Company collapse hits Aussie music festivals

A company that had been a part of international events such as Coachella and Pitchfork has gone under, impacting Australia’s music scene.

A US ticketing company that was being used by Australian music festivals has collapsed forcing organisers to scramble amid fears ticket sales and profits could be put in jeopardy.

The company called Lyte, shut down without warning earlier in September, leaving festival organisers looking for answers in Australia.

Meanwhile, in the US festival operators have launched legal action against the company.

Lyte promoted itself as a fan-to-fan ticket exchange where resale of tickets could be done “ethically” in the US.

However, in Australia two music festivals caught up in the company’s collapse were using Lyte as their primary ticketing platform.

The message on Lyte's website. Picture: Lyte

The two Australian festivals impacted are Lost Paradise, a music and arts festival held over four days across New Year’s Eve on NSW’s Central Coast, and Queensland-based festival Rabbits Eat Lettuce.

On September 17, Lost Paradise told its fans on Facebook that the festival had been informed that its ticketing platform, Lyte, was offline, showing a “scheduled maintenance” message.

“We are actively investigating the issue. In the meantime, our accommodation on-sale will be rescheduled,” they wrote.

One fan expressed concerns saying they “already paid upfront for my tickets”.

The Lost Paradise festival has been caught up a in ticketing collapse. Picture: Facebook

Meanwhile a day earlier, Rabbits Eat Lettuce (REL), a festival scheduled to take place in April next year in Queensland, alerted its fans on Facebook that it had become aware that its ticketing provider was “currently offline” with the festival’s tickets unavailable.

“This was unexpected and we have been unable to make contact with Lyte’s team for clarity,” organisers wrote.

“We are investigating the issue and exploring solutions.”

Rabbits Eat Lettuce festival has also been caught up in the Lyte collapse but have found a solution. Picture: Facebook

An update from Lost Paradise a week later revealed organisers had heard news reports of Lyte going under.

“Communication with Lyte’s senior team has not helped us understand exactly what has happened,” the festival added.

“We are taking this situation seriously as we do everything we can to protect and understand the impact this will have on ticket holders. We are looking to have a resolution to share with you soon.

“In the meantime, all sales of our accommodation upgrades, Parking Passes and VIP upgrades remain on hold.

“For context, Lyte’s international clientele includes renowned festivals and major events such as Coachella, Pitchfork, Electric Forest, CRSSD, NYComicCon and more.”

The link for tickets on Lost Paradise’s website still goes to Lyte where a message states: “Be back soon.”

Panicked fans questioned on social media if tickets already purchased will still be eligible and were told by the organisers to be patient as they work on a resolution.

“Why would LP use a 3rd party company based in the states instead of an Australian based one that’s within the reaches of Australian based consumer protection?” another wrote.

The festival organisers responded that they believed “their ticket reservation technology was genuinely forward thinking – a customer friendly way to secure tickets early while allowing us to better forecast the event’s popularity and plan accordingly”.

While many expressed sympathy for the Lost Paradise organisers’ situation, saying it was already hard enough for music festivals in Australia right now, others said they were frustrated at the lack of updates on the situation adding “transparency was key”.

The Lost Paradise festival has been caught up a in ticketing collapse. Picture: Facebook

Meanwhile, REL revealed it had made the switch to an Australian-based ticketing platform

“We have received correspondence from a Lyte representative, who has advised us Lyte Ticketing has suspended operations, therefore we have made the necessary move to change ticketing providers for REL2025,” it said.

“We apologise for this inconvenience Lyte has caused, and will be working to ensure a smooth transition, with all existing tickets transferring to the new provider.”

All tickets and glamping items purchased will be transferred to the new ticketing system and any payments made on incomplete payment plans will be honoured 100 per cent, it added.

“In the interest of a safe and secure customer experience we have decided to switch back to Humanitix, who we have worked with since 2021,” it said.

“After this experience with Lyte we have decided to put our trust in a locally based Australian company for stability, peace of mind and reliable service.”

Rabbits Eat Lettuce festival has also been caught up in the Lyte collapse but have found a solution. Picture: Facebook

REL could be out of pocket by an estimated $30,000 as a result of Lyte’s collapse.

Fans praised REL for its quick thinking and for recovering the situation so fast.

Two independent music festivals in the US were facing losses of up $300,000 and legal documents had revealed that Lyte had moved its business model into large scale ticket scalping, the publication Billboard revealed.

The legal documents also revealed that Lyte’s CEO had resigned on September 12 resulting in its business operations virtually ceasing and most staff being fired.

Rabbits Eat Lettuce festival has also been caught up in the Lyte collapse but have found a solution. Picture: Facebook

It comes at a time when the Australian music festival scene has faced troubled times.

A number of well known festivals have been cancelled this year including Splendour in the Grass, Groovin The Moo, Falls Festival, Dark Mofo, Coastal Jam, Goomfest and ValleyWays.

Spilt Milk joined the growing pile in July this year.

Meanwhile event organisers of the The Birdsville Big Red Bash were taking a hiatus in 2025 after 11 years of holding the event in Australia’s outback.