Pixel Envy

Written by Nick Heer.

Joint CBC and Toronto Star Investigation Finds Ticketmaster Complicit in Ticket Scalping

Dave Seglins, Rachel Houlihan, and Laura Clementson, CBC News:

In July, the news outlets sent a pair of reporters undercover to Ticket Summit 2018, a ticketing and live entertainment convention at Caesars Palace in Las Vegas.

Posing as scalpers and equipped with hidden cameras, the journalists were pitched on Ticketmaster’s professional reseller program.

Company representatives told them Ticketmaster’s resale division turns a blind eye to scalpers who use ticket-buying bots and fake identities to snatch up tickets and then resell them on the site for inflated prices. Those pricey resale tickets include extra fees for Ticketmaster.

“I have brokers that have literally a couple of hundred accounts,” one sales representative said. “It’s not something that we look at or report.”

Not only does Ticketmaster ignore scalpers’ tactics, this report reveals that the company effectively encourages them to exploit potential buyers with its TradeDesk software. The software’s description in the App Store indicates that it’s built for high-volume resellers, with features like bulk price adjustments and large-scale inventory management.

This is why Ticketmaster does such a terrible job at stopping automated purchases: the fee that they get from direct sales is large, but the commission they get from the reseller platforms that they own is extraordinary. Meanwhile, artists get none of the markup, their fans get bilked into paying obscene ticket prices, and Live Nation — Ticketmaster’s parent company — has a near-monopoly on large-scale tours, events, and venues. That’s not right.