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Madonna Reinvents Herself As a Ticket-Scalping Profiteer


Camacho

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Its obvious that other stars have done this?

Why call M bad, when others are doing it.

Its a business folks!

No other stars have not done it, Madonna is the first one.

Once again Its sleazy kinda like a doctor making a profit on illegal prescription drugs.

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do they have plans on doing so?

According to the article on the Wall Street Journal:

StubHub Enlisted in Resale Of Madonna Concert Tickets

By ETHAN SMITH

May 9, 2008; Page B6

Madonna's coming concert tour is to feature what appears to be a first in the concert business: An official ticket reseller that will peddle seats at marked-up prices to fans who couldn't get them through normal channels.

In the U.S. and Canada, eBay Inc.'s StubHub will serve as the "official fan-to-fan ticket marketplace." In Europe, the role will be filled by Viagogo Ltd., a ticket reseller that also will sell "VIP packages" -- higher-priced tickets that include amenities like backstage passes and meetings with performers.

The endorsements highlight the growing popularity and influence of so-called secondary ticketing companies, which let both fans and brokers sell tickets to others at prices that often far exceed their face values. Concert promoters and artists have long complained that they are locked out of the secondary marketplace, putting money in the pockets of speculators and middlemen who aren't involved in staging or promoting concerts.

Sports teams and leagues have entered partnerships with secondary ticketing companies. But executives at Viagogo and StubHub called this the first time a major music artist has officially embraced the secondary market on this scale.

"It's the future of the ticketing business," said Chuck La Vallee, StubHub's head of business development for music. "Promoters have always complained that we don't have skin in the game."

Terms weren't disclosed, but people close to the deal said Viagogo is paying promoter Live Nation Inc. and Madonna a flat fee, while StubHub is offering a percentage of revenue on top of a fee. Despite the official status of the two companies, fans would still be able to buy and sell tickets on other online marketplaces, such as TicketsNow, RazorGator or Craigslist. But Viagogo and StubHub will be promoted in emails to fans and other marketing materials.

The tour is the first for Madonna since she announced a $120 million partnership with Live Nation in which the promoter is to participate financially in nearly every aspect of the pop star's career. The album she is promoting, "Hard Candy," is the last under her record contract with Warner Music Group Corp. The "Sticky and Sweet" tour is to start in August, with nine dates in Europe, followed by 18 U.S. shows in the fall. There will be several stadium shows in the U.S., including at Los Angeles' Dodger Stadium -- far larger venues than the arenas Madonna has historically performed in. Prices weren't announced.

Live Nation's contract in the U.S. with IAC/InterActiveCorp's Ticketmaster expires at the end of this year. At that point Live Nation will begin selling its own tickets for its concerts. Arrangements like the one with Viagogo -- in which Viagogo handles a portion of the so-called primary ticketing, in addition to resales -- could become more common on Live Nation tours once Ticketmaster is out of the picture.

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Financial Times

Madonna endorses secondary ticket markets

By Roger Blitz

Thursday May 8 2008 20:10

Madonna is endorsing the sell-on of concert tickets, condemned by some concert promoters as scalping or touting, by making two leading companies in the secondary ticket market official partners for her forthcoming Sticky & Sweet tour of North America and Europe.

StubHub will be able to trade tickets for her North American concerts, while Viagogo has been given the rights to be secondary ticket partner in Europe, as well as handling VIP packages and all premium tickets.

The deals mark a breakthrough for a practice which has been strongly opposed by leading concert promoters in the UK, such as Harvey Goldsmith, but which state politicians in the US and the UK government have rowed back from making illegal.

Secondary ticketing companies enable the public to trade their tickets online with customers who are prepared to pay above their face value. The company takes a cut of about 10 to 15 per cent.

Many sports promoters complain that they are not getting any share of the premium on these ticket sales and concert promoters in the UK have pressed unsuccessfully for the government to outlaw the practice.

The tabular content relating to this article is not available to view. Apologies in advance for the inconvenience caused.

Viagogo has paid a rights fee to Madonna and Live-Nation, the concert promoter which last year signed a 10-year contract with the artist for her albums, tours and merchandise.

StubHub declined to discuss the terms of the deal, while Viagogo described its deal as similar to the partnership deals it struck with Premier League football clubs, including Chelsea and Manchester United.

Eric Baker, chief executive of Viagogo and founder of StubHub, described the deal as "truly groundbreaking" and the first time that a major artist had endorsed secondary ticketing.

The deal allows both StubHub and Viagogo to set up links with Madonna's website and fanzones and to be included in press releases and promotional material.

