The BBC has posted an article which loosely correlates increased concert ticket prices with decreased album sales due to internet based piracy.
Of course, various folks have grabbed on to this story and making totally wild claims. “InterWebs Piracy is Killing Artists!!” or “Internet Downloads Are Teh B3ST THANG EVAR!!!11!1111″.
What a total crock of crap. I’m sure the RIAA will jump on this and milk it for all it is worth.
There are three major flaws with the whole line of reasoning.
First, and as mentioned (sort of) in the article, it isn’t just Concert tickets that are shooting through the roof. Sporting event and other entertainment events are also way up, too. Last time I checked, it was pretty damned difficult to download next Sunday’s big game on Pirate Bay.
Secondly, and also as the article mentions (without actually telling the full story), very very few musical artists have ever made any kind of real money off of album sales. This has always been the case. Just look at the margins at the iTunes Music Store; the RIAA walks away with 66+ cents on the dollar of every song sold, only pennies of which go to the artist (actually, to the exploitation contract — yes, “exploit” is what they call it). And, yet, that isn’t enough.
Outside of the superstars or supergroups, artists that want to make money in the music biz have always had to do so through touring, touring, and more touring.
Finally, the most damnable flaw of the claim is the total lack of acknowledging simple supply and demand.
The article specifically calls out Madonna’s upcoming tour as an example of skyrocketing ticket prices.
Madonna is a superstar. Every show she plays will be sold out. That is, every single show on this tour will run out of a supply of tickets before demand has been met.
Las time I checked, Madonna still likes money. Regardless of her hypocritical claims otherwise (what a crock! “Now that I have so much money I even gave my child aged daughter a $10,000/month credit card, I have decided money is evil… now where is my butler, my hand picked tibetan mountain berry blessed tea is a bit cold”), she really likes having lots of money and wants more of it.
Is it any surprise that ticket prices would be skyrocketing in a situation where there is vastly more demand than supply? Madonna makes more money. Her management & touring company makes more money. The artists on tour with her [might] make more money. The venue makes more money. This is every capitalists dream situation.
Same goes for U2, Rolling Stones, David Bowie and every other artist mentioned in that article.
I saw that Eddie Money was playing at a nearby bar. $25 cover at the door. I’d bet Eddie would love to see tickets for his show go for $325. Wrong end of the supply/demand equation, unfortunately…