Ticketmaster's CEO Nathan Hubbard knows he's got a major problem. Ticket sales were down by double digits, and 40 percent of seats went unsold last year.
Now, he has a solution, one he unveiled on CNBC's "Power Lunch" today. It's 'dynamic' ticket pricing, a technology developed with a company called MarketShare.
Instead of locking in a single price for tickets, the company (owned by LiveNation ) is rolling out an approach similar to the airline industry's strategy to make every seat on the plane is full. The new variable pricing system will let artists and sports teams raise and lower ticket prices to reflect demand, while they're being sold.
If this strategy works, more of the seats that have been sitting empty will sell and promoters will be able to drop prices if they're not selling. If ticket prices more accurately represent their value to consumers, that could mean fewer tickets being sold at sky-high prices on the secondary market.
If tickets for a particular sporting event or concert are selling like hotcakes, the band or team can raise ticket prices—preventing them from selling for sky-high prices on Stubhub later.
And perhaps most importantly, it could mean consumers are more satisfied and less frustrated. And since Ticketmaster is a brand consumers love to hate, it could use the help!Page 1 of 2 | Next Page