yeah, this. this is going to hurt bands a lot (directly and indirectly), just like groupons for tickets have. here's the problem - when you run promotions on marking down tickets, whether it's this, groupons, etc. it DOES sell more tickets in the short run - and i'm sure we can all agree that $10 spent is better than no dollars at all. but it also trains consumers to 'wait for the sale' - and the more shows with marked down tickets, the more consumers will be trained as such. if it happens once or twice people won't learn that behavior, but when you start having groupons for shows once a week and an entire fucking clearance rack on ticketmaster people are going to start doing that - they already have - i hear all the time that people are going to the box office to ask when there's going to be a groupon, that is a TERRIBLE sign.
this turns into a vicious cycle - these promotions are run in the first place because a show isn't selling (no shit sherlock), but people won't buy tickets in advance because they'll wait for these promotions, and it's all downhill from there i'm sure everyone can see. and yes, you can argue that if people want to go to a show they will go anyhow - but that only applies to fans (like people who post on this site), not the casual consumer - the casual consumer (like, people who heard one foster the people song on the radio) will really not go to a show because "well it never went on groupon, why would i pay $40 for a show when they usually put them on groupon for $20?!"
and even if people do eventually buy the tickets, but wait til closer to the show to buy them, the promoters will spend more on advertising which will equate to less in a band's pocket if the deal is structured as such that they may be making a percentage of profits, and promoters don't like it when they have to sit on the edge of their chair til the last minute to find out if they're going to lose money (who does?), and i'm sure most of you by now can see why this is bad.
and, even if not from a business standpoint, it's downright insulting to an artist to have to put their tickets on the clearance rack. yes, it means that they were put in the wrong venue - it's not necessarily their fault, everyone makes a bad bet sometimes and every situation of why that happened is different - but it's still pretty fucking insulting.
also, FYI to the rest of the thread, most places have a physical outlet where you can buy tickets free of service charges (usually the venue or a sister venue's box office or a local record store) - if you really want to stick it to ticketmaster do that, because the fees they were anticipating collecting they are not getting on your sale of a service fee-free ticket!
sorry for the novel! i have more feelings on ticketmaster than anyone would ever care to hear in their life, haha.