Academy Music Group (AMG) venues are taking a 25% cut from merchandise sales at live events, according to an investigation by The Guardian.
An undisclosed amount then goes to Universal Music Group (UMG), owners of the world’s three largest record labels, even if the artist in question is not signed to UMG.
In March, post-punk band Dry Cleaning hosted a pop-up merch store away from their gig at London’s O2 Forum, owned by AMG, to retain their profits.
“We probably sold the same number of units, but as we were able to retain 25% it worked out better for us financially,” Band Manager Helena Watmuff said.
Over 380 venues nationwide are included in the Featured Artists Coalition's (FAC) 100% Venues directory, a public database of venues that charge zero commission on artists' merchandise sales.
FAC CEO David Martin said these venues are making selling merchandise at gigs worthwile for artists: “[This creates] a fairer and more sustainable touring circuit, particularly for grassroots and emerging talent.”