While Mr Baker expected Viagogo to make a profit from the Madonna deal, he described the promotional value of the deal as "truly priceless".

He expected Viagogo to be trading double or treble the number of tickets it would have otherwise exchanged unofficially.

Neither StubHub nor Viagogo was willing to discuss the terms of the deal.

Mr Baker said the Madonna deal showed that Viagogo and other secondary marketing companies were "here to stay for ever", adding that they were providing ticketing solutions across the board to artists.

StubHub said it was the first partnership with a leading performing artist and an endorsement of the secondary market.

Chuck LaVallee of StubHub described its agreement as a landmark deal, made with a forward-thinking and progressive artist.

"I applaud the Madonna and LiveNation teams for leaping with the industry leader into what will obviously be the future of the concert ticketing industry," he said.

Will Muirhead of Tixdaq, which monitors secondary ticket sales on websites, said the only previous examples of official endorsements of the market was The Eagles' partnership with Ticketmaster.

Agents representing performing artists in the UK have been working on a voluntary agreement with secondary ticketing companies to ensure that a share of the profits they make from the exchange of tickets is returned to the artists.

But Mr Baker said the Madonna deal signalled that such an arrangement would become irrelevant if performing artists continued to deal directly with secondary ticketing companies.

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Wow even Perez is calling her out on this, I agree with everything he says. "Sleeping with the enemy"

We're not sure how we feel about this!

Not only does Madonna charge upwards of $300 for the best seats on her tour, but now she wants a piece of the ticket scalpers' pie.

Yup!

Ticket scalpers (or "brokers" as they like to be called) buy up the majority of concert tickets, leaving many die hard fans to turn to other venues to buy their tix.

Now, Madonna is going into bed with the enemy!

Her Madgesty is the first artist to make a deal with StubHub, which is owned by eBay and lets people legally scalp (or "resell") their concert tickets.

M will get a base fee PLUS a cut of all the ticket sales.

So, in theory, the high U pay for your ticket on StubHub, the more money she makes.

Why would Madonna (or anyone) wanna encourage ticket scalping/reselling????

Money isn't everything in life!

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According to the article on the Wall Street Journal:

StubHub Enlisted in Resale Of Madonna Concert Tickets

By ETHAN SMITH

May 9, 2008; Page B6

Live Nation's contract in the U.S. with IAC/InterActiveCorp's Ticketmaster expires at the end of this year. At that point Live Nation will begin selling its own tickets for its concerts. Arrangements like the one with Viagogo -- in which Viagogo handles a portion of the so-called primary ticketing, in addition to resales -- could become more common on Live Nation tours once Ticketmaster is out of the picture.

Wow I never thought id see the day that i was upset that someone would not use ticketmaster. Scary to think what LiveNation will do!

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I guess Madonna and Mariah are both obsessed about numbers. In Madonna's case, they're preceded by $$$$. :demonic:

HOW VERY DARE YOU!! MAdonna is a smart business woman that cares about social problems and has artistic credibility whereas Mariah is only a #1 obsessed freak talentless fat whore.

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HOW VERY DARE YOU!! MAdonna is a smart business woman that cares about social problems and has artistic credibility whereas Mariah is only a #1 obsessed freak talentless fat whore.

Mariah Carey is a murderer. She kills little children while eating fried chicken.

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Guest Xanthium

I'll be honest, this whole thing doesn't really affect me because I've NEVER been a concert person. I've only seen Madonna once (on the DWT @ MSG) and while it was the best concert I've ever been to I had to squint a lot to see the bitch lol. But my heart goes out to the Madonna fans who LOVE seeing her live. Is she not aware that most of her fans aren't rich? I can understand her wanting to get a profit off the scalpers, but at the expense of her fans? Really stupid move. Is she not aware that everyone will find out about this (pretty much everybody already has!) It might be a shrewd business move but it is a public relations nightmare. She's shooting herself in the foot. She must be really desperate to top the CT profits. I will always love you Madonna and stand by you but this is just a fucking stupid move on your part. You should reward your fans not make things more difficult for them.

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Even people who make alot of money wont pay. People in general dont like being ripped off even if they have the money, it makes them feel like a sucker.

Whats funny is that Madonna was complaining how NYC is not the same and how if she first moved here now she would never make it. She was talking about the artist vibe because people could afford it.

But now shes in a deal with scalpers, thats the height of IRONY! Yea her NY shows will have that DOnald trump vibe instead of the NY artist vibe she was talking about. Guess she likes it after all.

