Via Forbes: Last summer, One Direction tickets were the hottest ticket on what was a super-star packed calendar. Nothing could compete with the X-Factor five, including Beyoncé tickets, The Rolling Stones, Justin Timberlake tickets or even Justin Bieber himself.
Over the forty shows that we tracked on last summer ‘Take Me Home’ Tour, 18 had an average price of over $500, six had an average price over $700 and two had an average price above $1,000. That kind of money made it the most expensive concert we’ve ever tracked at TiqIQ.
We’ve all grown up either having experienced or hearing about Beatlemania in the sixties, and last summer’s Take Me Home tour felt like Beatlemania on steroids. It seems that One Direction Mania is subsiding.
The average price on the secondary market for ‘Where We Are’ is 34% below the price for the ‘Take Me Home’ tour. While they are only playing about half the dates, most of the venues are larger stadiums, like Metlife Stadium in New York and the Rose Bowl in Pasadena. With half as many shows and twice the capacity, though, they’ll be selling roughly the same number of tickets for this tour.
NOTE: Midnight Memories is #1 it has sold more than 237,000 copies during the last seven days, beating 2011’s Up All Night (139,000 copies week one) and 2012’s Take Me Home (155,000 copies). It’s also the fastest selling artist album of 2013 so far.
While lower prices for One Direction tickets is good news for fans, it’s bad news for those who make money on the band. Boy bands have a notoriously defined half-life, after which they fade away, often overnight. One Direction’s management (including Simon Cowell) have done an amazing job of monetizing the product in a tight window, and in the process they’ve built the first ever billion-dollar boy band.
With just a portion of tickets for the upcoming tour on sale, though, it’s likely that prices on the secondary market will drop even further as additional pre-sales and onsales go online. Despite that drop, they’ll still be more expensive than other big winter tours that include Jay-Z tickets and Miley Cyrus tickets.
The first pre-sale on November 26 was limited to CitiCard members and coincided a Good Morning America appearance to promote their new album, Midnight Memories. If you don’t have a CitiCard, the next pre-sale opportunity is a Facebook pre-sale, which happens next Tuesday, and based on the latest Facebook stats, will be open to about half of the country. After that, there are still two blocks of tickets to be released. The first of those in on December 5th as part of the Ticketmaster/Livenation pre-sale, followed by the General Public onsale for anyone that’s left on December 7.
The benefit of all these pre-sales is that the promoter can gauge demand along the way and adjust prices accordingly with the goal of maximizing the revenue that ends up in their pocket, as opposed to the secondary market. The bad news for One Direction’s staying power is that with lots of inventory still to come into the secondary market, it’s likely that the average price will continue to drop. According to basic economics, with greater supply comes lower demand, and before a single note is sung, the 2013 tour could very well cost patient fans half the price of the last one.
The other factor playing into a potential price drop is that the first concert won’t happen for eight months. In the fickle world of teenage pop-lust, that leaves a lot of room for changes of taste, or bad publicity. If you need any evidence of that, look no further than Justin Bieber. Before One Direction’s tour last summer, Bieber’s ‘Believe’ tour was the hottest ticket in town.
Now, a year later, amid a prostitution scandal and other bad behavior, Bieber is having trouble filling seats in Australia. Despite his best efforts to introduce new material through his ‘Music Mondays’ series, it seems that Bieber has come back to earth and is wrestling publicly with the daunting task of crossing over into an adult star.
While we’ve all tracked his meltdowns, a new ‘It’ band has emerged, and you don’t need to be a Belieber to see them. You just have to be a Directioner, and if you want to get a good deal, you have to have some patience.