Code Red: Australian Music Festivals

Don’t we all love the buzz of feeling part of a community (even a temporary one), part of something that is bigger than the sum of us? 

It’s hard to ignore the hum of excitement when we join together in celebrating the simple beauty of music, lights in the city, shared love of food and friendships. That’s why my heart sank when I heard yet another iconic Aussie festival where people joyously came together was sinking into the shadows. 

With the recent announcement of the closure of one of Australia’s most beloved music festivals, BluesFest, alongside a string of other high-profile cancellations including Splendour in the Grass, it is clear that Australia's live music industry (and the associated community spirit they generate) is in pain. Festival cancellations are becoming more frequent, worrying their loyal communities of fans, the local communities they inject energy into, and people in the industry.

BluesFest, one of Australia's longest-running and most cherished music festivals, has been a beacon of community, music, and resilience since 1990, with nearly 100,000 attendees celebrating all things music and community each year. Unfortunately, Festival Director Peter Noble recently announced its closure after years of relentless challenges, including COVID-related cancellations, fire, rain, soaring costs, and artist withdrawals. NSW’s Music Minister, John Graham, expressed deep concern, stating, "The festival industry is under extreme pressure, and I am deeply worried about the health of the festival scene here in NSW" (Australian Associated Press 2024).

As someone who has proudly enjoyed the sense of connection and the cultural richness available at community-based music festivals regularly since childhood, including St Albans Folk Festival (Greater Sydney) and the National Folk Festival (Canberra), these cancellations are deeply troubling. 

The community based volunteer festivals continue on, despite facing many of the same factors as the commercial festivals, but they also are struggling,  with the additional issue of a decline in volunteerism across Australia in recent years. Many are holding on by the fingernails of their dedicated volunteer teams. 

Live music festivals are not just events on the calendar; they are vital for nurturing emerging talent, celebrating creativity, connecting communities, &  boosting local economies. 

If we step back and look at the situation, it is anything but simple. A myriad of factors have converged to lead to the current troubling state-of-affairs. 

Let’s take a look at just two of these factors alongside real-world examples illustrating the impact. The following analysis is a synthesis of perspectives from over ten sources on the current state of Australia’s live music industry.

Rising Supply Costs

The cost of supplying festivals has increased significantly. According to Bailey (2024), “the costs of staging a music festival have risen at least 30 per cent since before the pandemic”. Key factors include:

1. Logistics costs: Rising costs of transportation, accommodation, insurance, and construction.
2. Health and safety measures: Enhanced health and safety protocols, especially post-pandemic.
3. Adverse weather: Increasing extreme weather events due to climate change necessitate more backup options and weather controls, raising supplier costs. “In 2022 alone, more than 20 Australian festivals were cancelled because of extreme weather” (Whiting & Green 2024).
4. Inflation: General inflationary pressures raise the prices of goods and services.

Organisers face a tough decision: raise ticket prices, cut costs, or cancel the event to prevent bigger losses (Swartjes et. al. 2023). 

Declining Consumer Spending

Several factors influence consumers' willingness and ability to purchase festival tickets. . These include:

1. Economic conditions: During economic downturns and with rising inflation, consumers prioritise essential spending over discretionary expenses.
2. Disposable income: As living costs rise, discretionary income shrinks. Rondinel (2023) reports that over half of Australians are currently facing financial stress.
3. Alternative entertainment: Cheaper options, such as streaming services or local events, reduce demand.
4. Perceived value: If consumers think that the festival experience does not justify the cost, demand declines. 
5. Consumer preferences: Changing preferences, including a trend towards genre-specific festivals (Whiting & Green, 2024).
6. Last minute spending: Consumers are delaying ticket purchases, causing “concern among promoters, who rely on opening-day sales for momentum and capital” (Whiting and Green 2024).

The Impact on Festivals

The combination of rising costs and declining consumer spending leads to:

1. Cancelled festivals: When organisers cannot cover rising costs, cancellations become necessary. 
2. Smaller scale events: Reducing the number of days, stages, or featured artists.
3. Increased prices: Raise ticket prices, risking lower attendance as a consequence.

