The National Independent Venue Association (NIVA) has issued a statement in response to Live Nation’s new initiative aimed at providing financial support to touring artists.
As part of its “On the Road Again” program, Live Nation announced that it will no longer take cuts of artist merchandise sold at any of the club-sized venues it operates. The company also promised to offer $1,500 stipends per show to all headlining and support acts at their venues for the purpose of covering tour expenses like gas and lodging. NIVA argues, however, that these short-term benefits will harm independent venues in the long run.
In a statement issued to Consequence on Wednesday (September 26th), NIVA said Live Nation’s initiative is a “a calculated attempt” to steer artists away from smaller independent venues in favor of the venues Live Nation operates.
The “On the Road Again” website doesn’t explicitly point out that all the participating venues are operated — or exclusively booked — by Live Nation. It also doesn’t outline how long the program will run — other than saying that, “Over the next few months, On The Road Again will deliver tens of millions of dollars in extra earnings to developing artists and crew.”
Thus, it’s entirely possible that the program will cease at the end of 2023, at which point venues revert back to gobbling up 15%-30% of an artist’s merch revenue — an alarmingly common practice, as veteran punk rocker Jeff Rosenstock pointed out earlier this month with an in-depth breakdown of some of his tour-related finances. Live Nation representatives did not respond to Consequence’s inquiries about the program’s specific time frame.
Read NIVA’s entire statement below.
“Temporary measures may appear to help artists in the short run but actually can squeeze out independent venues which provide the lifeblood of many artists on thin margins. Independent venues and promoters are investing in and elevating up-and-coming artists every day, and NIVA is supporting those efforts nationally. The initiative announced yesterday may seem like a move to follow the lead of some independent venues. It is not that.
“Instead, it appears to be a calculated attempt to use a publicly-traded conglomerate’s immeasurable resources to divert artists from independent venues and further consolidate control over the live entertainment sector. Such tactics threaten the vitality of small and medium-sized venues under 3000 capacity, many of which still struggle to keep their doors open.
“Independent stages, where the majority of artists, musicians, and comedians start their careers, are small businesses and nonprofits. They are continually facing rising costs, increased deceptive ticketing practices in the resale market, and ongoing challenges following the global pandemic. Our stages are critical to the live entertainment ecosystem and local economies, and they must survive.
“The economics of touring must drastically improve for artists and independent venues. There has to be a better way. NIVA will continue to support artists and empower independent venues as we collectively find it.”
Editor’s Note: Final voting is underway for Hometowns of Consequence, our fan-led initiative highlighting America’s best local music venues. Alternatively, you can support independent venues by purchasing a shirt from Consequence Shop’s Protect Live Music collection, proceeds of which benefit NIVA.
