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May 13, 2009

TicketsNow sold phantom DC Springsteen tix

Ticketmaster does it again. In February the quasi-monopoly botched sales for Bruce Springsteen's current tour and sent fans to Ticketmaster's TicketsNow.com scalper site, where they had to buy seats at huge markups. Now, AP reports, TicketsNow says it sold too many tickets for the Springsteen show at DC's Verizon Center on Monday. The company has been calling fans who thought they locked up seats at hundreds of dollars to tell them the bad news. TicketsNow says it will give people refunds along with free tickets in the nosebleed section.

But I doubt they're happy. Baltimore resident Joe Compton said he got locked out of buying Springsteen seats at face value from Ticketmaster in early February. So he went to TicketsNow, he says, paid $440 for two tickets plus another $80 in nuisance charges and was told the tix would be mailed in early May. They never came

"On Friday they called, leave me a message," he told me on the phone. " 'Contact us.' I've called Friday, Monday, Tuesday and Wednesday. They have not gotten back to me. I go and look on my TicketsNow account. It says 'the order is complete'.... They've kept 520 of my bucks for three months and I don't think I'm getting the deal."

He's feeling doubly abused and very ticked off. Good thing Ticketmaster doesn't do anything important, like fly planes or run nuclear energy plants. Dear Justice Department and FTC: Don't let Ticketmaster merge with Live Nation!

Here is February's Hancock column on the Ticketmaster/Springsteen debacle:

'Boss' furor shakes Ticketmaster's reign

Date: Saturday, February 7, 2009
Byline: JAY HANCOCK

Lettie Holman swears on Bruce Springsteen's soul patch that Ticketmaster automatically kicked her over to its high-priced TicketsNow scalper site when she was trying this week to buy seats for The Boss' tour stop at Washington's Verizon Center.

Ticketmaster says she and others who make similar claims are misremembering or lying.So it is that, even before it starts, Springsteen's newest tour has become a public relations disaster for him and America's best-loved concert-ticket monopoly.

Springsteen is "furious" at Ticketmaster, he said in a prepared statement. Ticketmaster denies forcing Internet buyers to TicketsNow, where one is helpfully offered seats at $500 a pop, and says problems experienced by Springsteen fans have been exaggerated.


A New Jersey congressman is demanding an investigation. New Jersey's attorney general has asked Ticketmaster to stop doing what it says it didn't do.

Ticketmaster is scrambling, overnighting free tickets to aggrieved Springsteen fans, compensating people who mistakenly bought marked-up seats on TicketsNow and doing its best to imitate a caring, progressive mega-corporation.

"We sincerely apologize to Bruce, his organization and, above all, his fans," wrote Ticketmaster boss Irving Azoff.

Because he's worried about losing future business from rock fans and impresarios?

Heck no. Ticketmaster owns 70 percent of the concert-ticket market, estimates Scott W. Devitt, who follows the company's stock for Stifel Nicolaus. There's really nowhere else to go, Ticketmaster's notorious "convenience charges" notwithstanding.

Azoff, who grew to fame and riches managing Dan Fogelberg and the Eagles, is probably more concerned about what the Springsteen debacle spells for Ticketmaster's reported merger plans with concert promoter Live Nation.

That deal would make Ticketmaster even bigger and more powerful, which is hard to imagine. Given that the administration of President Barack Obama was already likely to frown on such a combo, the Springsteen episode couldn't have come at a worse time for the company.

It began at the Super Bowl. Springsteen's Sunday halftime show was a glorified ad for his tour. Tickets went on sale at 10 a.m. the next day.

Jonathan Kandell of Catonsville, attendee of 54 Bruce shows, wanted seats for the Verizon Center on May 18. But as Boss Hour struck he couldn't complete the purchase. Then he tried searching for Springsteen seats in Philadelphia. That was when, he said, Ticketmaster's software automatically sent him to TicketsNow.

He couldn't believe it. It was only a few minutes after 10, but TicketsNow was already selling hundreds of Springsteen tickets for three or eight times face value.

"I was really upset," Kandell says. "Is this some sort of fraud or monopoly? I don't know."

Ticketmaster owns TicketsNow, which is why Holman, of Silver Spring, thought something was fishy when she had the same experience.

"It feels like Ticketmaster is hoarding and saving seats in the venue that are going to TicketsNow," said the 100-show veteran. "We're not getting access to the seats."

Ticketmaster spokesman Albert Lopez acknowledges there were software problems Monday - but only for people trying to buy tickets for shows in New Jersey and on New York's Long Island.

