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Universal Music Group, the world's largest record label, has been discretely taking a cut of artist merchandise sales from one UK venue chain, a Guardian investigation published Friday reveals. The profits come from Academy Music Group, who are responsible for running major venues across England including the O2 Shepherd’s Bush Empire in London, O2 Academy Brixton, and O2 Forum Kentish Town, as well as other performance spaces in Birmingham, Bristol, Glasgow, Leeds, Leicester and Manchester. AMG takes 25 percent of merch sales from artists who perform at these venues — a staggering number considering these sales are often the most lucrative part of touring for musicians who are struggling to make ends meet in a crumbling live music industry.
UMG confirmed to The Guardian that merch stands at "some or all of these venues" are run by Concessions Management International Ltd., which is owned by Bravado, the label's merchandise division. Therefore, the investigation concluded that UMG has been profiting from these sales, even when the artists in question are not signed with the label. The company told the paper that AMG takes "the lion's share" of revenues from their cut but would not provide a breakdown of the profits.
The FADER has reached out to a representative of UMG for further comment.