Live Nation acquires 51% of Secret Sounds.
In an acquisition that signals an aggressive move in the Australian live music industry Live Nation has acquired 51% of Secret Sounds.
Whilst it should be noted that not all of the businesses under the umbrella have been bought, they have bought into the festival business.
Congratulations to Paul and Jessica for getting a presumably well deserved reward for their work over the last 20-25 years. Mind you I'm sure they will be still working on Falls and Splendour.
Where to now for the Australian music business? Given that the business has sustained a 30% fall in turnover over the last 2 years according to just released figures, where will growth come from?
Given the amount of festivals that have departed over the last few years, the end of the boom in touring due to the high dollar (coincidently plummetting 30%), where to now.
The old model of putting events on with 3 bands is harder to see working. The rivers of gold do not flow through the till at venues any more. Music is just a part of most venues, along with food. Venue hire is going to have to be higher and acts will have to bear more of the costs.
Events need to be interesting, to engage people. But to create great events you need the talent. And if talent doesn't have outlets or a possible business model that makes it worth while people won't go into the business.