to either secure or afford tickets for these events, with some facing prices in the hundreds or thousands of dollars or euros.
Andrew Mall, associate professor of music at Northeastern University, states that as long as fans are willing to pay higher prices, ticketing giants will continue this model. He notes that there are many fans indeed willing to pay those higher prices, meaning those unwilling or unable to spend such sums will have fewer opportunities to see the biggest artists perform. The trend is likely to persist as long as sufficient demand exists among those willing to pay premium prices.
In response to this economic pressure, Mall advises music lovers to consider acts at medium-sized venues with capacities between 500 and 3,500 patrons. He observes that while the smallest venues face increased pressure from various forces, medium-sized venues are actually seeing really great business. Concerts at these venues are often selling very well and usually do not employ dynamic pricing strategies, offering an opening for audiences seeking live experiences without the algorithmic markup.
The report highlights a growing consumer sentiment where audiences are seeking real live experiences to counteract the saturation of algorithmic content on streaming services and social media. Mall argues that when people go to a concert, it is real, with humans on stage making the music and performing for an audience surrounded by hundreds or thousands of others. This communal experience is something that is not very often found in other realms of life, making the live gig a worthwhile investment for many despite the cost barriers at large stadiums.
Beyond pricing models, the industry is also navigating concerns regarding the use of artificial intelligence to create songs or mimic artists. The report notes that using AI to deepfake established artists or create entirely new acts is controversial. Mall warns that the more AI-produced music there is, the less opportunities there are for performers, songwriters and musicians to make a living, potentially reducing the earning potential for human creatives in the sector.
