Music Venues Cope with High No-Show Rates in the COVID-Era

Kolker at the Bitter End on January 21

Independent venues in the United States are facing ticketholder no-show rates of as high as 50 per cent, a representative of the National Independent Venue Association (NIVA) told the U.S. House of Representatives’ Committee on Small Business at a virtual hearing on January 19. Even with tickets already sold, this higher-than-usual no-show rate impacts the sales of additional admissions, food, liquor and merchandise. Ticketholders are not the only no-shows; many musicians are postponing or canceling their appearances almost at the last minute, preventing the venues from booking a substitute act.

Recognizing that “artists and creative workers make huge contributions to the American economy,” the House Committee on Small Business hosted the virtual hearing entitled “The Power, Peril, and Promise of the Creative Economy.” The committee, which has jurisdiction over the Small Business Administration, called the hearing in order to examine “the overall impact of the creative economy and how we can drive pandemic recovery in this key sector.”

“Representing nearly 5.2 million American workers, the arts sector is a major component of the economy,” read the announcement of the hearing on the committee’s website. “Unfortunately, this industry has been exceptionally hard hit by the COVID-19 pandemic and its recovery has been slower than many others. The hearing will provide recommendations for investments in key infrastructure and provide a roadmap for bringing arts, culture, and creativity into the center of long-term recovery. Members will hear from experts alongside creative entrepreneurs to demonstrate the power of the creative economy and its importance to a robust recovery.”

Push at Rockwood Music Hall, Stage 2, on January 19

“Today, the rollercoaster ride of the pandemic continues,” NIVA chapter secretary Raeanne Presley told the committee at the hearing. NIVA, formed in March 2020 at the start of the coronavirus pandemic, represents thousands of independent music venues, promoters and festivals. “It is customary in the independent venue industry that about 5- 8% of the patrons who buy tickets don’t attend, and we budget accordingly. Now, venues across the country are experiencing a 20-50% no-show rate. That is a devastating statistic because most of our venues make the lion’s share of our revenue through food and beverage sales. That is what we rely on to pay rent, utilities, and salaries. With consumer confidence continuing to be fragile and fewer people in the room, accurate financial planning can feel like a mirage at this moment.”

Presley was among the speakers discussing the special challenges small, independent businesses in the live entertainment industry are experiencing at this juncture of the pandemic. Presley co-owns the venue Presleys’ Country Jubilee in Branson, Missouri. Representatives of Be an Arts Hero, Actors' Equity Association, and Oregon Shakespeare Festival also testified before the house committee.

Presley requested that congress pass the SOS Extension Act, which would provide the recipients of the Shuttered Venue Operators Grant additional time to spend their emergency relief funds. As of now, that federal aid must be spent by June 30 or be forfeited. Senators John Cornyn (R-TX) and Amy Klobuchar (D-MN) in September 2021 introduced the SOS Extension Act, which would extend the timeline for using the federal Small Business Administration's Shuttered Venue Operators Grants (SVOG), created by his bipartisan Save Our Stages Act, to spring of 2023. The $16 billion SVOG revived and helped stabilize the live entertainment industry as it emerged from the pandemic shutdown.

Jr. Mack with the Jr. Mack Band at Terra Blues on January 21

A Wall Street Journal report in December 2021 found that between 17 per cent and 20 percent, or approximately one in five ticketholders in the United States did not attend shows for which they had tickets in 2021. Smaller venues have seen rates as high as 25 per cent to 30 per cent. Presley did not annotate the source from which she drew the reported 50 percent of no-show

On January 20, the National Independent Venue Foundation (NIVF), which is part of NIVA and focuses on non-lobbying efforts, announced the reopening of its Emergency Relief Fund. This fund could provide economic relief to independent music and comedy venues, festivals, and promoters across the US. So far, the fund has awarded more than $3 million to applicants in 40 states.

Meanwhile, Senators Ben Cardin (D-MD) and Roger Wicker (R-MI) may propose a new bill that would distribute as much as $68 billion in federal funds to ailing businesses including restaurants, performance venues, gyms and even minor league sports teams. The bill could include a mix of new spending and a repurposing of unused funds authorized under previous aid packages. Cardin and Wicker may rally support from fellow senators, but passage would be challenging in the narrowly divided chamber.

Valkyrie's Vendetta at Otto's Shrunken Head on January 15

Doctor Dan at Otto's Shrunken Head on January 15

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The Manhattan Beat covers New York City's live music developments as they happen. All photographs are by Everynight Charley Crespo, except when noted otherwise. For a list of Manhattan venues that are presenting live music regularly, swing the desktop cursor to the right and click on the pop-up tab "Where to Find Live Music." For a listing of upcoming concerts for live audiences, visit The Manhattan Beat's January and February calendars.