Live Nation's praised merch cut elimination could harm independent venues?

Live Nation has announced a new initiative called "On the Road Again" that will provide financial support to touring artists. This includes no longer taking cuts of artist merchandise sold at any of the club-sized venues it operates and offering $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.

However, the National Independent Venue Association (NIVA) argues that these short-term benefits will harm independent venues in the long run. NIVA believes that this initiative is a calculated attempt by Live Nation to steer artists away from smaller independent venues in favor of the venues Live Nation operates.

NIVA also argues that the program is unfair to independent venues because it gives Live Nation an unfair advantage in the market. Live Nation is already the dominant player in the live entertainment industry, and the "On the Road Again" program will give it even more power over the market. This could make it more difficult for independent venues to compete, and could lead to a decline in the diversity of live music venues.

NIVA believes that there is a better way to improve the economics of touring for artists and independent venues. You can read their 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.”