Unveiling the Economics Behind Rising Concert Ticket Prices

Unveiling the Economics Behind Rising Concert Ticket Prices

  • Post category:Misc

Have you noticed that concert tickets are a lot more expensive these days? The price of goods and services always goes up due to inflation, but it is particularly noticeable in live entertainment. This can be frustrating for fans who feel priced out, especially those who remember how much cheaper it used to be to see a band. So, what are the main reasons why concerts are so expensive right now?

Historical Context

First, you need to look back through history. Statistics show that average ticket prices have more than tripled since the mid-90s, which means that seeing live music used to be a lot more affordable, even for the biggest and most successful bands in the world. Sadly, this is no longer the case with many high-profile acts like Beyoncé and Taylor Swift tickets costing well over £100.

Demand-Supply Dynamics

There are many reasons why gig tickets are so expensive now, including demand-supply dynamics. Although gig tickets are more expensive, they are still hugely in demand, with the big artists, bands, and festivals selling out in a matter of minutes. When demand massively outstrips supply, it will always result in higher prices.

Production Costs

Another reason why gig tickets are much more expensive nowadays is the increase in production costs, particularly since COVID-19. There are various costs that must be covered to put on any concert, including:

  • Artist fees
  • Venue costs
  • Sound
  • Lighting
  • Stage setup
  • Marketing
  • Security
  • Insurance 

Scalping & Secondary Markets

One of the most frustrating aspects of live entertainment in modern times is scalping, which is something that the industry is struggling to clamp down on. This involves people taking advantage of the supply-demand imbalance by purchasing tickets to live events and then charging fans hugely inflated ticket prices.

Tech & Innovation

Technology has also transformed the landscape in numerous ways. One notable example of this is the rise of online ticketing platforms, which means that people no longer have to visit the venue to buy a ticket. Streaming services have also had an impact by making music much more accessible, making it easier for artists to obtain new fans and increase demand for tickets. 

Artist Factors

There are also various artist factors involved in the cost of concert tickets. Streaming is good for the consumer, but it decimates music sales, which means that performing live is the leading source of income for many performers. This means that artists will often look to make as much money out of touring as possible with higher ticket prices. Many young musicians will also look for financing and funding solutions to improve their chances of success

These are the main factors that are driving the rising concert ticket prices. It can be frustrating when you are an avid fan, but it does encourage people to smaller, local gigs which are a lot more affordable.