NEWS: Report Shows Ohio Small Venues and Festival Promoters Lose Money While Creating Economic Benefits

Last week, the National Independent Venue Association, founded in the early days of the pandemic when small entertainment venues came together to find ways to survive and advocate for assistance, released an economic impact report called The State of Live on the economic impact of independent venues, festivals, and promoters across the country to their local markets.

It found that in Ohio, these independent entertainment sources produced $3 billion in total economic output, contributed $1.5 billion to the state GDP, supported 21,604 jobs paying $951.1 million in wages and benefits and producing $122.3 million in state and local tax revenue each year. But there’s also bad news: just 20% of Ohio’s independent venues and festivals showed a profit last year, lower than the national average of 36%.

 “Independent venues and festivals are more than cultural assets. They are major economic drivers,” said NIVA executive director Stephen Parker in the report press release. “In Ohio, the independent live sector generates $3 billion in economic output and supports 21,604 jobs. That scale rivals some of the largest investment and job announcements in the state, and it should be top of mind for governors, legislators, and local officials when making decisions about investing in the arts and live entertainment. Independent stages are proven community anchors and should have a seat at the table when leaders set priorities for economic growth and cultural investment.”

The press release adds that the report reveals “the urgent need for Ohio governments to ensure they are not prioritizing public funding and preferential treatment for alleged monopolist and noted industrial scalper Live Nation.”

Happy Dog co-owner and chair of the Ohio chapter of NIVA, Sean Watterson, emphasized a bill that area club owners are pushing to offer small venues such as his some relief.  “Ohio’s independent venues and festivals are a significant contributor to the State’s economy and employment. We are facing stiff financial challenges that put these cultural and economic contributions at risk, which is why we support Ohio Senate Bill 186 — the effort to establish an Ohio Live Music Fund to support these small businesses and the jobs they create.”

Introduced by state Senator Kent Smith, whose district includes communities of the eastern part of Cuyahoga, the bill would create a music incubator program to provide sales tax rebates to certain qualifying venues and festival promoters.

The State of Live report also makes it clear that to have a healthy music scene, we need to protect all of its contributing elements. One of those is college radio, the only place you will hear the bands that play at a 250-capacity room such as the Happy Dog. It suggests that stripping Cleveland State’s WCSB of its long-running diverse format could have an actual (and negative) economic impact on the area’s live music scene.

nivassoc.org/stateoflive

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