But listen carefully to the conference call discussion with Live Nation Entertainment Chief Executive Michael Rapino and there are hints about the controversial company's future. And they are far removed from some of the pre-merger talk, especially when Rapino and Ticketmaster chief Irving Azoff went before Congress and noted that 40% of all concert tickets went unsold.
Rapino told The Times last year: “In my business, the cheaper the ticket price the better. I'd love for more consumers to walk into an amphitheater, park, have a beer and eat a hot dog. There's no advantage to me to have anything but sold-out shows."
All sounds reasonable, and could lead one to believe a merger would be good for the consumer. The combined entities could use their data and power to better price concerts, and the fan wouldn't have to worry about being gouged. Why, just look at Live Nation's U2 tour, in which about 10,000 tickets per show were priced at an economical $30 -- binoculars not included.
So where is the company sensing a growth opportunity? Concert prices!
“Our fundamental belief at Ticketmaster/Live Nation is the answer to grow our business is less about trying to make $5 or $6 million in service fees off secondaries and much more important to figure out how to capture that $1 billion in up-sell on the face value of tickets," Rapino said during the conference call.
The exec was answering a question about TicketsNow, which came under fire last year after fans trying to buy tickets to see Bruce Springsteen said they had been redirected from Ticketmaster to the resale site, where tickets had a steep markup. The New Jersey attorney general's office launched an investigation, and as part of the fallout TicketsNow further separated from Ticketmaster.
“The minute we had to unlink from our website, that business over the last year has deteriorated," Rapino said.
Indeed, he noted that TicketsNow is currently bringing in about $1 million to $2 million annually. That's down from the $15 million it used to rake in.
Thus, the strategy going forward: “So, whether it's seat maps, dynamic pricing or just convincing the band that the front row is worth $400, not $100, we're noticing a great reception by artists worldwide who would like to capture more of the upside, and our first goal is to figure out how to price the house right."
So let's back up. TicketsNow, the company's brokerage site, is suffering. To compensate, the face value price of the concert ticket will likely change, and notice it's not for the cheaper. To be fair, Rapino was speculating about possibilities and not stating any absolutes. But suddenly, the face value of a front row ticket at a concert jumped a whopping $300.
