Written by S. Monteban    Monday, 18 January 2010 00:00   
Mojo Concerts and 'Black Market' Secondary Tickets - Hypocrisy Rules the Day
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by Richard Kastelein

OP/ED - "The seller defines the price at Ticket Trade, not Mojo Concerts," states the site.  I guess that's why two tickets to Rammstein cost over €600 euro on Mojo Concerts aka Live Nation's 'Black Market', secondary ticketing site at Tickettrade. The hypocrisy of a primary ticketing agent being involved in an outright war against the secondary ticketing market, which include ludicrously spearheading an anti-secondary ticket market campaign website and actively blocking tickets that end up on the secondary market (We wonder if those tickets made it over to Tickettrade after they were blocked for massive profits) is absolutely absurd. What consumers in the Netherlands should be fighting against is a merger of Mojo Concerts/Live Nation and Ticketmaster - which will create a monopoly in the Netherlands and worldwide that will absolutely stamp out any competition and allow a behemoth to be formed - one that can charge what they like without any market challenges. 

Mojo Concerts - owned by Live Nation,  canceled 400 Rammstein concert tickets  for the December 6th at the Gelredome in Arnhem, Netherlands last year and twelve Dutch online companies lost anywhere up to 100,000 euro, if one uses the top price of 300 euro per ticket being charged at Mojo Concert Ticket Trade Platform as a benchmark (see screenshot below).

Mojo Concerts claimed the valid tickets, bought by secondary ticket traders and sold on the Internet, violated the terms and conditions of Mojo Concerts. But if one were to sell tickets via their own 'scalping', black market' site which is fueled by a UK Secondary Ticket Marketplace leader, it's apparently okay. They claim to 'reject' brokers, yet tickets run as high as 630 euro for two tickets on their own 'touting' platform. 

If Mojo Concerts is so against the secondary market maybe they should set limits on markup over face value... like 25 percent? That would sort out the problem of ensuring one's brand stays away from the idea of being associated with black marketeering, touting, or scalping... old words for a different ballgame. There would be no tickets for sale on the site.

Mojo Concerts is unlikely to have any control over the White Label solution they use in a deal with a London-based company and clearly can't say who is a 'broker' and who is not, nor take any action against them.  Dutch ticket seller's won't find their tickets blocked as long as they use the Ticket Trade Platform - but sellers listing them on their own sites or via other ticket marketplaces appears to be off limits.

Mojo Concerts advised clients of these banned companies to make contact with the sellers and to demand the money back because the cards were not 'properly' purchased and were not valid for the Rammstein concert. What happened to those tickets that were blocked? Did Mojo simply move them onto Tickettrade and they were resold on their own 'black market' ticket trading platform? For more profit?

Mojo Concerts has been actively blocking tickets against the Dutch secondary ticket for years. They even have a website advocating their anti-secondary ticketing industry stance. The site supports new legislation being introduced by the Social Party in the Netherlands that tries to put a cap of ten percent on the resale of tickets.  Mojo Concerts new relationship to the secondary market vis a vis Live Nation severely challenges their own stance in the industry and one has to wonder if Live Nation and Mojo Concerts are even on the same page.

Cutting out Dutch Internet entrepreneurs - legitimate businesses, in the age of global economic crisis - in order to cut a deal with U.K. based secondary ticket industry participants driving business offshore... using a platform that claims to 'reject brokers' but clearly does not is not the smartest move.
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Forcing brokers to one's own platform is hardly conducive to what economists call 'supply and demand'. And most economists support the secondary ticket market because it's a reflection of real value. Monopolization of the industry kills competition and in the end - consumers lose. Ticketmaster in the USA has been accused of shifting tickets directly to their secondary platform at Ticketsnow (similar toTickettrade) and reaping huge profits from the Secondary Market.

Also a good reason why the Livenation - Ticketmaster merger needs to be denied by US Legislators next year... because tactics like this are clearly indicative of market abuse and quite possibly a roadmap to the future.

Almost all economists are opposed to anti-scalping laws because they create market inefficiencies. The Secondary Ticket Market exists as a necessary mechanism that allows the market to clear. Without it, demand would continue to exceed supply, thus creating an inefficient market.


The old adage, “If you can’t beat ‘em, join ‘em,” seems to be applying well to the relationship between American ticket resellers and primary ticket agents. But it appears that the standoff in Holland will continue.

 

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