The Music Industry's Merch Problem

Spending $75 on a hoodie at a concert feels absurd, and quite frankly, it is. But you shouldn’t blame the artist.

For a long time, venues have been skimming a percentage of artists’ merchandise sales — jeopardizing whether they get a meal or hotel room that night. The cut often puts touring artists in the red, and many are lucky to break even. Chances are, if the price of a hat at a show raises your eyebrows, the merch cut that night is probably quite lofty.

Venues will typically take between 10% and 40% of merchandise sales, even though the artist is responsible for designing, transporting, and typically selling the items. Venues believe that because they give artists a dimly lit corner to peddle goods to the fans who are bringing business to the venue that night, they are entitled to a percentage of all those sales.

Adding that ingredient to the already nasty cocktail of inflation, venue consolidation, dismal earnings from streaming services, and the costs of putting on a tour leaves small and mid-tier artists struggling to stay afloat.
» Sign up for our newsletter KnowThis to get the biggest stories of the day delivered straight to your inbox:https://go.nowth.is/knowthis_youtube
» Subscribe to NowThis:http://go.nowth.is/News_Subscribe

For more news, subscribe to @NowThisNews.

#Merch #Merchandise #Concert #Artists #MusicIndustry #Music #News #NowThis

Connect with NowThis
» Like us on Facebook:http://go.nowth.is/News_Facebook
» Tweet us on Twitter:http://go.nowth.is/News_Twitter
» Follow us on Instagram:http://go.nowth.is/News_Instagram
» Find us on Snapchat Discover:http://go.nowth.is/News_Snapchat

NowThis is your premier news outlet providing you with all the videos you need to stay up to date on all the latest in trending news. From entertainment to politics, to viral videos and breaking news stories, we’re delivering all you need to know straight to your social feeds. We live where you live.

http://www.youtube.com/nowthisnews
@nowthisnews
The Music Industry’s Merch Problem