Australia's live music scene is facing an unprecedented crisis. While some critics have pointed fingers at multinational corporations like Live Nation and TEG for dominating the industry, an ongoing parliamentary inquiry has revealed that these companies are not the root cause. Instead, the industry's downturn is driven by a more complex mix of factors including extreme weather events, a changing global market, and the economic strain from inflation and the COVID-19 pandemic. This article dives deep into these challenges, the misconceptions surrounding the crisis, and potential solutions to save Australia's vibrant live music scene.

The State of the Industry: Broken Models and Weather Woes
As Australia's live music industry grapples with mounting pressure, many of its business models have been deemed "broken and unsustainable." A parliamentary inquiry has heard testimony from Live Performance Australia (LPA), the peak body representing over 400 concert promoters, ticketing companies, and venues, suggesting that the global nature of the live music industry is contributing to its instability.

According to Evelyn Richardson, LPA's outgoing CEO, the issues plaguing the industry are not due to anticompetitive practices by large promoters. Richardson stated, "The live music industry is global. The world has changed. Many models in the live music industry are broken and unsustainable."

But perhaps the most unexpected factor affecting the industry is climate change. Catherine Strong, an associate professor from RMIT, testified that extreme weather events, such as dangerous heat, bushfires, and heavy rain, have severely impacted the confidence of event organizers and attendees alike. Research presented at the inquiry showed that over 40 Australian music festivals had been disrupted by weather events since the pandemic, highlighting a growing challenge that many in the industry are ill-equipped to handle.

Economic Pressures and Shifting Consumer Behavior
In addition to weather-related disruptions, Australia’s live music venues are also struggling with the economic fallout from the COVID-19 pandemic and inflation. David Barrett, owner of Melbourne venues Laundry Bar and Bad Decisions, is among many who have seen a sharp decline in revenue. Despite high demand for major concerts like Taylor Swift’s recent Australian tour, smaller venues are witnessing fewer ticket sales and decreased spending on food and beverages.

Barrett notes that the costs to keep venues open have skyrocketed, while consumer spending has decreased. “We’re kind of not really seeing people spend anywhere near as much over the bar,” he said, referencing a combination of rising insurance premiums, liquor licensing fees, and other operational costs that have compounded over the years. Many venue owners are now working extra hours themselves to offset these rising expenses.

The Inquiry's Findings: Misconceptions Around Corporate Dominance
Despite widespread public perception, the inquiry has so far found no evidence of anticompetitive practices by the major multinational promoters. Instead, these companies, which include Live Nation and TEG, are seen as playing a crucial role in the sustainability of the industry. Richardson emphasized that large promoters provide the financial resources necessary to invest in artists, infrastructure, and technology, helping to stabilize an inherently risky business.

“They’re also competing against every other city and market in the world,” Richardson said, stressing that losing these players could hurt Australia’s global standing in live music. Multinationals, she argues, have the capacity to weather the ups and downs of audience demand and continue investing in the industry.

This stands in stark contrast to earlier claims by the Media Entertainment and Arts Alliance (MEAA), which alleged that the Australian music industry had been “Amazonified” by three multinational companies. MEAA argued that these vertically integrated giants had too much control over venues, ticket sales, and artists. However, Richardson countered that these models, while under scrutiny in the U.S., were necessary for survival in a highly volatile market.

The Human Cost: Musicians and Venues Struggling to Survive
For Australian musicians, the crisis in live music is more than just an economic issue—it’s a personal one. Many artists rely on small and mid-sized venues for exposure and income, but these venues are now among the hardest hit by the downturn. Tori Forsyth, a professional musician for over a decade, credits small venues like Brisbane’s It’s Still a Secret for helping her establish her career. Losing these venues, she believes, would be devastating for new talent.

“Live music is where you’re adding that dimension to music. It’s where you’re gathering people together,” Forsyth explained. “You’re creating the community, you are able to connect with people.” Without these intimate spaces, artists will find it harder to develop a following, and the industry risks losing the diversity and innovation that small venues foster.

Potential Solutions: Levies, Grants, and Government Intervention
With the live music industry teetering on the edge, various stakeholders have put forward proposals to help save it. One idea, inspired by a model in the UK, is a ticket levy to support grassroots music venues. In the UK, a voluntary levy of £1 on tickets sold at venues larger than 5,500 seats is being considered, with the proceeds going into a charitable trust to fund smaller venues.

Howard Adams, chair of the Australian Live Music Business Council (ALMBC), has voiced support for a similar system in Australia. He believes that a $1 levy on tickets sold at large events could provide much-needed financial relief to struggling venues. “That dollar is spread evenly between the consumer, the artist, the venue, and the promoter,” he explained. The funds could then be used for grants of up to $15,000 to cover wages, production costs, or other operational needs.

Others have called for more direct government intervention. Greens senator Sarah Hanson-Young has described the inquiry’s findings as “compelling evidence” that the government must take action to curb rising overheads and help the industry navigate its many challenges.

A Need for Adaptation and Innovation
While government support is crucial, the live music industry is also trying to innovate to stay afloat. Some venues have begun running music academy programs, offering young people the chance to learn skills such as lighting and sound mixing—skills that are essential for keeping the live music ecosystem alive.

“There are a few genuine music universities, but they’re very expensive,” Adams said, highlighting the need for accessible training opportunities in the live music sector.

Moreover, venues are increasingly serving as community hubs, especially for ethnic and queer communities. Barrett noted that themed nights and events targeting these groups have brought more patrons through the doors, even in tough economic times. He believes these initiatives are vital to maintaining the cultural relevance of live music venues.

Conclusion: The Future of Live Music in Australia
The challenges facing Australia’s live music scene are multifaceted and daunting, but they are not insurmountable. While large corporations like Live Nation and TEG are often blamed for the industry’s woes, the real culprits are far more complex—extreme weather events, economic instability, and outdated business models. Solutions will require a combination of government intervention, community support, and innovative thinking from within the industry itself.

For Australia to retain its vibrant live music culture, it will need to adapt quickly to these new realities. With the right policies and initiatives in place, the industry can continue to thrive, providing artists and audiences alike with the experiences that make live music so essential to the country’s cultural fabric.

Amid rising costs, natural disasters, and evolving consumer behavior, Australia's live music industry faces its most significant challenge, with calls for government intervention and innovative solutions to keep the scene alive.