Nine months earlier than Live Nation made the headline-grabbing determination to chop merch charges at 77 of its golf equipment and theaters throughout the nation, Ineffable Music Group did it first. Now, the corporate’s CEO, Thomas Cussins, has a chunk of recommendation for different impartial venue homeowners and operators involved that the live performance large is utilizing this tactic to curry favor with artists and brokers and squeeze out their companies: Everything will likely be OK.
“Merch money is not what is going to keep us in business,” says Cussins, whose firm oversees 10 venues throughout California, together with The Catalyst Club in Santa Cruz, the Ventura Music Hall in Ventura and the Golden State Theatre in Monterey. “What causes independent venues to go out of business is the one in 10 shows where venues pay way too much relative to the draw and end up losing everything they made on the previous nine shows.”
Cussins made the choice to cease charging acts acting at his venues a minimize of their merch gross sales — a regular business observe — whereas watching a Jan. 24 Senate Judiciary Committee listening to about Ticketmaster. Cussins says it was members of the band Lawrence’s testimony about how a lot bands depend on merch cash for touring that moved him to alter the corporate’s coverage: “It is money that most directly gets into the band’s pocket and the idea that we were taking away from that did not sit right with me.”
Since then, he says the choice has not damage his enterprise “at all.”
Still, impartial venues stay involved about what Live Nation’s new “On the Road Again” program will imply for them — how can they compete with the offers Live Nation is providing? The National Independent Venue Association (NIVA) launched a press release on Wednesday (Sept. 27) following the information, 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.”
Thomas Cussins
Daniel Swan
The assertion continued, “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 3,000 capacity, many of which still struggle to keep their doors open.”
A NIVA member since 2020, Cussins says he understands why some NIVA members could also be upset that Live Nation’s coverage may put stress on their companies. But, he provides, eliminating merch charges is a web optimistic for the complete reside music ecosystem — one the place everyone seems to be benefiting.
“It’s difficult to operate a single venue in a market against Live Nation,” says Cussins. “Venues are low-margin businesses. I’m not here to say that no one should charge merch fees. What I am here to say is that it is my opinion that if you waive those fees, it is an overall healthier ecosystem and you will actually do better in business because you are doing something that makes the process easier.”
What was your response while you heard the information that Live Nation was going to waive merch charges for artists?
I used to be ecstatic. It’s one thing I’m very captivated with as a result of it fosters a more healthy live performance ecosystem.
Were you apprehensive concerning the monetary hit Ineffable would take while you determined to eradicate merch charges at Ineffable venues?
No, as a result of merch cash isn’t what will preserve us in enterprise. What causes impartial venues to exit of enterprise is the one in 10 exhibits the place venues pay manner an excessive amount of relative to the draw and find yourself shedding all the pieces they made on the earlier 9 exhibits. I believe it’s extra productive spending one’s time fostering a more healthy ecosystem the place all people has an opportunity to make cash. To me, which means not taking artists’ merch cash and artists taking extra door offers, the place the artist has a possibility to take advantage of cash.
But is that practical? For many artists, taking a door take care of no assure is just too dangerous.
Correct. Some can’t take that danger. But many different artists perceive they will make more cash on a door deal and decrease the danger the venue faces. For impartial venues to be wholesome, we want quantity, which implies we want bands to be wholesome and touring and making sufficient cash to assist themselves. And the cash constructed from merch most immediately impacts their means to be out on the street and do effectively.
What is your response to the assertion NIVA issued, saying the On the Road Again program is simply an try and squeeze out indie venues?
They’re doing what they assume is in the very best pursuits of their members. We’re members of NIVA and so they have finished an unimaginable job for our enterprise. I’m an enormous fan. But my take is that merch cash isn’t what’s going to maintain these impartial venues in enterprise. What’s going to maintain them in enterprise is a wholesome live performance ecosystem, the place we’re protecting the bands wholesome and protecting them on the street with offers which can be honest so that everybody could make a couple of bucks and eat on the desk collectively and no one is gouging the opposite particular person.
What is the most important problem going through artists on the street proper now?
It is the journey prices — the value of fuel, car leases, the value to pay crews. If you’re going on the market and you’re doing the identical enterprise and your prices have elevated 30%, how are you going to presumably make that up? You may simply not tour. I do know numerous bands which have instructed me they have been doing 80 dates a yr and now they simply wish to do 40. They simply wish to decide the 40 greatest markets. That hurts impartial small companies. I’m seeing that firsthand. Artists which can be within the prime of their profession saying, “I want to work less, but each one has more meaning.” And I can’t blame them. But if they will do an extended tour and amortize these prices and play these small secondary markets, then I may be their companion on the bottom in markets the place I function venues and preserve my arms out of their merch cash.
What recommendation do you must different venues contemplating dropping their merch charges?
It’s not one-size-fits-all and it may not be the precise answer for everybody. But I’m so glad that we made that transfer — not solely from an ethos standpoint, financially as effectively. It has not damage me in any respect.
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