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Stopping Scalping

ScalpingDigital Music News are carrying this story about online ticket scalping – a case in which an LA based company calling themselves ‘Wiseguy Tickets’ employed a ring of Bulgarian computer programmers to buy up all the best tickets to high profile, high demand concerts and resell them online for a huge mark-up. Perhaps parting with more than six times the face value of the ticket is painful for whoever buys the ticket second hand, but presumably no-one is twisting their arm as they click ‘confirm bid’, and as far as eBay is concerned it’s perfectly legitimate (at least in the UK – some US states have laws against it).

So who is at fault here? Blocking the public from buying tickets wholesale with highly organised, bulk buying and reselling operations seems pretty underhand and unsporting, but the scalpers are taking the risk that people will purchase the inflated tickets, so isn’t it just the normal exercise of a free market? Are the promoters missing a trick in the first place? A staggered ebay auction style release of tickets by the promoter, with say 25% of total tickets released 12, 8, 4 and 2 weeks before the gig, with prices starting at a reasonable face value would surely have the same free-market effect. There’s the strong argument that this competetive model would be a disservice to the less affluent fans, but promoters would have the same chance of selling out a venue at the starting price, and could only benefit from any uplift if the tickets ended up being worth more to a punter than the original price – if they were bid up by competing punters, and this would make it harder for scalpers to get hold of tickets in the first place, as to get them they’d have to compete with Joe Public in the first place, paying the elevated prices themselves. It would also go some way to eliminating their profits – why buy from an unofficial auction when there’s an official one happening, and could potentially make more money for the promoter, venue and artist if the ticket revenue is split out between them.

What do you think, internet people? Is sclaping fair practice, or callous parasitism? Would selling online like this just be a way for promoters to benefit at fans’ expense, or would it be a neat way of cutting scalpers out of the loop and rationalising ticket prices for the rest of us?

ebay mumford and sons

…And I Agreed

An interesting opinion piece from The Huffington Post on the future of the music industry, confirming our long held belief that the head-in-the sand, resistive approach from the big record labels when it comes to making their music more available online is untenable.

It’s unreasonable and naive to expect record labels to go down without a fight, but it’s no longer a matter of if — it’s a matter of when — they’ll embrace these changes. The smart ones will adapt their model toward online music — just as the New York Times and Washington Post have adapted to online news. It won’t be easy for them, but it’ll be great for musicians and music fans.

I applaud anyone who encourages the big players to be more open and forward thinking about facilitating legal channels of online music consumption like Spotify, Last.FM and MOG, and I urge you, gentle reader to get your music up online with these stores; not only are they great for attracting new fans, but they’re increasingly popular with advertisers, which means more revenue for you.

Win A Year’s Free Distribution With RouteNote

RouteNoteIn order to encourage people to get their music online with us, and introduce new potential customers to our service, we thought we’d run a little competition. If you’re a solo musician or you’re in a band that has new music that needs to get out there and selling, all you need to do is add a comment to this blog post with the name of the band or artist and a link to the track that you think is their (or your) best. We’ll keep entries open until the 14th of December, and then we’ll judge all the tracks that have been entered. The top 3 according to our judges will be given completely free distribution to all of our partners stores during 2010 on any new releases they upload to RouteNote. No fees, no subscriptions, no back end cut, no strings – just access to our service completely free until 2011. The top 5 will get a feature and review on our blog, and we’re promoting this competition in collaboration with www.music-news.com, so you can expect to get their attention too. This competition is open only to artists and bands and music not already signed up to RouteNote.

Thanks, and good luck!