Event Feasibility Report
Event Feasibility Report
BY :
ANDALAS UNIVERSITY
FACULTY OF ECONOMIC
DEPARTMENT OF MANAGEMENT
2019
3. METHODOLOGY P.3
6. RECOMMENDATIONS P.7
9. AN OPTION P.12
City of Yarra (the Principal) wished to undertake a feasibility study into the establishment of a new
live music Festival within the City of Yarra. This included recommendations about the feasibility,
nature, structure, positioning and model for such a new venture.
THE BRIEF
consult across a range of stakeholders, note issues of concern as well as areas of consensus
consider the status quo as a possible recommendation of the Study
Produce a report that offered an overview of the feasibility of establishing a new music
festival within the City of Yarra.
This would include:
o Examining the current context, environment and situation and issues affecting the
establishment of a new live music festival including practical aspects such as the
Festivals timing, location, management, structure and underpinning principles
o Evaluating the impact of external factors within the music sector or industry,
o Providing recommendations to the Principal on viable strategic directions and some next
steps
METHODOLOGY
In respect of these terms of reference, the study pursued the following methodology:
Reviewed relevant written material provided by the Principal including, policy documents,
previous discussion papers, and minutes from relevant meetings.
Conducted analysis of these to inform and create a basis of further investigation and
consultation
Considered the wider sector or market context for a possible new music festival based
within the City of Yarra.
Considered available data and relevant research
Consulted key stakeholders in the field both persons and organisations whose perspectives,
views, experience, location might inform the task at hand including: music venue operators
with the City of Yarra, musicians and other performing artists, City of Yarra Councillors,
professional promoters and presenters of live music, local residents, local traders, City of
Yarra Council officers, funding bodies, members of the Principals Live Music Working Group.
(A summary of those consulted appears in the Appendix)
Sought input from those consulted as to further possible consultations or suggestions for
other interested stakeholders.
Shared trends of discussions with YAARTS and sought feedback.
Conducted a scoping exercise of the best option available considering all the relevant
viewpoints and practical opportunities and constraints.
Out of all this created and presented a draft report to the Principal.
The study found that there was broad support for the notion of establishing a new music
festival within the City of Yarra and that indeed a live music festival within the City of Yarra is
feasible.
Firstly, and fundamentally, all those consulted agreed that the region defined as the City of
Yarra has a strong and valued history in supporting arts and cultural activity which contributes
positively to the regions allure. And, that this support has in the recent past focused heavily in the
area of contemporary music. 1 It is widely acknowledged that the geographical area within the City of
Yarra has, historically, been a breeding ground for the development of a vast amount of musical
creativity which has significantly contributed to the Cities reputation – locally, nationally and
internationally - as a culturally vibrant place over many years.
Further, there is wide agreement that to lose or diminish such a cultural asset in the face of
many threats would be a great loss to the vibrancy of the local area and be very difficult, if not
impossible, to replace.
Many stakeholders consulted, particularly those immersed deeply in the music industry,
warned of the dangers of establishing a generic or non-descript music festival. The credibility of such
an event in an increasingly difficult marketplace or environment is seen as a key factor in the success
or otherwise of a new venture. This is borne out by the available research and data. Many noted that
the days of throwing together a few musical acts and calling it a festival had long gone and that to
attract a music savvy Melbourne audience required deep industry knowledge, some risk taking and
industry nous.
Many pointed to a saturation of music festivals ranging from large scale commercially driven
music events with international stars and huge box office targets through to smaller scale boutique
music festivals (sometimes set up as a critique or response to the big commercially driven events)
right down to the local community organized and run music events.
It is noted that industry stakeholders consulted pointed to a necessity for creating a strong
point of difference in order to differentiate from existing events and local music venue operators
also indicated a desire for a festival to provide something that was not just “business as usual” for
them or their audiences.
Many felt there was little or no point in duplicating another event or in trying to push into an
already crowded marketplace without strong reasons.
particular1
Contemporary music is defined here as music that is being created within a contemporary
context but not restricted to a particular genre or form.
There seemed to be considerable confusion and miscommunication amongst those consulted in
relation to the Brunswick Street Parade (BSP) 1.
