ALMBC Backing Festivals and Venues
The Australian Live Music Business Council (ALMBC) welcomes the findings announced in the Creative Australia research, Soundcheck: Insights into Australia’s music festival sector and note the confirmation that one of the hardest hit groups when festivals cancel are small businesses, sole traders and those employed by these businesses.
The ALMBC acknowledges the turbulent time the music industry is travelling through, with the recent cancellations of both the Splendour in the Grass and Groovin’ The Moo festivals and the financial impact on many of our members in production, management, security, booking agencies and more.
We understand the growing financial pressures faced by festival promoters and venues and we want to reassure our members that our key focus is the many micro and small business contractors that have suffered significant financial losses due to these and other cancellations. We also acknowledge and congratulate the many small, local, genre specific and community specific festivals that are breaking all records in this difficult climate.
The ALMBC appreciates that the success of the independent contractors that provide specific services to festivals, including artists, managers, production, security, catering and more, is tethered to the success of these events; that these operators are burdened with difficult contractual demands form promoters regarding regional and calendar exclusivity, deposits and risk-passing. Despite these onerous demands from organisers, these smaller businesses rarely receive fair recompense when a festival fails.
ALMBC Chair Howard Adams said “It is worth noting that many major Australian festivals, including those mentioned above, are owned by overseas companies and the foreign owners play an active role in deciding whether some festivals go ahead or not.”
ALMBC Treasurer Brian ‘Smash’ Chladil, said, “The ALMBC’s position is that any federal or state funding should be directed towards the suppliers and workers who don’t get paid until the band plays. Cancellation of a festival means an incredible amount of people in the live music value chain do not get paid.”
The ALMBC also acknowledges the research findings that in the wake of the pandemic, there has been a notable shift in consumer behaviour, particularly among young people, who represent a significant demographic for music festivals and live music. The trend towards delayed ticket purchases and increased scrutiny of ticket prices, reflects a fundamental change in the way audiences engage with music gigs and festival experiences. This shift poses a unique challenge for promoters, who rely on early ticket sales for momentum and capital. This is an important focus for future research.
Adams said “As Creative Australia has recognized there has no doubt been a shift in spending patterns amongst festival goers, but it can’t all be down to that. Many festivals have a lifespan and if organisers lose touch with their audience and community in terms of line up and experience then some will fail.
Finally, the ALMBC calls for national leadership bringing key organisations such as Australian Festivals Association, Australian Artist Managers Association and state peak music industry bodies together to create strong national leadership, outside of government.