Aussie rules! Australia market report

With a population approaching just 26 million, Australia punches way above its weight in terms of ticket sales for live music tours and events. And bouncing back from the Covid pandemic with a new culturally savvy government, the demand from fans only seems to be increasing. Lars Brandle reports.

Floods, bushfires, Covid-19 – Australia’s live music industry has felt all the forces of nature in recent years, and by most accounts, has made a stellar comeback.

For a population of 25m, Australia’s live industry punches above its weight class, a space where a singer can sell 1m tickets on a single tour (Ed Sheeran’s Divide) and another can play – and fill – 58 arena shows (P!nk’s Funhouse).

It’s not all fun and games. Touring Australia, a country roughly 4,000 km wide – a distance greater than London is from Moscow – the concerts space has its complexities. The soaring cost of travel, haulage, and booking acts; ongoing pressure on inner-city venues from developers; and a shortage of skilled professionals, many of whom left the industry during the pandemic, are just some of the challenges faced by promoters and others in Australia’s live music ecosystem.

But with a new federal government in power, one that’s sympathetic to the music industry, and a bonanza of major tours performing well at the box office, optimism is high.

So business is back, although it’s not what it was.

“Right now is a very exciting time to be an Australian music fan”

For a continent as vast as Australia, some things are surprisingly the same wherever you go. Drive for days and the language, currency, and power-points remain the same. And all across the country, there’s an enormous appetite for live entertainment. Getting a show on the road, however, is never a cinch.

“Right now is a very exciting time to be an Australian music fan,” says Geoff Jones, CEO of live entertainment, data, and tech giant TEG. “Since the end of the pandemic, we’ve seen many artists flock to Australia to play for their Aussie fanbases, which has played a major part in boosting the economy.”

Among them, stadium treks by Guns N’ Roses (TEG Dainty), Ed Sheeran (Frontier Touring), Harry Styles and Red Hot Chili Peppers (Live Nation Australia) – all visiting these parts within the space of three months.

And while cost of living and inflation is a big issue that’s impacting Australians, “consumers have been highly resilient and are still keeping money aside to watch their favourite artists perform to crowds of thousands,” Jones adds.

“We’re still seeing buying patterns lean much closer to the festival or show date, and we expect last-minute purchasing to remain part of the landscape,” notes Zac Leigh, CEO and founder of Tixel.

“I think the per-cap spending in Australia is the highest in the world. It’s just so engrained in the culture to see live music and sport”

In the most recent summer (December 2022-March 2023), “Something like 20% of the tickets listed on Tixel were traded for less than 50% of the face value of the ticket and we believe the oversupply was due to things like illness, Covid isolation periods, inability to travel, and the clutter of rescheduled events,” Leigh explains. Now, less than 5% of tickets trade at that level – signs that the market is returning to a demand-supply equilibrium for tickets.

The backlog of shows after two-and-a-half years of Covid disruption and market and border closures resulted in a “huge summer touring season” across concerts and festivals, explains Evelyn Richardson, chief executive of Live Performance Australia (LPA), the trade body for the live entertainment industry.

The data isn’t yet in; the most recent figures were captured for LPA’s Ticket Attendance and Revenue Report 2021 – then Australia’s industry was largely mothballed due to Covid. Richardson says the market has since seen “significant activity,” an “exceptional summer,” and the trade body expects that the “upcoming touring schedule later in 2023 going into 2024 will be massive [in the region].”

For its population, Australia “really punches above its weight when it comes to live performance,” Adam Wilkes of AEG Presents Asia Pacific said during a keynote at Singapore’s All That Matters gathering in September 2022. “I think the per-cap spending in Australia is the highest in the world. It’s just so engrained in the culture to see live music and sport.”

Live Nation president Asia-Pacific, Roger Field, states, “Australasia is going great. This will be our biggest year ever and we’re seeing unprecedented attendances at all levels from club to arenas. We have more artists coming to our shores and we’re having our biggest stadium year.”

