Independent Venues Fueling the U.S. Economy, Report Shows
A new economic analysis reveals the significant impact independent venues have on the American economy, surpassing industries like beer and airlines. The report highlights the vital role these venues play in boosting local economies, providing jobs, and driving tourism across the nation.
Economic Powerhouses
The National Independent Venue Association (NIVA) unveiled its inaugural nationwide economic impact assessment, titled The State of Live, during a Milwaukee session. The study, which included data provided by JamBase, underscores how crucial independent venues, festivals, and promoters are to the U.S. economy, while also bolstering communities nationwide. The report covers data from 2024.
Independent live music venues, promoters, and festivals poured $86.2 billion directly into the U.S. GDP in 2024. The economic contributions of these venues exceeded those of the gaming, beer, and airline sectors. Taking into account ripple effects from local business activity, tourism, and audience spending, independent venues generated a massive $153.1 billion in overall economic impact.
“Independent venues are more than stages for entertainment; they are economic engines and cultural lifelines,”
—Stephen Parker, NIVA Executive Director
Supporting over 907,000 jobs nationwide, the sector also provided more than $51.7 billion in benefits and compensation. Approximately 9.2% of all U.S. travel and tourism earnings came from these venues, amounting to more than $10.62 billion annually in visitor spending. Despite this positive impact, the report revealed that 64% of stages were not profitable in 2024.
Challenges and Recommendations
The report also identifies challenges for independent venues, including inflationary pressures, predatory resale practices, and anti-competitive practices. These issues, according to Parker, call for policy changes and public investment to maintain these essential community hubs.
“Thanks to NIVA, and the efforts and trust of those who responded with real data on their operations, we can tell our story,”
—Sean Watterson, State of Live Task Force Chair and President and Co-Owner of The Happy Dog
The State of Live report offers a vital tool for community leaders, policymakers, and industry stakeholders aiming to sustain and strengthen the independent live entertainment sector. A 2024 study by the National Endowment for the Arts found that 38.6% of U.S. adults attended a live music event, showcasing the continuing importance of the sector (NEA, 2024).
Key Findings from The State of Live
- $153.1 billion in total economic output, driven by fan spending on lodging, dining, shopping, and transportation
- $86.2 billion contributed to the U.S. GDP
- 908,000 jobs supported nationwide
- $51.7 billion in wages and benefits
- $19.31 billion generated annually in combined federal, state, and local tax revenues, equivalent to the entire annual budget for FEMA’s disaster relief efforts.
- 64% of stages were not profitable in 2024
- 31% of all independent stages’ expenses went directly to artist and booking fees
- 91% of venues operate year-round
The comprehensive findings and policy recommendations were shared during a national gathering of key decision-makers and legislators in Milwaukee. The focus was on the importance of targeted policy solutions to ensure the enduring growth and resilience of independent venues nationwide.
The report underscores the critical need for support to these venues, essential to local economies and cultural vibrancy. By addressing the challenges and supporting recommendations, the independent live entertainment sector can thrive and contribute to the nation’s economic and cultural landscape.
