Escalating costs for fans and venues strain Canadian live music industry: report

Jully Black performs the halftime show as the Chicago Sky take on the Minnesota Lynx in WNBA preseason basketball action in Toronto on Saturday May 13, 2023. (THE CANADIAN PRESS/Chris Young)

An association representing the live music industry says budget-conscious concertgoers are getting pickier about which shows they go to and spending less money when they get there, posing “a worrisome trend” for an industry facing economic uncertainties and razor-thin margins.

The Canadian Live Music Association released an economic report Thursday that touted $10.92 billion in contributions to gross domestic product in 2023, but also noted fan budgets are being squeezed by escalating ticket prices for top-tier acts, leaving them with less money to also see mid-range or smaller events.

On top of that, the “Hear and Now Survey” found younger audiences drink less alcohol, putting a dent in what has traditionally been a steady revenue stream for venues, and that people are more frequently buying tickets last-minute, making it hard for venues and artists to plan.

The president and CEO of the Canadian Live Music Association says audience interest often depends on the specific show — some small venues do very well — but consumer patterns have been shifting for a while.

“And for a long time we thought it was temporary, but it does feel permanent,” Erin Benjamin says from Ottawa.

“Sometimes people have to make a choice, and occasionally they make a choice between a big-ticket show — a once in a lifetime chance to see their favourite artist — versus a series of discovery shows with smaller live music venues.

“I don’t think that’s new, necessarily, but given the economic scenario that we’re in, we feel it more acutely.”

The report says this uncertainty comes after the majority of live music companies surveyed said revenues grew in recent years after the pandemic, showing resilience in the sector.

It estimates Canada’s live music companies contributed $2 billion to GDP, and nearly $9 billion from tourism stimulated by live music.

The report is billed as the first to assess the economic impact of the live music scene, which during the study period included 3,750 venues, music festivals, live music production companies, equipment rental companies, support organizations, promoters, managers and agents.

It says an estimated 18,945 live music shows were booked in Canada in 2023 – roughly 50 shows per day.

The report lands as R&B veteran Jully Black heads out on her first national headlining tour in over a decade, and she says there’s “no comparison” to her 2008 tour, which was supported by a sponsorship from Best Buy.

This time, the independent artist-entrepreneur says her band will tour by van instead of bus.

“The tour bus was going to cost us $130,000 so we said, ‘OK, we’re going to do Sprinters,’” says Black, referring to the Mercedes-Benz crew vans.

“We’re going to still do it comfortably, but I’m not getting to wrap the bus, right? We don’t have the sponsorship dollars to wrap the bus right now.”

Black says more savings come by combining her band with that of her opener, Edmonton’s Melafrique.

A lot has to go right for the tour to work financially, Black admits: “We need to sell out. We need to sell merch,” says the “Seven Day Fool” singer, who kicks off her tour Feb. 7 in Oakville, Ont.

Among the fixes sought by the CLMA are: more partnerships with the private sector; measures to address systemic barriers faced by people who are LGBTQ+, Indigenous, Black and people of colour; and deeper integration with tourism initiatives. It also wants to see better compensation and working conditions for those who work in the industry, noting the average salary for a full-time employee is a little more than $31,000 — below the poverty threshold.

Benjamin’s group doesn’t represent performers but as a former artist herself she says the cost of touring now “is off the charts” while artists are getting fewer gigs as pandemic pressures forced venues to shutter.

Putting new acts on stage was “a natural part of the business” before COVID-19, but it’s harder for venues today to take any kind of risk.

“There remains a very sort of crushing impact for the small, mid-sized companies,” says Benjamin.

“The convergence of inflation and the changes in consumer habits have meant more of an unpredictability and one of the results, the direct result of that, is less risk-taking on stages.”

Black has invited emerging artists on her tour and says she would like to see more collaboration among performing artists, even if they are in different genres. She says an agent’s decision early in her career to have her open for the pop-punk band Yellowcard expanded her audience.

“More privileged artists need to open their minds and open up their opportunities. They say you want to be an ally? Ally. OK, then systemically, let’s ally for each other.”

Financial data for the live music report was primarily collected through a survey April 30, 2024 to July 12, 2024. Findings are also based on roundtables with industry representatives and interviews Nordicity held with groups that represent Indigenous and Black music communities, and environmental advocacy groups.

Despite the financial hurdles, Black says just being able to mount a tour — even if it’s scaled back or shorter than hoped for — “is an absolute win.”

Black’s “Songs and Stories” tour is bound for a mix of theatres and concert halls in cities including Ottawa, Winnipeg, Camrose, Alta., and London, Ont.

But Black says she’s treating them like big-budget stadium shows, with a top-tier performance to match.

“I’m doing this like it is Rogers Centre, and that’s what it feels (like) in my heart.”

This report by The Canadian Press was first published Jan. 30, 2025.

Cassandra Szklarski, The Canadian Press