“It seems that the years of being unable to tour and operate have enabled a number of arena acts to take the leap into stadiums with huge success”

He observes, “It seems that the years of being unable to tour and operate have enabled a number of arena acts to take the leap into stadiums with huge success. This in turn creates the opportunity for more acts to step up to fill those arena dates – and fans are really getting behind these artists and demanding even more.”

Legendary concert promoter Michael Chugg handled the 40-plus-date domestic swing for Elton John’s Farewell Yellow Brick Road tour, through Chugg Entertainment and its partners Frontier Touring and AEG Presents.

It’s the “same old problem with rival promoters paying too much for artists,” he tells IQ, “not enough care going into ticket pricing; lack of personnel, security, food and beverage staff, crew; bullshit flight prices.” Add to the list an ongoing lack of support for homegrown music on commercial radio, a situation which, for several weeks in mid-2023, became acute when no Australian-made singles appeared in the ARIA Top 40.

The challenges are many and varied. Booking an itinerary with a relatively small number of venues and many concurrent tours, “it’s a jigsaw puzzle,” Chugg notes. “I don’t think we are truly back on track as an industry. We need new people and some who left [during the health crisis] to come back.”

Snapshot of a billion-dollar business
There’s truth to the stereotype that Aussies like few things more than a night (or day) out with their best mates for a good time. The numbers stack up. According to LPA’s pre-pandemic ticketing data, live entertainment is a billion-dollar-plus business.

Australia’s live sector is a sophisticated one with trade bodies and lobby reps working alongside its industry captains in each field

Australia’s live sector is a sophisticated one with trade bodies and lobby reps working alongside its industry captains in each field. In addition to the LPA, the Australian Festival Association (AFA) was presented to the media in December 2018, with a commitment to making “festivals safer for patrons and reduce friction between festival promoters and regulatory bodies,” and more. AFA holds a position on the executive committee of the Live Entertainment Industry Forum (LEIF), established during the pandemic to help support the return of live entertainment and sport.

Meanwhile, the Australian Live Music Business Council (ALMBC) was launched during the pandemic, to advocate for thousands of Australian-owned small businesses and sole traders that support Australian music in public performance places.

Festival specialists will gather 30-31 August at Sydney’s Luna Park for the 2023 Australian Festival Industry Conference. And for the first time, SXSW expands outside of its decades-long base in the United States with SXSW Sydney, set for October 15-22, 2023. TEG is event producer, and industry veteran Colin Daniels helms SXSW Sydney as managing director.

Australia’s leading promoters include Live Nation Australia; Frontier Touring, part of the Mushroom Group, which is now led by Matt Gudinski following the March 2021 death of his father, the great music entrepreneur Michael Gudinski; Chugg Entertainment; TEG Dainty, and others.

It’s a constantly evolving and growing space. In 2019, Frontier Touring struck a joint venture with Chugg Entertainment and separately formalised a years-long alliance with AEG Presents, ensuring the company Gudinski built would be the official partner for AEG treks in these parts.

“Our interest in venues of all sizes is partly motivated by having the ability to engage with a variety of artist content”

TEG continues to grow and expand, including a 2020 deal for Van Egmond Group, Garry Van Egmond’s concerts company, which has orchestrated blockbuster tours for Dire Straits, AC/DC, and many others. The following year, in 2021, TEG landed deals that brought the Laneway festival brand and boutique promoter and events company Handsome Tours into its empire, while its ticketing arm, Ticketek, now operates in 11 markets, including the UK.

Frontier Touring remains one of the world’s leading concert promoters, its founder, Michael Gudinski, posthumously recognised by Billboard in April 2021 as its International Power Player. The concerts specialist this year celebrates its 50th anniversary, which the Melbourne-based business will mark with an all-star concert in November.

Live Nation’s domestic arm continues to expand its portfolio of venues and live assets. regional boss Roger Field comments, “Our venue development is a huge priority for us across both Australia and New Zealand – we’ve just celebrated the return of the iconic Festival Hall in Melbourne to a fulltime live music venue after signing a multi-lease and that’s only the beginning. Our interest in venues of all sizes is partly motivated by having the ability to engage with a variety of artist content, even if we’re not promoting it, but also open to new ticket buying markets.”

