Concert ticket prices skyrocket for big names

By

Posted 10:17AM on Wednesday, May 8, 2002

Tuesday, the Rolling Stones dropped into New York City in a blimp to announce plans for a fall North American tour. But some fans' hopes may have been deflated when performance costs were announced: the average ticket price will run between $50 and $100, with top-tier tickets going for about $350. This summer, musical stalwarts from the Rolling Stones and Paul McCartney to the Who and the Eagles will be testing their loyal fans' price tolerance. Concert promoters are pushing prices so high for the big names in part because the rest of the field looks comparatively uncertain. Some current acts, like Britney Spears and Latin crooner Marc Anthony, are expected to do well. But some other artists are touring on double-billed shows that sometimes feature two marquee acts in hopes of ensuring better sales. Meantime, the classic rock bands have proven they can bring in the big bucks with their deep-pocketed Baby Boomer fans -- good news for concert promoters, who are rebounding from a post-Sept. 11 slump in concert attendance. "It's a mature audience and generally speaking their incomes are at the highest level of their careers," says Dave Lucas, president and co-chief executive of the music division of Clear Channel Entertainment, the nation's largest concert promoter. Subsequently, the big-time classic rock artists are expected to carry much of the summer. The average ticket price on the first 10 dates of Paul McCartney's tour, a musical journey through the Beatles, Wings and recent solo offerings, is $134.27, before ticketing and service charges, according to Pollstar, a publication tracking the concert industry. Those who care to see classic rockers the Who perform "Won't Get Fooled Again" (possibly for the last time, and this time they really mean it) will pay between $54 and $250 at one of the four dates at Madison Square Garden in New York and between $44 and $505 dollars at Los Angeles's Hollywood Bowl. "The public is buying it," says Gary Bongiovanni, editor of Pollstar. "The true market value is what people will pay." Meantime, for popular acts with comparatively smaller audiences such as Lenny Kravitz, Alanis Morrissette and rockers Korn and Sheryl Crow, the price point is lower, with some commanding top prices of only $40 to $45. Heading into the biggest five-month stretch of the year, that's causing head-scratching among some promoters about how to market them. "Where do they fit in? What's the market?" says Randy Phillips, chief executive of Los Angeles-based AEGLive, whose Concerts West unit is promoting tours by the Eagles and Britney Spears, among others. "High ticket prices kind of squeezes the middle-range acts and it's hard to figure out what their value is." AEGLive is a division of Anschutz Corp., the company controlled by Denver billionaire Philip Anschutz. One way to draw a crowd for this group includes pairing more than one high-profile act on the same bill. On the road soon: David Lee Roth and Sammy Hagar, both lead singers ousted from the band Van Halen. Already playing some dates together are adult pop acts Chris Isaak and Natalie Merchant, while pop star Pink will be the opening act for Lenny Kravitz this summer. Even if some consumers are willing to pay more for classic rock acts, the net result may be a decrease in overall concert attendance, a scenario that does not bode well for promoters who increasingly rely on ancillary revenue including parking fees and concessions for their profits. For the top 100 tours last year, gross revenues from ticket sales hit an all-time high and average ticket prices increased 8 percent from the year before to $43.86, according to Pollstar. But total ticket sales for the year dropped by about 7 percent and the total number of shows for the top 100 tours fell about 6 percent. Still, Mr. Lucas of Clear Channel Entertainment says, for someone like Paul McCartney, charging less would simply be bad business. If McCartney tickets were lower, say $100, then they could be bought by scalpers and sold at "three times its face value," Mr. Lucas reasons. Some concert promoters blame industry consolidation for the upward pricing trend. Because Clear Channel is by far the market-share leader, critics say it has disproportionate influence over ticket prices. But Clear Channel says it faces the same challenge its competitors do: to get as many people as possible into a venue. Although Clear Channel has tried to boost sales with "tiered" ticketing, which offers a range of prices depending on a seat's location, it's also looking for ways to generate revenue that don't involve across-the-board lowering of ticket prices. To that end, the New York-based company, a unit of Clear Channel Communications, San Antonio, Tuesday announced the launch of getAccess, a "live entertainment membership program" whereby patrons pay a $60 fee for pre-sale tickets to concerts such as the Stones, discounts and other opportunities. Chris Hearne, president of the company's Access Group, says about 50 percent of tickets to shows offered through getAccess will be sold in advance online to members. One of the big names, meanwhile, is strategically plotting its tour plans for the next couple of years. When a new album they are recording comes out -- possibly next year -- the Eagles will likely tour all major markets, says Mr. Phillips whose company is sponsoring the current tour. So as not to cannibalize that tour, this summer they'll play the old hits in smaller "secondary" markets. And ticket prices for the tour, while priced slightly cheaper than they likely will be in larger cities, still aren't cheap at $55 to $125. But that hasn't deterred buyers, says Mr. Phillips. "It's a good value. People know they're going to get `Hotel California,"' he says. "The Eagles coming to Moline (Ill.) is like the Beatles re-forming."