Australia’s live music industry is grappling with significant challenges, with many business models deemed “broken and unsustainable,” as highlighted during a parliamentary inquiry into the sector. Despite the scrutiny on large multinational promoters like Live Nation and TEG, industry peak body Live Performance Australia (LPA) contends that these companies are part of the solution rather than the problem.
LPA, representing over 400 entities including concert promoters and live performance venues, defended the role of major promoters during an evidence session in Melbourne. Outgoing chief executive Evelyn Richardson emphasized the lack of concrete evidence supporting claims of anticompetitive behavior by these multinationals. Richardson criticized the inquiry for its “chest-beating and unsubstantiated claims,” noting that the accusations lack factual backing.
“It’s been very disappointing to hear some of the misinformed statements made by earlier witnesses around the role of our largest promoters,” Richardson stated. She underscored that the companies operate within the competition and consumer legislative framework, with no solid evidence presented against them. “The live music industry is global. The world has changed. Many models in the live music industry are broken and unsustainable.”
Labor MP Brian Mitchell, chair of the inquiry, pointed out that proposed solutions could impact LPA’s largest members, highlighting that their business practices were a focal point of the inquiry. The inquiry has revealed that over 40 Australian music festivals have been disrupted due to various factors, with extreme weather events significantly impacting the sector.
Associate Professor Catherine Strong from RMIT University attributed the instability to the climate crisis, noting that extreme weather events have shaken market confidence. Research presented at the hearing indicated that more than half of the disruptions, including dangerously high temperatures, bushfires, heavy rain, or flooding, occurred post-Covid pandemic. A joint submission by academics from RMIT, La Trobe, and Griffith universities called for policy intervention to prepare the sector for future challenges.
The inquiry also heard accusations of market concentration from the Media Entertainment and Arts Alliance, which likened the situation to “Amazonification” by three dominating multinationals. These companies’ vertical integration business models allegedly give them control over venues, ticket sales, merchandise, and artists, raising concerns about monopolistic practices.
In the United States, Live Nation faces a civil lawsuit by the Department of Justice for allegedly engaging in anticompetitive conduct. The Australian Competition and Consumer Commission (ACCC) acknowledged observing similar behaviors by Live Nation in Australia, closely monitoring the US lawsuit.
Despite these concerns, Richardson argued that the major promoters are vital to the Australian market, directly employing 1,500 people and generating about 85% of total live music ticket revenue. She highlighted their investment in people, artists, infrastructure, technology, and innovation, describing the industry as capital-intensive with high risk. The financial backing and risk appetite of these companies enable them to weather fluctuations in audience demand and preferences.
Richardson defended the multinationals’ vertical integration business models, asserting that they allow for cross-subsidization within the business, essential in a volatile and competitive market. “We’ve got three major players competing against each other,” she said. “They’re also competing against every other city and market in the world … it’s very important that we maintain those three players if we want to maintain our place in the global live music market.”
As the inquiry progresses, the future of Australia’s live music industry remains uncertain, with calls for both regulatory scrutiny and innovative solutions to ensure sustainability and diversity in the sector.