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Billboard Changes Chart Rules: No More Ticket & Merch Bundles

Reversing a rule implemented in January, Billboard has updated the rules regarding album sales and charts to reflect consumer intent better.

Achieving success on the Billboard charts is a lot like trying to win a presidential election. You can do your best to make as many people as possible buy your music outright, or you can find smart ways around traditional album sales. One example of the latter is bundling, which combines a digital or physical album with the purchase of merchandise or concert tickets. Such tactics have helped several performers appear to move massive units of their latest record and top the chart, but thanks to new guidelines, that approach no longer works.

Billboard is changing the rules to its Billboard 200, Hot 100, and other album and song charts. The announcement comes to rectify how sales are counted with respect to album bundles with merchandise and concert tickets, as well as instant digital sales attached to purchases for physical albums delivered at a later date.  

On the issue of bundling, the latest rule changes supersede several others that were previously instituted in January. Those included a requirement that albums bundled with merchandise be available for purchase concurrently and individually on the same website, as well as a condition that merchandise sold on its own be priced lower than bundles that included the album. Additionally, merchandise/album bundles could only be sold on an artist’s official direct-to-consumer web store and not via third-party sites.

Billboard is now acknowledging what many critics have claimed to be true. Album sold in bundles with merch and tickets may not accurately reflect consumer intent. There are many cases of fans buying tickets or merchandise without realizing (i.e., caring) that the sale included an artist’s new album. So, if the fan doesn’t buy the bundle specifically for the release, why should the sale count toward the total units of that album sold?

Billboard will also no longer allow sales of physical albums or singles that are bundled with digital downloads to be reported as digital sales. That decision eliminates the practice of “spontaneous” non-manufactured items being used to influence first-week chart rankings. Only when the real thing — that is, what the consumer is buying — is shipped, will it be counted in Billboard’s official tallies.

The practice of selling vinyl, CDs, and other physical releases that won’t be manufactured and shipped to consumers for weeks or months — while offering a digital download that can be redeemed instantly — has become widespread as of late. Especially in the age of COVID-19, when manufacturing delays are rampant, many artists are using the promise of a physical item later to boost “sales” in the present.

Billboard recognizes that the use of bundling has been commonplace in music for decades. However, the practice of using merch and ticket bundles to boost album sales has been rampant as traditional record sales have fallen. The goal of the Billboard charts is to capture consumer intent, and the company believes it is impossible to gauge whether or not the sale of bundles reflects a clear desire to own the release rather than a piece of merchandise or attendance at a live event.

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Report: Live music sales slip in first-half of 2019

Despite more artists touring than ever before, total ticket sales and revenue for live music is down compared to the same period in 2018.

Are the cost of concerts too high for consumers, or are there not enough megastars touring right now? Are people growing tired of live music, or has the number of tours happening at any moment time overwhelmed audiences? We don’t have any answers, but these questions need to be addressed.

Pollstar released data regarding the top 100 tours of the year so far, and the results show a steep decline in sales compared to the same period in 2018. The stats show that Sir Elton John had the global highest-grossing act in the first-half of 2019, generating $82.6m across 56 shows. The British singer/songwriter, currently on his farewell tour as biopic Rocketman graces movie theaters, brought in more than P!nk (No.2 with $81.8m), Justin Timberlake (No.3 with $75.5m), Metallica (No.4 with $69.7m) and Fleetwood Mac (No.5 with $67.7m). 

Those figures are impressive, and they represent countless sold out shows in large arenas, but they pale in comparison to sales from last year. According to Pollstar’s data from the first-half of 2018, the Top 100 global tours turned over $2.81bn in gross sales. In the same period this year, however, this worldwide figure for the Top 100 tours stood at $2.06bn – falling by 26.8%, or $752m, year-on-year.

That three-quarter of a billion-dollar decline is setting off alarms throughout the industry, and raising a lot of questions about what could explain such a change. 

Not surprising, total ticket sales for 2019 so far are down as well. Data from 2018 reveals 31.29 million tickets sold in the first six months of the year, but in 2019, that number is down to 22.28 million. That’s a 28% change.

The one area of ticketing that increased this year? Ticket prices.

Calculations by Music Business Worldwide suggest that the average ticket price of the world’s Top 100 shows was $92.42 in H1 2019 – up from the $89.85 average price posted in the first half of last year.

