Live Nation promise to reduce merch fees in small venues
The events giant Live Nation has announced that it will no longer profit from merchandise sales taking place at smaller club-sized venues. They have also pledged $1,500 stipends for each show until the end of 2023 for all acts performing at such events.
The announcement arrives as part of Live Nation’s newly launched programme for emerging artists, developed in collaboration with country music icon Willie Nelson. This initiative, aptly named ‘On the Road Again’ in tribute to Nelson’s classic song, aims to support smaller artists who have faced growing economic challenges in recent times.
Live Nation has not only eliminated merchandise fees, which have previously consumed a substantial 15% to 30% of artists’ merch sales, but also introduced a $1,500 stipend to assist with travel expenses, including gas. Furthermore, various entities involved in the touring process, such as crews, local promoters, and tour representatives, will receive undisclosed bonuses as part of the initiative.
Live Nation will introduce the new regulations across all of its 77 club-sized venues over the coming months, including famous venues like the House of Blues in Orlando.
These developments follow a recent online discussion surrounding the issue of merchandise cuts. The conversation was initiated by punk musician Jeff Rosenstock, who shed light on the breakdown of his 2023 tour income, pointing out the substantial merch fees many venues were deducting, some as high as 20%.
“This is going to cause us to sell our merch for higher prices than we’d like to at certain venues,” Rosenstock wrote. “We think that sucks… So much of the time all that money goes to big corporations like AEG & LiveNation. Seems like the fuckin’ rule now: if you work in a creative field, you’re supposed to feel lucky and happy enough to be there to get raked over the coals by millionaires and billionaires who will give you as small as slice of the pie as they can to perpetually show growth in profits.”
As Rosenstock points out, Live Nation isn’t the only corporation profiting from artists’ merchandise sales. Still, the company’s move is hoped to be the beginning of a chain reaction.
“Delivering for live artists is always our core mission,” Michael Rapino, President and CEO of Live Nation Entertainment, said in a new press statement. “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.”
“Touring is important to artists, so whatever we can do to help other artists, I think we should do it,” Nelson added in a statement. “This program will impact thousands of artists this year and help make touring a little bit easier.”
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