A recent article in The Detroit News, goes out on a limb and suggests that perhaps ticket prices have reached the point of diminishing returns. Citing the fact that ticket prices have "soared 82 percent between 1996 and 2003 -- far exceeding the rate of inflation" while concert attendance continues to fall off, they make a fairly solid argument that it may finally FINALLY be time for promoters to wratchet down the prices and bring the fans back.
Prices have increased at the same time the number of tickets sold has slowly but steadily declined. Some industry analysts believe the rate of increases in concert ticket prices has peaked or will soon.
"At a certain point, which we may have reached, you are going to have diminishing returns," said Owen Sloane, a Marina del Ray, Calif., entertainment lawyer with Berger Kahn, who has negotiated contracts for Elton John, Kenny Rogers and Bonnie Raitt, among other clients.
"I think most people in the business feel that the prices are too high, and you're basically cutting out a lot of people."
Live Nation and Clear Channel are facing a class action suit in Detroit for the same questions of collusion which are plaguing them in Denver, and the article seems to favor the argument that concentration of ownership may be one of the most glaring reason for the exorbitant rise in concert ticket prices. While Live Nation does an excellent job of producingthousands of high quality shows every year, they must learn that the best way to improve their product and keep prices in line with what the customer will be pay is by engaging in a bit of friendly competition. I hope to hear news of a major shake up in governance in the weeks to come. The business will benefit and it will do wonders to build trust in their brand (which is one of the major initiatives for the forthcoming year anyhow!)
Full Detroit News article here .
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