LN’s suite of venues also includes The Palais Theatre in Melbourne, the Fortitude Music Hall in Brisbane, the Hindley Street Music Hall in Adelaide, and Anita’s Theatre, a historic venue in Thirroul, a northern seaside suburb of Wollongong, which in 2022 became the concerts giant’s first entry into regional Australia.

Australia’s concert promoters have, historically, been at loggerheads with each other. The late Gudinski was never short of a word or three for LN or Dainty. However, during the pandemic, the hatchets were buried and once-bitter rivals shared infrastructure on several major events, keeping costs down in the most difficult of times.

On 21 May 2022, when border closures still plagued the touring space, Australia took a left turn

One of the Australian events industry’s many success stories is the rise of Untitled Group. “The challenges posed by the pandemic allowed us to pause, reflect, and focus on the long-term growth of our business,” comments Nicholas Greco – co-founder/managing partner. Greco and his colleagues “took the opportunity to strategise and refine our approach. It was undeniably a difficult time, but it offered us a moment to breathe and strengthen our foundations”.

Untitled organises such events as camping festivals Beyond The Valley and Pitch Music & Arts, both of which, says Greco, have experienced a notable uptake, especially in the post-pandemic era. Independently owned and based in Melbourne, Untitled boasts 65 staff and shifts more than 400,000 tickets each year across its events.

Australia’s outdoor concerts network extends into wineries. A Day On The Green, created by Michael and Anthea Newton from Roundhouse Entertainment, operating as a joint venture with Mushroom Group, in November 2022 celebrated its 500th show with Crowded House’s performance at Mt Duneed Estate, Geelong.

After Covid – a new dawn, new government
On 21 May 2022, when border closures still plagued the touring space, Australia took a left turn.

After the best part of a decade led by the centre-right Liberal political party, a national shift occurred when Anthony Albanese and his Australian Labor Party (ALP), the country’s major centre-left party, swung into power.

“We need serious skills training; we need new venues, big and small; we need a regional circuit”

After a generation, during which time the music industry’s calls for support repeatedly fell on deaf ears with the Liberal leadership, the ALP represented a new dawn for the country’s live music community.

Prime minister Albanese and minister of arts Tony Burke moved swiftly and decisively to reward that belief. In June 2023, the Creative Australia Bill passed through parliament – a document that lays the legal foundation for the national cultural policy presented earlier in January 2023. The bill establishes Music Australia with AU$69.4m in funding which, for the first time in the nation’s history, explains APRA AMCOS CEO Dean Ormston, provides an opportunity “for a whole-of-government, cross-portfolio, strategic and long-term relationship with the breadth of the Australian contemporary music industry.”

Music Australia sits under Creative Australia, formerly the Australia Council for the Arts, or Australia Council, which was due to commence from 1 July and was presented in the government’s 116-page “Revive” document, a years-long roadmap for the music industry, which details new investment totalling $286m over four years.

The government’s initiative and “all that money will make a serious impact,” notes Chugg. “We need serious skills training; we need new venues, big and small; we need a regional circuit. I would like to see more shows in universities and schools, which in the 70s and 80s were amazing breeding grounds.”

The ALP now governs at national level and across every state, with the exception of Tasmania, the last remaining Liberal post. It’s “a government that cares,” he enthuses. “My late mate, MG, would have such a huge smile alongside all the Australian music icons he is hanging out with in heaven.”

Some positive trends have emerged in Australia’s post-Covid touring landscape, including a revival in country music and comedy

What’s hot, what’s not
The elite A-list acts have filled Australian stadiums in the 2022-2023 southern summer. The demand side of the business is “really healthy in terms of artists who have been limited in their ability to travel for several years”, explains Dion Brant, CEO of Frontier Touring. One of those artists is Ed Sheeran. The Englishman’s The Mathematics Tour did over 830,000 tickets and “left excess demand,” explains Brant. Those artists “that care about the audience and produce great shows, combined with pricing that is accessible and strong campaigns, can lead to record-breaking results”.

