The reasons behind the high cost of U.S. concert tickets

The U.S. Justice Department has taken a stand against the rising cost of concert tickets by suing Live Nation Entertainment, accusing the company of illegally inflating prices through its Ticketmaster unit. The average ticket price for top concert tours hit $122.84 last year, a significant increase from $91.86 in 2019, according to Pollstar.

One of the main reasons behind the expensive ticket prices is the numerous fees imposed by Ticketmaster, including ticketing fees, service fees, convenience fees, platinum fees, and more. These fees can add up to 27% of the ticket price, far exceeding fees in other parts of the world.

Additionally, tickets to popular concerts are often sold in advance to fan clubs or reserved for agents and promoters, limiting direct sales to die-hard fans. Professional resellers also contribute to the high prices by snapping up tickets and driving up demand.

The Justice Department’s lawsuit highlights Live Nation’s market power, with the company directly managing over 400 musical artists and controlling a significant portion of concert promotions and ticketing. This dominance allows Ticketmaster to charge higher prices and impose fees that are not necessarily tied to higher costs.

As fans continue to face exorbitant prices for concert tickets, the lawsuit aims to address the unfair practices that have made attending live music events a costly endeavor. The outcome of this legal battle could have significant implications for the future of ticket pricing in the U.S. concert industry.