Music industry told they must help grassroots venues or face

The world’s biggest music promoters risk having a “torch shone” on the darker aspects of their business unless they agree to voluntarily support the UK grassroot music scene.

Campaigners say the argument for a premier league-style funding stream to force large venues, ticket companies and promoters to financially support the ecosystem that creates the stars of tomorrow has now been won and the only choice left is for a voluntary funding scheme or the Government to impose a statutory requirement.

This week as the Music Venue Trust (MVT) charity marked its tenth anniversary CEO Mark Davyd urged the big players to agree to a £1 levy on all arena and stadium shows – raising £20m – or face having every aspect of their business operations scrutinised by an industry regulator.

In May a report by the Department of Culture, Media and Sport (DCMS) recommended the introduction of “a voluntary levy”, and warned if that was not forthcoming, “the government should introduce a statutory levy”. There has been no voluntary levy and with new culture secretary Lisa Nandy braced to act Mr Davyd has urged them to follow the lead of Coldplay who have voluntarily agreed to donate 10% of the income from their 12-date summer stadium tour next year to UK grassroot venues.

He said: “The last thing the music industry needs at the top is a statutory regulator pointing a torch into all the dark crevices, looking at all the nefarious things that may have been done.”

Of the 47 grassroots venues that Coldplay once performed at in the UK 22 have closed, including the Charlotte in Leicester and the Falcon in London, which was a launchpad for Blur, Oasis, The Darkness and Franz Ferdinand.

Current statistics show two a week are closing with one in five facing imminent closure due to soaring costs. Last year the surviving 835 grassroots venues staged 187,000 concerts, featuring 1.7m different artists, and attracted audiences of over 23.5m. However, despite generating over £500m in direct revenue, a near 40% drop in ticket sales mean venues made just £2.5m – accounting for 0.5% profit.

In contrast over £2billion was spent on ticket sales for major UK shows.

Mr Davyd said: “This simply cannot continue, the whole music ecosystem should be benefitting from the success at arena and stadium level yet it is as close to the brink as it could be. Local communities have the right of access to live music in their communities, all that is needed is a small contribution and we can guarantee that.”

The Daily Express’ Strike A Chord campaign is demanding a transformation of music education and a safeguarding of the talent pipeline that creates the headliners of tomorrow.

Mr Davyd said: “There are two options left. We all get our act together and voluntary donations are made from every show with the money coming into a fund or the second option will be statutory like they have in France with 3.5% on ticket sales.

“There is not a third option where all the music venues close and nobody minds, everybody minds.

“My message to the CEOs is that if your ticket price can accommodate the bonus you received last year, and it can accommodate putting fuel into your private jet so you can fly around the world, then I’m pretty certain you can accommodate a small sum on a ticket price so our essential venues don’t close.”

A DCMS spokesman said: “We are encouraged to see the music industry exploring a voluntary levy to support talented musicians throughout their careers, from grassroots to the main stage.”