Nightclubs and Building Artists' Careers

These days, it’s obviously all about the economy, stupid, but according to panelists, the club business isn’t seeing “doom and gloom” just yet. Staying afloat in tough times will mean getting smarter and joining efforts to make sure bands keep touring and clubs keep booking.

Live Nation’s Anthony Nicolaidis, who moderated the discussion, started things off on a hopeful note.

“Ticket sales are great in my mind,” he said. “I don’t think the economy has had an impact at all, at least at our clubs, House of Blues Dallas and House of Blues Houston. My calendar’s full in February. I’ve already got 15 to 16 sellouts in the next couple of weeks. People are still going out in today’s economy.”

Goldenvoice’s Donna Busch agreed, explaining that Los Angeles ticket sales haven’t been too affected by the economy yet. But she’s learned to pass on shows she’s not certain will sell out.

In New York City, B.B. Kings Blues Club’s Toffer Chris-tensen said he’s seeing the beginnings of a decline, especially with new club openings and increased competition.

“For shows that we typically sell out, that repeat every year, we’re definitely down a little bit,” he said. “But we do have a major market and people in New York like music, so they’ll keep coming out if the ticket prices are reasonable.”

ARM’s John Domagall said tickets are still selling respect-ably, but traffic is down in the Midwest.

Paradigm’s Larry Webman explained that sometimes traffic decreases in markets because of oversaturation, rather than the economy.

“People still want to go see shows but when you try to bring [a band] back a second time, that’s where people are running into trouble,” he said, explaining there needs to be a good reason – like a new album – to bring a band back to a market.

The conver-sation moved to touring strategies for building bands. On the label side, Scott Brothman of Atlantic Records discussed the roles record companies are playing these days.

“We want our developing bands out on the road, but we want them to do it cheaply,” he said. “We’d like them to be able to tour for two years, and hopefully there will be traction after those two years. We are willing to cut tour support checks but it needs to be realistic. ... I’d like to see a band tour for $2,000 a week. Whether that means sleeping in friends’ apartments on the floor, maybe that’s what bands need to do to make that money last.”

Bill Silva of Bill Silva Management also takes a long view at building bands, explaining that it can help if artists go out on their own at first and build a solid base.

“The do-it-yourself business is a great business for a lot of bands these days,” he said. “It gives them a great work ethic and it lets them get involved in breaking themselves, so when they get partners they have an appreciation for it. But they have to hone their craft. If they’re not great live, sooner or later the audience is going to realize it.”

As far as partnering goes, Road-runner Records’ Harlan Frey said his label has had to step up to coordinate more with agents these days facing a dearth of great band managers out there.

But facing an uncertain economic future, many panelists agreed that greater cooperation will ultimately lead to greater success for all parties involved.

“Part of responsibility in the development business is to help everybody develop, not just our own piece of the business,” Silva said.

- Reported by Dana Parker-McClain, Pollstar
- Photos by Jason Squires and John Shearer