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Pay to play
Hi there, it’s Shaylee from Datawrapper’s Support team, taking the mic for today’s Weekly Chart. When was the last time you went to a concert?
A couple of weeks ago, I stumbled across this new band. They’d formed a little over a year ago, and had released no albums, just a handful of singles and LPs — so I was surprised to see a fully booked “Events” tab on their Spotify profile, with more upcoming gigs than they had songs. I had a gut feeling that that’s rare, but I didn’t quite know why. Cue a Weekly Chart!
As it turns out, taking a show on the road is incredibly expensive. Artists have to shell out for promoting the show, making any merch they hope to sell, traveling to the venue, and making sure everyone on the tour is paid, fed, housed, and insured, all before they see a cent. After the show, venues, agents, and taxes take their respective shares. Even breaking even isn’t a given, and the biggest costs are upfront.
This budget from the BandHive podcast breaks the costs of a hypothetical six-show tour for a five-piece band. This scenario makes some pretty strict assumptions: the band is mostly couchsurfing instead of staying in hotels; they’re traveling only about 200 miles per day; and they're using only equipment and a van that they already own to keep rental costs off the table.
Here’s the kicker: Even with a good turnout at every single stop, playing to a room of about 25 people per night, as well as selling out every piece of merch they haul along, the band will still end up about $20 short of what they put in. The only way out? Play to bigger crowds.
That’s because while the costs of touring are mostly flat, ticket and merch revenues build up on each night of the tour. Hitting the point of breaking even or earning any money is totally dependent on audience turnout. If our imaginary band plays to a crowd of 18, they’re essentially paying for the privilege; but if they get just a couple more seats filled, they could walk away with a few bucks in hand.
For a bigger tour, add in elements like long-distance travel, accommodation, visas for international appearances, agent and management fees, hiring tour technicians, rehearsal time, and even the potential for larger venues to take a cut of merch sales or require a bigger door fee — not to mention the glitz and glam that some mainstream musicians can incorporate, like pyrotechnics, backup dancers, and complex stage production. All those extra costs definitely add up in an industry with margins this thin.
For a new artist, releasing even a few songs is a much less financially risky way to chase the dream of being a working musician. Not because streaming is particularly lucrative, but because sharing music can help build an audience, and in turn, bring crowds through the door and help guarantee that you won’t be playing to an empty room and eating the cost of a show.
Of course, artists who tour before their first album aren't entirely unheard of. Another way to gain a foothold in the music industry is to open for bigger names or play through the festival circuit, which some newer artists (like the ones that inspired this post!) do consistently before producing full-length albums.
This strikes me as intimidating and precarious for all but the most successful musicians, and I’m not alone. There are people in the industry pushing to improve the situation for working musicians — from research papers by arts ecosystems nonprofits to statements by stars like Chappell Roan on the Grammys stage to full-blown musicians unions, many have been calling for things like a livable minimum wage, access to benefits like healthcare and unemployment pay, and compensation structures that take into account the costs of performing. For the sake of future shows from talented artists, big and small, I do hope there’s some change in the economics of live music. And for today, I have a whole new appreciation for all the musicians I’ve been able to see perform live, whether that’s to a half-sold room or on a full international tour.
That last track was “Pay to Play,” written by Shaylee, mixed and edited by Rose. Sound off in the comments if you’ve got thoughts, and jam on! Stay tuned for next week’s show, featuring Linus from our App team.
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