How Concert Ticket Prices Are Set and Why Filipino Fans Pay More Than Our Asian Neighbors

The recent wave of concert announcements in the region from some of the planet’s biggest music superstars has once again surfaced heated conversations about things like how artists choose the cities they play in and how exactly ticket prices are set. Of the two, it’s the latter that’s gotten some pretty intense reactions and speculations, especially from devoted fans who just want to see their idols play their favorite songs live in front of them but are prevented from doing so because of some objectively cost-prohibitive concert ticket prices. 

The issue isn’t new, of course: it pops up from time to time, especially when some big names announce concert tours with stops either here in Manila or a city near us in the region. This time, it’s Taylor Swift surprise reveal that her blockbuster Eras Tour is making only two stops in the entire Asian continent: Japan and Singapore. Additionally, big-name artists like Coldplay, Alanis Morrisette, Twice, The Corrs, Sam Smith, and a few others are scheduled to perform here in Manila within the year until early 2024.

ALSO READ

Local Concert Promoter MMI Live Is Now Live Nation Philippines. What Does That Mean Exactly?

Madonna, Coldplay, U2: How MMI Live Became a Leading Concert Promoter in the Philippines

In Swift’s case, fans couldn’t help but express shock when ticket prices for her concert in Singapore, to be held at the country’s National Stadium, was announced. The most expensive was “only” P14,223 while the cheapest was set at P4,414. Of course, if fans are able to get tickets for this show, they’ll have to add a few additional expenses, like flights, accommodations, inland transportation, and food to the mix, but, at face value, if we’re talking about just actual concert ticket prices, it does sound pretty reasonable.

Compare that with, say, tickets for pop star Bruno Mars’ show earlier this month. While the cheapest (Upper Box) was at P2,750, the most expensive reached P18,750 for the standing area in front of the stage.

In years past, fans have proven that money is not an issue and that they’re willing to open their wallets for the opportunity to see their idols perform live, even if it meant shelling out more than fans in neighboring Asian cities. The queen of pop Madonna set a record when VIP tickets to her first and only Manila show (for her Rebel Heart tour) cost an eye-watering P57,750 at the Mall of Asia Arena back in 2015. For comparison, at her stop in Singapore, the most expensive ticket was at SGD1,288, which was about P42,500 based on the exchange rate back then.

In 2017, Coldplay made their concert debut in the Philippines, with the priciest ticket at P22,500 for VIP access at the open-air Mall of Asia concert grounds. During the band’s stop in Singapore for the same A Head Full of Dreams tour, the top price was SGD298, or “only” about P10,728. In Bangkok, VIP tickets were priced at THB6,500 or about P9,425. 

So that begs the question, why are concert tickets more expensive here?

There are several factors influencing the price of concert tickets in the Philippines. But based on conversations we’ve had with people in the live music industry, two of the most significant contributors are the venue and taxes.

A venue problem

Let’s look at venues first. In the Philippines, two of the most popular concert venues are in Metro Manila: the Mall of Asia Arena in Pasay City, and the Araneta Coliseum in Quezon City. Both have a declared seating capacity of around 15,000. However, according to veteran concert promoter Renen De Guia of Ovation Productions, that’s not exactly accurate. Ovation Productions is one of the country’s oldest and top concert promoters having brought in artists like Boyz II Men, Lauv, Josh Groban, Celine Dion, Ed Sheeran, Liam Gallagher, and many others.  

“In a proscenium set-up, which is what we call the standard concert set-up, both Araneta and MOA Arena can accommodate only about 9,600,” he tells Esquire Philippines. “Medyo naiiba lang kapag standing, which is what some concert promoters do. So nadadagan ng konti, but not by much.”

Compare that with Singapore’s National Stadium or the Tokyo Dome, which has a declared capacity of 55,000, and both of which are popular concert venues. Even Bangkok Stadium in Thailand can fit 51,000 screaming fans, while Malaysia’s Bukit Jalil National Stadium in Kuala Lumpur can accommodate over 87,000.

