The who's who of Australian music and entertainment have turned out for Gudinski's state memorial service at Melbourne's Rod Laver Arena.

Rock singer Brian Mannix, Skyhooks guitarist Red Symons, former AFL star Nick Riewoldt and comedian Kate Langbroek were among the celebrities in attendance to pay their respects to the late music industry icon.

On arrival, guests were handed a memorial program resembling a record slip with photos of Mr Gudinski with many of the recording artists he championed over his illustrious career.

Aunty Joy Murphy performed a stirring Acknowledgment of Country before Victorian Governor Linda Dessau opened tributes to Mr Gudinski, who died suddenly in his sleep on March 2 at the age of 68

"He has been described as the founder of the Australian music scene, the godfather of the Australian music scene, a legend, a cultural icon, the ultimate music man, a force of nature and an amazing Victorian," Ms Dessau told the crowd.

"This arena, and all the others that you've filled - both literally and figuratively, with your larger than life presence - are now so very much the poorer for your absence."

Premier Daniel Andrews was absent as he recovers from a fractured spine and broken ribs in a fall earlier this month, but passed on a message.

"There are few people who have shaped our state like Michael Gudinski," MC Lee Simon said on Mr Andrews' behalf.

"From mobile dance halls to Festival Hall - music was his life's purpose."

His son Matt and daughter Kate will give speeches later in the event, as will TV personality Carrie Bickmore and rabbi Menachem Wolf.

Global star Ed Sheeran, a friend and protege of Mr Gudinski, is headlining a cast of big names to perform on the night.

Alongside the English singer and songwriter, there will be performances by Jimmy Barnes, Kylie Minogue, Paul Kelly, Mark Seymour, Vika and Linda Bull and Mia Wray, who all had links to Gudinski.

"I'll miss you brother," Police frontman Sting said after a video performance.

The memorial is expected to run for two-and-a-half hours and is being live-streamed on YouTube.

In lieu of flowers, the Gudinski family has asked people to consider making a contribution to Support Act, a fund for musicians doing it tough during the COVID-19 pandemic.

To coincide with the service the Australian Recording Industry Association announced an ARIA award will be renamed in Gudinski's honour.

The award for best breakthrough artist will be rebadged as the Michael Gudinski Breakthrough Artist ARIA Award. It will be presented for the first time this year.

Gudinski was a senior figure in the Australian music scene, having founded independent label Mushroom Records in May 1972.

Mushroom Records became the largest independent label in Australia's music history, expanding into touring, publishing and film and TV production.

Gudinski's artist roster included Kylie and Dannii Minogue, Archie Roach, Hunters & Collectors, Barnes, Kelly, the Skyhooks and Split Enz.

More recently, he represented artists including Dan Sultan, Eskimo Joe, Evermore, The Rubens, The Temper Trap and Vance Joy.

Gudinski's Frontier Touring brought international stars such as Guns N' Roses, Foo Fighters and Madonna to tour in Australia.

Australian Associated Press