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I'll be honest, this whole thing doesn't really affect me because I've NEVER been a concert person. I've only seen Madonna once (on the DWT @ MSG) and while it was the best concert I've ever been to I had to squint a lot to see the bitch lol. But my heart goes out to the Madonna fans who LOVE seeing her live. Is she not aware that most of her fans aren't rich? I can understand her wanting to get a profit off the scalpers, but at the expense of her fans? Really stupid move. Is she not aware that everyone will find out about this (pretty much everybody already has!) It might be a shrewd business move but it is a public relations nightmare. She's shooting herself in the foot. She must be really desperate to top the CT profits. I will always love you Madonna and stand by you but this is just a fucking stupid move on your part. You should reward your fans not make things more difficult for them.

There has to be an elaborative reason behind this move.

We really do NOT know why or the specifications of this vendure.

lets wait and see why she opted this way.

$$$ is probably is #1 but there has to be more behind it....

keep an open mind guys (and gals)

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From what I understand, lori has said it best so far. These things were happening anyways, Madonna is not buying out the floor herself (or her people rather) and then selling the tickets on StubHub for $8,000 each. Ticketmaster (obviously) is in cahoots with these people (nothing new there either) they sell off the tickets to StubHub and corporations, people with A LOT of expendable income take advantage of this instead of clicking on ticketmaster 800 times hoping for that perfect seat like most of us "common folk" Basically NOTHING is different now than it was on CT, RIT or DWT for us fans. We are all still going to log into ticketmaster on May 19th (or presales) and click away and hope for the best. Some of us who are ready to turn in the fan card at this moment will be coming here in a couple of weeks talking about how we got FLOOR seats through ticketmaster.....or through the Icon, citibank etc presales (and we will have big smiles on our faces :)). NOTHING is different for us fans who by tickets that method anyways. THE ONLY DIFFERENCE IS MADONNA IS NOW MAKING MONEY FROM THOSE FANS WHO ARE WILLING TO PAY ASTRONOMICAL PRICES ANYWAYS....CUZ THEY HAVE NEITHER THE TIME OR PATIENCE TO DEAL WITH TICKETMASTER!!

Like many of you I was ready to say "fuck that greedy bitch", "I'm not going to the tour"......but that's before I understood what the hell is going on. Nothing is different. She's just making money from the scalpers who have always been and will always be there anyways. And why shouldn't she? It's her show.

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Guest Xanthium
There has to be an elaborative reason behind this move.

We really do NOT know why or the specifications of this vendure.

lets wait and see why she opted this way.

$$$ is probably is #1 but there has to be more behind it....

keep an open mind guys (and gals)

I'm definitely going to keep an open mind about this until all the facts come in because this all just seems way too obvious. Its like even a dumb person would be like, um not such a hot move Madonna. It's THAT blatant. There's no way to be sneaky or underhanded about this and get away unscathed. It's too much of a everyone-will-find-out-you-moron kind of blunder. That's what makes me question the validity of this. Madonna isn't stupid. I guess we'll find out soon.

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After allowing the initial dust to settle, I figured this is just Live Nation's way to acknowledge that scalping is a reality and isn't going to go anywhere. By making a deal with StubHub, LN has essentially created an official, more centralized (and perhaps better regulated?) platform for scalping. The same people who will buy from StubHub are probably the same people who bought scalped tickets last time. Is LN trying to profit from the situation? Of course. They're a business and it's all economics. When you can't beat them, join them. As some people have already said, it's probably not going to make ticket purchasing any more or less easy for the regular fans this time around as compared to the last tour. Again, what I'm more concerned about is when ticketmaster is completely out of the picture.

While it's obviously not comparable, it's slightly similar to the situation with what happened with mp3's. Initially, mp3's spread like wildfire and became the medium for illegal download and sharing. Record companies fought it but eventually gave up and decided to sell them officially via iTunes, etc. If you can't stop it, might as well profit from it.

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I CANNOT BELIEVE people are trotting out the BUT SHE GIVES BACK TO CHARITY excuse. That is just as patronising and naive as when Madonna herself says it. Damn. ALSO I don't see exactly WHY it's such a given it wont affect fans. Let's not forget it's not LiveNation or Ticketmaster entering into this deal with Stubhub, it's MADONNA. And why would stubhub suddenly turn over part of their profit over to her if they were not getting some sort of special treatment from her in terms of what seats they have access to? Jesus the LOONDOM scares me.

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Oh also, if she wanted to avoid scalping, she could do a number of things to make sure the tickets go to her TRUE fans at reasonable prices instead of doing *this* to get even more money from whoever is stupid and rich enough to fork out thousands of $$$ for a concert.

