Are Australian festivals facing another year of misery?

Hopes that the crisis-hit Australian festival business can reverse course on a turbulent couple of years have suffered a major blow after it was announced that Splendour in the Grass (SITG) will not return in 2025.

Organisers of the long-running NSW festival, which was cancelled last year, confirmed it would not be returning this year as “it needs a little more time to recharge”.

“Think of it as a breather so we can come back even bigger and better when the time is right,” the statement continues. “Lots of other huge events on the horizon so keep an ear to the ground in the coming months.”

According to the Australian Festival Association, more than 25 music festivals across the country have been axed since 2022, with this year’s casualties so far including Hello Sunshine, Nowhere Festival and Chapel Street.

Allied to SITG’s second successive cancellation, the direction has sparked fears the sector could be in line for another year of misery. The Australian Greens have called on the government for a ‘reform and revive’ package for festivals in 2025 to help turn the tide.

“Reform is urgently needed if we are to revive our local music and festival culture”

“We can’t afford another year of festival cancellations in the cost of living crisis,” the party said in a statement. “We’ve seen this sad movie before and it’s a warning to policymakers that unless we see reform that can actually revive the live music sector, 2025 could be another wipeout year of festival cancellations.

“Reform is urgently needed if we are to revive our local music and festival culture. We need to look at funding, tax and insurance reforms and the Greens stand ready to work with the government to deliver a package that can stem the cancellations and allow new and independent operations to flourish.”

SITG, which is staged by Live Nation-backed Secret Sounds, was to feature the likes of Kylie Minogue, G Flip, Tash Sultana and Fontaines D.C. in 2004, but was axed less than a week after tickets went on sale. Organisers cited “unexpected events” as the reason behind the cancellation.

The previous year, then co-producer Jessica Ducrou reported a 30% drop in sales from 50,000 tickets to 35,000, while the 2022 instalment was hit with the worst weather in the festival’s 20-plus-year history, resulting in the cancellation of its first day. The 42,500-capacity festival, which launched in 2001, typically takes place at North Byron Parklands in Yelgun.

In addition to Splendour, Live Nation owns some of Australia’s largest music festivals, including Spilt Milk, the Falls Festival and Harvest Rock – none of which went ahead last year. It is yet to be established whether the events will return in 2025.

You & Me, Promise Village, Coastal Jam, Summerground, Vintage Vibes, Tent Pole: A Musical Jamboree and ValleyWays and Groovin the Moo were also cancelled last year, all of which referenced either financial difficulties amid the cost-of-living crisis or slow ticket sales.

“I believe the major shakeout in the festival market has already occurred”

Lack of funding and grants was the second most cited barrier to running music festivals in last year’s Creative Australia report, after rising operational costs. However, there are some good news stories to be found, with some festivals still managing to thrive in the face of higher costs – notably those curated by independently owned promoters.

In the last couple of years, Untitled Group has gone from strength to strength with its stable of such as Beyond The Valley and Wildlands. Co-founder Nicholas Greco puts much of the festival market’s turbulent 2024 down to a lack of headline talent capable of driving ticket sales, but is hopeful the worst is over.

“Many artists are opting for major headline tours instead, where they have full creative control over their shows, essentially creating a festival-like experience on their own terms,” he tells IQ.

“That said, I believe the major shakeout in the festival market has already occurred,” continues Greco. “The brands that remain have proven their ability to resonate with the new generation of festivalgoers. These are the events that artists want to align with because they hold cultural significance and deeply connect with the communities they’ve built.

“Of course, the cost-of-living crisis remains a significant challenge. It hasn’t improved over the past year, which makes ticket pricing a critical consideration for us.”

“It’s a tragedy seeing Splendour in the Grass and others bite the dust because we need those events”

Laneway Festival, the much-loved Australasian touring festival, has also enjoyed record sales for its upcoming 2025 edition. The touring festival, which this year features the likes of Charli XCX, Beabadoobee and Clairo, saw its Sydney and Melbourne dates sell out in one day.

“This was a record for the festival,” said organisers. “And we’re confident that 2025 will continue its 20-plus years of success.”

Meanwhile, Byron Bay Bluesfest’s Peter Noble revealed to IQ last month that his curtain call was largely a ploy to attract the attention of the state government, which he says declined to invest in Bluesfest during a difficult time for the economy.

“It’s a tragedy seeing Splendour in the Grass and others bite the dust because we need those events,” he says. “The real efforts need to be squarely put in the hands of government. At the federal level, there is $6.6 million for festivals nationally that can be awarded in grants. Put another zero behind that, and it still wouldn’t be enough. Two zeros behind it might actually make a difference and keep our industry working.”

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