Back in 2001, Billboard reported that the top 100 grossing concerts of the year, collectively, made $350 million. Fast forward to 2015, and the top-25 concerts alone grossed nearly $360 million. This significant increase can be attributed to two main factors: a growing number of concert-goers and soaring ticket prices. For instance, a VIP Live Nation ticket to see the Dave Matthews Band at The Gorge was priced at $198 just two years ago. Today, that same ticket has skyrocketed to nearly $900! This dramatic shift is part of what some call "Platinum Pricing." Lower reserved tickets that used to cost $75 are now ranging between $175 and $250. Just last week, on the day of the Rolling Stones' show at the Rose Bowl, tickets in the nosebleed sections were priced over $200. This illustrates the hefty price of admission to enjoy live music in 2019.
To further understand this trend, let’s examine U2 as a case study. In 2001, they achieved the ninth-biggest venue gross in the U.S., earning $6.4 million from 78,275 tickets sold over four shows at the United Center in Chicago, with ticket prices ranging from $45 to $130. By 2015, they climbed to the fourth-biggest gross, amassing $19.4 million over eight shows to 148,942 fans, with ticket prices running from $30 to $275. U2 effectively doubled their performances and audience size, resulting in a threefold increase in earnings compared to 14 years earlier.
But where does the money from that $275 ticket actually go? Many fans might believe that it goes directly to the band; however, this is a common misconception. In reality, several parties need to be compensated along the way. There isn’t a standardized figure that the entire music industry follows—it varies based on the band, promoter, venue, market conditions, local taxes, and more. Approximately 10% of a ticket’s price is consumed by booking and processing fees. Just last week, I forked out nearly $100 in fees for two Heart tickets at the Hollywood Bowl, and a portion of those fees might flow back to the promoter or band.
What You Will Learn
- The significant increase in concert ticket prices over the years.
- How ticket sales grossed differently for major bands like U2 from 2001 to 2015.
- The various costs and fees deducted from ticket sales before reaching the artists.
- The complexities of revenue distribution in the concert industry.
