What will stem the tide of Australia’s music festival closures?

what-will-stem-the-tide-of-australia’s-music-festival-closures?
What will stem the tide of Australia’s music festival closures?

Several Australian music festivals, big and small, have had to cancel over the past year, some choosing to take a break to recalibrate. The industry is facing several challenges, including COVID-19 pandemic lockdowns, unpredictable weather events, consumer confidence, high fees, escalating operational costs, and a weak Australian dollar. This has led to an uncompetitive market and, coupled with consumers’ cost of living pressures, created a perfect storm. Easing regulatory requirements and costs at a state level could be one solution, according to Mitch Wilson, Managing Director of the Australian Festival Association. Simplifying costs for hiring government-owned venues, policing costs, and liquor licensing conditions could also help.

There has been a slump in younger generations attending music festivals, so festival operators “need the time and support to try and understand what new, younger audiences want,” says Wilson. One promoter that has both led and capitalised on the electronic music zeitgeist is Untitled Group, whose success has been marked most recently by 35,000 tickets sold at the 2023/2024 edition of Beyond the Valley. High-profile headline tours are thriving as festivals struggle, so Untitled Group will continue to promote festivals, but will also focus on touring major international artists over the next 12 to 24 months.

Founder of the Birdsville Big Red Bash and the Broken Hill Mundi Mundi Bash, Greg Donovan, believes that the government is not the only answer. Festival operators must take ownership of their decision to enter such a risk-prone sector operating on razor-thin margins. These two events, the biggest remote outback music festivals in Australia, have received funding for infrastructure upgrades to their festival sites and have fostered community in unique ways.

Palermo believes festivals play a critical role in platforming local artists. “Dom is a testament to how strong our team is alongside Dom’s team, to work with such an amazing songwriter, an amazing performer,” Palermo said. “To be able to further increase his value in life ticket sales in Australia, to the point of what we just did, it’s nothing short of extraordinary.”

Despite the industry’s bleak outlook, pockets of strong performance across the sector, particularly in the electronic music space, have emerged. Festivals provide significant benefits to the communities they serve, both cultural and financial. It is vital to uplift the brand and reputation of the locations where festivals are held, and Wilson, Palermo, and Donovan all agree that “we really need to keep them going”

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