Concert sales hit a record global high in the first half of 2018 — but average ticket prices are soaring, according to new report from Pollstar Aventus Network Follow Jul 18, 2018 · 3 min read

According to Pollstar’s mid-year report, the top 50 best-selling tours of the first half of 2018 saw a 12% year-on-year increase in total gross, up to a record-breaking $2.21 billion. Credit must go in part to Ed Sheeran, whose tour led the pack at a whopping $213.9 million — making him the best-selling global recording artist for the second year in a row.

However, while gross ticket sales hit a record high, total tickets sold remained relatively constant — actually dropping a little, at 2.1% down from last year.

The increase in revenue at a time when total ticket sales have decreased is down to cost of tickets sold at face value in primary markets having risen internationally by 14% since last year, up to an average of $84.40. In North America, average ticket prices for the top 100 highest-grossing tours grew by an even higher 19.1%.

Historically in the primary market, tickets are often sold at below market value; for example, so that artists can increase customer loyalty and prioritise fan experiences. Ticket pricing is far more demand-driven on secondary platforms than on primary platforms, with tickets finding their own market value. Pollstar posits that the current rise in face value tickets is due to the industry’s increasing embrace of “aggressive pricing” strategies within the primary market, put in place in an effort to “exclude the secondary market”.

Interestingly, while Sheeran’s tour was by far the highest-grossing, his average ticket price was over $15 cheaper than the average; demonstrating that there is still ample opportunity for artists and musicians to solidify their brand and differentiate themselves by positioning themselves as “for the fans” — especially with many other face value ticket costs spiralling.

Sheeran has taken an active stand against ticket touts and resellers recently, working with the Fair Ticketing Alliance in an effort to ensure that fans did not have to pay above face value for his tour dates by cancelling 10,000 tickets sold through illegitimate secondary sites. The scheme was not universally deemed to be a success, however, with hundreds of fans who had purchased via Viagogo reportedly angry at being told their tickets were now invalid.

Speaking to The Guardian on behalf of Sheeran’s management company Kilimanjaro Live, CEO Stuart Galbraith said that the scheme had “achieved what Ed wanted us to… we’ve given them advice about how to receive refunds against their fraudulently traded tickets, and we’ve sold them face-value tickets”. The fact that some fans were still disappointed with their experience, he said, “perfectly highlights the need for some strong action from the government against profiteering secondary ticket marketplaces.”

While governments and legislatory bodies around the world are indeed scrutinising business practices on secondary ticketing sites, many worry that dedicated touts will simply find new loopholes to exploit in the face of new legislation. At Aventus, we believe that blockchain has an important role to play: a secure technology solution than can enable controls over the secondary market, provide ticket transaction security, and allow artists and managers to enforce fair ticketing for fans.

The Aventus Protocol essentially provides transaction integrity throughout the ticketing supply-chain, allowing rights-holders to set rules around how a particular ticket can be transacted: at which minimum and maximum price caps, through which secondary sellers, and at what times (to name but a few of the available properties available within the Protocol). Every ticket held on the blockchain is given a unique ID which can be tracked as it is transacted from rights holder to primary seller to secondary seller to consumer.

This provides a much-needed positive experience for fans, while avoiding the considerable overheads associated with Sheeran’s approach and the risks of legislation loopholes. At the same time, it continues to support consumer choice by allowing space for legitimate ticket resales between fans, while giving rights-holders and artist the tools to control their own inventory and — if they wish — oust the touts completely.