Is Live Music a Dying Industry?

The live music industry may appear to be thriving, but beneath the surface, a crisis is brewing. Grassroots music venues, the very places where today’s biggest stars first performed, are closing at an alarming rate. Oasis played at The Boardwalk in Manchester. Coldplay took the stage at The Laurel Tree in Camden. Ed Sheeran performed at The Steamboat Tavern in Ipswich. These small, grassroots venues were the starting points for these massive artists, giving them the platform they needed to build their careers.

Emily Nicholas

October 28, 2024

Today, venues like these are disappearing. In 2023 alone, 125 small music venues in the UK closed for good, with another 365 reporting financial losses. This is according to the Music Venue Trust – a charity dedicated to protecting grassroots music venues, and is fighting to keep these spaces alive. Without these venues, we could lose the next generation of up-and-coming artists.

So why are these grassroots venues closing their doors? The rising costs of rent, utilities, and insurance are suffocating them. Average rent and utility bills for grassroots venues have risen by 37.5%, according to the Music Venue Trust. Unlike larger venues, these smaller spaces can’t simply raise ticket prices to cover costs. They’re being priced out of existence.

It’s ironic though, that while grassroots venues are struggling, the live music industry as a whole is booming. In 2023, Live Nation Entertainment saw a 36% increase in revenue and a 90% jump in net profits. The live music sector as a whole contributed £6.1 billion to the UK economy, bolstered by a post-pandemic rush to see big-name artists perform live.

Why does this matter?

Grassroots venues aren’t just places to go see a gig – they are essential to the music ecosystem. These small venues act as the industry’s research and development centres. Without them, there’s no space for new talent to emerge, and without new talent, the future of live music is at risk. However, with the rising financial pressures, these small venues cannot afford to take risks. So they are forced to sell out their shows by selecting artists with an established following, making it almost impossible for new artists to get a look in.

For artists, especially those just starting out, grassroots venues are vital. However, the cost of touring has also skyrocketed. Many are forced to scale back their tour schedules to avoid running at a loss, further limiting access to live music for fans in smaller towns. In the 1990s, artists would play an average of 22 shows on a grassroots tour. Today, that number has dropped to just 11. This isn’t just a crisis of economics; it’s a crisis of access too.

From a fan perspective, music enthusiasts across the country now have to travel long distances to large venues to see live music, which has become less accessible due to rising costs of tickets, transport, and general living expenses. This is a shame, as the charm of small venues is undeniable. Nights spent in these spaces with sticky floors, cheap drinks, intimate crowds and incredible live performances are often the best nights out (in my opinion anyway). These experiences, giving us the opportunity to see the next big thing before they hit the big time, are becoming more scarce.

But why are these venues struggling while the broader live music industry thrives?

The answer lies in rising costs and a lack of government support. While countries like France, Germany, and Italy have slashed VAT on gig tickets to 10% or below, the UK continues to charge the full 20%. Grassroots venues are being squeezed from all sides, and without intervention, many won’t survive. In response to the crisis, there has been talk of introducing a £1 levy on all arena and stadium concert tickets, with the proceeds going towards supporting grassroots venues. But the question remains: will this be enough to save the industry?

Despite the challenges, live music remains a vital part of our culture. Our love for music is unwavering, and whether we realise it or not, grassroots venues play a key role in that. Strangely, many small venues survived the pandemic only to be suffocated by rising costs in its aftermath. Noise complaints, increased rents, and pressures from property developers are pushing venues to the brink. If we lose these venues, we lose the next generation of artists… so we need to act now. Whether it’s by attending gigs, writing to local MPs, or lobbying for government intervention, we can all play a part in saving grassroots music. The future of live music may be uncertain, but the importance of these venues is undeniable. As the saying goes, “Use it or lose it.” So go buy a gig ticket, support your local venue, and help keep live music alive.