The National Independent Venue Association (NIVA) has raised concerns over Live Nation’s new initiative, On The Road Again, designed to financially support emerging artists and their touring teams in the face of rising touring expenses Live Nation, the conglomerate that owns and operates numerous clubs, recently unveiled a program offering $1,500 in gas and travel funds per show to both headliners and support acts performing at their venues. In addition to nightly performance compensation, Live Nation-owned clubs will waive merchandise selling fees, allowing artists to retain 100% of merchandise profits.
However, NIVA contends that this initiative may inadvertently harm independent venues, which lack the extensive resources available to Live Nation. The association fears that such programs could exacerbate the consolidation of the live touring sector. In response to Live Nation’s announcement, NIVA issued a statement via social media, expressing concerns about the potential long-term impact on independent venues and promoters. NIVA emphasized the importance of these smaller venues in nurturing emerging talent and supporting artists with slim profit margins.
The statement read:
“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.”
While Live Nation’s On The Road Again program offers benefits to artists, including financial bonuses for local promoters, tour representatives, and venue crew members, NIVA remains concerned about its potential impact on the vitality of smaller venues with capacities under 3,000. In justifying the program, Live Nation acknowledged the financial strain that travel expenses place on artists and expressed a desire to ease this burden, allowing artists to reach more cities and perform for their fans. As the debate unfolds, improving the economics of touring for artists and independent venues remains a pressing concern. NIVA has pledged to continue supporting artists and empowering independent venues as they collectively seek solutions to these challenges.
