Live music ticketing market broken due to attendance issues

The live music ticketing market is facing criticism for its lack of flexibility and customer-friendly refund policies, particularly in cases of unexpected emergencies preventing attendance. The Australian ticketing market has seen significant consolidation, leading to limited options for consumers and added costs for refund protection.

Traditionally, event tickets in Australia and overseas have started integrating “refund protection” as an additional purchase during the point of sale. This practice became more widespread during the pandemic when uncertainties related to lockdowns and cancellations plagued the events sector. However, these refund protection fees often scale with the ticket price, making them more expensive for higher-priced tickets.

Consumer protection laws in Australia do very little to help attendees who are unable to make it to an event, adding to the burden on consumers when significant personal emergencies occur. Without purchasing refund protection, consumers have little recourse for refunds or reselling tickets if they cannot attend, even in the case of severe circumstances like a medical emergency.

Resale platforms like Tixel, which allow legitimate ticket resale at face value, can be blocked by event organizers, limiting fans’ ability to resell tickets for events like the Good Things festival. This restriction could push fans towards unregulated platforms like social media, increasing the risk of scams and further complicating the ticketing process for both buyers and sellers.

The domination of the Australian ticketing market by major operators like Ticketek and Ticketmaster, with Ticketmaster acquiring Australian company Moshtix in 2019, has limited competition and innovation in the industry. While smaller operators like Oztix, Eventbrite, Humanitix, and TryBooking exist, they struggle to compete with the duopoly’s market share and influence.

In contrast, ticketing markets in the United Kingdom and Europe boast a more competitive landscape with numerous ticketing providers vying for business in smaller markets like Denmark and Ireland. Through his research during a Churchill Fellowship, industry professional Sam Whiting discovered that this increased competition leads to more consumer-friendly practices, lower costs, and better options for fans, artists, and promoters alike.

By promoting more competition in the Australian ticketing industry, consumers could benefit from lower prices, fewer hidden fees, and better refund policies that accommodate unforeseen events, ultimately creating a more vibrant and consumer-friendly live music market for all parties involved.