Ticketmaster rapped for Bruce Springsteen AI price surge
Ticketmaster came under fire over its AI-powered dynamic pricing strategy for a Bruce Springsteen concert tour, which resulted in ticket prices soaring to as high as USD 5,000. The pricing model, likened to Uber's surge pricing , adjusts ticket costs based on demand, leading to outrage among fans who feel priced out of attending the shows. When tickets went on sale, only a small percentage (about 11.2 percent) used dynamic pricing, with 88 percent sold at average prices around USD 202. However, the visibility of the high-priced tickets overshadowed the more affordable options, causing disappointment, frustration and anger amongst Springsteen fans. Critics argued that the artist and his management approved this pricing strategy, suggesting that the responsibility lies not solely with Ticketmaster but also with Springsteen's team. Ticketmaster defended its approach by stating that the goal is to keep tickets out of the hands of scalpers and ensure that artists receive fair compensation. Despite this, many fans voiced their dissatisfaction, prompting discussions about the affordability of live music events and the ethics of Ticketmaster owner Live National and the music industry more generally. Dynamic pricing Dynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing, and variable pricing is a revenue management pricing strategy in which businesses set flexible prices for products or services based on current market demands. Source: Wikipedia 🔗 System 🤖 Ticketmaster Platinum 🔗 Documents 📃 Ticketmaster. What is Ticketmaster Platinum? Operator: Developer: Live Nation/Ticketmaster Country: USA Sector: Media/entertainment/sports/arts Purpose: Calculate pr ice Technology: Pricing algorithm; Ma chine learning Issue: Ethics/values
- Date it happened
- 2022-01-01
- Organisation involved
- Live Nation/Ticketmaster
- Product, system or model
- Ticketmaster Platinum
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