Ticketmaster to Implement Dynamic Pricing System
Ticketmaster will partner with data analysis company MarketShare to roll out new ticket pricing technology this summer, parent company Live Nation announced Monday.
Under the "dynamic pricing" system, tickets to major shows and sporting events will be priced according to consumer interest. If an event is in high demand, initial prices for desirable seats will increase, while harder-to-sell tickets will see price cuts.
The new approach is designed to ensure that scalpers don't inflate prices by snatching up the best seats and reselling them for a profit, according to Ticketmaster Chief Executive Nathan Hubbard.
"Efficient pricing is one of the most important and untapped opportunities," Hubbard said in a statement. "By utilizing MarketShare and Ticketmaster's technology, our clients will be able to retain economic value that is normally siphoned off by the secondary market, and to sell more of their tickets that go unsold today. Meanwhile, more fans will have more opportunities to enjoy live entertainment events because tickets will be more accessible and pricing options will broaden."
The company plans to test the dynamic pricing system with North American sporting events and concerts this summer before expanding to include arts and theater.
Live Nation has taken a hit recently due to flagging concert attendance, with ticket sales falling 9 percent in 2010.