Live Nation scraps artist merch costs at its United States club places as part of brand-new ‘On the Road Again’ program

The practice of music locations taking a cut of merch revenues at live programs has actually referred contention among exploring acts for a long period of time.

Now, show huge Live Nation [484 articles]href=”https://www.musicbusinessworldwide.com/companies/live-nation/”> Live Nation has actually revealed that its United States clubs will stop taking a portion of artists’ merch stand sales, “so artists keep 100% of merch earnings for each program”.

The relocation becomes part of a larger program called “On the Road Again”, which is presently being presented with famous artist Willie Nelson to support establishing artists and team at the club level.

Live Nation hasn’t set an end date for the program and the business states that all gain from On the Road Again “are being supplied straight from the place’s existing profits, without any boosts to customers.”

A complete list of taking part locations can be seen on the program’s main site.

The program will likewise see Live Nation pay acts dipping into its taking part clubs an additional $1,500 per program to cover fuel and travel costs on top of what those artists get in settlement for their efficiency.

That $1,500 stipend will be paid to all headliners and openers at those clubs.

Live Nation stated in a declaration on Tuesday (September 26) that “touring is a vital part of an artist’s income, and we comprehend travel expenses take among the greatest bites out of artists’ nighttime earnings”.

It included: “By assisting with these core costs, we intend to make it simpler for artists on the roadway so they can keep carrying out to their fans in more cities throughout the nation.”

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The assistance provided through the program likewise extends beyond artists, with Live Nation promising to supply “monetary bonus offers to regional promoters that assist carry out at programs, trip representatives that live life on a bus, in addition to place team members that have actually worked over 500 hours in 2023”.

On the Road Again is likewise contributing $5 million to Live Nation’s Crew Nation relief fund to support team throughout the market “dealing with unexpected difficulty”.

Via these efforts, Live Nation states that through completion of the year, the On The Road Again program is “anticipated to provide 10s of countless dollars in additional profits to club artists and team”.

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Live Nation has actually seen growing earnings over the previous number of years following the return of live music after the pandemic.,

According to the company’s Q2 revenues report, its profits grew 27% YoY to USD $5.6 billion.

Incomes from its performances department can be found in at $4.63 billionup 28% YoY on a consistent currency basis.

Ticketing (i.e. Ticketmaster) generated $709.3 millionup 23% YoYwhile sponsorships and marketing generated $302.9 millionup 13% YoY

In FY 2022, Live Nation produced profits of $16.7 billionaccording to its monetary outcomes for the quarter and complete year ended December 31, 2022 (see listed below).

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Discussing the brand-new program, Michael Rapino [115 articles]href=”https://www.musicbusinessworldwide.com/people/michael-rapino/”> Michael Rapino, President and CEO of Live Nation Entertainment, stated: “Delivering for live artists is constantly our core objective.”

“Delivering for live artists is constantly our core objective.”

Michael Rapino, Live Nation Entertainment

Added Rapino: “The live music market is continuing to grow and as it does, we wish to do whatever we can to support artists at all levels on their visiting journey, specifically the establishing artists in clubs.

“Like Willie states, this is everything about making it a little much easier for countless artists to continue doing what they enjoy: heading out and betting their fans.”

Music Business Worldwide