Memorandum submitted by the Music Managers
Forum (MMF)
In response to the Government's request for
submissions in relation to the ongoing problem of ticket touting,
and especially online ticket touting, the Music Managers Forum
(MMF) would like to make the following comments and proposals.
The MMF, as the group that represents the collective
interests of the UK's Artist Management community, believes that
the Artist must be at the forefront of any decisions that are
made within this sector.
It is, after all, the Artist that has both the
primary relationship with the consumer/fan and is the creator
of each original and unique performance. When addressing issues
such as ticket touting, it is the Artists who are most concerned
with the ways in which the secondary market operates and how it
impacts the unique relationship they have with their fans and
the public.
Consumers, supported by the emergence of numerous
ticket touting sites, have already created an online marketplace
for the re-sale of tickets to live music events estimated to be
worth over £250 million in annual revenues in the UK alone.
In light of this, a "head in the sand" approach by the
industry is no longer viable or appropriate.
The MMF considers that the majority of Artists
would prefer that the ticket touting market did not exist. The
MMF, however, also recognises that the current processes in place
for selling tickets does not fairly reflect either the economic
or technological realities brought about by the emergence new
technologies such as the Internet and mobile platforms.
There are particular pricing problems whenever
there is a fixed capacity and an unpredictable demand for a live
event. Where demand exceeds the available supply there will inevitably
be upward pressure on price. This could perhaps be dealt with
by having higher initial ticket prices (to restrict demand) or
by adding more performances (to increase supply). Neither of these
solutions is preferable for our Artists, most of whom are unhappy
with a situation in which their fans may end up paying relatively
high ticket prices, but themselves have limited time, resource
and capacity for adding more and more performances. The secondary
ticket market resolves the problem in theory, but in practice
does so in a way which is currently chaotic, does not benefit
the stakeholders, and leads to dissatisfaction for both Artists
and fans alike.
In today's world, in which consumers have the
freedom to express their views openly via the Internet, there
is a growing desire for the accessibility of tickets to be democratised
and for the price to be determined by the market. For example,
it is possible that the adoption of dynamic ticket pricing, as
utilized in the commercial airline industry, and adapted to the
live music industry, might provide a potential acceptable market
and technology-based solution; this is one of many future scenarios
which the MMF would like to prepare for by preventing "over-legislation"
at this point.
As a result of addressing this changing landscape,
it is necessary that the MMF (and other stakeholders in the creation
of live music events) becomes actively involved in re-formulating
terms and conditions for the sale and re-sale of tickets. Our
intentions are to eliminate the ticket touts, stimulate fair competition,
satisfy the needs of the consumer and deliver value back to the
creators of live music events in order to secure their future
health, financial and cultural value. We recognise that there
may be a need for legislation to support any resulting solutions
proposed in light of the legal uncertainties surrounding the re-sale
of tickets.
The MMF proposes to host a series of meetings
where stakeholders in the live music event industry can construct
appropriate measures to address all of the concerns arising from
the above; most importantly, fan and consumer concerns over ticket
authenticity in the secondary marketplace, and industry concerns
over the lack of stakeholder engagement from the current secondary
ticketing platforms. In the event that the current situation continues
unabated, we will continue to investigate ways for our Artists/Performers
to participate in this additional revenue stream.
June 2007
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