A parliamentary investigation into the wrestling live music sector of Australia has recommended the Australian competition and the consumer committee to follow the industry for anti-competitive behavior and insisted on a harsh action against “extreme dynamic prices”.
The final report, I will ever see you live, concluded that consumer legislation should be changed to improve transparency in reimbursements and charging practices for concert tickets and to eradicate behavior that distorts, manipulates or undermines, without necessarily misleading or scarcity, such as practices that have an unnecessary sense of urgent “… .. ..
The almost annual national research that was heard of some witnesses that attributed the failing live music sector to a lack of competition and the business practice of vertical integration, where the production of concert and festival, location, ticketing and resale ticketing is all controlled by a single parent company.
Together, Live Nation based in the US (who owns Ticketmaster), TEG Live (who owns Ticketek) and AEG Frontier Control around 90% of the most important concert market in Australia, the study showed.
The independent concert promoter Supersonic Australasia indicated that the committees and reimbursements on ticket sales were charged by ticket deck and ticket master were usually double that of smaller independent ticket companies, such as Oztix.
Live Nation gave evidence to the research and said that her ticket master Australia and Live Nation Australian concert companies were “fully separate entities” and claimed that they were locations that determined which ticketing company to use, not the promoters who hired the locations.
In his evidence, Teg said live that most large locations in Australia were owned by the State governments, and although the company Doornam, the company usually received between only 10 and 15% of the profit.
Since COVID, around 1,300 locations of live music have been lost and the presence of the nightclub are almost half pre-pandemic level.
Only half of the country’s festivals made a profit in the post-known environment (with a median win of $ 731,579) and about 35% lost money (with a median of a loss of $ 470,000), the study found.
The live music sector was a crucial part of the broader cultural and creative industries of the country, the study showed that $ 21.8 billion contributed to the National BDP.
Rising insurance premiums, unpredictable weather and ticket sales and new technology – including algorithms used by platforms such as Spotify – had all influenced the sector.
The public liability insurance of one location rose from $ 10,000 to $ 60,000 in one year, the investigation heard, while the Laneway festival told the committee that the cancellation insurance has increased by 280% in four years.
The costs of the police also had a “debilitating” impact on music festivals in some states.
Although a festival in Melbourne can increase a fee of $ 10,000 to $ 15,000 from Victoria Police, it can cost up to $ 60,000 for the same festival in Brisbane and up to $ 150,000 in Sydney.
The report recommended governments of the state and the territory consider a reduction or abolition of the control of user payments at music festivals.
One of the 20 recommendations of the report was also a consideration of Treasury to introduce a tax offset for the live music industry, similar to the way the film industry works; the introduction of discounts or a voucher schedule to encourage younger public to attend live music; And the addition of a small levy to the price of every ticket to large music events to support smaller locations and live music.
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