Real-World Examples

Groovin the Moo

In 2024, this multi-city festival got cancelled one month out “due to 'insufficient' ticket sales” (Newstead 2024). Cost-of-living and rising overhead costs have skyrocketed, “making a multi-city event like GTM particularly risky” (Newstead 2024).

Splendour in the Grass

The 2020 and 2021 festivals were cancelled due to COVID. In 2022, the festival faced wild storms and flooding on site, with some acts being cancelled and many attendees needing refunds, adding to unanticipated costs (Strong & Green 2023). 

The 2023 festival went ahead but this year, they had to cancel the event again. "We just didn't have the ticket sales that we needed. It was either take that gamble and hope that they walked up and bought them the week before or at the gate, or to cut our losses and postpone it", the General Manager shared (Walker & Mahe 2023).

National Folk Festival

Running for over 55 years, the National Folk Festival is a gem in Australia’s live music industry. But after years of dwindling ticket sales and rising supplies, they are facing a dire situation. President David Gilks shared “At this stage, we are looking at an operating deficit of about $450,000 – a result that cannot be repeated” (Bushnell 2024). 

Director Heidi Pritchard commented that their ticket sales were down by 25%, equating to 10,000 fewer attendees. In response, they are looking to downsize their office, shrink its staff and rely more on volunteers to safeguard future events. 

Corporate takeovers

The Australian music industry, including festivals like Splendour, is increasingly being taken over by US-based corporate giants. While some may argue it safeguards the viability of some of these festivals, it is giving these overseas companies unprecedented market power, with some critics suggesting that this may reduce healthy business competition and increase market consolidation (Tregoning 2024). Stakeholders are seriously concerned over the “increased costs for concertgoers, as a result of the market consolidation” (Sainsbury 2022).

The Australian live music industry is at a critical juncture. Rising costs, shifting consumer behaviours, and a decline in volunteerism are leading to both more commercial and community festival cancellations, with significant implications for their place in our cultural calendars. While both volunteer and commercial festival organisers can adapt by scaling down events, enhancing value propositions, and seeking sponsorships, broader systemic changes are needed to ensure the survival of this vibrant industry. 

Without meaningful intervention, the future of Australia's music and cultural festival scene looks increasingly uncertain. 

Image Description: Scenes from St Albans Folk Festival. Vendulka (Aya Yves) singing on a stage. A group of people doing line dancing. Brodie Buttons singing and playing the fiddle.

References

Australian Associated Press, (2024). Byron Bay’s Bluesfest to finish after 2025 event, ending three-decade run. The Guardian.

Bailey, M., (2024). ‘Shock the industry needs’: Splendour in the Grass cancelled. Australian Financial Review.

Bushnell, I., (2024). National Folk Festival looks to leaner event after horror financial result for 2024. Riotact.

Newstead, A., (2024). Groovin the Moo cancellation signals 'feast or famine' Australian festival crisis. ABC News.

Rondinel, A., (2023). More than half of Australians are only just making ends meet. Pursuit, University of Melbourne.

Sainsbury, M., (2022). The overseas giants swallowing Australia’s live music industry. Sydney Morning Herald. 

Strong, C., Green, B., (2023). Climate change is transforming Australia’s cultural life – so why isn’t it mentioned in the new national cultural policy?. The Conversation.

Swartjes, B., Berkers, P., Haynes, J., Woodward, I., & Mogilnicka, M. (2023). Uncertain festival futures: how European music festival organisers navigate ‘loss’. Creative Industries Journal, 1–16. 

Tregoning, J., (2024). First Groovin the Moo, now Splendour: why are Australia’s music festivals falling over?. The Guardian. 

Walker, L., Mahe, D., (2023). Splendour in the Grass fails to sell out, as music festivals face cost-of-living challenges. ABC News.

Whiting, S., Green, B., (2024). With many Australian music festivals being cancelled, what does the future hold?. Smart Company.