| Those cuts are typically referred to as "rebates", and yes, they're standard operating procedure. There's an interesting history behind how this practice got started, that's a good lesson in how multi-party markets work. Back in the good old days, touring acts typically got a modest percentage of gross ticket sales for a given concert, leaving enough for the promoter and venue to cover costs and make a profit. At some point (the 80s, maybe?), artist percentages started creeping up closer to 100% (in one ridiculous example, Jimmy Buffet got "105% of gross ticket receipts"), so venues and promoters had to make money on something other than tickets. Since "ticketing fees" weren't calculated into the gross ticket receipts of which a percentage were due to the artist, they were a green field for exploitation and creative deal-making, like the "promoter rebates" referenced above. In many cases (almost all venues above a certain size), venues sign exclusive ticketing company contracts that come with up-front bonuses or advances on fee rebates, which make ticketing companies kind of like cash machines (or payday loan vendors?) for venues. The general public perception of "ticketmaster is evil" is, as with most things when you look beneath the surface, much more complicated than it appears. Scalping itself is a related but different issue that ticketing companies and venues could certainly limit or end if they had the will, but the system works just fine for them, so there's really not much incentive to change. [sources: various anecdotes from music industry veterans who will likely deny a lot of the above if pressed ;-] |