I’ve never dealt much with TicketMaster, despite them being a monopoly. So my questions here may just be out of naiveté:
1) Why would TicketMaster pay event organizers ahead of time, if the event might be shit and attendees may demand their money back? Rather than having to deal with a lot of chargebacks and making it their own problem with the banks, they might prefer to make sure the event goes off without a hitch and refund people while they still can. Rather than subsidizing the refunds they make the event organizer have to get (and pay for) financing instead, backed by their payout. They might also offer such financing.
2) I get that they hold event organizers hostage by making contracts with the venues for years, that might be an antitrust issue but it’s separate from 1.
3) Why would TicketMaster make scalping easy? Middlemen would just buy up all the tickets and then pump and dump the price, much like early crypto investors in a meme token or altcoin do. So they don’t “deliver” the ticket to you until just before the event, exactly for that reason.
With ChatGPT it’s now easier than ever to impersonate thousands of people at scale, with credit cards and everything. But I will admit, showing up to an event at least once confirms there is a human behind the account. But a first-timer buyer? Shouldn’t be able to resell, no.
#1 and #3 are related. They make scalping easy so they get all of their money immediately and can pay event organizers ahead of time. I personally think scalping should be straight-up illegal but business schools loove it and consider it an excellent example of helping with liquidity in a system and finding the true "willingness to pay" price of something.
It features a price discovery mechanism: you auction off M tickets to M people, the price goes up every time after M people buy and the oldest buyer is booted when the others buy, but can buy back in again. Buyers can set a “reserve price” to automatically bid up to that price.
No scalping, because tickets aren’t transferrable.
Similarly, you can disallow transfering of bearer token X but let the user sell it back to the central market maker and someone else buys it. Enforcing commissions on sales.
1) Why would TicketMaster pay event organizers ahead of time, if the event might be shit and attendees may demand their money back? Rather than having to deal with a lot of chargebacks and making it their own problem with the banks, they might prefer to make sure the event goes off without a hitch and refund people while they still can. Rather than subsidizing the refunds they make the event organizer have to get (and pay for) financing instead, backed by their payout. They might also offer such financing.
2) I get that they hold event organizers hostage by making contracts with the venues for years, that might be an antitrust issue but it’s separate from 1.
3) Why would TicketMaster make scalping easy? Middlemen would just buy up all the tickets and then pump and dump the price, much like early crypto investors in a meme token or altcoin do. So they don’t “deliver” the ticket to you until just before the event, exactly for that reason.
With ChatGPT it’s now easier than ever to impersonate thousands of people at scale, with credit cards and everything. But I will admit, showing up to an event at least once confirms there is a human behind the account. But a first-timer buyer? Shouldn’t be able to resell, no.