Ticketmaster's new blog: 'We get it -- you don't like service fees'
Ticketmaster is the company everyone loves to hate, and today it acknowledged as much. Quietly, the ticketing behemoth that's now part of Live Nation Entertainment launched a blog, making a very real effort to finally put a consumer-friendly face on the largely automated, fee-heavy operation.
In a post attributed to CEO Nathan Hubbard, the company admitted the following: "We get it -- you don’t like service fees. You don’t like them mostly because you don’t understand what the heck they are for." Hubbard doesn't totally break down the allotment of the fees, but reiterates some of what is already known. He wrote, "Most of the parties in the live event value chain participate in these service fees either directly or indirectly -- promoters, venues, teams, artists and, yes, ticketing companies."
So fees are not going to go away, but Ticketmaster is making an effort to let customers know what kind of financial commitment they'll be making the moment they come to the site. For years, Ticketmaster waited until a potential concertgoer was nearly done with purchasing a ticket before unveiling the fees, which typically add a minimum of $10-$15 to the price.
Now, at least for most events, prospective buyers will see a portion of the fees as soon as they select the tickets. So, for example, let's say you want to see Nick Cave's Grinderman at the Music Box @ Fonda (you should). A drop-down menu tells you that the $30 is actually $40.30. It's not until one clicks through the site that the fees are broken down, with a $2.50 facility charge, which goes to the venue operator, and a $7.80 "convenience charge," some of which goes to Ticketmaster, the promoter, credit card companies and artists.
Yet the actual cost of the ticket still isn't $40.30.
The final price comes to $47.30, thanks to an additional "order processing fee" and the $2.50 charge to print your own ticket. All told, fees add $17.30 to a single $30 ticket. In instances where the promoter owns the venue, the latter is double-dipping of a sort. The Goldenvoice-run Fonda comes with a $2.50 faculty fee, and Live Nation's own Palladium tacks on $1.
Company chief Irving Azoff acknowledged some of the shortcomings of the new features on his Twitter page. He wrote, "can’t boil all fees down to a per ticket fee until we know how many tix are bought and shipping method chosen, so it has to happen later."