Concert Tickets Expected To Drop In 2011
December 27, 2010 at 7:59 AM (PT)
It looks like reality will hit the concert business in 2011 -- to the benefit of consumers. According to YAHOO.COM, after what has charitably called a "tough" 2010, concert promoters and numerous bands will be dropping the prices of their concert tickets to their 2011 tours.
This sentiment comes after POLLSTAR reported that concert attendance fell 12% in the first half of 2010, while LIVE NATION reported that its summer business -- normally the holiday season of the business -- dropped 16% ... even after it cut prices and service fees in advance.
Actually ticket prices have deflated for a while, after a near-decade where the average ticket price to a North American concert increased from $26 to $67 in 2008 -- an increase four times faster than inflation that didn't even include exorbitant ticket fees for everything from "order processing" to "convenience."
Ticket prices actually came down by about a buck in 2009, which prompted fans to buy 12% more tickets than in 2008. Promoters decided to raise prices again in 2010 --and ticket sales dropped, which prompted last year's last-second deep discounts. "People felt they could go back to pushing the envelope again," POLLSTAR Editor-in-Chief GARY BONGIOVANNI said. "The economy has proven that a lot of people probably reached too far."
Although the average isn't expected to fall drastically in 2011, there'll be bargains at the back of the house. LIVE NATION plans on actually raising prices for front-row seats as a way to grab revenue that might otherwise go to ticket resellers. But the company also plans on cutting prices even further for the cheap seats to let in more fans.
"We know that if you lower the price, they'll come," LIVE NATION CEO MICHAEL RAPINO told investors in NOVEMBER.
One band that will be offering lower ticket prices in 2011 will be ZZ TOP, which expects to set prices below the 2010 average of $55; some tickets will go for as little as $10. "It's time to give the value back," band manager CARL STUBNER said. "We'll find other ways to make money."
Other acts, such as JUSTIN BIEBER and LADY GAGA, won't be offering any discounts. NEIL DIAMOND said he'd like to bring ticket prices down, but can't because of the size of his production. "As the shows get bigger, the expenses get bigger, so it's got to be translated somehow to the ticket price," he told The ASSOCIATED PRESS. "If I just used the guitar it'd be a lot simpler, but then I'd have to put 50 people out of work."