ticket pricing revenue yield management | pay per view price discrimination | research and development

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Live Concerts
Pay Per View
The Concert Ticket Market

• A total of $3.6 billion was spent on 37.9 million tickets to the top 100 concert tours in 2006.
• The average ticket price is $61.45, up 8 percent.

Demand Forecast

• The secondary ticketing market amounts to as much as $30 billion in annual sales.
• 20,000 tickets are posted for resale every day on ebay.com.
• The National Association of Ticket Brokers has more than 150 licensed online and offline members.

Artist Examples

Bruce Springsteen
• Gave away $3 million of surplus in Philadelphia, double what the concert actually took in, by setting a uniform ticket price below what the market price.

Tom Petty
• Tickets priced at $65. Promoters said, “We could charge $150”.

Bruce Springsteen and Tom Petty have more than doubled their ticket prices since that time.

Hannah Montana
• Current ticket price: $66.
• Secondary market resale price: $3,700.

Barbara Streisand
• Ticket Price: $750.
• Surplus in some cities.

The Rolling Stones
• Retail price: $350.
• Secondary market resale prices: $2,000 - $5,400.
• Surplus of low-priced $75 tickets in some markets
• TicketsNow posted tickets with prices as high as $5,400 each for the Rolling Stones' Madison Square Garden show last September.