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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.

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