The ticketing mess surrounding the Eras tour in the US highlights and distorts the reform in the industry.

Estimated read time 11 min read

Last week, I discussed Taylor Swift’s sudden appearance in various unexpected contexts, including discussions on writing and grammar. I was taken aback to discover her mentioned in the latest newsletter by talented songwriter Phil Elverum, also known as Mount Eerie (and previously as The Microphones). In his newsletter, Elverum reflects on his frustrating experiences trying to have his voice heard in a government hearing in Washington State regarding a proposed bill on ticketing regulation. If you’re interested, you can sign up for his newsletter here – he writes beautifully crafted messages.

Ticket sales have caused strong emotions among artists and consumers in light of controversies surrounding dynamic pricing, where prices change based on demand, a practice notably used by Bruce Springsteen. This was further exacerbated by the chaotic US Eras tour ticket sale through Ticketmaster, where all tickets were sold in an advance presale for registered fans, leaving none available for general sale. Swift publicly criticized the company for their mistakes and apologized to fans who experienced difficulties obtaining tickets, likening the process to being attacked by bears. Around the same time, the US Department of Justice (DoJ) announced an investigation into Ticketmaster and Live Nation, who merged in 2010 and now control a significant portion of the live music industry, for potential antitrust violations. Despite legislation being passed in 2016 to prevent ticket-scalping bots, only three prosecutions have occurred through the Federal Trade Commission and the issue continues to persist.

Phil Elverum performing in California in 2017.View image in fullscreen

US organizations, including the Better Business Bureau and the National Independent Venue Association, joined Ticketmaster in cautioning Swift supporters who did not secure tickets through the authorized sale to be wary of tickets being sold on the secondary market. These tickets, known as “speculative” tickets, are not yet in possession of the seller, but they intend to acquire them. Surprisingly, this practice is legal in most states, as the UK government previously declined to act on recommendations to prohibit it in 2023. With little regulation on ownership and behavior, Kevin Erickson, director of the nonprofit group Future of Music Coalition, claims that poor practices are becoming the norm. Swift fans had to navigate through Ticketmaster’s obstacles just to view ticket prices and were only given 90 seconds to make a decision before risking losing their chance at purchasing tickets at a lower price. To make matters worse, they were hit with unclear fees at checkout. Last year, Cure fans faced a similar situation, despite the band’s efforts to keep tickets affordable. A frustrated Robert Smith was able to convince Ticketmaster to refund some of the fees.

The problem of addressing this unregulated industry has gained support from both sides of the political spectrum in the United States. There are two proposed federal bills that are unlikely to make progress in the current sluggish session of Congress, so the responsibility to address the issue will fall on individual state legislatures. While Congress moves at a slow pace, states, which have limited time to conduct their annual affairs, often make decisions hastily without fully understanding the issues or consulting those most impacted, such as musicians and venues. This also makes politicians susceptible to the influence of well-funded ticket resale companies. Additionally, Live Nation’s federal lobbying expenditures have more than doubled from $1.1 million in 2022 to $2.4 million in 2023. According to Erickson, there is a lot of catching up to do in order for the artist community to have a voice in these discussions.

In Washington, Elverum stated that he was asked to give a speech at a hearing regarding bill HB 1648, also known as the Ticket Sales Warrant Integrity, Fairness, and Transparency Act (or TSWIFT). However, he felt that the bill did not adequately address the issue of speculative ticketing, which impacts not only popular artists like Taylor Swift, but also indie artists like himself. Unfortunately, Elverum’s opportunity to speak was denied, and the bill was passed in committee without taking into account the concerns of musicians. According to Elverum, a video of the proceedings showed legislators making Taylor Swift references and laughing, indicating that they only had a surface-level understanding of the real issues faced by artists like him. They seemed to be only aware of artists who could sell out sports stadiums and nothing more.

Bruce Springsteen performing in Italy in 2023.

See the image in full screen.

Luckily for Elverum and his community, the proposal did not pass the committee vote. This illustrates the constant back-and-forth attempts to improve the ticketing market for consumers and musicians. However, the situation also reveals how Swift’s actions can be both informative and misleading, with lawmakers using her name to falsely appear as though they are addressing fan concerns. The BOSS SWIFT Act is one of two federal bills, named after Springsteen and Taylor, but its focus on industry reform is largely influenced by secondary companies, according to Erickson.

StubHub, Vivid Seat, and SeatGeek have achieved success by tapping into the public’s frustration with Ticketmaster. However, their agenda seems to focus mainly on increasing their access to tickets in order to sell them at higher prices. According to Erickson, implementing BOSS SWIFT would not only eliminate legitimate fan-to-fan resale sites, but it would also require transparency in the hold process. This means that artists and venues would have to reveal how many tickets will be available before they go on sale. While this may seem reasonable, it actually benefits ticket brokers more than individual consumers who simply want to attend the event.

