When an unexpected medical emergency forced me to miss the Melbourne leg of the annual hard rock festival Good Things, headlined by the legendary band Tool, I found myself entangled in the complexities of Australia’s ticketing market. Despite explaining my situation to OzTix, the festival’s ticketing provider, my request for a refund was denied because I hadn’t purchased “refund protection.”
Directed to Twickets, a resale platform that only allows tickets to be resold at their original price, I realized the futility of this option for an event that hadn’t sold out. This experience highlighted the significant consolidation within the Australian ticketing market and the problematic nature of “refund protection” as an added cost.
The Rise of Refund Protection
The integration of “refund protection” as an optional purchase began as event tickets became digitized in the 2000s. This practice was fully embraced during the pandemic, as ticketing providers sought to mitigate liability for cancellations and no-shows amid lockdown uncertainties. However, this liability has largely been transferred to consumers, with many providers abandoning robust refund policies regardless of the circumstances.
Consumer law offers protection only if an event is canceled or postponed, leaving attendees without recourse if they cannot attend. This approach mirrors the choices made by airlines regarding refunds or compassionate fares during medical emergencies. The cost of refund protection, scaling with ticket prices and often purchased months in advance, resembles the hidden fees of budget airlines, raising concerns about price-gouging.
Challenges in Ticket Resale
Many consumers opt out of refund protection, believing they can resell tickets on platforms like Tixel. However, the Good Things festival restricted resale to Twickets, limiting sales to the original cost price. This restriction forces fans to turn to unregulated channels such as social media, increasing the risk of scams and further eroding consumer confidence in the live music sector.
The live music industry is already under strain, and blocking legitimate resale platforms could deter early ticket purchases in the future. The lack of competition in the ticketing market exacerbates these issues.
Market Consolidation and Its Impact
Australia’s ticketing market is dominated by two major players, Ticketek and Ticketmaster, owned by multinationals TEG and Live Nation. This duopoly was reinforced in 2019 when Ticketmaster acquired Moshtix, leaving OzTix as the primary independent operator. Smaller companies like Eventbrite, Humanitix, and TryBooking offer niche services but have yet to penetrate the live music market significantly.
In contrast, the UK and Europe boast a competitive landscape with numerous ticketing providers. During my Churchill Fellowship research, I found that venue operators and promoters in these regions have multiple ticketing services to choose from, fostering a healthier market for artists, fans, and promoters.
For fans, increased competition could mean fewer hidden fees, more robust refund policies, and lower prices as costs are not passed onto them. For promoters, it offers access to competitive rates and diverse services. For artists, it reduces intermediaries’ control, potentially enhancing their relationship with fans.
Addressing Anti-Competitive Practices
The Australian government has taken steps to address dynamic pricing for concert tickets, but further action is needed. Encouraging new market entrants could enhance competition, but the industry remains locked through long-standing contracts and relationships. The failed attempt by UK-based DICE to enter the market in 2019 underscores these challenges.
Australia’s lack of anti-trust laws is a significant barrier, particularly concerning the vertical integration of ticketing by companies like Live Nation and TEG. The Australian Competition and Consumer Commission (ACCC) could investigate anti-competitive practices, such as blocking legitimate resale sites like Tixel. If new entrants struggle in a market of nearly 28 million people, the ACCC should explore the reasons and potential solutions.
While OzTix did not respond to requests for comment, the issues within Australia’s ticketing market are clear. As the live music industry continues to navigate post-pandemic recovery, addressing these systemic challenges is crucial for its long-term health and sustainability.
