Why concert tickets are getting pricey
By Kimi Yoshino
Los Angeles Times
LOS ANGELES — Tony Harris first saw Prince in 1988 at the Los Angeles Sports Arena. He sat in the nosebleed section, surrounded by thousands of screaming fans. He can't remember how much he paid for the ticket, but it wasn't more than 30 bucks.
His last Prince show was a recent night at the Hollywood Roosevelt Hotel, where he paid 10 times that for a standing-room-only ticket to an intimate show that kept Prince jamming nearly until the sun came up. If Harris had wanted a seat, that would have set him back $3,121 a pair — priced in homage to the artist's recent album, 3121.
"I can't think of a worse cause than the Prince wallet fund," said Harris, 34. "But I have to say, it was worth it, the experience of it, the after-show with the jazz. It was something that, you want to say, money can't buy."
Then, he added: "But I guess it did."
Not many people can afford the price tag Harris paid.
But Prince still has the cachet that can pack them in, whether at a small hotel lounge or the Staples Center in Los Angeles. The Hollywood Roosevelt concert, however, shows how artists are searching for ways to offset lagging album sales as more fans turn to the Internet for their music. In addition, artists such as Prince are increasing their revenue by dealing with corporate sponsors and using marketing tricks to draw mainstream audiences.
Prince, who performed last year on "American Idol," has teamed with Verizon Wireless to promote their new V Cast phones, which enable customers to download songs and videos, including his new single, "Guitar." Verizon is sponsoring his seven-night concert-and-dinner shows at the Hollywood Roosevelt, which accommodates only 200 people. The intimate performances have generated a great deal of buzz from pop critics and in the blogosphere.
"In the past, artists have been more sensitive to not wanting to be perceived as charging high ticket prices," said Don Passman, author of "All You Need to Know About the Music Business."
"The stigma on that has changed."
The average concert ticket price has climbed from $25.81 in 1996 to $61.58 last year. Tickets are generally priced based on the acts — and the demographics of their fans. The Cheetah Girls, for example, sell their tickets for an average of $35; Fallout Boy, $27. Seeing Barbra Streisand costs about $300.
"We're kind of playing in an unknown area," said Gary Bongiovanni, editor of concert trade publication Pollstar. "Who knows how many people really can afford $1,500 or $3,000 for tickets to see anybody? That's going to be a very small market."
This summer, folks willing to pony up $15,000 for a ticket can see Prince, Billy Joel, Tom Petty, James Taylor and Dave Matthews in a five-concert, 1,000-seat series in the Hamptons in New York. Guests will dine on food prepared by "celebrated chefs," peruse art exhibits and be entertained before the concert by illusionist and stuntman David Blaine. And organizers promise no long waits for the bathroom.
"Our clients told us over and over that they wanted to see the big names perform but didn't want the hassle that came along with attending a concert in a big stadium," said Joe Meli, chief executive of Bulldog Entertainment Co., the "Hampton Social" promoter. "We believe our ticket price is in line with what ticket-reselling Web sites such as www.StubHub.com already get for high-profile events."
Even with high ticket prices at a limited-seating venue, it's not about the cash, Bongiovanni said. "If (Prince) wanted to make money, he'd be playing at Staples."
Neither the Hollywood Roosevelt nor Bulldog Entertainment are disclosing financial terms of the deal, including how much the artists are getting paid. Hotelier Jason Pomeranc, whose Thompson Hotels operates the Hollywood Roosevelt, said that although the deal was profitable, it's also about the intangibles.
"It was to create a special event and to send a really nice branding message for Prince's album, for the hotel and for Verizon," Pomeranc said.
The price and exclusivity are sparking a debate among his most avid fans, who are debating how much is too much to charge.
"Let's hope his next album isn't called 987654," quipped one fan.