All those fans were contacted by phone or e-mail and provided seats, he said.

The rest of Monday's frustration, Lopez said, resulted from high demand for Springsteen tickets and the fact that they quickly sold out, not from anything Ticketmaster did.

While Ticketmaster offered an optional TicketsNow button for Springsteen buyers, he said, nobody was automatically sent to the site.

"There is no automatic redirect," Lopez said. "A fan has to physically click the button."

"It happened automatically without me touching a damn thing," said Holman.

I talked to three other customers, including Kandell, who said they had the same experience.

Why was Ticketmaster even allowed to buy TicketsNow last year?

Lopez says Ticketmaster doesn't own the tickets sold on TicketsNow. They're put up by individuals and licensed brokers, some of whom could have already had seats to sell early Monday, he said. Ticketmaster will no longer provide optional links to TicketsNow, it says, unless performers allow it.

But both companies under the same roof is still a breathtaking conflict of interest, subject to little oversight. TicketsNow is one of Ticketmaster's fastest-growing units.

The Internet has been unkind to many media and entertainment businesses, but Ticketmaster is an exception. In a parallel universe it might have been regulated as a natural monopoly like electricity. But even electric companies aren't much regulated these days.

Years after the band Pearl Jam complained about Ticketmaster before a star-struck congressional subcommittee, the company reigns supreme. This isn't 1991, however, when the George H.W. Bush government approved its buyout of rival Ticketron and helped create today's mess.

Springsteen has come out against a Ticketmaster-Live Nation merger, which is a start at fighting back. A Ticketmaster boycott by Springsteen would be better.

Real competition in ticket distribution would be the best deal of all. Barring that, a Federal Trade Commission inquiry into Monday's problems might ensure that we're not still reading Ticketmaster horror stories when Miley Cyrus has her comeback tour.

Posted by Jay Hancock at 4:06 PM | | Comments (4)
Categories: Ticketmaster
        

Comments

Both those who designed $1000 seats in the new Yankee Stadium and those who sell $200 tickets to see an over the hill rock star are relying on the same marketing axiom: A fool and his money are soon parted.

Dan and Jay:

First Dan, fools and us fans get to do what they want with their money; I spent more on Leonard Cohen monday at MPP and saw one of the greatest shows of my life.Great art is not something that can be easily quantified or priced to market. Springsteen has done shows in the past worth that much to me. His current position playing the victim of this scam by Ticketmasters however does not sit well with me.

Jay:
Two hrs after we talked on this and I had emailed Springsteen's management, Ticketnow called me back, said that the independant tix broker who was to sell them my tixs had "not been able to fulfill his order", and I was out of luck. They first offered me tixs in hershey, I told them I had already refused that offer and that i had prior commitments that nite. then they offered a full refund of my money and free tixs up in the nosebleed 400s at the Verizon Center monday. Reluctantly I took this offer, but told them I remain both skeptical and suspicious of these "glitches".

I note that it is the Ticketnow position that the AP report of 1000s of tixs being oversold is overstated. The TN spokesperson in what i see as a non-denial denial, says there are 300 people affected; the Post reporter apparently did not ask if these 300 people were holding 1000+ tixs! I think the 1000 tixs by 300 buyers number makes sense and I have got to ask how did Ticketmasters/Ticketsnow manage to screw up 6% of the seats at the Verizon Center (18,000 capacity).

I see massive collusion in this DC market for the one area Bruce show intent on making a killing on the resale market and Springsteen and his management seem totally unwilling to ask any hard questions of their finanacial benefactors.

Dan-you may be right about the "rock star "bit in that Bruce has apparently lost his way; I will note those Yankee stadium seats you mention were at whole other level of inappropriateness/foolishness-$2750 per seat! 11 times what I would pay for a great artist. And everbody knows: "The Yankees s***".

Dan

My complimentary nose bleed seats for the monday springsteen gig just arrived and I am in section 425- exactly dead center behind the stage.
God awful seats, clearly the worst seats in the hall, face value $68 but free to me for being a victm of the almighty TixMasters evil empire.

Springsteen's management has not deemed it important enough to contact me; his publicist sent me a short note saying good luck and we have nothing to do with this. Yeah, right!

Did anyone know that Ticketmasters also has a policy that 2 people in the same family(same address) can't buy tickets to any of their concerts. i have 4 sons and they all have girl friends. If I but 6 tickets to a concert, my sons have to go to their after market sight and get theirs. It's ok to buy all you want if you pay the higher price. Someone needs to look at how they do business, but you know they won't.

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Wednesdays and Fridays.
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