By now you’ve heard that face-value Hannah Montana tickets were scarce, and that brokers were mostly to blame.
The popular story is that brokers — using phone banks, proxy buyers, dubious software and other methods — got tickets by the bundle when they went on sale to the general public in September. True fans of Disney’s Hannah Montana, standing on lines or sitting at phones and computers, didn’t stand a chance. They were shut out, or reduced to dealing with greedy brokers, who scalped their unfairly-gotten ducats to desperate moms and dads at five, ten or fifty times the tickets’ original asking price.
This version of events, repeated over and over in the media, has stuck. It figures into a Florida legislator’s plan to strip brokers of some of their operational tools. At last night’s concert at the BankAtlantic Center in Sunrise, I listened to several people express contempt for brokers, and blame them for the heartbreak that befell many Hannah Montana fans.
“We boycotted all scalpers,” said Laura Pascotto of Naples.
That was a polite rebuke. There are much harsher words for brokers in the comments posted below this story and this story.
But after weeks of immersion in Hannah-mania, I’ve decided all that fury is somewhat misplaced. It’s not wrong to dislike what brokers did with tickets for this tour, but if you have to be mad at someone, there are other deserving candidates.
They are, in no particular order: Disney (which owns the Hannah Montana franchise), AEG Live (which is promoting the tour), Ticketmaster (the designated retailer of seats) and any number of venues that hosted Hannah Montana concerts.
That would include our own BankAtlantic Center.
Heck, blame Miley Cyrus, aka Hannah, for not playing more shows. Blame your fellow Hannah fans for contributing to the feeding frenzy.
A lot of parties contributed to the scarcity of face-value Hannah Montana tickets. Below the fold, I’ll explain how.
As AEG Live’s senior VP, Debra Rathwell, told me, between 650,000 and 700,000 tickets were minted for the entire 54-date Hannah Montana tour. Assuming the higher number, 700,000, (for the sake of easy math, and because more tickets were released for sale as the tour rolled on) that’s an average of almost 13,000 per show.
Now cut that number in half, since half is how many disappeared right away from the pool of tickets to be sold to the general public. Disney and AEG set those aside for sale to members of Hannah Montana fan clubs (and even that wasn’t enough to satisfy fan-clubbers' demand, as this lawsuit suggests).
So now we’re down to 350,000 tickets, or fewer than 6,500 per concert, available at their original asking prices (in the $25-$60 range) to the ordinary, would-be ticket buyer who’s not a member of a fan club, or who is and still can’t get tickets.
And we’re not done shrinking the pool yet.
Ticketmaster, with permission from AEG and Disney, set aside some tickets for first-run auction on their Ticket Exchange. How many? I don’t know. But these were tickets that Ticketmaster decided would reach their “true value” through bidding. Another entirely fair way to say it is that, in this case, Ticketmaster scalped its own product. The company took tickets with a pre-set price and let bidders bid them up. That's not exactly what brokers do, but it's awfully close. Brokers ask for a particular price - based on past experience, gut instinct, or whatever - and then see what the market will bear.
And guess what? Legal, fully authorized price speculation for event tickets is on the rise. Put every broker out of business tomorrow, and outlets such as the Ticket Exchange, StubHub, and other entitites including pro sports teams and venue operators, are going to do what brokers have traditionally done: have bidders decide what is the “face value” of a ticket.
Increasingly, “face value” will be replaced by “minimum bid.”
“We’re bringing the industry closer to a market-value pricing, where the ticket reaches its true market value at the orginal point of sale, rather than the secondary market,” said Ticketmaster spokesperson Bonnie Poindexter.
In other words, Ticketmaster - already the biggest ticketer on the block - wants to be your broker and auctioner, too.
Now back to that incredible shrinking pool of publicly available tickets ...
Ever heard of a “seat license”? It’s another way for venue operators to make more money from their building. A seat license is a fee that you, the preferred VIP customer, pays not for actual tickets to upcoming events, but for the right to buy choice tickets to upcoming events - such as a Hannah Montana concert. Seat licenses mean a certain number of tickets are held back from the general public and offered first to the licensees.
