It has never been easy for small or independent music venues to turn a profit. Now, with inflated operating costs, some owners are struggling to keep ticket prices affordable for audiences and take chances on lesser-known artists.
The past year has seen music fans roaring back to large stadiums to see sold-out shows for icons such as Beyoncé or Taylor Swift, even as consumers cut down on spending for leisure activities. But many smaller, independent venues have yet to see business return to pre-pandemic levels, according to Stephen Parker, executive director of the National Independent Venue Association.
“If you are a larger venue, you’re probably doing quite well post-pandemic,” he said. “But if you were a smaller venue, you are seeing business, and you’re keeping your head above water, but you’re also seeing that many of the things that larger organizations have at their disposal, which is economies of scale, is becoming harder.”
NIVA was founded in 2020 as a means to lobby for government relief while venues struggled to stay open through Covid lockdowns. It was a driving force behind $16 billion in federal aid to the industry and now focuses its efforts on other issues such as price gouging in the resell market.
The latest challenge facing NIVA’s network of independent venues, Parker said, is protecting margins in the face of higher costs.
First Avenue Productions, which operates several venues around Minnesota’s Twin Cities, has seen operating costs increase nearly 30% since before the Covid-19 pandemic, with everything from beer to ice to insurance becoming pricier, according to owner Dayna Frank.
“We don’t have corporate backstops, we have limited resources,” said Frank, a founding member of NIVA and former board president. “Most folks are, you know, owner, operator, floor sweeper, booker, marketer, light bulb changer, everything.”