Comment Re:Great idea in theory (Score 1) 93
I don't think it's a good idea, even in theory. What this proposal will ensure is that tickets are very hard to find.
Imagine Bad Bunny announces a show in your hometown. Tickets sell out in an hour. Now, if you want to go, you have to be watching the Ticketmaster web site like a hawk. A ticket will be listed for sale and immediately be snapped up by some other lucky fan. You've just traded one problem, high prices, with another, a lottery system. What makes you so confident this is better?
Here's a proposal to think about: why is it an either-or? Ticketmaster could experiment with issuing ticket refunds and reselling tickets. They don't need legislation to do that. So we could run an experiment: let people resell tickets and have TM refund and rebuy them. Let's see which is more popular. We both know which will have more traffic.
Here's the thing. The observed value of the seats is far, far more than the original selling price (because that's what people are actually willing to pay). You could solve that problem by having more shows (yay!) or having artists and venues list tickets for their approximate fair market value. The question you ought to be asking is, why do neither of these happen?
If we want to see true equilibrium pricing with market forces, how about something like this?
The event is June 1.
January 1, tix go on sale from the original promoter for $1000 each, and you get to pick whatever seats you want.
February 1, the remaining tix go on sale for $500 each, and you get to pick whatever seats you want from what's left.
March 1, the remaining tix go on sale for $250 each, and you get to pick whatever seats you want from what's left.
April 1, the remaining tix go on sale for $100 each, and you get to pick whatever seats you want from what's left.
May 1, the remaining tix go on sale for $50 each, and you get to pick whatever seats you want from what's left.
May 31, the remaining tix go on sale for $10 each, and you get to pick whatever seats you want from what's left.
This is effectively a regressive-taxation system, so should be loved by many slashdot regulars.
Those for whom the event is a fun luxury they can easily afford due to their high wealth, can buy tix early and reserve their favorite seat location. They pay more according to their ability.
Scalpers have no incentive to scoop up tix for two reasons:
1) the initial retail price is so high that there's no margin to make in reselling.
2) Unless a single scalper can afford to buy up an entire 30,000 seat arena at $1000 each, there WILL be seats left and thus prices WILL continue come down in the future. In other words, prices rise because of competition in the demand side. With this time-decay price structure, scalpers aren't competing with other scalpers (and fans) for the resale margins, but you are forcing scalpers to compete against their future selves. The tickets their bots harvest today WILL depreciate in value. There's no longer any point to harvest-and-hold tix.
Additionally, this will allow every participant - artists, promoters, venues, fans, casual observers on slashdot - to finally learn exactly what the real market value is for a given event. There will be an obvious bell-distribution graph where the most ticket movement happened. Everyone will actually have to decide both what price point is worth it for them AND what risk level they can tolerate if they wait until the next price drop and that's also everyone else's price point. THAT price point where the big collective moves happen -- that's a great approximation of your true equilibrium price.
As a benefit, this makes the top-dollar events more reasonable AND makes the smaller events more lucrative to the promoters and artists.
1) Prestige mainstream events like Beyonce and Swift will still always sell 80% in the first couple months, and then the medium-tail trickle to the nosebleed sections in months 3 and 4.
2) Less mainstream artists will still have their superfans who are willing to spend $1000 to ensure they get a ticket and get the exact seat they want so they can have their Very Special Connection with the artist who Sees Their Inner Soul. This increases the total revenue by creating a Premium tier above what that event would normally command even with scalpers. The fans who were only going to go if it was less than $50 will still have their chance to go cheaply.