Dynamic tix: Could JPJ see Ticketmaster's demand-based pricing?

Live Nation Entertainment, the company whose Ticketmaster division drives customers to the tickets at the John Paul Jones Arena (and also the parent company of Crozet-based click-pack-ship division MusicToday), has announced that it intends to bolster revenues with an experiment in dynamic pricing, the strategy long used by airlines to tailor ticket prices to ever-changing demand.

The New York Times has the story of how Live Nation intends to utilize the strategy to regain some of the revenue it believes it loses to scalping firms such as StubHub.com and trim or reverse its losses, which were $228.4 million last year. Investors have seen the share price of the firm fall by one third in the past year.

Despite the bad financial news, the publicly-held company more than doubled its chief executive's pay last year. The firm purchased MusicToday from Charlottesville-area music mogul Coran Capshaw in two chunks: 51 percent in September 2006 and the remaining 49 percent in July 2007, according to company annual reports from those years. Terms of the purchase were never publicly revealed. Live Nation merged with Ticketmaster last year.

The Times notes that the company plans to launch the new pricing policy later this year for concerts and sporting events. In the Charlottesville area, Ticketmaster may drive customers, but the actual ticketing for the John Paul Jones Arena is handled by TicketsToday, part of MusicToday.

"I'm actually not that familiar with it because we're on TicketsToday," says Arena general manager Jason Pedone.

"I'm definitely watching to see if it helps or hurts," says Pedone. "For a fan, it could be interesting."

–story updated at 12:13pm Tuesday, April 26. (Corrects claim that Ticketmaster actively tickets at JPJ and adds quotations from GM)


Amazing how these CEO's keep raking in the dough, as profits and share prices tumble.

Sounds like another way that they can charge more than the face value for a ticket. I'm sure that they will retain their practice of charging mysterious "processing fees" on top of the ticket price.

Details of the sale of Musictoday were never publicly released? Come on Spence? Did you ever pull the SEC filing? You call yourselves investigative journalists, sounds more like lazy journalism.

CEO pay plans are approved by a Board of Directors. The execs ask what they want and the board either approves or disapproves.

If they approve it is because they want them, not because an exec is asking for a better package. Shareholders are able to vote in/out the board yearly.

Don't blame it on the execs..................

Love Nation exposed everything- just have to look for it- just like anything else.

OK- LIVE Nation- although I am sure they sprea the love...........