On Sept. 26, Live Nation announced a new program, “On The Road Again,” designed to combat unfair merch sales cuts and provide supplemental money for touring staff and artists. Although this program appears on the surface to be a step in the right direction, in practice it could negatively impact both independent promoters and venues, potentially diverting bands and fans away from smaller independent venues.
As a refresher, the new “On The Road Again” program, inspired by the Willie Nelson song, says that all acts playing Live Nation-owned and operated clubs, from headliners to support acts, will receive a $1,500 gas and travel cash stipend per show to all headliners and support acts, on top of nightly performance compensation. The company’s clubs will no longer charge merchandise selling fees, allowing artists to keep 100% of merch profits, which many artists rely on to generate cash for the band while they’re on the road.
Participating venues in New York State include Warsaw, Gramercy Theatre, and Irving Plaza.
However, this could have unrealized negative impacts on independent venues and promoters. The National Independent Venue Association (NIVA) released a statement, saying “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.”
The organization continued, saying “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.”
NIVA is not the only one to take note of this PR move. Gideon Plotnicki, from GMP Live, voiced his concerns about the program, citing it as “pretty scary for indie promoters.”
Independent promoters and venues are the lifeblood of the live music community. We invest in artists and provide crucial support and belief that helps them build their audience during the earliest phases of their career. How are independent promoters supposed to compete with a publicly traded company that uses its seemingly endless funds to entice artists to play their venues? How are we supposed to ask the artists to stick with us, rather than taking the bigger money elsewhere? It’s a question that a lot of independents will be asking themselves over the coming weeks and months.
Gideon Plotnicki- GMP Live
He also recognized that it is a pilot program, and may not “impact any specific market more than the other.” In turn, the “true impact will be felt if the program is successful and gets picked up for good. At that point, every Live Nation venue will hold an even more obvious financial advantage.”
Although the “On The Road Again” program may be beneficial to smaller acts touring right now, it could have negative impacts on independent venues, which are where artists get their start. An agreement between indie venues and Live Nation might need to be implemented, but for now, support the indie venues in your area by going to shows, buying merch, and supporting your local scene.
