Swift Notes: how the Eras tour ticketing debacle reflects – and distorts – US industry reform

Swift Notes: how the Eras tour ticketing debacle reflects – and distorts – US industry reform

Last week’s debut of Swift Notes discussed the recent emergence of Taylor Swift in unexpected contexts, including discussions of grammar and involvement in crafts. To my surprise, I discovered her also featured in a newsletter by talented musician Phil Elverum, also known as Mount Eerie (and formerly the Microphones). In the newsletter, Elverum expressed frustration with trying to gain attention during a Washington State government hearing regarding a bill proposing regulation of the ticketing market. (You can subscribe to his newsletter here – he writes beautifully.)

Ticket sales have sparked strong emotions among artists and customers due to controversies surrounding dynamic pricing – changing prices based on demand, a practice that has caused controversy when used by Bruce Springsteen. The chaotic pre-sale of tickets for the US Eras tour through Ticketmaster, where all the tickets were bought by registered fans and none were left for general sale, further intensified these emotions. Taylor Swift publicly criticized the company for “excruciating” mistakes and apologized to fans who felt like they had to endure “several bear attacks” to get tickets. Additionally, the US Department of Justice (DoJ) announced an investigation into Ticketmaster and Live Nation, a promoter and venue operator that merged in 2010 and now has control over a significant portion of the live music industry, for potential antitrust practices. Despite a law passed in 2016 to combat ticket-scalping bots, only three prosecutions have been made by the Federal Trade Commission and these bots continue to be a problem.

Phil Elverum performing in California in 2017.

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The Better Business Bureau and the National Independent Venue Association, along with Ticketmaster, have warned Taylor Swift fans to be cautious of tickets being resold on the secondary market. These “speculative” tickets are being sold by vendors who do not currently possess them but plan to acquire them in the future, which surprisingly is legal in most states. Despite recommendations to ban this practice, the US and UK governments have not taken action. Due to inadequate regulation, Kevin Erickson from the Future of Music Coalition says that unethical practices have become the norm. To purchase tickets through Ticketmaster, fans had to navigate through a difficult process and only had 90 seconds to decide whether to buy or risk missing out on tickets. Additionally, there were hidden fees that were not transparent until reaching the checkout. Similarly, fans of The Cure experienced these same issues, despite the band’s efforts to keep ticket prices affordable. After a backlash from lead singer Robert Smith, Ticketmaster agreed to refund some fees.

The necessity of addressing the chaotic situation in the US has gained support from both parties. There are two proposed federal bills, but they are not expected to make progress in the current slow-moving Congress session. This means that individual state governments will have to take action. While Congress operates at a leisurely pace, states must act quickly within small time frames, often resulting in policymakers lacking adequate knowledge and failing to consult with the musicians and venues most affected. This also makes politicians susceptible to being influenced by well-funded secondary ticketing companies. In addition, Live Nation’s federal lobbying expenses have more than doubled from $1.1 million in 2022 to $2.4 million in 2023. Erickson remarks, “There is a significant amount of progress that needs to happen for the artist community to have a seat at the table.”

During a hearing in Washington, singer Elverum was invited to speak about a bill (known as HB 1648 or TSWIFT) that aimed to regulate ticket sales and address issues of fairness and transparency. However, Elverum felt that the bill did not adequately address the issue of speculative ticketing, which disproportionately affects independent artists like himself and even superstars like Taylor Swift. Despite his appearance at the committee, Elverum’s concerns, and those of other musicians, seemed to be disregarded as the bill passed without any significant changes. In a video of the proceedings, Elverum noted that some legislators were making jokes about Taylor Swift, further emphasizing their lack of understanding of the impact of speculative ticketing on artists like him.

Bruce Springsteen performing in Italy in 2023.View image in fullscreen

Thankfully, Elverum and his community were spared from the potential effects of the failed bill at the committee vote. However, the situation highlights the ongoing efforts to improve the ticketing market for consumers and musicians, in a manner similar to the popular game Whac-a-Mole. Additionally, this incident showcases the complexities involved in using Taylor Swift’s actions as a benchmark for addressing these concerns, as politicians may use her name misleadingly to appear responsive to fans’ needs. Erickson explains that one of two federal bills, named the BOSS SWIFT Act after Springsteen and Taylor, is primarily influenced by the actions of secondary ticketing companies.

According to Erickson, companies such as StubHub, Vivid Seat, and SeatGeek have capitalized on the public’s frustration with Ticketmaster to pursue their own interests. Their main goal is to increase their access to ticket inventory and sell them at inflated prices. Erickson argues that implementing BOSS SWIFT would harm legitimate resale sites and require transparency in ticket holds, which could benefit brokers rather than individual fans trying to purchase tickets. Ultimately, this policy may not serve the interests of families who simply want to attend an event.

Erickson reassures that the bill is not supported by the musician community and is unlikely to be approved. Another proposed law, the Fans First Act, aims to prevent surprises at the time of purchase by requiring full disclosure of advance fees. It also bolsters the Better Online Tickets Sales Act of 2016 and tackles speculative ticketing. However, it may face delays in the congressional process. Erickson acknowledges that the fight for federal legislation will be a lengthy one for the artist community. He also recognizes that incremental changes in state laws help highlight the true issues and hold accountable those responsible, ultimately leading to federal momentum.

