LOS ANGELES (CelebrityAccess) — Live Nation is reportedly making drastic changes to the performance fees artists receive and is shifting the burden of risk for concert and music festivals to the performer.
According to a memo from Live Nation to talent agencies obtained by Rolling Stone, the promoter giant wants to slash monetary guarantees for artists by as much as 20%.
Live Nation wants to shift payment terms as well, with a deposit of 10% due one month before a festival and that payment contingent on an executed agreement and fulfillment of marketing responsibilities.
As well, Live Nation said that for shows cancelled due to low ticket sales, artists will receive 25% of their guarantee instead of 100% as they previously did.
For Force Majeure cancellations, such as concerts impacted by COVID-19, Live Nation will not pay the artist its guarantee and said the artist is responsible for obtaining any cancellation insurance for the performance.
For shows that are canceled by the artist themselves, they will be required to pay the promoter two times the artist’s fee.
Artists will also be required to allow their performance to be video-recorded and for that recording to be used commercially on a variety of platforms.
Additionally, artists will be required to assist in marketing, including on social media, Live Nation said.
“We are fully aware of the significance of these changes, and we did not make these changes without serious consideration. We appreciate you – and all artists – understanding the need for us to make these changes in order to allow the festival business to continue not only for the artists and the producers, but also for the fans,” Live Nation said in the memo obtained by Rolling Stone.