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 Send to email | Madonna, Live Nation Get Into The Ticket Scalping Business (EBAY, LYV) in EBAYLYVIACI |  By Silicon
el 09-May-2008 |
madonna.jpg: Paste this image in your site, Myspace, Facebook, Ebay copy this code...
 Who says musicians aren't savvy about money? Madonna has figured out how to get paid twice for each ticket she sells for her upcoming tour: Sell them at face value the first time around, then get another cut when they get scalped... er, sorry, resold.
Madge and concert promoter Live Nation (LYV) are endorsing eBay's StubHub (EBAY) and Viagogo, a European-based ticketing company, as official resellers for her new tour. The WSJ says Viagogo will give Madonna and Live Nation a flat fee, while StubHub will offer a revenue split.
These kind of moves are becoming standard for pro sports leagues, most of which are doing deals with Ticketmaster (IACI), which has its own reselling/scalping operation. But so far music acts have stayed away from resellers, instead complaining about how they are ripping off their fans, and/or ripping of the performers by not cutting them in.
We imagine we'll see more of these deals soon, but don't understand why the concert business hasn't picked up on our own modest proposal: Rather than investing in the reselling business, and getting a cut of those transactions, why not create a variable pricing system that sells the tickets at market prices to begin with?
See Also: Why Hannah Montana Should Sell $200 Tickets
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