CRI听力:What Is Making Concert Ticket Prices So High?

How much would you pay for a ticket to see your favourite pop star? According to statistics from the Beijing Trade Association for Performances, the average ticket price for concerts in large stadium was 772 yuan in 2010, which was 21% higher than the prices in 2009. Moreover, these prices are generally higher in Beijing than in Hong Kong or Taiwan.

Zhang Wan has more.

Usually, concerts in many cities throughout China cost between several hundred yuan to about two thousand yuan. Many people say that's too expensive.

"The prices are all very high. The average prices are 700 to 800 yuan for a concert ticket."

"The prices are expensive. I would pay no more than 700 or 800 yuan for a ticket to a concert by my favorite star."

What is causing ticket prices to be so expensive? Zhang Wei from a ticketing agency in Beijing explains:

"Ticket prices are usually set by the concert organizer, in accordance with previous concerts prices and the status of the star, the organizers set prices that they can make a profit from."

Generally, the prices of concerts in the mainland cities are higher than those in Hong Kong, Taiwan and the United States. Why is this?

The cost of a commercial performance usually includes pay for the performer, equipment and venue rental fees, sundry charges, costs for maintenance and security, advertising costs, and commissions for ticketing agencies.

Some insiders say the high ticket prices are due to the high costs of venues and stages as well as advertising fees. For example, the venue fee for Guangzhou Tianhe Stadium, which accommodates 5,000 to 6,000 audiences, is at 200,000 yuan, while Hong Kong Coliseum, which can accommodate more than 12,000 audience members, only costs about 50,000 yuan.

In other words, the venue cost of the stadium in Guangzhou is eight times higher than the one in Hong Kong. It's not just Guangzhou that's more expensive. The cost of the stage in Hong Kong is only two thirds of the price in the mainland cities.

As for the advertising costs for such a concert, it's about 500,000 yuan on the mainland, but it costs much less in Hong Kong. In addition, ticket agencies on the mainland usually take 8 percent of the ticket price as a commission, which is much higher than that in Hong Kong.

Chen Shaofeng from the institute of cultural industry of Peking University says, that in addition to these aspects, the security cost of a concert in the mainland is much higher.

Taking the National Stadium in Beijing as an example, it needs about 10,000 to 20,000 security employees in place if all the areas in the stadium are used for a concert.

So the question arises: how can mainland ticket prices be reduced? Experts suggest turning single-event-concerts into tours, presenting the show at additional venues, thus accommodating more audience. In addition to this, the government should figure out some policies to encourage lower ticket prices.

Chen Shaofeng suggests concerts be differentiated into commercial performances and non-commercial performances. For example, if a singer gives four performances, they sell tickets of the first three performances at prices that they can make profit, while they lower the prices of the last performance to benefit more prospective audience members.

For CRI, I am Zhang Wan.