The sudden collapse of Lyte, once marketed as a fan-to-fan ticket exchange, has left independent music festivals facing significant financial losses. Court records reveal that Chicago’s North Coast Music Festival and Ohio’s Lost Lands Festival, both of which partnered with Lyte to sell portions of their tickets on the secondary market, are now dealing with deficits exceeding $300,000 each—well beyond the $70,000 in revenue they had expected.
Lyte ceased operations earlier this month, leaving unpaid debts and lawsuits in its wake. Both Lost Lands organizers APEX Management and North Coast have filed lawsuits seeking to recover lost revenue. According to court documents obtained by Billboard, Lyte had quietly partnered with festival promoters to resell tickets. Though marketed as a fan-friendly exchange, only a small portion of tickets listed for these festivals came from fans; the majority were supplied by the promoters themselves.
For North Coast—who sold tickets on Lyte below their original check out price to protect buyers who wished to use the secondary market by ensuring they received valid tickets—just 89 of 3,064 tickets listed on Lyte came from fan listings while the remaining 2,975 tickets were posted directly by the festival’s promoters. These tickets, with a face value of approximately $287,750, were sold by Lyte, generating $426,912 in revenue. However, none of this income—including the $69,581 share of fees North Coast was owed—was ever paid to the festival.
[Update 9/27/24]: While Billboard initially implied that the festivals’ organizers were listing their tickets on Lyte at marked-up prices, the music industry publication has since issued an update to its initial report, citing sources who explained that “North Coast Music Festival actually took in less revenue on ticket price and fees by selling on Lyte.” A person with knowledge of Lyte’s role in ticketing for independent festivals explained to Live For Live Music that many independent promoters would list their tickets on Lyte at face value to both ensure that fans are buying real tickets and leverage the ticketing platform’s broad reach to raise awareness of their events.
Lost Lands faces similar struggles, with organizers trying to recover $330,000 for tickets sold through Lyte. Despite a $100,000 advance from Lyte, APEX repaid the amount and has yet to receive the remaining funds it was owed. An L.A. court granted APEX’s request to seize Lyte’s assets to ensure payment, but the path forward remains uncertain as Lyte’s financial woes deepen.
Lyte’s collapse has left not only festivals but also fans and sellers in a bind. Numerous fans have voiced frustrations online, claiming they are still owed payments for tickets sold through Lyte before its shutdown. The company’s failure has also impacted other events, including Bourbon & Beyond, for which Lyte served as the official ticket exchange partner.
The downfall of Lyte highlights a broader issue in the live music industry, where companies like Ticketmaster hold overwhelming control over ticketing markets. Independent festivals, already struggling to compete, face growing challenges in an industry that often prioritizes profits over transparency. As North Coast, Lost Lands, and other festivals work to recover, the live music community is pushing for ticketing reforms to ensure fairness and accountability for both fans and event organizers.
Note: A previous version of this article, originally titled “Festival Promoters Sue Collapsed Ticket Exchange Lyte, Reveals Large-Scale Scalping Operation,” incorrectly categorized the nature of North Coast Music Festival’s use of Lyte as a ticketing outlet. The article has been updated to more accurately describe North Coast Music Festival’s lawsuit against Lyte. We regret the error.
[Update 9/25/24]: Lost Lands issued a statement to fans on Wednesday detailing plans “to take care of our community and offer a resolution at our own expense for those who are owed money by LYTE.” Read the full statement below:
View this post on Instagram