Erickson suggests that Maryland can alter the tone of the discussion with a bill known as Commercial Law – Consumer Protection – Sale and Resale of Tickets, which is scheduled for a vote at the end of the week. The bill aims to implement all-inclusive ticket pricing for both primary and secondary markets to eliminate unwelcome surprises at checkout. It also guarantees the right to resell tickets, though with some restrictions on markups and fees charged by secondary ticketing platforms, and prohibits speculative ticketing.

I had a conversation with Senator Dawn Gile, one of the four Democratic sponsors of the bill. She mentioned that they had sought input from various local parties, including musicians and smaller theaters. As an example, a community performance of The Nutcracker was impacted by inflated ticket prices, while another theater discovered that tickets were being resold for nonexistent mezzanine and balcony seats. According to Gile, this is a widespread issue that goes beyond just popular concerts by artists like Bruce Springsteen, Taylor Swift, and Beyoncé. It also affects our smaller venues.

Taylor Swift fans exhanging friendship bracelets in Singapore, 2 March 2024.

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Gile has been dealing with the intense lobbying efforts of the secondary marketing industry. She finds it amusing that when talking to StubHub and other companies, they argue that speculative tickets are comparable to gig-worker services, allowing customers to avoid waiting in line and paying for the convenience. However, Gile believes this argument is weak because these tickets are being sold as actual tickets and the companies are really just hedging their bets. She also points out that these companies are trying to suggest that passing this legislation would mean no more shows in Maryland, effectively destroying the live entertainment industry in the state. However, Gile argues that this claim has already been disproven by the fact that several states, including the popular entertainment hub of Las Vegas, have already implemented caps on the secondary market, yet the live entertainment industry still thrives. She believes her bill simply removes the incentive for brokers to profit off of consumers.

The current situation is in part due to Ticketmaster and Live Nation’s dominant position in the market, according to Gile. He believes that the government has a responsibility to take action. The concept of tickets being a profitable commodity has also become normalized. Some argue that it is not our place to interfere with free market capitalism as there is a willing buyer and seller. However, this is not a truly free market, which is why regulations exist for the sale of securities and corporate stocks to prevent deception and market manipulation. The prevalence of ticket brokers and the use of bots and speculative tickets is evidence of a manipulated market.

According to Erickson, Swift serves as a useful example to highlight the issue of unregulated resale. This demonstrates that elected officials need to take action, rather than relying on the failed approach of letting the market regulate itself. This is a chance to shift the perception of live music from simply something with economic value to something that has intrinsic value. Live music can serve as a means for communities to come together, for marginalized voices to be heard, and for communities to define themselves. Policymakers have a duty to prioritize the voices of music communities that are being threatened by exploitative business models.

You only have to look at the photos coming out of each date on the Eras tour, in which thousands of teenage girls are having their first live music experiences, to see the vast potential for community activation: here are the roots of future lives spent in music so that they might one day look back, as Phil Elverum does in his beautiful 2020 epic Microphones in 2020, on how they were shaped by it: “I will never stop singing this song,” he sang. “It goes on forever.”

The story of us: the Guardian’s week in Swift

The response to Taylor Swift’s call for her fans to vote on Super Tuesday is varied.

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Singapore’s Prime Minister has defended the country’s decision to secure exclusive access to the Eras tour.

According to a genealogy company, Taylor Swift and Emily Dickinson are connected through family ties.

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The ‘Eras tour trail’ in Singapore, where Swift is currently touring.View image in fullscreen

This past week has been uneventful in terms of news coverage about Swift. Thus, here are the recent developments regarding efforts to regulate ticketing in the United States.

  • Efforts to curb the use of bots to scalp tickets have escalated in response to the controversy surrounding Taylor Swift’s ticket sales. Six states, including Pennsylvania where Swift grew up, have implemented measures to restrict the use of scalping bots.

  • This episode of the Decoder podcast delves into the history of Ticketmaster’s dominance in the live events industry, examining changes in policy during the Reagan era. The focus is on the comparison between Taylor Swift and Ronald Reagan.

  • In February, Reuters reported that the Department of Justice (DoJ) asked Live Nation for additional details in their antitrust investigation. This request came after concerns that Ticketmaster was not fully cooperating with the investigation. However, a recent spending agreement aimed at keeping the government operational until September may limit the resources available to enforcers of antitrust laws, potentially jeopardizing the investigation (Bloomberg, March 4).

Feels unique: a playlist of songs not in Swift.

The New Eves.

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I have consistently missed seeing the Brighton band The New Eves, who are part of the Broadside Hacks group and are friends with Cornish folk musician Daisy Rickman (featured in our 2024 ones to watch list). They bring to mind acts like the Roches and the Raincoats, with a similar raw and imperfect charm that is absent in the Last Dinner Party’s sentimental style. (Don’t forget to check out the weekly Hits Different playlist on Spotify.)

Source: theguardian.com