Some positive trends have emerged in Australia’s post-Covid touring landscape, including a revival in country music and comedy.

Morgan Wallen’s six-date tour for Frontier Touring in March, which included a headline slot at country-focused fest CMC Rocks QLD, was a hit and was reflected when Wallen led both the ARIA singles and albums charts, setting records along the way. Luke Combs returns to Australia and makes his New Zealand debut in August, for a trek promoted by Frontier Touring.

The resurgence of country has been powered by the likes of the late Rob Potts, and later, his son Jeremy, Chugg, and colleague Susan Heymann. As the country business grows, Chugg Music recently teamed up with Select Music and artist manager Dan Biddle of Wheelhouse Agency, to launch a new venture with an eye on growing the country music and Americana genre.

Though no brand has replaced the travelling festival juggernauts that were the Big Day Out and Soundwave, rock continues to roll along. Chris O’Brien is an aficionado of music of the heavier kind and wears multiple hats with Destroy All Lines (general manager of touring), Good Things Festival (promoter), and Knotfest Australia (co-promoter).

The price of putting on a show has escalated “in a way that needs to be properly looked at”

The appetite for rock and metal in Australia “continues to grow at an incredible rate,” O’Brien tells IQ. Between Good Things Festival and Knotfest, every show sold out, shifting just shy of 200,000 tickets. In the past 12 months, Destroy All Lines has sold over 650,000 tickets, he explains, and 2023/24 “is looking like we will get close to 1m tickets with what we have in the pipeline”.

Spiralling costs, less hands at the pump
Promoters and live event organisers are experiencing major skills shortages, particularly in technical, production, and stage management. Even sourcing riggers, drivers, and security is a challenge.

The price of putting on a show has escalated “in a way that needs to be properly looked at”, says Frontier’s Brant. Infrastructure on larger shows, such as stages, flooring, barriers, and chairs, are up by at least 50%. “Freight is through the roof.”

Production and touring costs have skyrocketed by 30-40% compared with pre-Covid levels, experts say.

At the same time, a shaky economy with high inflation and interest rate rises is having an impact on discretionary spending. “It may dampen some events,” notes LPA’s Richardson. “Having said that, we are seeing huge demand [for] shows going on sale for later in the year.”

“Suppliers to the industry need to be careful they are not trying to make up for lost time and squeezing the golden goose too hard”

Those on-sales include a trans-Tasman tour by Foo Fighters, organised by Frontier Touring; while Live Nation is promoting two special Coldplay dates at Perth’s Optus Stadium in November, as well as Blink-182’s arena run next year.
With the explosion in activity for stadium dates comes a heightened sensitivity to the replacement of turf, with rate per square meter said to be amongst the highest in the world.

“The cost to get to and from Australia is the highest it’s ever been,” explains Brant. “Fans want to go to shows and artists want to play to fans, but the suppliers to the industry need to be careful they are not trying to make up for lost time and squeezing the golden goose too hard.”

When the region’s venue operators gathered in May in Melbourne for the 2023 Venues Management Congress, Frontier Touring’s chief marketing and communications officer, Reegan Stark, quipped on stage, “I learned more about grass the last 12 months than I ever thought I needed to know.”

Where concert tours have “done exceptionally well,” notes LPA’s Richardson, “music festivals have had challenges both in terms of weather events disrupting or closing down events and changes in consumer buying behaviour with audiences buying much later than pre-Covid times.”

Peter Noble’s Bluesfest site was flooded ahead of the 2022 event, and, several months later, Splendour In The Grass, also held in Byron Bay, a picturesque beach spot in northern New South Wales, was inundated, leading to the cancelation of day one mainstage performances.

