The New Zealand leg of the music festival, which takes place in various cities around the continent this weekend, has been cancelled after Rip It Up magazine's editor claimed that it has not been a success in recent years.
Leonie Hayden told AAP: "Social, economic and cultural changes inform what is available to us, what we can afford, what we identify with. They have to charge more to survive, but audiences want to pay less. I suppose that's why the more boutique festivals are thriving."
John Minty, director of the Splore festival, added: "More specialist festivals seem to be the ones doing quite well; those ones that target families or add a lot of non-music activities to their festivals. The market has been very difficult. They were probably caught with rising prices, trying to deliver a hell of a lot."
This year's Big Day Out has been plagued by controversy following the initial lineup announcement. Hip-hop star Kanye West was axed from the Perth and Adelaide legs of the music event after organisers decided to make financial cuts. The Living End and Mariachi El Bronx were cancelled in Adelaide, and the Hilltop Hoods have been dropped from the Perth show.
Californian hip-hop collective Odd Future were then kicked out the Big Day Out lineup after organisers received complaints from activists in New Zealand over the group's 'homophobic lyrics'.
This Friday, acts including Soundgarden, Kasabian and Kimbra are scheduled to be taking to the stage.
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