Multinational concert promoter Live Nation Entertainment has come under fire, with an ABC Four Corners investigation saying its unprecedented market power is open to abuse.
The report follows concerns about the introduction of dynamic pricing – where ticket prices change according to demand – to the Australian concert market. A parliamentary inquiry into the live music sector is also underway.
Industry luminaries such as Peter Garrett and Michael Chugg told the ABC that Australia’s music scene is under threat, echoing the concerns of frustrated bands and fans. Live Nation issued a statement ahead of the program, calling it inaccurate and unbalanced.
So what is Live Nation and how is market concentration affecting our music scene?
The business
Live music is one of our most popular forms of cultural participation, engaging almost half of Australians over 15. In the decade before COVID, ticket buying and revenue for contemporary music doubled.
Ticket revenue doubled again in the year 2022–23 to well above pre-pandemic levels. How can such growth be squared against widespread talk of a sector in crisis, with venues closing and festivals cancelled?
This is because the growth is top-heavy. Overall figures have been boosted by an influx of stadium concerts by international superstars such as Taylor Swift and Ed Sheeran. Rising revenue outpaced attendance growth by almost three to one, with average ticket prices rising 47.4% to A$128.21. Market power is increasingly concentrated in a few corporate hands, notably Live Nation Entertainment.
What is Live Nation?
Live Nation began in the United States as a concert promoter. Traditionally, a promoter funds and arranges live events, negotiating with artists, their agents, venues and ticketing services. But Live Nation has integrated many such components into its operations. Now, everything from artist management to venues and merchandise can be done in-house.
In 2010, the US Department of Justice allowed the merger of Live Nation with major ticketing company Ticketmaster. The resulting entity, Live Nation Entertainment, has since acquired a growing set of interests internationally.
Live Nation’s acquisitions over the past decade in Australia include:
Live Nation Entertainment also acquired venues, leasing Melbourne’s Palais Theatre for 30 years from 2017 and Festival Hall. The group purchased Anita’s Theatre in Thirroul in 2022 and opened Brisbane’s Fortitude Music Hall (2020) and Adelaide’s Hindley Street Music Hall (2022) in partnership with local entities.
Ticketmaster is the authorised ticketing agency for Melbourne’s Marvel Stadium and for Australian tours promoted by Live Nation. These include concerts by Oasis, Green Day, P!nk and Red Hot Chili Peppers.
Live Nation has also acquired several Australian booking agencies, including Village Sounds, which represents Bernard Fanning, Courtney Barnett and Vance Joy.
The only competitors are TEG (which owns Ticketek) and AEG-Frontier. Music industry stakeholders are concerned about the oversized influence of these three “corporate giants”.
AAP Image/Luis Ascui
Keeping the shareholders happy
For consumers, a lack of competition can mean higher prices. Dynamic pricing made headlines, but Four Corners also alleged there were a range of “hidden fees” in the price of tickets ordinarily sold by Ticketmaster and Ticketek.
Artists are at a disadvantage when negotiating with a mass of connected businesses that are often owned by one entity and which sometimes includes their own agent.
South Australian rock band Bad//Dreems told the ABC they were left with just $9,000 from a tour that grossed $100,000.
Veteran promoter Michael Chugg complained major artists were being overpaid, skewing the sector to the detriment of local musicians. While Australian promoters, including Chugg and the late Michael Gudinski, have a history of consolidating interests and crowding out competition, they also had skin in the Australian music game. Live Nation is a publicly listed company with duties to its shareholders, including US hedge funds and Saudi royalty.
AAP Image/Dan Himbrechts
Midnight Oil singer and former politician Peter Garrett said this meant there was “no loyalty” to Australian artists. A multinational promoter with a shareholder-driven approach might be more likely to cancel a festival after weak opening sales, instead of weathering short-term losses to preserve the brand and relationships.
That cancellation might even consolidate demand for the company’s upcoming headline tours. But opportunities are lost for Australian artists, businesses and culture.
What can be done?
Federal Arts Minister Tony Burke told Four Corners he has put Live Nation on notice and warned the company not to use its power in an anti-competitive way. But he did not commit to legislative change.
In the United States, the Department of Justice and dozens of states have sued Live Nation for antitrust, seeking “to break up Live Nation-Ticketmaster’s monopoly and restore competition for the benefit of fans and artists”.
Australian courts currently have no power to break up monopolies without new legislation. However, the Australian Competition and Consumer Commission can investigate and prosecute misuse of market power, as alleged by some in this case.
Fair trading authorities in the United Kingdom and Europe are examining Ticketmaster’s dynamic pricing in the wake of the Oasis ticket-pricing controversy. However, Burke said surge pricing is something consumers have always dealt with, and “not something we’re looking at, at the moment”.
Governments could also regulate more transparency in ticket fees, as well as the rights of artists, who sit uncomfortably between employees and small businesses. Their union, MEAA’s Musicians Australia, is currently advocating about these matters.
Those passionate about Australia’s live music scene fear that if the sector isn’t better regulated, it’ll soon be too late to save it.
