News: Dynamic Pricing for Concert Tickets: A Double-Edged Sword, Warns CBS pricing expert Sof Thrane

Photo by Yvette de Wit on Unsplash

In the wake of the controversy surrounding the Oasis ticket sale, where prices soared due to dynamic pricing, pricing strategy expert Sof Thrane from the Department of Operations Management has weighed in on the debate. As a comment to the public debate in the Danish newspapers, he suggests that while dynamic pricing can lead to increased revenue for artists, it also carries significant risks.
"Artists may see a financial boon from flexible ticket pricing, but they need to be careful," says Thrane. "Fans can feel exploited, which may harm the artist’s reputation long-term."

The incident with Oasis, where the price of tickets skyrocketed as demand soared, sparked outrage among fans and raised questions about the fairness and transparency of the system. Sof Thrane emphasizes the delicate balance artists must maintain: "Fans waiting in long virtual queues only to see prices inflate will remember that frustration. Over time, this could reduce their willingness to engage with future concert events."

Despite the backlash, Sof Thrane believes that dynamic pricing is here to stay in some form. "It's likely we’ll see artists offer a mix of fixed and dynamic pricing. This could soften the blow of criticism by ensuring some tickets remain accessible at standard prices."
Fan reaction to the recent concert ticket sales has been largely negative. Many fans reported waiting for hours to purchase tickets, only to be faced with prices that had nearly tripled from what they initially expected. Some expressed frustration, saying they felt misled and that they would not have waited if they had known prices would increase so dramatically.

This situation has ignited discussions among industry experts. Concerns have been raised about how dynamic pricing could undermine the trust between fans and artists, with fears that musicians could be perceived as prioritizing profits over their fan base.
As dynamic pricing becomes more widespread, especially on the global stage, there are concerns that other artists may follow this trend. However, experts emphasize the importance of transparency in these pricing models to prevent damage to an artist’s reputation. Being clear about how ticket prices are set can help artists protect their brand while exploring new pricing strategies.

The debate continues, but the key concern remains: if dynamic pricing is not handled carefully, it risks alienating the very fans who support live events.