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I think StubHub makes its profits from the commission it charges the sellers. In turn, it sounds like Madonna and Co. gets a share of these profits.

In terms of how these individual sellers manage to get tickets earlier, I'm still not clear. I'm guessing it might be advanced tickets that were given away to radio stations and corporations for promotional purposes.

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Guest bedtimestorynyc

i'm done with this shit!

why the fuck not just wait till the official ticketmaster release date and then talk about how much we like this 'deal' or not???

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What I'm saying is that Stubhub had a business before Madonna. I don't see why they would suddenly turn over part of their profit over to Madonna if she didn't give them special treatment like advance access to premium seating. It's not like they were doing anything illegal and she threatened to SUE them or something.

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i'm done with this shit!

why the fuck not just wait till the official ticketmaster release date and then talk about how much we like this 'deal' or not???

I'm with you, nothing but back and forth here now. If she has fucked us over we will find out on Monday.

I still think its fucked up and it does not solve the scalping problem just like signing a deal with one big drug dealer does not solve the drug problem, still other drug dealers, still other scalpers.

She signed a deal with SCAPLERS to make $$$$$$$$$$$$,,, its there in writing. Theres nothing else to explain, Shes going to give some BS excuse for it.

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What I'm saying is that Stubhub had a business before Madonna. I don't see why they would suddenly turn over part of their profit over to Madonna if she didn't give them special treatment like advance access to premium seating. It's not like they were doing anything illegal and she threatened to SUE them or something.

Actually, StubHub has a lot to gain with their partnership even without access to premium seating. By virtue of LN and Madonna endorsing their site, they've essentially become THE official platform for ticket-scalping. This is definitely going to attract more sellers to list tickets at their sites, which in turn increases the revenue they get from commission. It also means people looking for scalped tickets are more likely to visit StubHub, because they feel they're less likely to get scammed as oppose to some shady independent dealer. If you look at StubHub's site, you'll notice their tickets come with a guarantee.

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Actually, StubHub has a lot to gain with their partnership even without access to premium seating. By virtue of LN and Madonna endorsing their site, they've essentially become THE official platform for ticket-scalping. This is definitely going to attract more sellers to list tickets at their sites, which in turn increases the revenue they get from commission. It also means people looking for scalped tickets are more likely to visit StubHub, because they feel they're less likely to get scammed as oppose to some shady independent dealer. If you look at StubHub's site, you'll notice their tickets come with a guarantee.

Fair enough. I guess you're right.

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Take a look at stubhub tiks for Van Halen in New York, almost 900 tickets for sale

http://www.stubhub.com/van-halen-tickets/v...23-2008-601617/

All the best seats, if you go on ticketmaster for them only the lousy seats are available. But for $300 you can get the floor and close to stage.

Their highest price on ticketmaster is $165 though.

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Guest northernlad

This is why I never said a single positive thing about the Live Nation deal while everyone else was praising it, the scent of corporate rape was all around. That said, some people are being a bit 2 angry in this thread, her past 2 tours have already sported the highest ticket prices in the industry... her greedy whorishness is hardly a relevation. Something I do wish the article would be more specific on, is Live Nation actually setting tickets aside for Stubhub/selling to them directly? If they still have to get them on their own, but just giving LN a cut of the profits, then this really isn't all that bad. But that would have involved some legal arm twisting by LN, and I'm not sure there were grounds 4 that... so it's probably the former scenario, sadly.

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Take a look at stubhub tiks for Van Halen in New York, almost 900 tickets for sale

http://www.stubhub.com/van-halen-tickets/v...23-2008-601617/

All the best seats, if you go on ticketmaster for them only the lousy seats are available. But for $300 you can get the floor and close to stage.

Their highest price on ticketmaster is $165 though.

But again, this already exists before Madonna & Live Nation made a deal with Stubhub. These ticketbrokers get their prime tickets from Ticketmaster, not the artist or the promoter. It's Ticketmaster who is to blame for this. And these ticketbrokers will sell their tickets through every avenue available. Through their own websites, through Stubhub or even Ebay. But now that Madonna & Live Nation have annointed Stubhub as the official reseller of Madonna tickets, for protection and reliability, most buyers will now go to Stubhub. Again, neither Stubhub, Madonna or Live Nation are the sellers. Stubhub is just a place where buyers and sellers meet and Stubhub charges a commission for every sale and the commission is in turn shared by Stubhub, Madonna & Live Nation.

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Guest northernlad

Erm, Live Nation is ending its contract with Ticketmaster this year, they are now the sellers.

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