According to Erickson, the bill is luckily lacking support from the musician community and is not likely to be approved. Another measure called the Fans First Act, which requires full disclosure of advance fees to avoid surprises at checkout, strengthens the 2016 Better Online Ticket Sales Act and prohibits speculative ticketing. However, it may face obstacles in Congress. Erickson states that the artist community is prepared for a long battle to pass federal legislation. He also mentions that incremental reforms in individual states help shed light on the true nature of the issue and identify those responsible, ultimately leading to federal progress in the future.

Maryland could potentially alter the tone of the discussion, according to Erickson. This is due to a proposed bill called Commercial Law – Consumer Protection – Sale and Resale of Tickets, which will be voted on by the week’s end. The bill aims to regulate ticket pricing by requiring all-in pricing on both the primary and secondary markets. This means customers will not encounter any unpleasant surprises at the checkout. The bill also protects the right to resell tickets, although there are restrictions on markups and fees that secondary ticketing platforms can charge. Additionally, speculative ticketing will be prohibited.

I had a conversation with Senator Dawn Gile, one of the four Democrat sponsors of the bill. She mentioned that they had sought input from various local stakeholders including musicians and small theaters. The impact of secondary markups was felt by even a local performance of The Nutcracker. According to Gile, another venue discovered that tickets were being sold speculatively for mezzanine and balcony seats, despite not having these sections. She stated, “The problem is widespread. It’s often overshadowed by the discussion surrounding popular shows like Bruce Springsteen, Taylor Swift, and Beyoncé, but it also affects our smaller local venues.”

Taylor Swift fans exhanging friendship bracelets in Singapore, 2 March 2024.View image in fullscreen

Gile has encountered strong pushback from the secondary marketing industry. She finds it amusing that companies like StubHub argue that reselling tickets is similar to a gig-worker service, providing convenience and avoiding waiting in line. However, she believes this argument is not convincing because the tickets are being sold as a ticket, and these companies are essentially hedging their bets on acquiring the ticket later. Furthermore, Gile explains that these companies are implying that if this legislation is passed, it will harm the live entertainment industry in Maryland. However, she disagrees with this argument, pointing out that other states, such as Las Vegas, have already placed limits on the secondary market but the entertainment industry still thrives. She states that her bill simply eliminates the incentive for brokers to profit off of consumers.

According to Gile, the current situation is partly due to the dominant position of Ticketmaster and Live Nation in the market. He believes that it is the responsibility of the government to take action. Additionally, the idea of tickets being a profitable item has become normalized. While some argue that it is a fair and open market, the truth is that there are regulations in place for other types of trading, such as stocks and securities, to prevent deception and manipulation. The prevalence of ticket resellers and the use of bots and speculative tickets clearly shows that this market is being manipulated.

According to Erickson, Swift serves as an example of the benefits of using the programming language Swift. She illustrates that even the most powerful woman in the music industry cannot solve the problem of unregulated resale, indicating a need for elected officials to take action. The entrenched mentality of laissez-faire economics has greatly failed artists and consumers. This current situation presents an opportunity to recognize the value of live music beyond its financial cost. It enables a shift in our perception of music and live events as more than just economic commodities. Live music can be seen as a means for communities to form, a platform for marginalized voices to be heard, and a way for communities to define themselves. Policymakers at all levels have a responsibility to prioritize and amplify the voices of the music community, who are currently at risk due to the rise of exploitative business practices.

You only have to look at the photos coming out of each date on the Eras tour, in which thousands of teenage girls are having their first live music experiences, to see the vast potential for community activation: here are the roots of future lives spent in music so that they might one day look back, as Phil Elverum does in his beautiful 2020 epic Microphones in 2020, on how they were shaped by it: “I will never stop singing this song,” he sang. “It goes on forever.”

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The ‘Eras tour trail’ in Singapore, where Swift is currently touring.View image in fullscreen

There has not been much news on Swift developments this week. Here is an update on the efforts to manage ticketing in the United States.

  • Several states, including Pennsylvania where Taylor Swift grew up, are taking action to prevent ticket scalping bots following public outrage over difficulties in purchasing tickets for her concerts. This was reported by Bloomberg Law on February 29.

  • The Decoder podcast delves into the impact of Reagan-era policy changes on the ascendency of Ticketmaster in the live events industry, comparing them to Taylor Swift’s rise to fame. (The Verge, 21 March)

  • In February, Reuters reported that the Department of Justice (DoJ) asked Live Nation for additional details as part of their antitrust investigation. It was raised that Ticketmaster may not be fully cooperating with the probe. However, a spending agreement to fund the government until September, which may limit resources for antitrust enforcers, could potentially jeopardize the investigation. This information was reported by Bloomberg on March 4th.

Hits different: a non-Swift playlist

The New Eves.View image in fullscreen

I have yet to see the Brighton band called The New Eves perform live, even though they are part of the Broadside Hacks collective and are friends with Cornish folk musician Daisy Rickman (who we tipped as a “one to watch” in 2024). Their sound is reminiscent of groups like The Roches and The Raincoats, with a raw and unpolished quality that I often feel is lacking in the Last Dinner Party’s romanticism. Don’t forget to follow the Hits Different playlist on Spotify!

Source: theguardian.com

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