In this podcast episode, we explore the growing frustration among bands and artists over the increasingly common practice of merch cuts. These are percentages taken by venues (often larger ones) out of the earnings bands make from selling their own merchandise during shows. For many artists, especially smaller and mid level touring bands, merch sales are a vital source of income that helps cover touring expenses like gas, lodging, and crew pay.
We’ll explore how these merch cuts work, often ranging from 10% to 30% of gross sales, and how this disproportionately affects independent artists who already operate on tight margins. We also discuss how major companies, including promoters, venue operators, and multi conglomerates like Live Nation and AEG, contribute to this exploitative practice, taking money from the bands that bring fans to their venues. Through firsthand stories and analysis, we shed light on why this issue has sparked outrage across the music industry and discuss the broader implications for artists' financial sustainability on tour.
Source audio in podcast:"How Merch Cuts Are Hurting Bands | Punk Rock MBA Podcast Clips." YouTube, uploaded by Punk Rock MBA Podcast Clips. Available at: https://www.youtube.com/watch?v=o23WYQb-x4o&t=458s
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THE LOST STATE SHOW
Weekly livestream covering music industry news, gear deep-dives, and the business side of music. Hosted by Trey (Lost State Studios) and Drew ( @RealNotGood )
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