This week we discussed the problem of ticket scalping. Ticket scalping is the practice of purchasing in-demand tickets for a show for the sake of making a profit. The scalper has no interest in attending the show, but to re-sell those tickets to fans for a value higher than the original cost price.It's a greedy way of ripping off desperate fans who will pay extraordinary amounts of money to see their favorite artists in concert. The prices some fans are willing to pay may be hundreds, even thousands of dollars above the original price. Many scalpers operate out of houses filled with banks of computers and use multiple high-limit credit cards to buy tickets in bulk on the first day of sale. They then put the tickets on sites such as TicketsNow, eBay or StubHub.
A couple of examples:
- A-reserve tickets to AC/DC concerts next February for $410 each (cost price $149.90)
- Platinum seats for Simon and Garfunkel's show last month were selling for $1000 each (cost prince $358.50)
Michael Jackson's farewell memorial is a rather morbid example of scalpers cashing in on the superstars death. 1.5 million fans signed up to go into the draw to receive tickets to the memorial - just 8,750 would be chosen. Each person selected received two tickets. Obviously there is an incredible demand for these tickets. The nature of the event meant fans were emotionally vulnerable and willing to fork out whatever it took to be in that arena, watching the King Of Pop's final goodbye. Tickets were found on eBay at crazy prices up to $25,0000! The screen grab above this article sees a ticket going for $10,000. eBay tried to pull these auctions down as soon as they could.
The industry is testing new ways of fighting the problem. Young American sensation Miley Cyrus' concert tour is introducing a paperless ticketing system where attendees do not receive a physical ticket for the event. Ticket holders will be required to present the credit card they purchased the tickets with as well as photo ID. This raises some issues. What if you don't own a credit card? We cannot imagine that many of Miley's pre-teen fans are credit cards holders. Obviously there is the expectation that parents will escort their children into the venue, but what about older teenagers? Can't see them being too keen with the idea of dragging mum or dad to a Kings Of Leon concert in order to get through the door. It's an inconvenience. This system may also lead to pre-show mayhem crowds, as it would most likely become a longer process. Credit card and photo ID checks would surely take longer as opposed to the simple swipe of a ticket.Green Day's latest tour has introduced new procedures to fight scalping. Ordered tickets will not be available for pickup until the night of the show. Holders of the "will call" tickets must present the original credit card used to order the tickets, confirmation number and photo ID. Once they have their tickets they are escorted directly into the venue. They will not be permitted to leave at any point. Additional box office staff will be in place, as well as additional security to ensure that the process runs smoothly and efficiently. "The concept is, you can't scalp tickets," says Duncan Gillespie of HECFI (Hamilton Entertainment and Convention Facilities Inc). "It ensures the person who buys the ticket sees the concert."
In Australia, only Victoria and Queensland have anti-scalping laws. Scalping has become a big issue for AFL matches. Under Victorian law, it is illegal to sell AFL grand final tickets above face value, but other games are not covered.
Further reading:
1. Ticket Scalping Discussion Paper December 2006
2. Cyrus fights scalpers with paperless tickets
3. Green Day cuts scalpers off
4. Green Day Apply Anti-Scalping Measures For Aussie Tour
No comments:
Post a Comment