Live concerts are back, but smaller venues have a long way to go –

Over the summer, entertainment giants Live Nation and MSG Entertainment painted the photos of the live event business pink, predicting record-breaking growth. While bookings are increasing at venues across the US, smaller venues are suffering from the influence of the Omicron version, and owners say audiences seem wary of returning. There is also the strain of staff shortages and the rising cost of goods and labor, as well as the constant question of whether the acts will show up.

First Avenue, which owns and operates several music clubs in Minneapolis, is filled with an “unbelievable” number of artists on the move due to the delayed return of concerts and live events, says CEO Dana Frank. It’s the best time to be at a show, but compared to the increase in customers returning to theaters in July 2021 since COVID-19 vaccines became available, it has recently dropped even further.

“It’s a difficult situation because, on the one hand, we’re all happy and celebrating and excited,” said Frank, who is also president of the National Association of Independent Assembly. More to do and the pain is very real. It is not restored, we are far from it. ”

Consumer confidence has taken its place after the fall and winter waves of COVID, with First Avenue naming January the worst month in the company’s history due to the number of show cancellations. Now everything looks better. But while many shows are technically on sale, venue owners say viewing fees when a customer buys a ticket but doesn’t attend are still higher than they were in 2019.

At Troubadour, West Hollywood, owner Christine Karayan believes attendees are still dropping 15 to 30 percent due to absenteeism. About 50 to 60 percent of the location has recovered from the pandemic, he says, in terms of revenue and employee retention. Absenteeism affects small places because there are fewer people to buy drinks, food or merchandise.

Revolution Hall and Mississippi Studios, venues in Portland, Oregon, are experiencing a 10% abandonment rate, which owner Jim Brunburg calls “excitement” compared to previous months. Reasons for not attending vary by user, but Brunburg suggests that some of them may be referred by customers who have tested positive for COVID or are reluctant to go to a crowded indoor space. According to Bunburg, the demand for concert venues is high, with an average of seven stops, that is, the demand for bands to perform at night.

But venues are also seeing regular band cancellations as tour crew members contract COVID. Even a canceled or postponed show means the crew won’t be working that night and the venue won’t be able to make any money. “A lot of things make it difficult to run any small business in this country right now, but especially small businesses that require people to be around and enjoy each other’s company,” Brunburg said.

Overall, Revolution Hall and Mississippi Studios are operating about 60% of where they were in 2019 in terms of monthly gross revenues.

To get to this point, many independent venues relied on federal government indoor space operator grants of up to $10 million. That money has helped reopen places, rehire staff, improve building security and deal with the recent waves of COVID. However, the subsidy amount, which must be disbursed by June 30, will not help companies during the unexpected duration of the pandemic, said the Rev. Mousse, executive director of NIVA. Without subsidies, the small profit margin of the business leaves independent venues vulnerable to new options that could lead to show cancellations.

The multi-seat incumbent pointed to the stress that is now at the heart of the political debate over requirements for vaccines and masks: this varies by state and location, but can also be determined by executive act. “It’s very difficult to compare what’s happening now with what’s happening before closing, because parties move differently,” Mousse added.

Compared to standalone salons, corporate facilities provided less information about the ongoing impact of COVID. In their most recent earnings report, MSG Entertainment, Madison Square Garden, Radio City Music Hall and Chicago Theater House, among other venues, called Omicron’s impact “short-lived” and noted that the number of ticket buyers was rapidly returning. For pre-war levels. Live Nation executives said Archen’s rates had improved or returned to pre-pandemic levels. “All the headline numbers point to a double-digit increase in fan attendance at our shows this year compared to 2019,” wrote Michael Rapino, president and CEO of Live Nation, in the earnings release.

These companies have better profit margins and more diversified offerings than companies with independent cash locations. Still, the general audience hasn’t returned to normal, as Live Nation announced around 11 million fans in Q1, down from 15 million in Q1 2019, with executives attributing fewer shows.

Some independent sites also see signs of hope. City Winery, a music and comedy venue in Manhattan, generates about 80% of its pre-pandemic revenue, says program director and NIVA member Grace Blake. The venue relied on a donation from SVOG to overcome the pandemic and was able to fill vacancies with local actors and comedians when tour groups were canceled due to COVID in December and January.

Old demographics are also coming back more slowly here and the absenteeism rate has dropped from 10 to 15 percent. But Blake is encouraged by the fact that the rate hasn’t increased and customers keep showing up, even during the ongoing wave of COVID in New York. “Our downfall is not what we expected,” Blake said. “I think people are ready to hear live music.”

The story first appeared in the June 1 issue of The Gossipify. Click here to subscribe.