Many of those consulted assumed that any discussion of a new festival would automatically
mean a return to the outdoor, street based BSP. The Consultant found no support for a festival
based on the model of the former BSP and many noted that the economic model for such an
undertaking had irreversibly changed since the last edition of the BSP. Issues, such as the
1 Brunswick Street Parade last run in 2001 was organized annually by Melbourne Fringe Festival and
developed over the years into a de facto outdoor music festival featuring several outdoor music stages. It
was discontinued as it was deemed financially unviable by the organisers.
Live Music Festival Feasibility 4
privatization of public transport would question the viability of any major street based festival on
Yarra’s well serviced public transport routes. Further, the financial support required to undertake an
event of this nature would be very difficult to find in the current financial climate.
Many stakeholders acknowledged Fitzroy as a hub for live music in Melbourne and valued
highly prominent venues within the precinct. Many also lamented the closure of the well-known
Punters Club forced to close in 2002. Stakeholders also acknowledged the various waves of “band
scenes” as they have come and gone since the first wave of the late 1970’s and reflected that this is
a strong local asset. Some expressed a nostalgic hankering for a return to the halcyon days of the
late 70’s and early 80’s where many new bands and the independent music scene had its start.
The Consultant found that there is considerable interest in small inner city venues focused
on music. Residents consulted acknowledged that part of the attraction of living within the City of
Yarra is the cultural vibrancy created in part by the proliferation of pubs, clubs, restaurants, galleries
and other similar venues.
The Consultant also found, anecdotally, that sound emanating from venues in Yarra has
been a point of contention for a minority of surrounding residents since the 1970s, increasingly
during the late 1990s and is still an issue facing music in Melbourne today. Laws and regulations in
regards to sound can be triggered when a nearby resident finds sound emanating from a venue as
being of an unacceptable audible level in a habitable room.
Some stakeholders pointed to increased gentrification and influxes of new residents to areas
occupied by existing live music venues and argued that residents moving into these areas should be
aware of the venues and the sounds prior to deciding whether or not to move to the area, as many
venues have been operating longer than most residents have lived in the same areas.
Of course, it is also true that a number of these areas are long-time residential areas, and as is often
the case with gentrification, new live music venues open in place of traditional non noise-emitting
businesses that are not suitable as live music venues.
Musicians consulted were not only excited by the possibility of a new performing
opportunity brought about by a new festival but also pointed to an opportunity to create a new
event with a great point of difference. Some pointed to the gap in the “cultural map” of existing
festivals where opportunities for new collaborations and the chance to work with other artists might
flourish in the context of professional development. This idea also has some currency in relation to
attracting financial support from outside of the City of Yarra.
Research of various industry reports and available data revealed a subtle yet significant
difference in trends between live music consumption in smaller intimate venues (which enjoys a
healthy attendance) and that of the broader festivals sector which has endured a period of hardship
(and a down turn in attendance). Closer examination has revealed reasons for this, which has
informed some of the recommendations into the style and nature of a new festival.
Venue operators also expressed an interest in the possibility of an event that created new
and interesting performing collaborations which could draw wider audiences into the City and was
outside their “business as usual.”
One stakeholder had a very specific and detailed idea for what can be described as “precinct
saturation” approach whereby many or most venues (music and non music) would be filled with
Many stakeholders emphasized the diverse nature of the City of Yarra and strongly
suggested that social inclusivity be a strong guiding principle of the festival. The Consultant believes
that stakeholders were largely referring to the desire for a new festival to provide opportunities for
participation for people from disadvantaged or lower social economic backgrounds. Such an aim is
difficult to achieve with a single strand of festival programming or a one style of program. The
barriers to participation from various sections of the community are incredibly complex (and too
numerous to explore deeply here) but are not limited to price and depending on the nature of the
festival program to be delivered can vary dramatically.
Whilst inclusion of all sectors of the community is probably not possible (no festival
anywhere can claim to provide a program that caters for everyone) there is strong reason to believe
that with correct programming, engagement with people from lower socio economic backgrounds is
possible and desirable.
A couple of stakeholders questioned whether a new music festival was the best way to
support engagement with the music sector within the City of Yarra, and one also suggested that
perhaps extending and linking to an existing event might be a way forward. There was a minor
concern that any new event should not “rob” any existing community festival or event and that new
money from Council budget process must be sought.
Stakeholders also confirmed that any new event should have strong environmental
credentials and seek to create new benchmarks in relation to sustainability outcomes.
The available research data, likely modest levels of funding and balancing stakeholder
interests point to an indoor, bespoke festival realised in the winter months.
