Could taxing multi-national live music companies help grassroots players?

There is growing support for the British music industry to voluntarily implement a levy within the cost of stadium and arena tickets to support grassroots music venues. An RMIT expert explains why Australia should follow suit.

Dr Sam Whiting, music industries expert:

“The UK government has taken a significant step in addressing the top-heavy and deeply unequal nature of the contemporary live music industry, by advocating for an industry-led ticket levy.

“A similar levy in Australia would create a much-needed revenue stream for independent and grassroots music venues, promoters and artists, improve the health of Australia’s live music ecosystem from the foundations up and ensure that the next generation of talent receive the opportunities they deserve.

“In an Australian context, such funding could be managed by the recently established Music Australia and used to subsidise costs associated with staging grassroots music events.

“It could also be used to ensure that musicians regularly performing to sizable audiences are paid at least the Musicians Australia $250 Minimum Fee, contributing to the long-term sustainability of musicians’ careers and rebuilding a middle-class of Australian musicians that has been hollowed-out since the emergence of streaming.

“An ABC investigation last month revealed how multi-national live music companies have consolidated their influence within the Australian sector and the subsequent impact on local operators. At the same time, audiences are also moving away from festivals and local music events towards high-end arena tours. 

“A levy for large performances and venues in Australia could create a much-needed revenue stream for independent and grassroots venues, promoters and artists who have been hit hard by inflation and rapidly rising insurance costs.

“A similar scheme already exists in France, where a statutory levy contributes to a publicly administered fund, and a levy on Premier League football tickets is used to generate funding for local and grassroots football clubs across the UK.”

Dr Sam Whiting is a Vice-Chancellor’s Senior Research Fellow at RMIT University and a 2024 Churchill Fellowship recipient. Sam will travel to the UK and Europe in 2025 as part of his Churchill Fellowship to investigate and learn from the work of the UK Music Venue Trust.