Why Is Ticketmaster More Expensive Than Vivid Seats?
If you’ve tried to buy tickets for a concert, sports event or any other live entertainment show in the US, you’ve probably come across two of the most popular ticket-selling platforms: Ticketmaster and Vivid Seats. While both platforms offer a wide range of tickets for various events, you may have noticed that Ticketmaster is generally more expensive than Vivid Seats. So why is that? In this blog post, we’ll explore the reasons behind Ticketmaster’s higher prices and get a better understanding of how ticket sales work.
The Ticketing Industry Explained
Before delving into the specifics of Ticketmaster and Vivid Seats, it’s useful to have a basic understanding of how the ticketing industry works. Essentially, ticketing companies are the middlemen between event organizers and their audiences. They sell tickets on behalf of event organizers, taking a cut of the profit in return. Moreover, the ticketing companies provide a range of services such as distribution, marketing, customer support, and more to the organizers.
The Monopoly of Ticketmaster
Ticketmaster is the largest ticketing platform in the world, with over 500 million tickets sold annually. Due to its scale, it has managed to create a near-monopoly over the ticketing industry in many countries, including the US. In fact, it owns or operates most of the primary ticket-selling platforms in the US, such as TicketWeb, TicketExchange, and TicketsNow. As a result, event organizers often choose to sell their tickets through Ticketmaster as it is seen as the most efficient way to reach a large audience.
Service Fees and Other Charges
One of the main reasons why Ticketmaster is more expensive than Vivid Seats is due to its service fees and other charges. When you buy a ticket on Ticketmaster, you may notice additional charges applied to the ticket price, such as processing fees, delivery fees, and facility charges. These fees can range from a few dollars to over 20% of the ticket’s face value. Moreover, Ticketmaster charges a service fee for each ticket sold, which can vary depending on the event and location.On the other hand, Vivid Seats uses a different pricing model. Rather than adding separate fees, it includes all fees in the ticket price. This means that the price you see on Vivid Seats is the total price you will pay, without any surprises or additional charges. While it may seem that Vivid Seats is cheaper than Ticketmaster, the total price may end up being similar or even higher than Ticketmaster’s price, depending on the event and location.
Market Demand and Supply
Another reason why Ticketmaster is more expensive than Vivid Seats is due to market demand and supply. As Ticketmaster is the dominant ticketing platform, it has more access to tickets for popular events. This means that it can set higher prices for these events due to limited supply and high demand. In contrast, Vivid Seats may not have access to as many tickets for the same event, resulting in a lower price due to lower demand and supply.Moreover, Ticketmaster also utilizes dynamic pricing, which means that the ticket prices can change depending on market demand. For example, if a popular event is selling out quickly, Ticketmaster may increase the ticket prices to take advantage of the higher demand.
Conclusion
In conclusion, Ticketmaster is more expensive than Vivid Seats due to a combination of factors, including its near-monopoly over the ticketing industry, service fees and charges, and market demand and supply. While Vivid Seats may seem like a cheaper option, it’s important to keep in mind that the total price may end up being similar or even higher than Ticketmaster’s price. Ultimately, the choice between Ticketmaster and Vivid Seats comes down to personal preference and convenience, as well as the specific event and location. As a consumer, it’s always helpful to compare prices and services before making a purchase decision.