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Better regulation of ticket resales urged

By Tim Bradshaw, Digital Media Correspondent

Published: June 3 2008 04:49 | Last updated: June 3 2008 10:05

A group representing 400 musicians and their managers is demanding greater regulation of the secondary ticketing market, claiming that a partnership between Madonna and ticket resale site Viagogo suggests the industry cannot regulate itself.

The Resale Rights Society, whose members includes the management of Robbie Williams, Radiohead and the Arctic Monkeys, said that Madonna’s partnership with Viagogo as the “official” ticket resale website for her “Sticky & Sweet” tour did not protect consumers or help artists.

The RRS said tickets were available on several other reselling sites, often at inflated prices and without the security that official partners provide.

It argues that exclusive arrangements also prevented artists from profiting from sales on other secondary ticketing sites, as they would through a levy scheme proposed by the RRS.

“The nature of these exclusives are meaningless,” said Marc Marot, chairman-designate of the RRS, because they could not prevent tickets being resold on hundreds of other sites where Madonna would not get a share of revenues.

“We feel very strongly that a huge amount of money is being made by lots of people that cuts out the artist that creates the [intellectual property] in the first place.”

He added: “There ought to be a blanket right like the Performing Rights Society where artists get a little piece of every transaction right across the board.”

The rapid decline in recorded music sales has meant artists are increasingly reliant on live music to generate income. But operators of secondary ticketing sites, which include Seatwave and GetMeIn as well as Viagogo, said it was not possible to control were tickets were sold and accused the RRS of trying to impose a “tax on fans”.

Eric Baker, chief executive of Viagogo, said the RRS’s demands for royalties from secondary ticketing revenues were “just as ludicrous” as authors or car manufacturers wanting a share of second-hand sales.

He said that Madonna and Live Nation, her management and concert promoter, partnered with Viagogo because it guaranteed security and ticket delivery for fans. “[The RRS] are just upset because they’re not getting paid,” he said. “Obviously Madonna, Live Nation and Viagogo believe that [ours] is a much better solution for everyone involved.”

Both the RRS and Viagogo claim to be protecting the interests of consumers and artists.

Danny Rimer of Index Ventures, an investor in Viagogo, said the row was a “classic example of how the internet disintermediates. You’re going to have a few unhappy people who are extremely vocal.

“There’s no such thing as exclusivity in secondary ticketing,” he added. “We’re not fleecing the consumer, we’re providing what they want.”

No other leading artists have yet signed official partnerships that between Madonna and Viagogo. Joe Cohen, chief executive of Seatwave, said that he did not believe the deal would “unleash a torrent of other deals”.

“The market will move to a place where there is a regular agreement between secondary exchanges and artists on the value that they can provide to one another,” said Mr Cohen. “In time, we will see deals get cut at reasonable economics for both parties.”

Andrew Blachman, general manager of GetMeIn, a ticketing marketplace acquired in January by Ticketmaster , said that a greater choice of secondary ticketing sites created competition, “resulting in higher standards of service and lower prices”.

“The UK government has investigated this issue for three years and we agree with their conclusion that regulation is not the answer.”

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