For small, independent music venues, profitability has never been a straightforward endeavor, and the current landscape presents even more challenges. The resurgence of large stadium events featuring iconic artists like Beyoncé and Taylor Swift has drawn enthusiastic crowds, showcasing a robust return for larger venues post-pandemic. However, the narrative for smaller establishments remains different, as they grapple with the lingering effects of the pandemic and escalating operating costs. According to Stephen Parker, the executive director of the National Independent Venue Association (NIVA), smaller venues face the dual challenge of staying afloat while lacking the economies of scale enjoyed by larger organizations.
NIVA, established in 2020 to advocate for government relief during Covid lockdowns, played a pivotal role in securing $16 billion in federal aid for the industry. Despite this support, the focus has shifted to new challenges, particularly the rising costs that threaten the margins of independent venues. Operating expenses for venues like First Avenue Productions in Minnesota’s Twin Cities have surged by almost 30%, encompassing everything from beverages to insurance. Dayna Frank, owner of First Avenue Productions and a founding member of NIVA, emphasized the limited resources of smaller venues, where owners often juggle multiple roles, from booking to marketing.
No bourbon, no scotch, no beer
Venue owners across the United States have witnessed a notable increase in costs across various facets of their operations. Paul Rizzo, owner of New York City’s historic club The Bitter End, highlighted the general decrease in consumer spending, coupled with elevated expenses for items like food and beverages. Some owners attributed the shift to a broader trend of younger music fans consuming less alcohol compared to older generations. Additionally, the legalization of marijuana in many markets is seen as a factor cutting into bar sales, a significant revenue stream for music venues.
Alisha Edmonson and Joe Lapan, co-owners of Songbyrd Music House in Washington, D.C., emphasized the ongoing challenge of pricing concessions in an environment where costs are rising, and consumer spending is contracting. The delicate balance of providing affordable options while covering increasing expenses poses a considerable hurdle for small venues. The expectation of patrons for reasonable prices at smaller establishments further complicates the economic equation, as these venues provide additional services that need sustainable funding.
Fighting for the right to party
According to NIVA Board President Andre Perry, running a successful small venue involves a complex balancing act. Venue owners constantly navigate diverse acts, assess the risk of promoting newer performers, and adapt to changing economic landscapes within their communities. Unlike traditional businesses selling consistent products, venues are immersed in a dynamic cultural practice that requires constant adaptation to remain sustainable.
For many owners of small venues, the passion for music and community often takes precedence over profit. Cat Henry, executive director of the Live Music Society, emphasized that these venues contribute to American culture, and their role extends beyond a purely commercial model. Organizations like the Live Music Society provide crucial support to venues with capacities under 300 by offering grants for innovative programs and taking chances on emerging artists, recognizing the vital cultural contribution of these establishments. As the industry grapples with financial pressures, there’s a collective hope that recognition and support at various levels will help sustain a vital part of American cultural heritage.
