Arlington, VA — In the wake of the Taylor Swift Eras Tour ticket debacle, the spotlight has intensified on Ticketmaster and the broader ticketing industry, leading to significant legal scrutiny from the Department of Justice (DOJ). The complexity of ticketing economics involves corporate actions and consumer demand dynamics, which significantly influence ticket pricing.
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Key Takeaways:
- Inconsistent with Lowering Costs: The current DOJ lawsuit against Ticketmaster, focusing primarily on anti-competitive practices, is unlikely to directly lead to lower ticket prices due to the high consumer demand that remains unaddressed.
- Vital Role of the Resale Market: Contrary to common perceptions, the resale market often offers tickets at prices below their original cost, suggesting a potential relief pathway from high prices.
- Significant Consumer Savings: Analysis of data from Automatiq for the year 2023 shows that 55% of roughly 80,000 events offered tickets below face value, translating into over $440 million in savings for American consumers.
While the DOJ’s efforts to address potential anti-competitive behaviors are appropriate within their regulatory scope, it is clear that solutions to high ticket prices lie beyond simple legal remedies. We urge policymakers to recognize the beneficial role of the resale market and to foster policies that support its ability to offer competitive pricing and choice to consumers. Protecting and enhancing this market can lead to more significant, long-term consumer benefits rather than short-sighted regulatory measures that could stifle market dynamics.
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