“We’ve all got to realise that this entire industry only works if everyone gets a slice of the cake”

The rotten weather of 2022, the abundance of shows in the early part of this year, and the wobbly state of the economy has put pressure on some festival brands. Noble and his team spent nearly a million dollars on waterproofing at Tyagarah Tea Tree Farm in Byron Bay. Attendance dipped from more than 100,000 in 2022, to about 70,000 in 2023, Noble tells IQ.

“We’ve all seen a bit of a drop off in festivals. I hope they all come back,” he says. Fests “have got some challenges”, he continues. “The attendances have been down, the costs are up. We’ve all got to realise that this entire industry only works if everyone gets a slice of the cake. And if you leave crumbs at one end, then you’re starving someone out of business.”

Bluesfest Touring “had a great season”, he notes, pointing to the 20 tours which worked the market, including Bonnie Raitt, Buddy Guy and the Doobie Brothers, and the launch of Bluefest Melbourne and Perth.

Climate change and the bad weather that comes with it is a blow to consumer confidence in ways that are difficult to predict, promoters say.

The festival and outdoor events industry “faces an existential crisis”, notes Richardson. “Adapting business models is a big topic of discussion right now.”

Another unexpected hurdle to doing business can be seen in the rising costs of renewing insurance for live music venues

Those forces of nature contributed to the travelling Falls Festival cancelling its 2023/24 edition. Led by Live Nation-affiliated concert specialist Secret Sounds, co-founded by Jessica Ducrou and Paul Piticco, Falls announced it would take the time out to “rest, recover, and recalibrate.”

Another unexpected hurdle to doing business can be seen in the rising costs of renewing insurance for live music venues. The public liability premiums for some venues have risen 15-fold, with one venue reporting a hike from $1,500 to $35,000. Rising costs are “the biggest issue in the live space right now,” explains Stephen Wade, chairman of the ALMBC and CEO of leading agency Select Music.

The so-called insurance cliff has been a “massive issue” for the industry and remains unresolved, although it is being addressed positively, he continues. In one potential solution, the trade body has approached several underwriters on behalf of its members, with the proposition to underwrite venues under an appropriate scheme that is both affordable and provides adequate cover.

Despite the challenges, business is roaring
The domestic live scene “is extremely vibrant and alive; on any Saturday night, we’re booking more than 25 shows at different venues across the country,” explains Darren Aboud, the former Universal Music Australia senior executive who recently joined Select Music Agency as chief operating officer. “Music has roared back post-Covid as people have longed for meaningful real experiences.” He adds, “Quality shows from quality artists will continue to sell.”

Those quality acts include homegrown talent. “Business is 100% on the up as far as we are seeing at our agency,” says Select Music’s Wade, “and we have a new wave of acts that we have been developing over the past 18 months who are all realising their potential and selling huge amounts of tickets.”

“We’re booking stuff into stadiums already into 2025”

As business grows, further investment is coming. Brisbane should benefit from at least AU$7bn in state and federal commitments for infrastructure, including the erection of the 18,000-capacity Brisbane Live venue.

Elsewhere, Cedar Mill Group has a raft of developments on the go, including winery circuit venues designed to integrate seamlessly, and a major project at Lake Macquarie. That planned 30,000-capacity venue on the doorstep of the Central Coast and Hunter region north of Sydney, “will be within reach of over a million people”, explains Paul Lambess, managing director at Cedar Mill Group. It represents the “first time an arena-sized venue in Australia will be built and funded by a private individual rather than a multinational corporation or a government body.”

Cedar Mill’s venues plans “are just as robust as the current touring cycle”, he continues. “The development runway is long and the investment substantial.”

Luke Hede, vice president of touring at Live Nation, says the outlook is excellent. “We’re booking stuff into stadiums already into 2025,” he told the audience during the Promoters Panel at the 2023 VMA Congress in May. “Hopefully, it won’t all be concertinaed like it was this year in the first quarter. But there’s certainly a lot of product coming through. 2019 was our biggest year ever with Live Nation. We’ve already surpassed the ticket sales this year for 2019. So, it’s been a phenomenal start. It looks like it’s going to continue.”

Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.