The era of \u201call-in\u201d pricing for concert tickets is finally arriving in the United States \u2013 and it will be backed by the law, Live Nation\u2019s leadership predicts.<\/p>\n
The live concert and ticketing company announced its Q4 2023 and full-year earnings<\/a> on Friday (February 23), showing revenues up a whopping 36% YoY<\/strong><\/span> in 2023, to USD $22.7 billion<\/strong>.<\/p>\n Its ticketing business, Ticketmaster<\/strong>, saw revenues spike by 32% YoY<\/strong><\/span>, on a constant currency basis, to $2.9 billion<\/strong>. All told, the company\u2019s adjusted operating income jumped 32% YoY<\/strong><\/span>, to $1.86 billion<\/strong>.<\/p>\n Little wonder, then, that the company called 2023 its \u201cbiggest year ever<\/strong>.\u201d<\/p>\n Even some bets that seemed potentially shaky paid off \u2013 not least Live Nation\u2019s shift to all-in pricing at its owned-and-operated festivals and venues in the US last September.<\/p>\n Concertgoers have long complained about the \u201cbait-and-switch\u201d nature of advertised ticket prices. After fees, taxes and other add-ons, tickets could sometimes cost considerably more<\/a> than the posted amount. It was in response to these types of criticisms that Live Nation announced its new US-wide policy<\/a> last year.<\/p>\n And despite some reservations about a policy that would mean Live Nation would be advertising relatively higher ticket prices than competing sellers, the company reported on Friday that they were seeing no negative impact, and even actually seeing a higher<\/em> conversion rate (i.e., more people clicking through from the advertised price to ticket purchase).<\/p>\n \u201cWe’re actually surprised and thrilled because we were always skeptical if we [could] be the one to lead the path, if there was any [reduction in] conversion that would hurt us. But I think consumers are loving the idea [that] they can see [the final price] up front,\u201d CEO Michael Rapino<\/strong> said on Live Nation\u2019s earnings call Friday.<\/p>\n \u201cUltimately, they’re shopping multiple tabs anyway, so they’re probably figuring out the true costs are the same. So yeah, we think it’s a great test.\u201d<\/p>\n Rapino also predicted that all-in pricing, in some way, will eventually become not just a matter of practice for ticket sellers, but also a matter of law.<\/p>\n “I think consumers are loving the idea [that] they can see [the final price] up front.”<\/p>\n Michael Rapino, Live Nation<\/span><\/p><\/blockquote>\n He said that in talks with politicians, \u201cthis seems to be the common torch that everyone’s running with. So I would assume this ends up being legislated somewhere, over time, and I would assume others are going to start jumping on the all-in wagon as a good step forward for consumers, so we can worry about the other issues around scalping, etc.,\u201d Rapino added.<\/p>\n Indeed, three US states have already mandated all-in pricing, with Ticketmaster already offering all-in ticket prices<\/a> in New York, Tennessee and Connecticut.<\/p>\n And there\u2019s a good chance that a similar law could be passed on the national level. The Speculative Ticketing Oversight and Prohibition (STOP) Act got the green light<\/a> from a House of Representatives committee in December, making it eligible for a full House vote.<\/p>\n Here are three other things we learned on Live Nation\u2019s latest earnings call…<\/p>\n Live Nation\u2019s Platinum program \u2013 the name the company gives to its \u201cdynamic\u201d ticket pricing strategy \u2013 has seen some controversies over the past few years, not least when high demand for a particular show results in elevated prices for the best seats in the house, as was the case with Bruce Springsteen\u2019s tour<\/a>.<\/p>\n
\n1) Dynamic pricing is Live Nation\u2019s \u2018great growth opportunity\u2019 as it expands internationally<\/h6>\n