I recently faced a personal crisis that highlighted a significant issue within Australia’s live music ticketing market. Following urgent surgery to remove a malignant growth, I found myself unable to attend the Melbourne event of the annual Good Things hard rock festival, headlined by the legendary band Tool. Despite explaining my situation to OzTix, the festival’s ticketing provider, my request for a refund for two tickets was denied because I had not purchased “refund protection.”
Directed to a resale platform called Twickets, I discovered that it only allows resale at the original cost price. This option is ineffective for events that have not sold out, as potential buyers can purchase tickets directly from the primary vendor at the same price. This experience led me to question the consolidation of the Australian ticketing market and the additional cost of “refund protection.”
The Rise of Refund Protection
The introduction of “refund protection” as an optional purchase at the point of sale coincided with the digitization of event tickets throughout the 2000s. In Australia, this practice became widespread during the pandemic, as ticketing providers sought to mitigate liability for cancellations and no-shows amid lockdown-related uncertainties.
However, much of this liability has been transferred to consumers. Most providers now lack robust or discretionary refund policies, regardless of the circumstances. Consumer law only protects individuals if an event is canceled or postponed, not if they are unable to attend. Without refund protection, providers are not obligated to offer refunds, even in severe cases such as medical emergencies.
“Refund protection is often costly. It scales with the price of the ticket, becoming more expensive as the cost price increases. And it can only be purchased at the point of sale, which is often six to twelve months before an event.”
Challenges in the Resale Market
Many consumers might choose not to purchase refund protection, believing they can resell their tickets on platforms like Tixel if they cannot attend. However, the Good Things festival blocked ticket resale on Tixel, limiting it to Twickets at the original cost price. This restriction forces fans with unwanted tickets to turn to unregulated channels like social media, increasing the risk of scams and further uncertainty.
The live music sector is already struggling. Blocking legitimate resale platforms could reduce consumer confidence and deter early ticket purchases in the future.
Market Consolidation and Its Impact
The issues within Australia’s ticketing market are exacerbated by its consolidation. The sector is dominated by two major operators, Ticketek and Ticketmaster, owned by multinationals TEG and Live Nation, respectively. This duopoly was solidified in 2019 when Ticketmaster acquired Australian company Moshtix. Today, OzTix remains the primary independent operator in the country.
In contrast, the UK and Europe boast a competitive market with multiple ticketing providers. During my recent Churchill Fellowship research, I spoke with 100 venue operators, promoters, and music industry professionals across the UK and Europe, all of whom had access to multiple ticketing services.
“This level of competition produces a healthier market for artists, fans, and promoters. For fans, it could mean less hidden fees, more robust refund policies, and reduced prices as fewer costs are passed on.”
Addressing Anti-Competitive Practices
The Australian government has already taken steps to address dynamic pricing for concert tickets, but more needs to be done. Encouraging new market entrants could boost competition. However, new entrants have struggled to break into the market due to long-standing contracts and relationships.
In 2019, UK-based operator DICE attempted to enter the market, but the pandemic and other factors hindered its efforts. Australia also lacks strong anti-trust laws, which are crucial in addressing the vertical integration of ticketing by companies like Live Nation and TEG.
The Australian Competition and Consumer Commission (ACCC) could do more to investigate anti-competitive practices, such as blocking legitimate resale sites like Tixel. If new entrants cannot impact a market of nearly 28 million people, the ACCC should question why and explore potential solutions.
Attempts to reach OzTix for comment were unsuccessful as they did not respond within the allocated timeframe. The ongoing challenges in the ticketing market highlight the need for reform to ensure fairness for consumers, artists, and promoters alike.