MOST EXPENSIVE AVERAGE TICKET PRICES IN H1 2019 AMONGST THE TOP 100 NORTH AMERICAN TOURS, ACCORDING TO POLLSTAR

  1. Bruce Springsteen, Springsteen On Broadway ($506.39 average)
  2. Lady Gaga ($269.94)
  3. Aerosmith ($205.02)
  4. Bruno Mars ($193.76)
  5. Andrea Bocelli ($176.41)
  6. George Strait ($173.74)
  7. Gwen Stefani ($170.24)
  8. Eagles ($157.86)
  9. BTS ($146.62)
  10. Fleetwood Mac ($143.58)

The possible explanations for these changes are numerous. More artists touring could mean less income for top-tier talent, but the number of festivals and tours for talent at all levels that have struggled to fill venues says otherwise. The increasing cost of tickets for good seats, coupled with the continuing reign ticketing bots, may also explain the change, but there is not enough data to support that idea at this time.

With streaming revenue remaining stagnant, artists are depending on tour revenue to keep their careers afloat. That may, in part, explain rising ticket prices, but if the cost of admission alienates consumers then artists will be in more trouble than they are right now.

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Nine Inch Nails is trolling the ticketing industry (and you should too)

You have to love Trent Reznor. Thirty years into his career as Nine Inch Nails the iconic frontman continues to find new ways to subvert the norm. This time, his rebellious actions come in the form of a (much-needed) jab at the modern ticketing industry. Before being released online, tickets for Nine Inch Nails’ upcoming US tour will only be available at select ticket booths across the country. You can read a brief explanation from the band below:

WHAT?  WHY?  PHYSICAL WORLD PRESALE?


THE PROMISE OF A WORLD MADE BETTER BY COMPUTERS AND ONLINE CONNECTIVITY HAS FAILED US IN MANY WAYS, PARTICULARLY WHEN IT COMES TO TICKETING.  EVERYTHING ABOUT THE PROCESS SUCKS AND EVERYONE LOSES EXCEPT THE RESELLER. WE’VE DECIDED TO TRY SOMETHING DIFFERENT THAT WILL ALSO LIKELY SUCK, BUT IN A DIFFERENT WAY.  WE’RE HOPING MANY OF YOU WILL BE HAPPY WITH THE RESULTS, WHILE SOME MAY DO WHAT THEY ALWAYS DO AND BITCH ABOUT IT.

HERE’S HOW IT WORKS:


YOU (AN ACTUAL HUMAN BEING) SHOW UP AT THE BOX OFFICE, INTERACT WITH THE TICKET SELLER (ANOTHER ACTUAL HUMAN BEING) AND PURCHASE UP TO FOUR TICKETS THAT WILL ACTUALLY BE HANDED TO YOU ON THE SPOT.  THE TICKETS WILL NOT BE AVAILABLE ONLINE OR ANYWHERE ELSE BEFORE OR DURING THAT DAY.  ALL SEATS (INCLUDING THE BEST SEATS) WILL BE AVAILABLE FIRST COME, FIRST SERVE.  YOU MAY ACTUALLY ENCOUNTER OTHER ACTUAL HUMAN BEINGS WITH SIMILAR INTERESTS LIKELY WEARING BLACK CLOTHING DURING THE PROCESS AND POTENTIALLY INTERACT WITH THEM.  THE EXPERIENCE HAS THE POTENTIAL* TO BE ENJOYABLE.  NINE INCH NAILS HAS ALWAYS BEEN ABOUT BRINGING PEOPLE TOGETHER, LIVING LIFE TO THE FULLEST AND GOOD TIMES.**

ANY REMAINING TICKETS WILL BE SOLD AT A LATER DATE.

*NOT GUARANTEED

**NOT ENTIRELY TRUE

Fans of music worldwide know the pains of ticket purchasing being referred to above. Knowing the day and time tickets go on sale is no longer enough, nor is it any guarantee you will even be able to purchase them when they’re officially available to the public. Most tours now have presales, and more prominent artists can have several presales that are exclusive to fan clubs or corporations (American Express, Spotify, etc.). Then you have the resurgence of VIP seating, which makes the seats closest to the performers out of reach for man, as well as Platinum Seats, ticketing bots, fees, and a ruthless secondary market that is growing by the week.

In short, ticketing is complicated and expensive. Furthermore, the increased competition for seats has only served to drive a wedge between fans. Concerts are no longer a communal experience, but a challenge to see who can find the quickest way to claim a desirable seat.

You also never see or interact with other fans until the night of, which limits the amount of interaction you’re likely to have with other concertgoers. That may not seem like a big deal, but that is likely because you do not recall any different experience. Previous generations literally camped outside venues for days, even weeks to get tickets. They recognized their shared fandom, and as a result, they found a deeper meaning in the live experience. They were less alone.

Nine Inch Nails’ new campaign may not kickstart a full-on ticketing revolution, but it should renew interest in the conversation around how tickets are acquired. The process of making tickets available to everyone reasonably is a complicated one, but it is necessary one all the same. The current ticketing market pits consumers against one another for the benefit of corporations. Change is needed, but it won’t come easy.  If you have ideas, share them with us on Twitter.

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