Five music festivals, some of which were forced to cancel their events in recent years due to economic challenges, have been given a multimillion-dollar lifeline.

The pandemic, inflation and the cost-of-living crisis have been to blame for dozens of music festivals around Australia calling off their events, often days or weeks before the scheduled date.

Bluesfest, Lost Paradise, Yours and Owls, Listen Out and Field Day have been picked to receive up to $500,000 each out of $2.25 million of emergency funding from the NSW government to help reduce costs and prioritise health considerations in festival planning.

Fuzzy Operations managing director Adelle Robinson, who runs Listen Out and Field Day, said the funding was a “lifeline”, adding that it was one of the reasons Field Day was able to go ahead earlier this year.

”We were seriously considering not moving forward with Field Day as the market was so precarious at the end of last year,” she said.

Bluesfest, which had previously announced it would hold its last ever event this year, has yesterday confirmed it is back on for next year.

Music and Night-Time Economy Minister John Graham said festival organisers are facing a “financial nightmare” and the state “can’t afford” to lose any more events.

“We can’t afford to lose that cultural experience because the festivals can’t afford to pay their rising bills,” he said.

“The festival circuit is a vital part of the live music industry, which employs almost 15,000 people.

“It’s too important to lose, that’s why we’re backing festivals with emergency funding and reforms that bring down their costs.”

The state government will open up its second round of funding for festivals from May 1, ahead of next year’s summer festival season. 

Funding will be divvied up on an as-needed basis. 

Good Life, A Festival Called Panama, Esoteric, Souled Out, Groovin the Moo and Forth Valley Blues have been forced to axe their events so far this year, citing low ticket sales and cost-of-living pressures.

“Groovin the Moo won’t be happening in 2025, while we work on finding the most sustainable model for Australia’s most loved regional touring festival,” Groovin the Moo organisers said. 

“Despite our best efforts, the event did not reach the level of support needed to remain financially viable,” Souled Out organisers said.

“These challenges have made it unfeasible to deliver the world-class lineup and experience that Australian teens have come to expect,” Good Life organisers said.

Big-time events like Splendour in the Grass and Spilt Milk have also faced similar challenges.