The rapper insisted that the festival boom has come to an end and that more events will close, despite there still being a demand for people to visit them.
Example - who performed at around 25 UK festivals last summer - told BBC Newsbeat: "A lot were promoted badly, had bad security, were in bad locations or the lineups hadn't been programmed well, so they didn't make sense.
"Some of them had a great theme, a great location and great lineup and the people running them knew what they were doing. And there were other ones which seemed to me were really amateur.
"There was a boom a few years ago. Every second person wherever you went was starting a festival in the UK. Anyone whose dad owned a farm. Obviously a lot of them are starting to go under."
He added: "The main ones will still be there. Reading and Leeds struggled last year. I think maybe that's because guitar music's not as big as electronic music at the moment.
"But festivals, to survive, just really need to think about their theme, who their market is and book the suitable acts to sell it out.
"There's still a demand for people to go to festivals even with the economy and the state that it's in."
Sonisphere 2012 was officially cancelled last week after organisers revealed circumstances had forced them to shut down this year's event.
> The Big Chill 2012 music festival cancelled
Watch the music video for Example's 'Stay Awake' below: