NIVA calls out Live Nation for its ‘calculated attempt’ to divert artists from independent venues

[UPDATED] NIVA (National Association of Independent Venues) is pushing back against Live Nation’s announcement that its clubs will give $1,500 in cash gas and travel stipends to each headliner and support act on top of their performance compensation.

Many in the industry applauded the new “On The Road Again” program yesterday, but NIVA points out that it will also hurt independent venues critical to local music scenes and local economies.

“The initiative announced yesterday may seem like a move to follow the lead of some independent venues. It is not that,” NIVA Executive Director Stephen Parker said in a statement. “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.”

“Tens Of Millions Of Dollars”

In its announcement, Live Nation said that “all benefits from On the Road Again are being provided directly from the venue’s existing earnings, with no increases to consumers” and estimated that through the end of the year, the program will deliver “tens of millions of dollars” in extra earnings to artists and crew.

Unlike Live Nation, independent venues and promoters don’t have tens of millions of spare dollars to compete.

“Independent stages, where the majority of artists, musicians, and comedians start their careers, are small businesses and nonprofits,” Parker continued. “They are continually facing rising costs, increased deceptive ticketing practices in the resale market, and ongoing challenges following the global pandemic.”

“The economics of touring must drastically improve for artists and independent venues,” he concluded. “There has to be a better way.”

MORE: Live Nation clubs drop merch fees, add $1500 cash in On The Road Again initiative

Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Agency, and a Berklee College Of Music professor.