A new white paper from the Vanderbilt Policy Accelerator estimates that ticket resellers and marketplaces such as StubHub add $11 billion in annual costs to live event audiences.
The study, “How to Save Audiences $11 Billion on Live Events,” attributes $4.5 billion to resale upcharges by ticket brokers and $6.8 billion to platform service fees. It also finds that fans lose $12 to resale markups for every $1 saved when tickets sell below face value, challenging claims by resale advocacy groups that secondary markets save fans money.
Industry groups back findings
The National Independent Venue Association (NIVA) and the National Independent Talent Organization (NITO) voiced support for the findings. NITO cited its own survey of 65 shows, which found an average resale markup of 91% and platform service fees occasionally exceeding 100% of face value.
Both groups said the added costs do not reach artists, crews, or venues.
“Vanderbilt has given Congress, governors, state legislators, and attorneys general the most convincing evidence we’ve seen that resale price gouging has to be reined in,” Stephen Parker, Executive Director of NIVA, said in a statement. “This report uncovers that fans and consumers lose $12 on the resale market for every $1 that scalper advocacy groups claim they save. That is shocking, and it calls for action.”
“Stubhub and the resale giants have spent millions on lobbying to convince law makers they are saving consumers money,” said Nathaniel Marro, Executive Director of NITO. “However, the facts are clear as day. Resale is costing fans billions of dollars each year, money that is being drained from our industry and never reaches the artists, crews or venues that actually put on these shows.”
Policy proposals and regulatory landscape
The trade groups support two central policy measures:
- Cap platform fees at 10%.
- Prohibit resale above face value.
Several jurisdictions have already adopted similar rules. Rhode Island, Maine, Vermont, and Washington, D.C., have passed laws capping resale markups or platform fees, and similar legislation is pending in Massachusetts. Ontario and several European nations have enacted face-value resale rules.
At the federal level, the report aligns with legislative efforts including the BOTS Act, the MAIN Event Ticketing Act, and the Fans First Act, which target ticket-buying bots and price transparency. The Federal Trade Commission (FTC) and Department of Justice (DOJ) are also pursuing enforcement actions against dominant ticketing companies and resale groups.
The study notes that state attorneys general and the FTC already have authority under Section 5 “unfair practices” rules to impose fee caps and resale limits without waiting for new congressional statutes.
