An economics lesson for the concert business
ARE you longing to see Take That, a British boy band approaching middle age? More than 1.3m people are. So heavy is demand for the tour, which begins in Sunderland in May, that Britain’s phone network at one point creaked under three to four times the normal weight of calls. But even sold-out concerts are never really so. Plenty of Take That tickets are for sale online—at up to five times the original prices.
For the hottest acts, the concert business is good. Lady Gaga and Justin Bieber have little problem selling tickets. Yet trouble lurks below the stratosphere. Pollstar, a research firm, estimates that the 50 biggest worldwide tours grossed $2.93 billion last year—12% less than in 2009. StubHub, a large website on which tickets are traded, says the average concert-ticket price dropped by 18% between 2008 and 2010. …



