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Actually, prices aren't always astronomical - it depends on the scale of the event and the venue, but yeah, they're usually pretty pricey. The main thing is that organizers need to cover the logistics: delivering drinks, coolers, staff, ice, cups to the venue, then cleaning it all up afterward. Plus you have to account for losses - some drinks will spoil, some won't sell. If it's an outdoor concert, the costs of setting up sales points go up even more.
Second point - it's part of the business model. Drinks are sold by a concessionaire or the organizer themselves, and they build in a markup that, honestly, can be pretty hefty. Here's where simple logic kicks in: people are hyped up about the music and less picky about prices, and organizers know that. Plus there's no competition - you can't just bring your own bottle.
Third thing - drinks at concerts often come in limited sizes. A tiny cup with 250 ml costs as much as a full drink at a café. That's where it feels like they're ripping you off.
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