‘Anti-competitive’: Calls mount to break corporate live music domination
By Linda Morris
Australian musicians have called for a high-level probe into the corporate players in the live music industry in a bid to stamp out “anti-competitive” practices they say are leaving them struggling to make a living.
The musicians’ arm of the Media, Entertainment and Arts Alliance, wants the dominance of Live Nation, the world’s biggest concert promoter and ticketing company now subject of an anti-trust investigation in the United States, also investigated by the Australian Competition and Consumer Commission.
Grammy-nominated musician Jess Cerro, who performs as Montaigne, has backed calls for an ACCC review. Credit: Rhett Wyman
The Saudi-backed multinational controls many of Australia’s music festivals and live music venues, but has denied wielding monopoly power. It made a net profit of $US563 million ($860.7 million) last financial year, a parliamentary hearing called to revive the once thriving industry has been told.
Live Nation has received $16 million in grants since 2020 as musicians’ incomes toppled during pandemic lockdowns, the union-entity Musicians Australia said.
Its federal president Kimberley Wheeler will tell the inquiry on Friday that vertical integration of the live music industry, in which companies controlled venues and festivals, meant reduced bargaining power for artists and performers.
“We’ve had some artists reporting exclusivity clauses in their contracts that prohibit them from playing other gigs around the time of a festival performance, for example,” Wheeler said.
“This has left several bands in the lurch where festivals have been cancelled, and we are calling for these anti-competitive clauses to be scrapped.
“We need the government to investigate the level of power and control of these large corporations and the competitiveness of the live music industry and start addressing the structural problems of the festival industry – not least the concentration of live music venues, agencies, and ticketing in the hands of large multinationals, and the systemic exploitation of Australian artists and performers.”
This week, the extent of the industry crisis was laid bare in hearings conducted across the major capital cities. Brisbane venues reported they were close to folding because of declining alcohol sales that underpinned their live music business model.
Streaming services were creating a more insular fan base less likely to seek out emerging artists and new music, music agencies said.
The rise of the superfan, as seen by the dedicated adulation of Taylor Swift during her Australian Era concerts, was also limiting opportunities for the discovery of new artists while demonstrating the huge buying power of motivated fans.
Young adults isolated by COVID-19 missed formational experiences to listen to live music and the collapse of festivals which provided vital exposure for bands. All this had created a perfect storm for the industry.
Teen Jesus and the Jean Teasers opened for the Foo Fighters following the release of their debut single last year. Guitarists Jaida Stephenson and Scarlett McKahey called for all touring overseas acts to open with Australian artists, as well as more financial support for bands to offset exorbitant tour costs. Flights between Melbourne and Brisbane were costly for a band and crew of eight without even factoring in accommodation.
Scarlett McKahey, Neve van Boxsel, Anna Ryan and Jaida Stephenson from Teen Jesus and the Jean Teasers.Credit: Alex Ellinghausen
The punk musicians urged government agencies consider ways to make grant processes simpler and more accessible, offer discounted travel and transport rates for touring bands and support music festivals to reduce cancellation risks.
Merchandise sales were the only way band members made money once the cost of touring was deducted from their performance fees.
Jess Cerro scored a Grammy nomination and represented Australia at Eurovision and yet, the singer who performs under the stage name Montaigne says their touring and marketing expenses outweighed their music earnings last year.
“People might see the streaming numbers on Spotify and say Montaigne is rich but believe me I’m not,” they told the Herald/Age ahead of their inquiry appearance on Friday.
“Even for a very decorated media artist working across multiple industries and I have many millions of streams, tens of millions of streams in some cases, the royalties I receive from my music is not enough to cover my life as a full-time artist.”
Cerro backed the need for an inquiry into the market dominance of Live Nation saying a company could not get so large without effectively cannibalising artists’ income.
Meanwhile, Greens senator Sarah Hanson-Young called on the AFL to replace American singer Katy Perry with an Australian musician to headline its grand final.
A spokesperson for the ACCC, which has appeared before the standing committee, said it would consider the inquiry report “with interest once the report is published to determine whether the issues before the inquiry raise concerns under competition or consumer laws”.
ACCC was also monitoring the proceedings commenced by US Department of Justice, along with 30 state and district attorneys general, against Live Nation-Ticketmaster.
Live Nation was contacted for comment. It has previously strenuously denied wielding monopoly power and said the DOJ lawsuit distracted from real solutions that would decrease ticket prices.