TEG executive tells live music inquiry that artists and venues the reason for rising ticket prices

November 22, 2024

Tim McGregor, Global Head of Touring for Ticketek owner TEG, has told the Parliamentary inquiry into the Australian live music industry that artists are to blame for high ticket prices and that venues are responsible for hidden fees, also stating that dynamic pricing is important to fighting scalpers.

Holding public hearings today and on Monday, the House of Representatives Standing Committee on Communications and the Arts is assessing challenges and opportunities within the Australian live music industry.

As reported by Melbourne’s The Age, McGregor, described the industry as highly contestable and in which ticket sellers have limited flexibility.

McGregor contention is contrary to statements made to the inquiry by not-for-profit ticketing company Humanitix that said big companies have locked it out of getting contracts for large stadium tours, creating “a localised monopoly style of business”.

Australian musicians earlier this year called for an investigation into corporate players in the live music industry in a bid to stamp out “anticompetitive” practices that leave them struggling to make a living.

McGregor said when it comes to pricing, TEG is the intermediary and carries the financial risk of a tour failing, telling the inquiry “artists generally control ticket pricing.

“Agents come … to set out stadium, ticket prices, sponsorships, production requirements, size of tour party, hotel and airline requirements. We make recommendations, of course … but ultimately the artist must approve them and is often highly prescriptive.

“(Contracts) typically involve a minimum financial guarantee and typically additional 85 to 90% of the share of the profit going to the artist.”

McGregor also suggested that venues require service, booking, facility and infrastructure fees which customers have to pay top of the base price, although ticketing companies did charge service and handling fees, which he defended as “per transaction, not per ticket”.

He said Ticketek was looking into how AI could further automate the booking process and decrease the charge.

With the Federal Government having announced it will ban dynamic pricing, McGregor defended the practice as a way of stopping scalping.

Earlier, Humanitix co-founder and Chief Executive Adam McCurdie told the inquiry that dynamic pricing should be made illegal, stating “dynamic pricing should not be allowed, it’s not good for consumers, it’s a horrific experience, and it’s an incredibly one-sided situation.”

McCurdie said his company had been locked out of contracts for major stadium tours, with large players such as Ticketek and Ticketmaster making deals with stadiums and offering millions of dollars upfront to get long-term exclusive rights to be the ticketing partner.

The Committee also heard from witnesses Untitled Group and Oztix while Live Nation is scheduled to give evidence on Monday.

Prior to the commencement of the inquiry, Committee Chair, Brian Mitchell MP advised “the Committee has seen recent media reports relating to issues including dynamic ticket pricing and market settings for live music events in Australia.’

“What has been reported captured popular attention and is very relevant to the Committee’s inquiry into live music.

“We would like to examine these issues further and allow event promotors and ticketing businesses an opportunity to discuss their perspective.”

Click here for more information on the Committee's work.

7th November 2024 - Music Victoria and Support Act among contributors to Live Music Parliamentary Inquiry

31st October 2024 - Ticketek renews Suncorp Stadium partnership

15th October 2024 - Live Performance Australia says industry problems not the fault of one company

31st October 2024 - Live Music Fund to support Gold Coast venues, promoters and musicians

27th October 2024 - New measures amplify protection for NSW live music venues

23rd October 2024 - Targeted Federal Government funding to support festivals and live music venues

16th October 2024 - Live Nation sets ‘the record straight on inaccuracies’ in Four Corners live entertainment investigation

15th October 2024 - Law changes proposed to reboot NSW nightlife, live music and entertainment precincts

14th October 2024 - TEG names Shane Harmon as Managing Director - Experiences

14th October 2024 - Four Corners program scrutinises Live Nation’s practices within Australian music industry

11th October 2024 - Live music inquiry focusses on risk and insurance

10th October 2024 - ABC Four Corners announces broadcast date for Live Nation investigation

9th October 2024 - Brisbane live music venue The Zoo saved and to reopen under new name

20th September 2024 - Victorian Parliamentary inquiry into the Commonwealth Games invites events industry input

15th September 2024 - Victorian Government announces new funding for live music industry

20th August 2024 - South Australian Government ‘saves’ live music venue but with possible two year closure

16th August 2024 - Tim McGregor moves into new role with TEG as Global Head of Touring

5th August 2024 - Partnership announced between TEG and Foxtel

6th August 2024 - Live Performance Australia sets out priorities for future survival of live music industry

27th July 2024 - Parliamentary inquiry looks at future Australia’s live music industry

23rd July 2024 - Brisbane and Sydney public hearings announced for live music inquiry

30th June 2024 - NSW Government announces soundproofing grants for live music venues

25th June 2024 - Insurance premium discussion on agenda for live music inquiry

7th June 2024 - ‘State of the Scene’ report delivers inaugural census of the live music industry in NSW

3rd June 2024 - Live music fans move from festivals towards stadium and arena acts

31st May 2024 - Ticketek Australia advise that customer accounts may have been accessed in cyber security breach

7th May 2024 - Creative Australia releases new report showing difficulties for professional artists to make a living

10th April 2024 - Creative Australia report outlines role of music festival sector and the challenges it faces

31st May 2023 - Australian independent ticketing company Oztix acquires rival Local Tickets

14th September 2022 - Humanitix ticketing platform founders recognised with Committee for Sydney award

14th April 2021 - Victorian Parliamentary inquiry into tourism and events support hears plea to save ‘industry in crisis’

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