2 South by Southwest (SXSW) is a set of film, interactive and music festivals and conferences that take
place in Austin, Texas, United States. SXSW Music is one of the largest music festivals in the United
States, with more than 2,000 performers playing in more than 90 venues
Live Music Festival Feasibility 6
KEY FINDINGS
RECOMMENDATIONS
Melbourne has a deserved reputation as a compelling live music destination in Australia with
a strong claim to being the “music capital” of Australia. Local audiences are spoilt for choice when it
comes to live music and we continue to have a very vibrant local music scene with full houses still
common place amongst smaller to mid size venues. While there are issues facing venues the live
music scene in clubs and pubs remains pretty healthy.
According to Live Performance Australia’s (LPA) 3 Ticket, Attendance and Revenue Survey
2010, audience participation in the Non-Classical Music category grew significantly in terms of both
ticketing revenue and attendances.
Ticketing revenue increased by 43.1% from $460.44 million in 2009 to $659.10 million in
2010. Similarly, total attendance grew from 4.68 million in 2009 to 7.03 million in 2010, an increase
of 50.1%.
The significant jump in this category in 2010 is largely due to an increase in large tours by
international acts. The largest of these tours in 2010 included ACDC, U2, Bon Jovi, Metallica and the
Eagles. Other large tours included Leonard Cohen, Lady Gaga, Muse, George Michael, Cliff Richard,
Taylor Swift, Linkin Park and Yusuf Islam. The combination of the increase in the value of the
Australian dollar against the US dollar, as well as the weaker economic conditions in traditional
northern hemisphere touring markets, have both assisted in attracting a greater number of
international artists to Australia.
Whilst this growth is encouraging and points to great confidence of the audiences of music
in Melbourne it is generally held that an adjustment in this trend is upon us and that we have
reached a watershed moment in terms of audience sales across non classical music in the broader
Festival (rather than venue based music) sector.
3 Live Performance Australia (LPA) is the peak body for Australia’s live entertainment and performing arts
industry
Live Music Festival Feasibility 8
August through to May in any year that is not taken up with a music festival or similar event of some
shape or size somewhere within Australia. The growth in music festivals over the last decade in
Australia has been exponential and there is now a proliferation of music festivals in Australia, which
many believe has reached a saturation point for music audiences.
Almost all the new music venues are in Melbourne's inner-northern suburbs and while the
traditional south of the river outpost in St Kilda struggles to hold on, the inner north is unequivocally
the new heart of the Melbourne music scene. City of Yarra is an important part of that live music
venue map.
There is a distinct pessimism at the premium end of the market - the big music festivals -
with their dozens of overseas and domestic acts, and tickets costing hundreds of dollars. The
internationally renowned resilience of the Australian touring market, which made Australia the
lucrative first stop for many American and British bands during the southern hemisphere summer,
has dipped, and that may be particularly felt in Victoria, where the festival calendar is crowded.
Many believe there are too many music festivals and many have lost their sense of
distinction. Festivals that have succeeded, whether it was the boutique and eclectic Meredith or
electronic music gathering Stereosonic, are believed to be those with a strong sense of identity and
point of difference. In industry parlance, they attract ''purists'', or repeat attendees, not the more
fickle ''tourists''.
Promoters behind the Gold Coast's Harbourlife, which sold out in record time in its first two
years, confirmed in 2011 the event had to be postponed; The Temper Trap were due to lead 2011’s
line-up. Earlier in 2011, The Lost Weekend festival failed to make it much past its announcement
with the winter event folding before it had begun, and after tickets had been sold.
Festivals during the just past summer season (that averages one event per week from December to
February), also witnessed slower tickets sales compared to the swift sellouts of previous years.
The electronic/dance music festival Parklife, held in September, also failed to exhaust their
ticket allocation. Conventional music industry thinking is that some music festivals will begin to really
struggle to the point of extinction, and this is a natural part of the industry attrition that does and
should take place. Festivals need to bring an experience that is distinct, unusual and give an
audience an experience different to others or the usual six night a week offering of venue based
presentations.
Market, audience and media fragmentation has never been so prevalent than now with
younger discerning audiences making more and more informed choices. As one industry insider
observed recently: “In a niche-focused music scene it's getting harder to find acts that cut across all
divisions. The days of everyone being into either Pearl Jam or Nirvana are gone. It's hard for
promoters to come up with a couple of big names that everyone will want to see.''
