The organization revealed that despite collaborative efforts with the NSW government and SXSW’s proprietors, Penske Media Corporation, to “explore potential pathways forward,” the event’s cancellation was ultimately due to “prevailing marketing conditions.”

In recent years, the festival has attracted an impressive lineup of high-profile international figures, such as Nicole Kidman and The Kid Laroi.

Last year, attendance soared to over 345,000, marking a 15 percent rise compared to the previous year’s figures.

This morning, fans expressed their disappointment on social media, lauding the event as “fantastic” and a “highlight” on Sydney’s event calendar.

“Every great story has a final page,” the event organizers poignantly remarked on social media.

“It’s bittersweet to be saying goodbye while the momentum is so high.

“We’re walking away knowing that something special happened here.

“We couldn’t have asked for a better community to share this journey with, or a better city to call home.”

Event organisers said they would work closely with staff members to provide appropriate support following the cancellation.