What is the real reason behind the rise in Glasgow concert tickets?

Fans are being asked to fork out hundreds of pounds to see their heroes on stage, and we are left wondering why this is happening.

In response to the public concern, the Glasgow Times has decided to investigate the rise in concert ticket prices.

As we continue with the series, we are today looking at possible reasons for the rise. 

But first things first, where does your money actually go when you purchase a concert ticket? 

According to Ticketmaster, ticket costs can be made up of several factors including face value, service fees, the order processing fee and the facility fee.

Face value is essentially the base cost of your ticket while service fees go to Ticketmaster and help them cover the costs of running its website and booking line, order processing fee covers the cost of processing the booking and the facility fee goes directly from Ticketmaster to the venue’s box office.

(Image: Donald MacLeod, MBE, captured by Gordon Terris)

Donald Macleod MBE, live music and club promotor (of CPL live, Cathouse and The Garage) said ticket prices are then decided by the artist's management and agent and agreed by the venue, promoter and so forth.

He added that the majority of the money raised from ticket sales, minus all costs of hall hire, production, crew, catering security and advertising, is paid to the artist as a guaranteed fee or percentage payment, with hopefully a small portion left for the promoter.

It should be noted that the venue does not set the price. 

So, if ticket pricing follows a seemingly structured system, what’s with the rise?

One word that has noticeably been thrown around between social media and gig-goers is ‘greed’.

Whether it is corporate greed or artist greed that people reference, the word is used, and it hangs in the air like a bad smell.

But there is much more to unpack.

For one, we are in the midst of a cost-of-living crisis and have been for some time now.

Since late 2021, a rise in day-to-day items, transport and entertainment means everyone is having to fork out more to live as they always have.

Touring bands have seemingly felt the impact too.

As fuel costs increase, artists’ management and agents may have to up ticket prices to match the expansion in inflation.

A few years ago, singer-songwriter Santigold pulled her American tour due to the ‘height of inflation’ and artists like Anthrax and Little Simz followed suit.

(Image: Little Simz, PA)

Music venues are also needing to up prices as they face a rise in running costs.

A spokesperson for the SEC in Glasgow said: “Like many businesses the SEC has experienced energy cost increases, however we are progressing at pace with our sustainability strategy with a clear aim of being carbon neutral by 2030 in line with Glasgow City Council’s ambitious energy targets.

“As part of this strategy we have a key focus on low energy technology like LED lighting which is creating cost efficiencies.”

But two recent changes in the music industry could also be responsible for the surge.

First off, productions are a lot different now than they used to be.

Though crowds used to be wooed by a singer holding a guitar and singing into a mic (And some still are), it seems it has become the norm for singers to put on a show.

Look at Taylor Swift for example.

(Image: Taylor Swift Eras Tour 2024, PA)

During her Eras Tour, which she has taken across the globe, the star put on a three-hour show every night with multiple costumes and set changes.

So, the more money forked out for the production, the more ticket prices must go up as the artist still has to turn a profit.  

But there is also a difference in how artists make money nowadays.  

Once upon a time, an artist’s income came from album sales alone and tours did not bring in much.

But as the industry has shifted to streaming music instead of buying it, artists now need tours and merchandise more than ever.

(Image: Thom York, PA)

This is because big streaming platforms like Spotify for example, can sometimes pay less than a penny per stream.

Thom Yorke of Radiohead famously tweeted in 2013 that artists discovered via Spotify will simply not get paid and in an interview, musician Beck said: “If I tried to make my albums with that Spotify pays me, I wouldn’t make them.”

But a lot of people have accounted for the unwelcome rise to the introduction of dynamic pricing too.

In short, dynamic pricing means ticket prices go up and up the higher the demand and the bigger the online queue to get tickets.

(Image: Donald MacLeod, MBE, captured by Gordon Terris)

Donald MacLeod MBE told the Glasgow Times: “An artist on sale popularity is driven by market forces and computer algorithms, which unfortunately means many fans end up paying an absolute fortune for a ticket which is way above the initial advertised price.”

And part of the problem, according to Donald, is that fans go along with it.

He explained: "Dynamic pricing hasn't stopped people from paying high prices, fans will pay to see their heroes. You have to question if there is a better way to do it, and at the moment I don't think there is.

“If people stopped paying those high prices, some of which are horrendous, the industry would be forced to have a major rethink."

(Image: Donald MacLeod, MBE, captured by Gordon Terris)

It is impossible to pinpoint one reason for the soaring costs of concert tickets because every possibility seems to play a part.

But what can be said, is if every factor continues the way it is now, ticket prices will seemingly never drop.

Our Glasgow Times Investigates continues tomorrow.