Counting the cost of the gig economy

© Simon Poulter 2017

I'm sure it's merely coincidence that, according to new figures from the British music industry body UK Music, gig-going has risen in this country during a period in which I returned to London after 17 years abroad. But given that I've been averaging one gig every two to three weeks since coming back last October, I'd like to think that, in my own small way, I'm keeping the real gig economy alive.

In its latest Wish You Were Here report, UK Music reveals that concert and festival attendance increased by 12 per cent during 2016, with 30.9 million people - almost three million more - going to events, generating £4 billion in direct and indirect spending. There was also a sizeable increase in the number of tourists coming to the UK for gigs, apparently adding more than 47,000 full-time jobs and spending, on average, £850 per trip.

Now, all this sounds very encouraging for the live music scene until you discover that much of this bounty came from the big venues, such as my near-neighbour, the O2, or Glasgow's SSE. Spending at the smaller venues (those I actually prefer) fell by 13%, continuing to raise concerns about the economic sustainability of Britain's independent music stages. It's something that UK Music and many of its members and affiliates are trying to do something about. "This success is being put at risk," chief executive Michael Dugher said in a press release. "That's why UK Music will continue to campaign to safeguard smaller music venues, many of which are fighting for survival. And, we will be pressing the Government to make sure the impact of Brexit does not damage our export trade or make it harder for UK artists to tour abroad and for overseas acts to come here.”

While I lived in Amsterdam and Paris, going to small, intimate venues was one of the immense charms of those cities. At Amsterdam's Paradiso and Le Cigale, Le Trianon and, yes, Le Bataclan in Paris, you could be up close and almost personal to acts that in the UK you'd have to see from Row Z of the biggest halls. Thanks to these modest theatres I've been a matter of yards away from Robert Plant, The Stone Roses, Paul Weller, the Manic Street Preachers, Kaiser Chiefs and many, many more. In fact, here's a secret: if you're thinking of coming to London to see one of the bigger bands play one of the bigger venues, check first that it wouldn't be cheaper and more rewarding to get the Eurostar to Paris...

Of course, what the UK Music report doesn't really share is the percentage of revenues generated by all the ancillary elements of gig-going. Just this week, Paul Sinclair, editor of the excellent Super Deluxe Edition music blog, was highlighting the habitual ripping off of punters at the big branded outdoor gigs.

In the superbly headlined 'Great Sausage Roll Swindle', Paul railed - quite justifiably - about how, having paid £220 for his family to attend last Saturday's British Summer Time event in London's Hyde Park (featuring Elbow, Tears For Fears and The Killers), he was then stung for food and drink he was forced to buy because his family wasn't allowed to bring its own catering in to enjoy as a picnic. "Time to vote with our wallets and not buy tickets to events that have this restrictive policy," Paul wrote. "I'm not going to accept it and I'm not going to attend another BST event for this very reason. Same with the O2 (which I loathe, anyway)."

On top of the well known problem of price gouging by so-called legitimate ticket agencies (which would take up a rather angry post all of its own), gig-goers face other hidden horrors: when The Foo Fighters cancelled their Wembley shows two years ago after the berk Dave Grohl broke his leg on stage in Gothenburg, I could only get a refund for the tickets themselves, and stoically accepted that I'd use the return flight from Paris as a family visit. However, when I challenged the Gigs And Tours ticket agency about refunding the "transaction" fee, they pointed out the Ts & Cs and that I wouldn't be getting my £2.50 back. OK, it's only a couple of quid, but it meant that over the two shows they would have pocketed a cool £450,000 from no Foo being fought at all. Harumph.

There is also the charge that concerts in the UK are more expensive than in other countries. I've certainly noticed a price difference that doesn't match up to exchange rate variations when buying tickets to see bands while I've been on holiday in America. Last Saturday The Times ran a damning story comparing ticket prices for 15 major touring acts, finding that the cheapest were, on average, 28 per cent more expensive in Britain than the United States. For example, tickets for the aforementioned Foos cost £62 for their UK dates but just £38 a pop for their US shows. Similar gaps were found for A-list acts like Katy Perry and Adele, although tickets for U2, Coldplay, Taylor Swift and Lady Gaga were cheaper in Britain. Well, relatively cheaper.

Whatever you pay, it's a given that touring is an expensive business for the artists themselves. These days it's no longer a licence to print cash (a myth born from the tales from the '70s of acts like Led Zeppelin stuffing cash takings into suitcases thanks to the strongarm acumen of manager Peter Grant), unless you are Bruce Springsteen (whose The River tour last year grossed $268,300,000) or Roger Waters, whose epic three-year tour of The Wall reportedly took more than $458 million at the box office.

However, concert promoters say they have to take on the biggest risks when it comes to touring artists - covering the cost of hiring venues, insurance and paying for venue staff and security. According to The Times, the promoter also has to pick up Performing Rights Society royalty fees as well as pay for catering and transport for the talent. One promoter even told the newspaper that the high price of tickets is simply down to the bands: "Everyone is complaining that artists are asking for too much," she said, speaking anonymously. "Promoters wish they were making big money but they’re not. It's a risky business. Cash flow is always a problem. Big stars take 95 per cent of the revenue after costs."

© Simon Poulter 2017

For many artists, though, gigging and recording, recording and gigging, is a subsistence living. One leading rock musician, who is a good friend of mine, will barely make much profit from sell-out world tours of medium-sized venues, once wages and creative costs are taken into account. Not that he will complain, it's just that he's not - yet - in the echelon of the mega rock star. Being a rock star at all in 2017 is nothing like it was in 1971, when record sales and tours bought Malibu mansions and swimming pools in which to park the Roller. "Grab that cash with both hands and make a stack," as Pink Floyd satirised on Money.

Here, I'm caught in a bind. The truly great artists who still tour - a McCartney or the Stones, for example - are only going to make it work in the big halls, the venues where the fan experience is questionable, and the add-on costs of a hot dog and beer are unreasonable. Which means I can probably forgo seeing the legends.

Actually, given the choice I would rather enjoy the intimacy of a pub basement, venues like Camden's Green Note, where for a tenner acts like The Magic Numbers' Romeo and Michele Stodart will host evenings for the 30-odd people who can fit in the place, inviting their mates to join them. The bar and toilets are a better experience, too.

The other day I had the privilege to be at the famous Half Moon pub in Putney where, for just £5 I saw an incredible set by The Second Sons, a superb, rollicking young R'n'B band in the vein of Exile On Main Street-era Rolling Stones (whose producer, Chris Kimsey, worked on their current singles, along with the late Stones sax player Bobby Keys). With cold Guinness on tap at reasonable bar prices, this was as good a gig experience as you could possibly get. And you didn't have to spend the evening staring up at a giant video screen, either.