Dynamic pricing examination by Parliament: Ticketmaster on trial

The Business and Trade Select Committee in Parliament has noted the dynamic pricing method and secondary ticketing. Andrew Parsons, the Managing Director of Ticketmaster UK, is questioned about the dynamic pricing model and ticket pricing methodology. The discussion also raises the issue of secondary ticketing, where resellers sell tickets at higher prices.

The committee has asked how ticket prices are decided and how ticket resellers impact fans and artists.

Parsons has stated that dynamic pricing reflects demand and that event organizers, not Ticketmaster, set the prices. The Music Week report states that the MD emphasized how secondary ticketing drives up prices, impacting both artists and fans.


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What are Andrew Parsons’ Views and Defense? Why is Parliament Questioning?

• Andrew Parsons, Ticketmaster, UK, MD, explained that Ticketmaster only follows the prices set by event organizers and artists.
  As reported by BBC, he said:
  "The price that you see on the Ticketmaster website is the price that the event organiser wanted that to be, including all fees, and that’s the only price that we will ever display."
• Dynamic pricing changes based on demand, but it’s not controlled by Ticketmaster itself.
• Ticket prices are set ahead of time, so there’s no "bait and switch" during the buying process.
• Fees are clear and upfront, with an average service fee of 11%.
• Parsons also pointed out that secondary ticketing, where re-sellers mark up prices, harms fans and artists.
• As per Parsons observations, while a cap is favorable, "30% still gives the opportunity for touts to be able to be running a business in that manner.", BBC reported.
• Andrew Parsons backs the government's secondary ticketing review but warns a 30% resale price increase could still benefit scalpers.

Parliament is questioning whether dynamic pricing gives Ticketmaster and resellers an unfair advantage, leading to higher prices, especially for big events.

What is the Secondary Ticketing Issue?

Secondary ticketing refers to resellers who buy tickets at face value and sell them at inflated prices, often taking advantage of demand. This practice harms fans who face higher costs and artists who lose potential revenue.

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According to Music Week, Ticketmaster’s Andrew Parsons highlighted how allowing artists to set higher prices for certain tickets could help minimize scalping, ensuring fairer pricing for fans and reducing the control secondary resellers have over ticket availability. Despite these efforts, scalpers often find ways to profit, causing significant concerns about fairness in ticketing.

FAQs:

1. What is dynamic pricing?

Dynamic pricing implies a system where demand decides the ticket prices. In case of higher demand, the prices will go up, while unsold tickets could be reduced to attract buyers.

1. How does Ticketmaster handle ticket pricing?

The pricing on Ticketmaster is determined by the event organizers and artists. They have no hand in changing the prices. However, the ticket prices vary as per demand and availability.