A parliamentary inquiry into Australia’s live music sector has revealed alarming findings about the challenges facing the industry. The inquiry’s final report, Am I Ever Gonna See You Live Again, recommends that the Australian Competition and Consumer Commission (ACCC) monitor the industry for anti-competitive behavior and proposes changes to consumer law to combat issues like “extreme dynamic pricing” and the lack of transparency in ticketing fees and charges.
Industry Challenges and the Need for Reform
The live music sector in Australia is grappling with significant obstacles. The inquiry highlights the issue of vertical integration, where major companies control various facets of the industry, including concert production, venue management, ticketing, and resale ticketing. Live Nation (owner of Ticketmaster), TEG Live (owner of Ticketek), and AEG Frontier dominate approximately 90% of the market.
The report urges reforms to increase competition and ensure greater transparency in pricing practices. One of the key concerns is the practice of dynamic pricing, where ticket prices fluctuate in response to demand, often leading to inflated costs for consumers. Additionally, the inquiry calls for amendments to consumer law to address practices that distort or manipulate consumer choices, such as creating artificial urgency or scarcity in ticket sales.
Economic Impact and Post-COVID Struggles
The live music industry has been further devastated by the aftermath of the COVID-19 pandemic. The inquiry notes that around 1,300 live music venues have closed, and nightclub attendance has halved since pre-pandemic levels. Festivals, a critical part of the industry, are struggling financially. Only half of Australia’s festivals are turning a profit in the post-COVID environment, while a significant portion is losing money.
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Rising costs, such as insurance premiums and policing fees, have made it even harder for smaller festivals and venues to remain viable. The inquiry highlights the extreme rise in public liability insurance costs for venues, with one example showing an increase from $10,000 to $60,000 in just one year. The cost of policing, which can range from $10,000 to $150,000 depending on the state, has also had a crippling effect on festivals.
Recommendations for Industry Reform
To address these issues, the inquiry offers 20 key recommendations, including:
- A crackdown on anti-competitive practices: The ACCC should monitor the industry for behaviors that undermine consumer choice, including extreme dynamic pricing and excessive ticketing fees.
- Policing charges reform: The report recommends that state and territory governments consider reducing or abolishing user-pays policing fees at music festivals, which have become prohibitively expensive.
- Support for smaller venues and grassroots live music: The introduction of a small levy on large event tickets to fund smaller venues and independent music scenes.
- Tax incentives: The report suggests Treasury explore a tax offset for the live music industry, similar to the film industry’s tax rebates.
- Youth engagement: Introducing rebates or vouchers to encourage younger audiences to attend live music events.
Conclusion: A Crucial Sector in Need of Support
The live music industry is vital to Australia’s cultural and economic landscape, contributing $21.8 billion to the national GDP. The findings of the inquiry underscore the need for immediate and comprehensive action to ensure the sector’s survival and growth. By implementing these reforms, the Australian government can help secure a brighter future for live music, which has faced unprecedented challenges in recent years.