Although most promoters refuse to go on the record about crowd numbers, the news
headlines speak for themselves. The past 12 months have seen Rewind Australia, Great Southern
Blues Festival, Raggamuffin and Funk N Grooves either cancelled or placed on hiatus.
Industry stalwarts such as Big Day Out, Splendour in the Grass and Good Vibrations have all struggled
to move tickets. Splendour failed to sell out for the first time in its 11year history, Big Day Out in
2011 was forced to scale back its Adelaide and Perth shows, and Good Vibrations was offering half-
price tickets in the lead-up to its Gold Coast and Perth events back in February.
The steady rise in ticket prices and a general economic downturn have also affected
attendance levels. According to the Australasian Performing Right Association, the average price of a
festival ticket in 2011 was $133 (compared with $53 in 2004). Economic fears have seen people now
going to two or three events, where before they were going to seven or eight.
In addition, the appearance of stand-alone outdoor concerts has placed added pressure on
the market. Acts once considered festival headliners have increasingly gone out and hosted their
own stadium events, further segmenting a fractured market
There is a feeling that at the larger end of the spectrum something has to give with music festivals.
Programmers have to get more savvy and perhaps more adventurous and not rely on huge names
commanding huge fees to fill their coffers.
The report provides in-depth consumer analysis on the state of the Australian music festival market
with findings collected from an online survey of 2,949 respondents.
Further, it found:
• Line-up/music acts are by far still key in whether or not respondents would attend a
particular festival
• Respondents highlight improved variety and quality of acts as well as better festival
organisation as ways festivals had improved in the last five years. • More than half of
the respondents (52.7 per cent) think there are just enough festivals in Australia. 27.2 per
cent there were too many • Their attendance at live music gigs has increased over the
last five years according to almost half (47.5 per cent) of respondents.
• Intimate pubs were chosen as the most favoured place to watch a favourite music act (56.3
per cent). Festivals were second (23.4 per cent)
• The steep cost of festival tickets is the key reason respondents (83.7 per cent) believe
attendance at a number of festivals has declined. • Nearly two thirds of people who
had attended a festival would only pay up to $499 for tickets to attend festivals across a
whole year.
4 Established in 2003 Moshtix is a ticketing and promotions service that has years of experience running
and delivering some of Australia most iconic music and festival events and regularly undertakes industry
research.
Live Music Festival Feasibility 10
• When asked how the music festival experience has changed over the last five years, the most
common response (41.6 per cent) stated that the music festival experience has gotten worse
with the remaining of respondents feeling it had improved or stayed the same.
• Respondents are happy to pay a little bit more for food and beverages if it means it will help
the environment
What the Moshtix report highlights is that promoters need to find the right balance between
securing a high-quality, compelling line-up of artists, keeping the ticket price as low as possible and
creating an experience for audiences which eschewed the typical large scale festival experience with
huge crowds with potentially inappropriate crowd behaviour a feature of the overall experience.
Importantly, the report illustrates that there is still potential for growth in the market and
there are still opportunities for new entries to the marketplace but the festival experience needs to
be distinct and of a more intimate nature.
Australian audiences have a universal love for music and while we have seen some
frustrations from festival attendees with concerns around crowd behaviour at festivals and
increasing costs of festival tickets, rather than turning their back on the industry, they are attending
a few festivals and finding alternate venues and ways to watch their favourite music act perform.
The Moshtix report noted an increase in attendance at live music gigs in venues over the last
five years, which corresponds to the Live Performing Arts Australia research presented here also.
The Tote rally sparked moderate public and political debate about the effect these laws were
having on small music venues and quickly grew to encompass other venues which host musical
performance and lack of government investment and support of live music in general. The rally also
forced the State government to open discussions between the state government and local music
industry representatives in fear of losing marginal inner city seats at the 2010 Victorian State
election, though no action was taken on amending the laws to remove restrictions on small live
music venues. A new body Music Victoria was established and several community groups began
organising a much larger rally to encompass the wider spectrum that the issue now covered.
Subsequently, the 2010 Melbourne live music rally was held 23 February 2010 with a crowd of
20,000 to 50,000 in attendance.
After these events live music seemed to be on the political map and led to the City of
Melbourne funding Melbourne Music Week to the tune of $750,000 in its first year.
LOCAL ENVIRONMENT
There is a tension between residents living in high density housing close to major activity
centres, and licensed venues providing live music experiences for eager audiences.
