NIVA criticises Live Nation’s venues initiative
The National Independent Venue Association (NIVA) has spoken out against Live Nation’s new On the Road Again programme, which is intended to support developing artists and crew at club level.
Announced earlier this week, the scheme promises to allow artists keep 100% of merchandise profits at LN’s network of club venues in the US and Canada, as well as offering financial aid.
It will provide $1,500 (€1,425) in gas and travel cash per show to all headliners and support acts – on top of nightly performance compensation – while an additional $5 million (€4.75m) will be donated to global relief fund Crew Nation to support crew across the industry.
However, NIVA argues the move could cause more harm than good to the wider circuit in the longer term, adding that it “appears to be a calculated attempt” by the promoter to steer business away from independent venues.
“Temporary measures may appear to help artists in the short run but actually can squeeze out independent venues”
“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,” says the US-based organisation. “Independent venues and promoters are investing in and elevating up-and-coming artists every day, and NIVA is supporting those efforts nationally. [On the Road Again] 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 3,000 capacity, many of which still struggle to keep their doors open.”
More than 75 Live Nation venues are participating in the scheme, which has been endorsed by legendary musician Willie Nelson, including The Wiltern in Los Angeles, New York’s Irving Plaza, Austin’s Scoot Inn, Shelter in Detroit and Danforth Music Hall in Toronto, Canada, along with House of Blues venues across the United States.
“Artists are asking for support. On The Road Again is about supporting artists. NIVA members are perfectly capable of providing similar benefits”
However, critics say the initiative will only run for a limited period of time.
“Independent stages, where the majority of artists, musicians, and comedians start their careers, are small businesses and nonprofits,” adds the NIVA statement. “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.”
Posting on X, Live Nation’s EVP corporate & regulatory affairs Dan Wall responds: “Artists are asking for support. On The Road Again is about supporting artists. NIVA members are perfectly capable of providing similar benefits. Many already do.”
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Live Nation drops merch commission at club venues
Live Nation is dropping merchandise commission at its North American club venues as part of a new programme designed to make it easier for emerging artists to tour.
Created with music legend Willie Nelson, the On the Road Again initiative is projected to deliver tens of millions of dollars in extra earnings to club artists and crew.
As well as letting artists keep 100% of merch profits, all LN clubs will provide $1,500 (€1,425) in petrol and travel cash per show to all headliners and support acts – on top of nightly performance compensation – as part of the scheme, which is also donating $5 million (€4.75m) to global relief fund Crew Nation to support crew across the industry.
“Touring is important to artists so whatever we can do to help other artists, I think we should do it,” says Nelson. “This programme will impact thousands of artists this year and help make touring a little bit easier.”
The dozens of participating venues include The Wiltern in Los Angeles, New York’s Irving Plaza, Austin’s Scoot Inn, Shelter in Detroit and Danforth Music Hall in Toronto, Canada.
“We want to do everything we can to support artists at all levels on their touring journey, especially the developing artists in clubs”
LN says that benefits from On the Road Again are being provided directly from the venues’ existing earnings, with no increases to consumers.
“Delivering for live artists is always our core mission,” says Live Nation president and CEO Michael Rapino. “The live music industry is continuing to grow and as it does, we want to do everything we can to support artists at all levels on their touring journey, especially the developing artists in clubs. Like Willie says, this is all about making it a little easier for thousands of artists to continue doing what they love: going out and playing for their fans.”
Across the pond, the Featured Artists Coalition (FAC) recently ramped up the pressure on UK venues that charge commission on merchandise sales at gigs.
The FAC launched the 100% Venues scheme – a public directory of music venues that charge zero commission on the sale of merchandise – in 2022 in a bid to address the “outdated and unfair” practice at gigs, which it says is making live touring “unsustainable”, especially in the midst of a cost of living crisis.
In an open letter signed by more than 60 industry bodies and businesses, the FAC urged venues not currently participating to start making change
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