Last year, Jay-Z was accused of selling tickets for as low as $6 for his 4:44 tour on Stub-Hub. Whether it was true or not, it seems like there were no negative effects. Mr. Carter’s legal team responded to the accusations with facts stating that the tour was doing just fine. According to Billboard, “by pricing tickets closer to actual market value, Jay-Z and Live Nation are capturing more revenue and creating little room for brokers to mark up the best seats.”
Many thought that Jay’s business decision was not a smart move, but by the looks of it, it was the best thing he could have done. The rappers 4:44 tour has become his highest grossing solo tour ever earning $48.7 million with 32 shows in two months and beating his Magna Carter Tour by 21 percent.
“This tour will be the biggest headlining tour of Jay’s career,” says Omar Al- Joulani, VP of touring at Live Nation.
Mr. Carter’s whole purpose for pricing tickets closer to actual market value was to take the pricing pressure off the upper- level seating sections causing a paradigm in ticket sales. By raising the seat prices on front row seats, VIP experiences, and platinum tickets this lowered tickets prices for all other seating tremendously, which allowed more fans to attend the show at an affordable cost. This resulted in a seven figure per night gross. Patrick Ryan with ticketing and inventory company Eventellect says,
“This might be the future of ticketing. We are seeing many creative pricing strategies and we are seeing artist find what works for them. You generate a ton of revenue up front, but you still have a $25 price point that makes it more affordable for individuals who want to see an arena show.”