At a hearing with the Business and Trade Select Committee, the boss of Ticketmaster UK, Andrew Parsons, has stated that event organisers set ticket prices. This comes after criticism from fans over the prices of tickets for the Oasis reunion tour last summer. Despite fans indicating they paid significantly more than advertised, Parsons explained that the prices for the various tiers are determined by humans and not bots and that a high-priced tier is “fairly reasonable”.
Parsons noted that if Ticketmaster couldn’t capture the value of those tickets, then touts would capture them instead. He stated that the high pricing tiers serve as a way to combat that. The dynamic pricing model has come under fire from the industry, as consumers feel misled during the pricing process. However, Parsons has argued that such a system offers benefits in the background of competition with touts.
The bosses of Live Nation, which Ticketmaster’s parent company, have been criticised as having dominant market share by MPs on the committee. The Competitions and Markets Authority (CMA) has launched an investigation into whether Ticketmaster’s dynamic pricing policy have breached consumer protection laws. Charlie Maynard, MP, has pushed for an investigation into Live Nation.
Ticketmaster also expressed concerns about the UK government’s proposed cap on the resale of tickets. While supportive of a cap, Parsons noted that “30% still gives the opportunity for touts to be able to be running a business in that manner.” Culture Secretary Lisa Nandy’s announcement to clamp down on touts who bulk-buy and resell tickets for profit has come under scrutiny as touts continue to find ways around the system.
Despite the criticism, Parsons remained supportive of a transparent system. He stated that humans have created the prices and Ticketmaster provides the tools that enable to organisers to use dynamic pricing. The CMA ‘s investigation continues, but opinions on both sides remain unchanged
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