Covid-19 Festival Fallout
Updated: Jun 26
As live music remains in lockdown, companies at different stages of the festival supply chain are scrambling for any justification to hold onto their cash, rather than refunding their customers. Ultra Music Festival is now facing a class-action lawsuit, and so is Stubhub, Live Nation, and SXSW.
The problem each of these companies faces is simple: they don’t have the money to refund every ticket they’ve sold for the foreseeable future and continue to operate. They’re screwed, and their decision is understandable — but passing the screwing along to their customers isn’t going to win them many friends. As a rule, The EP does not recommend specific fiscal policy, but if the government were able to provide investment or financing to alleviate the crunch these companies find themselves in, it would almost certainly end up paying for itself.