The Rising Cost of Live Music: Consumer Tolerance and Price Limits in the Concert Industry

Andrej Raspor, Darko Lacmanović, Bojan Rojko, Ajda Srdić, Anton Vorina

Abstract

Introduction: The rapid increase in concert ticket prices has become a defining feature of the contemporary live music industry. As revenues from recorded music have declined, live performances have emerged as a primary income source for artists and promoters, intensifying debates about affordability, accessibility, and consumer tolerance. Despite extensive research on pricing strategies and demand, less attention has been given to identifying the price limits at which consumers begin to withdraw from concert attendance.

Background: Previous studies have examined concert attendance through cultural, experiential, and economic perspectives, highlighting the role of emotional engagement, social interaction, and perceived value in shaping consumer behavior. Research on ticket pricing has focused on demand elasticity, price discrimination, and dynamic pricing models, yet consumer price thresholds remain insufficiently explored, particularly across different audience segments and demographic groups.

Purpose: The purpose of this paper is to examine consumer tolerance for rising concert ticket prices and to conceptualize the price thresholds at which ticket costs begin to significantly deter concert attendance. The study aims to integrate experiential, behavioral, and economic perspectives to better understand heterogeneity in consumers’ willingness to pay.

Methods: The paper adopts a conceptual and analytical approach, synthesizing existing literature from cultural studies, behavioral economics, and music industry research. Long-term trends in concert ticket pricing and industry pricing mechanisms are reviewed, and illustrative empirical evidence from selected markets, including smaller national contexts, is used to contextualize broader theoretical insights.

Results: The analysis indicates that concert ticket demand is generally inelastic, but consumer price tolerance varies substantially across audience segments and demographic characteristics. Emotional attachment to artists, perceived uniqueness of live performances, income levels, and prior concert experiences significantly influence willingness to pay. While segmented and dynamic pricing strategies increase revenue potential, they also contribute to rising average prices and growing affordability concerns.

Conclusions: Consumer tolerance for increasing concert ticket prices is not uniform and is shaped by a combination of experiential value, economic constraints, and psychological reference points. Although many consumers continue to accept higher prices due to the unique nature of live music experiences, identifiable price thresholds exist beyond which attendance declines, posing challenges for the long-term inclusivity and sustainability of live music markets.

Practical implications: For concert organizers and promoters, the findings highlight the importance of differentiated pricing strategies that account for heterogeneous consumer price sensitivity. Maintaining accessible entry-level ticket options may help preserve audience diversity while allowing premium pricing for highly engaged segments.

Social implications: Rising concert ticket prices risk excluding lower-income audiences and undermining the social and cultural accessibility of live music. Understanding consumer price thresholds can inform more inclusive pricing practices and cultural policy discussions.

Originality/value: This study contributes to the literature by explicitly linking concert attendance motivations, audience segmentation, and behavioral pricing theories to the concept of consumer price thresholds. By integrating cultural and economic perspectives, it offers a more nuanced understanding of affordability and consumer limits in the live music industry.

Keywords: concert ticket pricing; consumer price tolerance; price thresholds; live music industry; concert attendance behavior; demand elasticity