Obviously, not every one of those tickets is going to be bought by licensees, and some will presumably make their way back to the box offfice. But for an event like Hannah Montana, it’s probable that a lot of licensees exercised their first right of refusal, and bought tickets that never circulated through Ticketmaster.
(Does the BankAtlantic Center have seat licenses? Last week I asked a BAC spokesperson to tell me about the venue’s seat licensing arrangements and, specifically, how many such “licensed” seats were set aside for the Hannah Montana concert. I wanted to know if we were talking about dozens, hundreds, or more.
The spokesperson never got back to me. But a local broker, Michael J. Lipman, President and CEO of Tickets of America, said he knows for a fact that BankAtlantic Center has seat licenses.
Also, I know of at least one Florida Panthers season ticket holder who was offered a chance to buy Hannah Montana tickets without having to go through Ticketmaster. So assuming other season ticketholders got the same consideration, there’s another block of seats possibly withheld, or delayed, from general sale.)
Back to the pool ... Still other Hannah Montana tickets were held for promotional use in sponsor contests, radio giveaways and the like. Some tickets also were set aside for the media. (Present company included. I bought one ticket at face value from the co-promoter of the BAC show, Fantasma Productions in West Palm Beach.)
Now, add all of these up - the Disney/AEG fan club sale holds, the Ticketmaster auction holds, the seat license holds, the sports season-ticketholder holds, the promo holds, the media holds, the comps (freebies) for friends of the band, friends of the venue, and friends of anyone else with connections.
Taking my best semi-educated guess, we’ve gone from just under 6,500 tickets at the traditional, open-to-all "box office" for each Hannah Montana show, down to maybe 4,500 tickets. That's out of nearly 13,000. A little over a third.
Our numbers vary, of course, because the BankAtlantic Center had at least 15,000 people in the building on Tuesday. But the math is about the same. I’m comfortable guessing that of the 15,000 or so ticketed seats for Tuesday evening at the BankAtlantic Center, somewhere between 5,500 and 7,000 - again, about a third - actually went on sale through the box office at their advertised asking price.
And I’m not even sure those all went on sale at once, back in September. That’s because two Mondays ago, about 2,000 tickets materialzied and quietly went on sale for the Sunrise show. I found out about this development the next day, while talking to AEG Live’s Rathwell, who said the release was the result of revisions in the seating arrangements, based on a better understanding of how much room the tour production takes up. So that opened up more seats (some of them obstructed view).
Were those in addition to my guesstimate of 5,500-7,000, or part of that total? I think there's some overlap, but I don’t know for sure. The people I’ve spoken to (or not) were only willing to divulge so much, so the math gets a little fuzzy here. To further confuse me, a few hundred more BAC tickets were freed up for sale yesterday, just before the show. I mean, when does sold out finally mean sold out?!
But don't miss the larger point, which is that you shouldn't blame everything on brokers. The arrangements for ticketing to a tour this in-demand are more complicated, and there are more things eating away at the supply of face-value seats than Joe Broker and his speed-dialers.
True, by going after a shrunken pool of tickets with methods not available to the general public, brokers magnified, and profited from, the scarcity of face-value tickets. But to say they caused it is an oversimplification. Brokers are not the biggest reason that so many people aren’t able to see Hannah Montana. Raging demand for a limited supply of shows is.
I say all this as someone who has a) never bought anything from a broker and b) thinks that the broker is, like a lot of very profitable and longstanding business models, parasitic in nature. At their most benign, brokers are like pilot fish cruising alongside the big shark. At their worst? Pick your metaphor.
Besides, you can argue Disney/AEG/Ticketmaster have the right to auction tickets. It's their party. You can argue that venues have the right to give first dibs to their best customers. It's their building. Where do brokers get off inserting themselves into other people's work product?
I wouldn’t disagree. But keep in mind that a lot of these parties - performers, promoters, venue managers - have historically profited by the activity of brokers. Some work directly with brokers, in fact, because brokers will take risks the other businesses can't or won't.
And brokers, over the long term, have shown the trade how much people are really willing to pay to see a show. If you don’t think the live-events industry has noticed, then you haven’t been paying attention. Showbiz has rushed into the gap between face value and the broker's price, and we're all paying through the nose because of it.
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