Found this, quite an interesting read.
"Service charges are added to the face value of concert tickets because two important players in the concert ecosystem – venues and primary ticketing companies – get little or nothing out of the revenues derived from the ticket’s face value. That money goes mostly to the performers, secondarily to cover certain show costs, and if anything is left over to the promoters. So, the practice developed to add a percentage service charge to a ticket’s face value to pay the venue for hosting the event and the primary ticketing company for servicing venues and distributing tickets. The add-on nature of the service fee is annoying to many fans and fuels the narrative that these are junk fees. But they are not junk fees for the simple reason that the venues and ticketing companies have costs associated with the services they provide to help produce the show. They provide value and one way or another will be compensated for it.
Fans are also told that service charges are Ticketmaster’s way of raising ticket prices. In fact, Ticketmaster does not set service charges, venues do, and most of the money goes to the venues. Let’s break that down."
By Dan Wall In the ongoing antitrust attacks on Live Nation and Ticketmaster, a constant theme is that their alleged “monopolies” are responsible for high ticket prices. Rhetorically, that’s understandable, because if you want to rile up fans against Live Nation and Ticketmaster, there is no...
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