Piracy Effect? Artists Want Piece of Resold Concert Ticket Action

Lost proceeds once derived from recorded music sales prompt artists to seek additional income from ancillary sources.

From Owen Gibson and Sam Jones, Guardian:

Radiohead, Robbie Williams and Arctic Monkeys joined calls yesterday for a levy to be added to tickets resold on the web to allow musicians to claw back some of the profits made by touts and fans.

The acts' managers, together with about 400 other artists, including KT Tunstall and the Verve, said the move was vital to bring some regulation and rigour to a market they described as "the wild west".

They proposed the creation of a Resale Rights Society, which would collect a fee from each ticket sold on eBay and other websites such as Seatwave, Viagogo and GetMeIn.com that have sprung up to satisfy the demand to trade concert tickets.

They said the levy would help to ensure that money raised from the boom in live music flowed back into the industry rather than the pockets of venture capitalists.

With the increased demand for tickets, resale values have soared, fuelling a sizeable secondary market. According to the information service Tixdaq, the market is already worth around £200m a year in the UK. In October, £2m was spent on tickets for the Spice Girls alone.

Marc Marot, chairman-elect of the RRS and the former chief executive of Island Records, said the levy proposal was a "grown-up solution" to a "completely unregulated area".

"The secondary ticketing market offers benefits to music fans and the live music industry alike. It does not make sense to try and criminalise it," he said. "On the other hand there are real issues of consumer protection here. It is unacceptable that not a penny of the £200m in transactions generated by the resale of concert tickets in the UK is returned to investors in the live music industry."

Marot said the move was not intended to boost the bank balances of big names such as Mick Jagger and Sting but to help new artists who increasingly make less money from recorded music sales and rely on income from gigs to make a living.

As record sales have plummeted, the live scene has boomed in recent years with new artists and reformed supergroups playing to wider demographics in better quality venues. A Mintel report in July said the market was worth £743m a year.

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