With punters drinking less, running costs rising and one-third of the sector wiped out by Covid, venues and promoters are turning the business model on its head
On a cold, rainy Tuesday night in Sydney’s Dulwich Hill, most of the shopfronts are dark, but one is shaking. A small crowd is absorbed in a set by local band Entertainment Quarter, performing behind a shelf of records and T-shirts, in a space that used to be a butcher’s shop. It is so intimate that the band greets new arrivals with a friendly “hello” as they step through the door. Among the posters plastered across the walls, one stands out: a call for patrons to become members for $15 a month to help keep the not-for-profit venue, Lazy Thinking, alive.
Founder Jim Flanagan launched the venue’s membership model in June, citing average losses of $1,000 a week. More than 100 people have since signed up. The aim is to reduce the venue’s reliance on bar sales – a business model Flanagan says no longer adds up for grassroots live music venues. “We sell drinks and hamburgers, and we take a small portion of ticket sales,” he says. “Those income streams have never been enough to cover the cost of running the venue.”