The implication is clear, of course: fewer seats, fewer attendees, lower revenues. So promoters will naturally increase ticket prices.

“We have a need for more choices for venues,” De Guia says. “As a promoter, I think very limited ang venues natin, and that (contributes) to the ticket prices.” 

This is a plea echoed by Rhiza Pascua, managing director of Live Nation Philippines, which was once called Music Management International (MMI). In an interview with this author in 2017, Pascua said she looks forward to having more big event venues in the country to help attract top-tier acts. 

Of course, there’s the Philippine Arena in Bulacan, which has recently become a notable venue in the country for some of the world’s biggest music stars, like Katy Perry, U2, Harry Styles, and most recently, Bruno Mars. But even a venue with a declared capacity of 55,000 (much less when you consider part of it is turned into the stage and is therefore inaccessible to audiences) isn’t enough to keep ticket prices down. (Other issues, including getting in and out of the venue itself, are another thing altogether).

The reason is that the venue is just part of it.

Pascua acknowledges that they still get complaints about the exorbitant ticket prices. 

“Ticket prices are set based on expenses,” Pascua said then. “People think that it’s the promoters who are making up the ticket prices, with no basis. They don’t know that we have to pay for fees, we have to pay taxes. As a partner of Live Nation, we pay the correct taxes. It’s a publicly owned company, so you can’t cheat when it comes to paying taxes.

“What we do, and this is just us, is that we try to drop our ticket prices as much as we can, hoping the show sells out and sponsors would come in, and that becomes our income,” she added. “But our main goal is to make our ticket prices reasonable.”

In April 2022, Live Nation acquired MMI, which, in turn, became Live Nation Philippines. It has since become one of the top concert promoters in the country, with concerts like U2, Coldplay, Madonna, Harry Styles, Maroon 5, and many others under its belt.

Pascua added that sometimes, it’s the artists or their management themselves who set ticket prices.

“Before we release all the ticket prices, we inform (artist’s) management,” she says. “Naka-audit kami. They have to approve the ticket prices. And we have to report (tothem) every hour. That’s how strict our system is. Kaya hindi kami pwede mag-bloat ng tickets. (We can’t inflate ticket prices).” 

Of course, a huge bulk of the expenses necessary to mount a large-scale concert goes to the artist and their management. Non-disclosure agreements it signs with the artists prevent Live Nation Philippines from revealing just how much this expense costs, but considering that and things like the stage set-up, lights and equipment rental, security, food and accommodation for the artists and staff, permits and taxes and many others, Pascua says one show can easily reach into tens, perhaps even hundreds of millions of pesos.

Taxes and government support

Pascua mentioned taxes that contribute to the cost of concert ticket prices. De Guia echoes this assessment. 

“Taxes are just part of so many other costs,” he says. “You have to pay amusement tax and the artist’s withholding tax. There are a few others but those two are the biggest. Plus VAT, of course.”

Government support is another element. After news spread that Singapore had managed to attract Taylor Swift’s only show in Asia (besides Japan), it also came to light that the city state has long made it part of government policy to support initiatives in the entertainment field, particularly live music, in its quest to become “the events and entertainment capital of Asia.” That includes partnering with the artists and promoters themselves.

“The truth is, in many countries, the government wants to lure tourists, so they support the promoters because they know the benefits,” De Guia says. “People will go to the country and city. Sometimes the government even subsidizes the cost. Or sometimes they’re even the financiers. Korea is another example.

“Here, we don’t have that,” he adds. “Hands-off ang government dito.”

“I just really hope the government here can be more supportive of us,” Pascua added.

There are other considerations that contribute to relatively higher concert ticket prices here compared to our neighbors in the region, but venues and taxes constitute a significant bulk of it. Unless something is done about it, we might have to contend with paying more to see the world’s biggest music artists perform live.