The Live Music Working Group in Yarra has acknowledged that the cultural and economic
contribution live music makes to the vibrancy and diversity of the city is valued and an important
part of local identity.
Planning Yarra has been proactive in its efforts to support both the amenity of residents
living close to live music venues, and to encourage best practice management from venue owners.
Residents consulted in relation to this study were supportive of the possibility of a new
music festival provided it did not disrupt amenity to their local area with particular emphasis on a
lack of support for a large scale street based festival.
Live Music Festival Feasibility 11
City of Yarra receives a small number of complaints about live music venues, and many live
music issues are complex and entangled in overlapping State and local legislation, permits and
enforcement. This makes it difficult for developers, venue owners and the general public to work out
who is responsible for what, how to make mixed use work at a local level.
The City of Yarra already actively supports the live music industry at the local level through
its community festivals and events, along with other key organisations within the community e.g. the
Boite. With the establishment of Music Victoria as an umbrella organisation for the live music
industry, collaborative projects are possible in the future.
It is noted that recent changes under the Liquor Control Reform Amendment (Licensing) Bill
2009 have impacted heavily on live music venues, resulting in the dramatic closure of the Tote Hotel
in Collingwood, and prompting the subsequent rally in the CBD. While this is largely a State
Government issue, and not exclusively a local one, patrons and live music representatives have been
inspired by this situation to raise concerns about the way council manages its commitment and
responsibilities to the industry.
It is noted that Yarra has a good track record in the management of issues around
neighbourhood amenity.
AN OPTION
The Consultant notes that below is a sketch of what is possible however closer and fuller
details of a new festival model should be solicited from potential organisers in order to build strong
“buy in” during an Expression of Interest process.
WHAT
BREEDING GROUND – A NEW MUSIC FESTIVAL FOR YARRA
Breeding Ground is the suggested name for a new Festival based in the City of Yarra.
The name reflects not only the history of the local area in relation to fostering new creativity
for live music but also gives an insight into the possibility of new musical collaborations between
artists which would be the focus for such an event.
The proposed content for the new festival is new collaborations; new musical ideas between
artists to create previously unperformed works, songs or music.
Breeding Ground would facilitate artists to work together to create work that is outside of
those artists’ usual material to encourage creative challenges for those participating. These works
would be performed in recognized local venues within the City of Yarra in the so called non festival
months outside of August to April.
Creating a winter, indoor festival Breeding Ground honours the creative history of the local
area, creates new performance material outside of the usual run of the mill activity of the venues
and gives audiences a distinct offering which is intimate and “special”.
It is recommended that the festival run gigs and events over a ten day period to include two
weekends.
WHERE
It is recommended that Breeding Ground should be established in Year 1 largely through a
consortium of interested venue based operators within Yarra from which a new festival can be
scaled up or down in subsequent years and further growth can be welcomed as budget and finance
dictates.
HOW
The interest in a new music festival is significant however there is no single entity or interested
group with the sole capacity (or interest) to drive a new festival. A further process (EOI) is required
to either:
a) Galvanise existing potential music sector groups and individuals to come together to develop
and manage a new festival, or
b) Attract the interest of music industry specialists to develop and manage a new festival.
HOW MUCH
Whilst one of the significant parameters of the festival should be scalability in size and cost, it is
unlikely that any new venture could succeed without significant support from the City of Yarra
particularly in its initial stages.
A minimum financial commitment of $125,000 annually from all sources would be required
to kick start such a new event.
APPENDIX
LIST OF STAKEHOLDERS CONSULTED
Venue
Jon Perring Bar Open
Helen Marcou Bakehouse Studios
Tim Northeast Corner Hotel
Steve Sedergreen Dizzy's
Mil Hanna The Fitz
Resident
Judith Campbell Resident
Ann Polis Fitzroy Residents Association
Industry
Patrick Donovan Music Victoria
Hannah Fox Supple Fox - Live Music Producers/Touring
Blair Stafford Live Music Touring
Susan Forrester Big Day Out Festival
Adrian Basso General Manager PBS radio
Jonathan Williamson Manager Contemporary Music, Arts Victoria
Mary Micahalos Former Editor Beat Magazine. Sticky Carpet
Sophie Brous Musician, former director Melbourne Jazz Festival
Musicians
Lou Bennett Musician
Shane Howard Musician
Dan Sultan Musician