The Real Reason Why Concert Tickets Actually Cost A Fortune

Here’s an interesting breakdown of who’s pocketing your money.

Jesse

• Published in Music
• September 30, 2024

You’ve done it! You’ve braved the virtual waiting room, endured the nail-biting refresh marathon, and finally secured a ticket to the much-anticipated Oasis reunion tour. But at what cost?

As you take a closer look at your receipt, a sinking feeling sets in: “Did I just pay how much for a concert ticket?” 

If you’ve ever felt like the cost of seeing your favorite band live seems to skyrocket as soon as demand surges, you’re not alone. It’s not just you, and there’s a reason behind every penny (or so they claim). 

For those braving the modern-day gladiatorial battle of securing tickets, there’s more than just the price hike to contend with. Ticketmaster, for one, has taken heat for its grip on the industry, leaving many to face an avalanche of fees that often feel like they’re paying for a second ticket. 

And if that wasn’t enough, even the U.S. Justice Department has been eyeing the ticketing giant, launching a lawsuit to curb its dominance. But beyond all these frustrations, the real question is: where is your hard-earned cash going when you buy that golden ticket?

Let’s take a look at the numbers, courtesy of the BBC, for a concert ticket that costs £150 (or around $200).

Massive concerts like the Eras Tour aren’t just breaking records—they’re breaking banks.

Out of that £150 ticket, a solid £93.60 ($125.15), or 62.4 percent, goes to the artist. 

You might think, “Great! At least my money supports my favorite band.” But hold up. That amount isn’t just for Liam and Noel Gallagher’s next luxury vacation. It also covers a slew of expenses like transporting their gear, paying the roadies, and hiring security. 

Next up, we have the taxman. In the UK, Value Added Tax (VAT) eats up £25 ($33.43) of your ticket, which is about 16.6 percent. It’s a necessary evil, but still, it’s hard not to feel a little short-changed knowing a chunk of your ticket funds the Treasury’s coffers.

Sadly, affordable concerts are quickly becoming a thing of the past

And now, drumroll, please, for the most annoying part of all: ticket fees. These dreaded add-ons amount to £16.50 ($22.06), around 11 percent of the total ticket cost. Ticketmaster has to get its slice of the pie somehow, right?

Promoters, those responsible for organizing and marketing the tour, take about 6.9% of the total, which is £10.40 ($13.91). Not a huge chunk, but enough to keep them in business, ensuring you actually know when your favorite band is rolling into town.

Meanwhile, performance royalties—basically paying the artist for singing their own songs—claim a measly £4.50 ($6.02), barely three percent of the ticket. 

Notice who’s missing? The venue. Smaller venues, unlike stadiums hosting mega-tours like Taylor Swift’s Eras Tour, are often left out in the cold, struggling to make ends meet. And as they face an uphill battle to survive, the future of live music hangs in the balance.

So next time you’re shelling out for a concert ticket, at least you’ll know where your money’s going—or not going. And while Oasis might be getting back together, maybe our wallets need to break up with these bloated prices.

Jesse