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Archive for category sports tickets

Miley Cyrus Tour to be all paperless

Jun 5

Posted by mmiller in paperless tickets, sports tickets, stubhub, the eagles, ticketmaster, tom waits

The upcoming Miley Cyrus tour will be all paperless, in response to complains because of her her last tour being one of most sought after tickets in years, and also one of the highest priced tickets on the secondary market. Paperless ticketing means no actual tickets are issued and the buyer must attend the show, and bring their photo ID and the credit card issued. This will be the first ALL paperless tour at a scale this large. Tom Waits was the first all paperless tour, but his venues were theaters, not arenas like Miley is playing. AC/DC had the best tickets be paperless for their tour, but the majority of tickets were still standard paper tickets. What does this mean for Mileys tour?

I predict that fans will actually be hurt by paperless ticketing and this could be the last time it is used at a show like this for the following reasons:

  • Given the age group of her fans (tweens), how many have their own credit card to scan at the show? Does this mean parents will have to goto the show, too, even if they don’t want to and be forced to buy another ticket?
  • Ticket brokers will still come up with ways to resell tickets (escorting buyers in, anyone?).
  • The arenas will still sell out, and many fans will still be without tickets, however the secondary market will have a much smaller supply due to the paperless ticketing, driving prices sky high.  In the end, the same moms who were complaining about all the ticket brokers reselling Miley tickets last tour will now be wishing they would come back so her daughter could get in for under $1000/ticket.

With all the current legislation in the works for the ticket industry, I  wouldn’t be surprised if anti paperless ticketing legislation was drafted because people complain they can’t resell their tickets if they end up having to work, and because they have to buy an extra ticket for the parent even if they don’t want to attend.

It will be interesting to see how loudly parents complain and what ticketmaster does in response and what it means for the future of paperless ticketing.

The video that explains paperless ticketing for the Miley tour(an instant classic!):

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Betting on the losers – The Michigan Wolverines

Jan 8

Posted by mmiller in economy, michigan wolverines, season tickets, sports tickets

Michigan Wolverines football has historically been one of the hottest tickets in sports, with even the bad match ups often going for double face value. Big initial donations (at least $1500 for the rights to purchase a pair last season, which doesn’t even include the actual ticket price) are needed to secure season tickets, as well as yearly donations to keep the tickets. They also track the secondary market and cancel any tickets suspected of being re-sold for profit.

However, will this year be different? Here are a few reasons why I think it might:

The last 10 season, they have won an average of about 10 games/season and have been perennially in the top 25. Last season (2008) they ended the year with a dismal 3-9 record. Also, the economy this year is much tougher than last year, especially in Michigan.

Will fans still be willing to pay the exorbitant prices even though their bank accounts are dwindling? Is Michigan football such an institution that it will be immune from a season full of loses and a dire economic situation? Is their fan base hardy enough to withstand these obstacles and keep Michigan Football hot?

The answer is: no. The bloodbath that started at the end of last season (tickets going for half of face value) will continue and worsen this season, especially if their record continues to tank.

The good news? Many fans will be dropping their season tickets and it’s a great time to get in if you’re not a season ticket holder. And if you do currently own season tickets, you can add more tickets, or upgrade your seats much easier than in past years. If you can weather a few seasons of breaking even or even losing money, you can come out at the end of the tunnel (things will start to turn around and great profits to be made again in 3-4 years) with some great seats, ready to cash in.

Michigan is a great example, but this strategy can be used for a lot of teams if you do your research. It’s the perfect storm for getting in on some hot season tickets (a bad record + bad economy).

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The effect of the economy on the future of the ticketing industry

Oct 22

Posted by mmiller in Live Nation, economy, sports tickets

The current economic conditions are effecting everyone from school teachers to house wives. How is the recession effecting the ticketing industry?

One of the most recent and obvious effects is prices for baseball playoff tickets on the secondary market. As chronicled here, you could buy tickets to the one of the Dodgers/Phillies games for about $10 bucks/each. And Red Sox playoff tickets this year were going for about half of what they have been going for the last few years.

NFL tickets have also taken quite a hit on the secondary market. One reason is that the average price of NFL tickets rose approximately 8% this year. For example, decent lower level tickets to see the New England Patriots this year have a face value of close to $200/ticket after fees. If you look on the secondary market, a lot of football tickets are going below face value or breaking even. Another factor contributing to this is that Monday Night Football used to be a much hotter ticket, but it seems that since it moved from ABC to ESPN, it doesn’t have the same allure (or price premium on the secondary market) that it used to. NFL isn’t the only sport that has raised it’s prices. Major League Baseball has also steadily raised their average ticket price every year. And this year, for the first time in 4 years, MLB season attendance has dropped.

As for concerts, one affect of the downturn has been smaller bands cutting their touring due to gas prices and less ticket sales. Many indie bands no longer can afford a west coast tour because the stops are so spread out. 400 miles of gas to goto a show that only 30 people might show up at is too much of a risk, but big towns being less than 2 hours away from eachother on the east coast is much more financially viable. As for big name concerts, most of the high-priced summer tours are already over and then went onsale about 6 months ago, when the economy was not so bad. Madonna still came close to selling out her tour at $350/ticket for premium tickets and Tom Petty had one of his best tours in years at close to $100/ticket. But will people shell out that much next summer? It has yet to be seen.

What does this mean for the ticketing industry? As an event patron, it’s going to get easier to goto events for cheaper or even way under face value. Also, the slowing economy may force concert promoters and sports teams to lower ticket prices. As a ticket broker, things are going to continue to get tougher with primary ticket sellers charging more than ever right now and the economy getting worse, as well as the constant inflow of new ticket brokers (and their inventory), it’s just going to get harder and harder to make the same profits.

Another unknown factor is when Live Nation starts selling their own tickets next year, perhaps with dynamic pricing and even more scalping of their own tickets. I’ll address their future plans and possible effect on the secondary ticketing market in a future blog post.

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