Save Our Stages Act
Dear [Senator/Representative] [Insert Last Name],
My name is Matthew Kirby and I am a resident of Cheshire, Connecticut. I am writing to request your support regarding the Save Our Stages and Restart Acts. As a lifelong music fan, I fear that allowing them to fail will be detrimental to the music industry and economy.
According to a survey of members of the National Independent Venue Association (NIVA), 90% of venues will permanently close within the next few months without federal funding. Unfortunately, PPP funding alone will not provide a solution for these venues. While it is understandable that concert venues will be among the last businesses to reopen, venues will still have expenses such as mortgage, rent, loans, taxes, insurance, licenses, maintenance, and staff without any revenue. Many larger venues, companies, festivals, and chains will have the luxury of providing fans with drive-in concerts, live streaming concerts and festivals, or providing socially distanced outdoor events. However, several smaller and independent venues do not have these same opportunities.
Throughout the country, many venues would need to wait until 2021 before they can reopen at partial capacity. Even after opening in such a manner, most venues will certainly lose a substantial amount of money from these shows. In the U.K., the first approved indoor show occurred in July when the country approved a show by folk-punk musician Frank Turner. Turner wrote on his blog that while it was great to be able to perform again, the format would not be sustainable for most venues. The venue could only operate at less than 20% capacity, but they doubled their working staff to meet guidelines. Additionally, the venue did not pay for advertising and did not pay Turner (he agreed to this prior) and the opening acts and still suffered major financial losses. Most venues will have to pay the performers and will also need to have more working employees than usual to enforce guidelines, making it impossible to come close to making a profit for shows upon reopening.
A 2019 study regarding the Chicago Loop showed that for every $1 spent on a ticket at small venues, approximately $12 in economic activity is generated in the community, particularly in restaurants, hotels, taxis, and retail. Without loss of generality, this can be compared to Connecticut. In Connecticut, there are 45 venues that are members of the NIVA. I would like to consider two venues at 20% capacity in major cities: The Webster Theater in Hartford and Toad’s Place in New Haven. If Webster operated at 20% capacity (240) and sold tickets at around $30 each, this would generate $86,400 for the community using this same $12 estimate. If Toad’s operated at 20% capacity (150) and sold tickets at around $25 each, this would generate $45,000. Even a small venue with a maximum capacity of 100 selling tickets for $10 would generate $2,400 by this estimate.
Even if we ignore the fact that on average, artists make 75% of their revenue touring, the issues presented above demonstrate it is crucial for action to be taken. Nationally, there is fear that several venues will be closed. The 45 venues in Connecticut provide more than just entertainment: they provide a livelihood for many residents and an economic boost for the communities. As such, I implore you to support the Save Our Stages and Restart Acts. It is crucial for the nation and the state to not only keep music as we know it alive, but also to help the economy as we attempt to return to normal.
Thank you for your time and support.
Sincerely,
Matthew Kirby
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