Going to a concert can now cost you as much as a short vacation. Tickets for Adele's concert in Munich this summer cost between 180 and 600 euros. However, we have to add to the ticket the costs of travel, food and possibly a hotel. Since the coronavirus pandemic, ticket prices have risen by an average of 30%, the Federal Union of the Concert and Events Industry told ARD.
„Fees for artists in the festival sector have in some cases even tripled. One of the reasons for this is that concerts have become the main source of income for the majority of artists, as only a few of them earn significantly from streaming, says Johannes Everke of the union. According to industry sources, Taylor Swift earns more than twelve million euros for one concert night. Also, organizing concerts is becoming more and more complicated and therefore more expensive.
Demands are growing, so are costs
„This means that we have not only sold the music at the concerts for a long time. It is available for free elsewhere. Instead, we sell the experience, the identification and the community,” says Everke. In addition, the requirements - both of the audience and of the performers - have changed: “220 meters of LED wall, fireworks and all kinds of pyrotechnics for Adele - this was not necessary 20 years ago.“
Staff costs also lead to an increase in ticket prices, continues ARD. For Adele's concerts, 700 workers were involved in the construction of the concert stadium in Munich, which, according to media reports, cost 140 million euros. The equipment has also become more expensive. Increased risks, such as weather, have made insurance premiums more expensive. The end result: organizers' production costs have increased by 40% over the past two years.
Ticket sellers also influence prices
Ticket sellers also influence concert prices. The largest ticket seller and promoter in the US is the company Live Nation, which is also behind the concerts of Adele and Coldplay. Live Nation is also active in Germany and Europe with its subsidiary Ticketmaster, but to a lesser extent because of its significant competitor CTS Eventim.
Both Live Nation and Eventim not only sell concert tickets, but also act as promoters either themselves or through subsidiaries. In addition, some of them also manage the venues where the concerts are held, which gives them enormous market power. This often means higher prices for customers, explains the public legal media.
Higher demand - higher prices
Some companies adjust ticket prices depending on demand – the so-called “dynamic pricing”. Research shows that Live Nation in the US uses algorithms that regularly monitor ticket sales and adjust prices accordingly.
Although this system has long been common practice in Germany for plane tickets or car rentals, it still does not seem to play an important role in the German music business. To ARD from CTS Eventim explain: “Dynamic pricing algorithms are currently only used in exceptional cases in Germany and are not used at all at eventim.de. The decision on this is made by the event organizers.“ The Federal Association of the Concert and Events Industry also says it is not aware of any “dynamic pricing” in Germany.
Platinum Tickets
In addition to “dynamic pricing” with algorithms there are other ways to adjust prices to demand – for example the platinum tickets. These are special ticket quotas, usually for popular concerts, the price of which is determined by ticket demand. Ticketmaster explains its platinum tickets for ARD as follows: “Ticketmaster Platinum enables market-driven pricing for live events”. In theory, this should make it possible to buy cheaper tickets when demand is low.
Live Nation and its pricing have been repeatedly criticized in the US. In May 2024, the US government filed an antitrust lawsuit against Live Nation Entertainment and its subsidiary Ticketmaster. The charge is that they illegally inflated concert ticket prices.
Authors: Christopher Jenert | Anne-Catherine Beck (ARD)