Music Industry Innovation Saves UK Adele Fans £4.2m
MIC found the recent removal of 18,000 ‘known or likely touts’ from Adele’s pre-sale ticket release intriguing and went a step further to calculate a monetary value on the saving made for Adele’s fans. Their research was picked up by BBC Radio 4 and Chris was interviewed this morning on the Today Programme.
Click here to listen (55 minutes 20 seconds)
Below is the press release:
· Adele removed 18,000 ‘known or likely touts’ from her pre-sale ticket release window
· This meant that touts were prevented from purchasing and more fans could buy face value tickets
· Media Insight Consulting estimate that 36,000 tickets were rescued from touts
· Media Insight Consulting research shows on average people are willing to pay £181 for tickets, meaning that Adele’s move saved her fans £4.2m
· Media Insight Consulting research also showed that there were over 50,000 people willing to pay over £750 for each ticket, valuing the potential lost profit for touts at just over £29m
Media Insight Consulting CEO, Chris Carey, commented, “Adele’s 25 has been smashing sales records and there has been incredible demand for her live shows. Her music has reached the masses and it’s great to see her taking steps to protect her fans.”
Carey added, “The resale of tickets has been a contentious topic in the live industry with professional touts making very large profits from an artist’s biggest fans. Its fantastic to see the live industry innovating to ensure that more fans have access to affordable tickets when they first go on sale.”
– What did Adele do differently?
In order to qualify for Adele’s presale tickets for the upcoming UK dates of her tour, fans had to register their details at adele.com for the chance to purchase tickets.
As well as rewarding Adele’s super-fans there was a larger motive here for Adele and her management team at September. It meant that they could apply a method to exclude touts from the pre-release ticketing window.
Working with SongKick, Adele and her team identified accounts they believed to belong to touts. The methodology has been kept secret, presumably to allow a similar approach in the future.
– How many people were affected?
Over 500,000 fans registered in the UK for access to pre-sale. Jonathan Dickins, Adele’s manager at September management, said that that more than 18,000 “known or likely touts” were de-registered before the UK pre-sale tickets were made available.
– How did you estimate the impact on fans?
Each person who registered was eligible to buy up to four tickets.
18,000 accounts (presumed touts) were removed from pre-sale
If half of those touts had purchased their full allocation there would be 36,000 tickets available on the secondary market.
Media Insight Consulting research showed the average willingness to pay for a ticket was £181.
So, £181 minus £65 (face value of the ticket) gives a mark-up of £116
Average mark-up of £116 x 36,000 tickets = £4.2m
– What if touts had perfectly price discriminated and maximized revenue?
Media Insight Consulting found that 50,000 people were willing to pay between £750 and £1000 for a ticket.
If touts were able to find this audience and extract their maximum willingness to pay, profits for touts could have been as much as £29m.
[Taking the midpoint of £875.50, minus the face value (£65) there is a mark-up of £810.50. Multiply this by 36,000 tickets gives £29,178,000.]
– And Team Adele are not finished yet
New ticketing regulation (The Consumer Rights Act, 1st October 2015) means that tickets on secondary markets now have to declare the seat numbers for tickets that are being resold. This means that team Adele can ‘zap’ a ticket that is being resold (in breach of terms and conditions) and reallocate it for sale to fans.
Adele put around 400,000 tickets on sale for the UK part of the tour. According to Adele’s website, all dates (including European dates) have sold out.