WB, It's only going to get worse, here is an article I read yesterday. Looks like greed can be found at many different levels.
Ticketmaster's online auction service will boost prices to what market can bear
Tuesday, September 09, 2003
Lining up for concert tickets may be a thing of the past under new online service by Ticketmaster. If tickets for Shania Twain's sold-out show at the Pacific Coliseum Dec. 7 are going for $500 on the Internet, was the original price of $50 too cheap?
Ticketmaster thinks so, and it has a plan to see that ticket prices better reflect what people are willing to pay -- not to mention take business back from scalpers and online resellers.
By the end of the year, the ticket giant is to start selling concert and event tickets to the highest bidder through an online auction service.
The new system would push aside fans who line up for hours to get the best seats and instead award those seats to the person who ponies up the most cash.
"It has the ability to make [prices] what the market will bear," said Patti Babin, spokeswoman for Ticketmaster Canada. "We developed this because the artists and promoters asked us to. They are the ones who are losing out on the money in the secondary market."
Ticketmaster said it is offering the auction system -- similar to eBay or Yahoo! Auctions -- in order to stop the circulation of counterfeit tickets and to curb scalping.
The auction service will be made available to music artists and promoters who choose to sell off some, or all, of their tickets at premium prices. Those who don't want to auction tickets will still be able to stick to the fixed-price system.
Vancouver talent manager Bruce Allen applauds the proposal, noting that boxing promoters already sell ringside seats by online auction.
"I don't think they're going to put a whole building up for auction," he said. He sees bands choosing to sell only front-row-centre seats this way. For the fans, it means average people without connections have a shot at the best seats.
"People aren't averse to price if they want to go see it," Allen said.
And of course, auctions could boost the payday for the artists and bands, who are usually paid a percentage of the gate.
"There's so much discretionary pricing right now in concerts. Most people know that scalpers get all the good tickets at concerts, so they buy them from scalpers and they end up paying double or half again as much," Allen said. "This can eliminate that."
Other observers warn the auction plan may deter fans.
"There will be a huge backlash if people can't go to concerts they want to see because scalpers, or people who can pay the most, are getting first access to all the tickets," said Adam Cooper, a consultant with retail analyst firm J.C. Williams Group in Toronto. "Really, they are not in the business of trying to maximize profits by selling the tickets for as much as they possibly can."
Dennis Ruffo, an Ottawa concert promoter, was equally cautious.
"From a fan's point of view, I don't think this would be fair," he said. "Obviously, everyone should have equal access to tickets, especially if you're a fan that lines up overnight. It should be fair and equitable."
Don Simpson, president of the House of Blues Concerts Canada, likes the idea, but doesn't see it being used to sell large quantities of tickets.
"I'm sure that everybody is going to walk before they run on this system," He said. "We all know the demand is not 4,000 people at $400. There may only be six people that would pay that kind of money."
Ticketmaster is an arm of Interactive Corp., an Internet services company that owns Expedia, an Internet travel agent, and the Home Shopping Network.
The company sold 24 million tickets worth $1.2 billion around the world between April and June -- an increase of five per cent over the same period last year.
Bands like Pearl Jam have refused to allow Ticketmaster to sell tickets for their concerts, saying the company's service charges on tickets are far too high. But the protests, for the most part, have fizzled because many consumers are willing to pay for the convenience of ordering tickets online or by phone.