For those against this: I'm curious to hear your take on how you'd stop/mitigate scalping.
Named tickets, like airplane seats?
Sorry, I only thought about this for 5 seconds, but there are markets where scalping doesn't cause issues. We could look at those.
This is ultimately a supply and demand problem. If tickets sell out on the secondary market for 10 or 100x the face value, then that's the fair market price. Either artists should charge more, or perform more shows.
I recently bought tickets to a concert in France (I live in Germany) and ended up not being able to travel and had to resell my tickets. Apparently according to French law you are not allowed to resell a ticket above its face value and so I had to resell it through the same ticketing company I bought it. They allowed me to set a price with up to a maximum amount which was less than how much I bought it (by a Euro or two) to cover their fees. It was also possible to name a specific buyer who would then get be able to buy your ticket.
Maybe there’s still another way for scalpels to game this system, I don’t know, but I’ve been to a few concerts in Paris and I’ve never seen scalpels hanging outside the venue selling tickets, which would be the norm in Germany, so maybe the system does work.
There are many solutions.
For example - allow ticket resale only through the official platform and cap it at the original sale price.
Another approach - check IDs at the door and only let the original ticket purchaser through.
The real problem is that scalping is insanely profitable for Ticketmaster & co. They take a cut of the original sale and every subsequent transfer, most of them at highly inflated prices, from both buyer and seller. Why would they give that up?
Why should anything be done? If people are willing to pay five times the face value for a ticket, then it signals that tickets are priced too low. Let the market price itself.
Harry Styles is playing in my city, he's apparently very popular, but there's still plenty of tickets available for as low as 47€ for tomorrow.
so they're partnering with Live Nation, the same company that's part of the vertically integrated monopoly on ticketing, venues, and resale. Nobody is buying these tickets for cash from a scalper outside of the venue. My 2-min tought: tie use of the ticket to the payment method or id of the purchaser; allow limited transfers. If LN/TM actually cared they'd provide for risk-free transfer without charging ridiculous mark-up. Since they sell the orginial ticket 95% of the time they have almost complete control over the pricing and consumer's id.
It's a bandaid and not a particularly good one. Spotify reserving a ticket allotment is really no different to American Express doing the exact same thing. Amex uses their allotment to attract premium members through concierge services. Spotify doesn't quite have this same upsell potential (yet?) but they're doing it to make money. We just don't know how that'll happen yet.
Defeating bot buyers, scalpers and resellers would actually be a noble goal but its' really the tip of the iceberg. If anyone was actually interested in tackling this (hint: they aren't) then you need to tackle a much bigger problem: the venue monopoly with Ticketmaster and Live Nation.
Many venus, particularly larger venues, have exclusive contracts with Ticketmaster. Ticketmaster also has an official platform for reselling tickets, of which they get a cut. In a more equitable world, you would only be able to resell tickets for their face value. It's alleged (and I believe this) that Ticketmaster only releases a tiny portion of tickets to the general public. The rest they have arrangements to sell through scalpers and resellers and their own platform because, hey, they make more profit that way.
There was a time when businesses were a tool to generate income. Small businesses still work this way. But any sufficiently sized company now is just a tool to speculate on and make a capital gain on. Ticketmaster doesn't need to grow into a trillion dollar company but they want to and, at a cewrtain point, the only way companies can continue to grow is by cutting costs and raising prices.
Back in the nascent days of Internet music piracy it was pointed out that almost no bands make enough money from selling music to live on. It's why the biggest anti-piracy advocates were huge bands like Metallica. Most bands make their living for performance fees ie playing concerts. And even then they might make barely enough to cover gas. What really gets them over the line is selling merch at the venues.
I'd say that music would be in a better state if bands could see more of the value of their labor from playing concerts. But even concerts aren't about bands or their fans anymore. They're about upselling premium services to high-net-worth clients. You ever notice that at sports venue, for example, general seating always gets mysteriously ripped out and replaced by suites? Same principle: venues make more per square foot from a corporate suite than they do from sports fans. There was a time when ordinary people would be fans of their home teams and just go to every home game. That's increasingly out of reach.
In short, the entire system is broken. Spotify participating in it won't change anything.
I’m against it from these angles:
1. I like live concerts but I don’t spend my days listening to a lot of music. I would be considered “not a fan” by these metrics.
2 The monopolistic aspect. I subscribe to a much smaller Spotify competitor, now I’m at a disadvantage.
3. I don’t consider scalping a problem. The market price is determined by demand. It’s also been a problem that has been solved by artist presales and fan club gates.
I also think that as a recognized monopoly Ticketmaster should have more limitations on its business model. For example, their compassion on resale tickets should be limited. At present, they are encouraged to double dip on fees by finding ways to send more tickets to the secondary market.
Spotify is another entity dipping into the limited pool of available tickets and further limiting supply. I don't pay for/use Spotify and don't want to, so as far as I'm concerned this is only worsening the problem by further constraining the supply of tickets available to me.