What Percentage Does Ticketmaster Take?
If you’ve purchased tickets for a concert, show, or sporting event recently, you’ve likely encountered Ticketmaster at some point. As one of the largest ticketing companies in the world, Ticketmaster has revolutionized the way people buy and sell event tickets. However, many people are curious about how much money Ticketmaster is making through each transaction. In this blog post, we’ll dive deep into the percentage that Ticketmaster takes from each sale.
Understanding Ticketmaster’s Transaction Fees
Ticketmaster charges a variety of fees for each transaction, including processing fees and convenience fees. These fees can vary depending on the event, location, and other factors. For example, processing fees, which cover the cost of processing the transaction, can range from a few dollars to over $20.Similarly, convenience fees, which pay for the convenience of purchasing tickets online or over the phone, can also vary widely. These fees can include charges for printing tickets at home, shipping charges, and fees for using a credit card.
Ticketmaster’s Service Fees
In addition to processing and convenience fees, Ticketmaster also charges a service fee on each transaction. This fee is intended to cover the ticketing company’s operating costs, including maintaining the website and customer service centers. According to Ticketmaster, the service fee is typically around 10% of the ticket price, but it can be higher or lower depending on the event.For example, if you purchase a concert ticket for $50, the service fee may be around $5. However, if you purchase a VIP ticket for $500, the service fee may be closer to $50. While it’s important to note that service fees vary widely depending on the event, 10% is a good rule of thumb for estimating the cost of a Ticketmaster service fee.
How Much Does Ticketmaster Make Per Transaction?
Based on the fees and charges outlined above, it’s possible to estimate how much money Ticketmaster makes per transaction. According to The Balance, Ticketmaster’s fee structure can result in an effective service fee of up to 40% of the ticket price. For example, if you purchase a $100 ticket, you may end up paying an additional $40 in service and convenience fees.However, it’s important to note that Ticketmaster doesn’t take all of the fees collected from each transaction. According to a report by Business Insider, Ticketmaster typically only keeps around 15% of the total fees collected. The rest of the fees are paid to the venue, the artist, and other partners involved in the event.While 15% may seem like a small percentage of the total fees collected, it’s important to remember that Ticketmaster processes millions of transactions each year. In fact, the company sold over 500 million tickets in 2018 alone, generating over $2.2 billion in revenue.
Why Does Ticketmaster Charge So Much?
While it’s easy to criticize Ticketmaster’s fees as excessive, it’s important to remember that the company provides a valuable service to both customers and event organizers. Ticketmaster’s platform makes it easy for people to purchase and sell tickets, and the company provides customer service and fraud prevention services to protect both buyers and sellers.In addition, Ticketmaster is just one player in a complex ecosystem of event organizers, venues, and artists. These stakeholders all have a hand in the fees charged for each transaction, and each one takes a cut of the overall revenue.
Conclusion
In summary, Ticketmaster charges a variety of fees for each transaction, including processing fees, convenience fees, and service fees. While the effective service fee can be as high as 40% of the ticket price, Ticketmaster typically only keeps around 15% of the total fees collected. While it’s easy to criticize Ticketmaster’s fees, it’s important to remember that the company plays an important role in the events industry and provides valuable services to both buyers and sellers.