Report: Indie music venues bring billions to Texas economy
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Independent music venues in Texas generated $5.9 billion in economic output and added $3.1 billion to the state GDP, per a first-of-its-kind report.
Why it matters: The report was produced by the National Independent Venue Association (NIVA) to inform policymakers and music industry stakeholders about the importance of independent venues.
Yes, but: The report's findings weren't all cause for a standing ovation. In 2024, 64% of the nation's independent venues were not profitable.
The big picture: It's a gritty time for indie music venues. NIVA categorizes independent venues and music festivals as those not owned by a multinational corporation or a publicly traded company.
- The live music industry is dominated by corporate giants like Live Nation and AEG.
Zoom in: Sam's Burger Joint, an independent venue and restaurant near Pearl, is having what co-owner and entertainment director Keith Howerton calls a "hangover" year. While the pandemic hit hard, Sam's did well in its aftermath — but now things are slowing down again.
- Howerton tells Axios he isn't surprised that most indie venues don't turn a profit. But Sam's has made it work for 26 years.
What they're saying: "If we make 10% (profit) a year, then that's great," Howerton says.
- Despite the difficulties turning a profit, Howerton says independent venues are integral to the music industry because they book musicians who are in the beginning of their careers.
State of play: Independent venues in major cities are also facing escalating real estate costs and inflation.
- The Amp Room on the St. Mary's Strip closed this year after a decade in business, citing a rent increase.
- Howerton and his partners own the Sam's Burger Joint property. He thinks that — and having a restaurant — helps keep them in business.
By the numbers: In Texas, independent venues supported 41,855 jobs and more than $186 million in tax revenue, per the NIVA report.
- Gov. Greg Abbott in 2021 signed into law the Texas Music Incubator Rebate Program, which offers certain venues rebates of up to $100,000 on taxes paid on alcohol.
What's next: NIVA, which launched in 2020 after the pandemic pushed independent venues to the brink, wants policymakers to use the data as motivation to back policies that preserve music venues, citing Texas as an example.
- "We can use NIVA's research to strengthen local music ecosystems, working with coalition partners to preserve and protect the value we bring to our communities," Sean Watterson, chair of NIVA's economic research task force, said in a statement.