Rising Concert Prices: A Look at the Factors Involved
escalating cost of concert tickets
In an interview with the German Press Agency, Klaus-Peter Schulenberg, CEO of CTS Eventim, Europe's leading ticket provider, has shared insights into the reasons behind the expected increase in concert prices.
Key Contributing Factors
High Production and Operation Costs
Schulenberg explains that the limited room for event organizers to further raise prices is due to rising costs for artists, production, logistics, and venue operations [2]. These costs are squeezing profit margins and forcing price adjustments.
Fighting Bots and Scarcity-Driven Demand
A significant factor behind price pressure is the ongoing battle against ticket bots and the secondary (black) market. Schulenberg reports that CTS Eventim faces "millions of bot requests" during major ticket sales events, as automated systems attempt to buy up tickets for resale at inflated prices on unofficial platforms [5].
Secondary Market and Secure Ticket Exchange
CTS Eventim is strengthening its measures against bots and the black market, emphasizing the importance of secure, officially sanctioned secondary markets (such as their Fansale platform) to help regulate the resale of tickets and prevent exploitation by scalpers [1]. This reflects a broader industry trend where ticket providers are investing heavily in technology to protect both fans and event revenue streams.
A Summary of the Factors
| Factor | Impact on Prices | CEO Schulenberg’s Perspective | |-----------------------------|-------------------------------|-----------------------------------------------------------| | Rising production costs | Increases base ticket price | Organizers have little room to raise prices further [2] | | Bot-driven scarcity | Increases demand, resale prices| “Millions of bot requests” at large onsales [5] | | Secondary/black market | Fuels price inflation | Pushing for secure, official resale platforms [1] |
Conclusion
With rising production costs and the challenges posed by automated ticket buying for the black market, concert prices are expected to rise. Schulenberg emphasizes that while event organizers have little flexibility left, the proliferation of bots and the resulting artificial scarcity are persistent drivers of price increases. CTS Eventim is responding with technological and platform-based solutions to secure the ticket market, but the underlying economic and market dynamics continue to push prices upward [1][2][5].
According to Schulenberg, anyone observing the industry will see that prices are only going up. It is important to note that CTS Eventim is not alone in this trend, as the business of live music follows similar economic patterns as other industries. Last year, Eventim achieved a profit of 318.9 million euros, up from 274.6 million euros in 2023. Bands and solo artists are increasingly reliant on tour revenue due to streaming. Schulenberg himself is involved in Eventim through his foundation.
- The high production and operation costs in the entertainment industry are causing a strain on event organizers, leading to limited room for price increases and forcing adjustments in concert ticket prices as shared by Klaus-Peter Schulenberg, CEO of CTS Eventim.
- The ongoing battle against ticket bots and the secondary (black) market is a significant factor contributing to price pressure in the music business, as reported by Schulenberg, with millions of bot requests during major ticket sales events attempting to buy up tickets for resale at inflated prices on unofficial platforms.
- In response to the challenges presented by bots and the black market, CTS Eventim is investing in technology to protect both fans and event revenue streams, by strengthening its measures against bots and emphasizing the importance of secure, officially sanctioned secondary markets, such as their Fansale platform, to help regulate the resale of tickets and prevent exploitation by scalpers.
