Tag Archives: music

The Cost of Buying Springsteen Tickets

First, a question for everyone… Do you think concert ticket prices are ‘too low’, ‘too high’, or ‘just right’? Going out on a limb here, we bet the biggest percentage of people selected that concert ticket prices are ‘too high’.

Example: Bruce Springsteen ticket prices were for sale for $5,000 and up. And that was if a buyer tried to purchase tickets directly on Ticketmaster.

Another example: Adele concert prices in Las Vegas started at $676 and went for $40,000 (for front row).

Ticketmaster, Live Nation, and StubHub now use “dynamic pricing” for concert tickets. This translates to prices fluctuating wildly; high demand equals high prices. These ticket hubs also have resellers who scoop up blocks of tickets and then resell those at a higher price, often using the original ticketing site to make the sale. The ticketing site earns commission from the double sale.

[Note: Ticketmaster release data that showed only 12% of tickets used dynamic pricing. Overall, only 18% of Springsteen’s U.S. tickets sold for under $100, and only 1% sold for more than $1,000.]

Regardless, buying concert tickets can be both confusing as well as expensive. When to buy? Where to buy? And if we can’t get tickets directly, what will a reseller charge for them?

What would you pay to see The Boss?

Group Activities and Discussion Questions:

  1. Pricing is a complex topic. Discuss the six steps for pricing (determining objectives, estimating demand, determining cost/profit relationships, select price level, set list price, and make adjustments).
  2. Discuss the various pricing models in class: demand-oriented, cost-oriented, profit-oriented, and competition-oriented.
  3. For Springsteen concert tickets (or any other entertainment), divide students into groups and have each group work on any/all of the six steps.
  4. When setting the price level, assign each team a different model to use (demand-oriented, cost- oriented, etc.).
  5. Debrief the exercise. Compare the various pricing models and discuss advantages/disadvantages of each.
  6. Optional: Have students examine the pricing policies on Ticketmaster, StubHub, SeatGeek, and Live Nation. (Note: Ticketmaster and Live Nation merged in 2010.)

Sources:  Greene, A. and Millman, E. (2 August 2022). Springsteen fans raged over ticket prices. Experts say there’s no easy fix. Rolling Stone.; Lieber, R. (26 July 2022). The case of the $5,000 Springsteen tickets. New York Times.; other news sources.

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Marketing Used for Good

We commonly think of using marketing principles and practices to promote business and grow revenue. And that’s fine – up to a certain point. However, marketing can be so much more.

We know that marketing is used to grow businesses and organizations. Increased revenue usually leads to new research and development, new products and services, and strong returns for shareholders and stakeholders. Lots of people benefit from this. And that’s good. But it is only part of the story. Marketing can also be used to help society in very powerful ways.

In one example, advertising agency Havas Tel Aviv recently used it powers for good when it partnered with Laisha, a popular women’s magazine in Tel Aviv, to promote a domestic abuse hotline. A study of women in Israel had found that most women were not even aware that a  hotline number for domestic abuse even existed. Therefore, for the promotion the agency created a simple cover page for Laisha with the 24/7 helpline phone number in large white letters on a black background. Basically, making it an impossible-to-miss cover. The text stated that women who suffer from domestic violence are not alone – and that the anonymous phone line offers help in all languages.

The result: An increase in calls to the hotline by 500%!

Musicians and artists also are powerful contributors to social programs and awareness. Several years ago rapper Logic recorded the song titled “1-800-273-8255,” directing young people to the National Suicide Prevention Lifeline phone number. The song chronicled a youth’s journey through depression to a suicide prevention call. The song was nominated for Grammy awards for song of the year and best music video as well as a MTV music video award. But the most stunning result was the increase in calls for help during its release.

The results: 9,915 more calls to the support line were made in the 34-day period after the Grammy and MTV Music Award shows! The song’s impact contributed to an estimated 245 fewer suicides over the same period. That’s powerful!

Consider: Marketing makes a difference in many ways.

Group Activities and Discussion Questions:

  1. Discuss how marketers can be active with social responsibility and justice.
  2. What skill sets translate from corporations to community service?
  3. Show Logic’s video: https://youtu.be/Kb24RrHIbFk
  4. Divide students into teams. Have each team select a social issue or a community program that they admire.
  5. Challenge each team to develop a marketing tactic to highlight the ways in with the programs can help people.
  6. Alternatively, have each team research an existing social program and analyze its messaging and tactics (ex: Red Cross, Big Brothers, etc.)

Sources: Ansari, T., (Dec. 15, 2021). Rapper Logic’s song about suicide prevention may have saved hundreds of lives, study says, Wall Street Journal; Griner, D. (Dec. 2, 2021). This magazine cover boosted calls to an abuse hotline by 500%. Ad Week.

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SiriusXM Buys Pandora

SiriusXM satellite radio provider is buying music streaming service Pandora for a $3.5 billion stock deal. The deal will create the world’s largest audio entertainment company. Why should SiriusXM buy Pandora? Because SiriusXM wants to gain people who listen to music but don’t want to pay for the premium SiriusXM service.

SiriusXM offers streaming without advertisements for $10.99 to $20.99 per month per car with up to 140+ channels, or streaming on any device for the same amount of $10.99 to $20.99 per month, or combine both options for all-access streaming. SiriusXM has 36 million subscribers in North America.

On the other hand, Pandora, which has 70 million active listeners (5.6 million who are paying members) can be used at no-cost as long as listeners don’t mind listening to advertisements. Or, listeners can buy monthly subscriptions at $4.99 or $9.99 per month for services that eliminate advertisements and offer personalized stations and create playlists, plus other options.

SiriusXM isn’t new to Pandora; it provided $480 million of funding to Pandora last year. Pandora faces stiff competition from other music services such as Apple Music, Amazon, Tidal, and Spotify.

The war to gain new listeners is heating up!

Group Activities and Discussion Questions:

  1. Poll students:How much music do they listen to each day? Where is their music coming from? How much do they pay each month?
  2. View SiriusXM: https://www.siriusxm.com/
  3. View Pandora: https://www.pandora.com/
  4. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
  5. Which strategy is SiriusXM using? Why?
  6. Divide students into teams. Have each team research the different prices and packages offered by each music streaming company.
  7. Compare price structures. Which offers listeners the better deal?

Source:  Wall Street Journal, New York Times, other sources

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