Launching in London, Dancefloor’s Nightlife Dividend Programme seeks to forge a new path forward for a struggling industry.
Dancefloor, a discovery platform for the UK club scene, has announced an initiative called the Nightlife Dividend Programme in which it will support the nightlife ecosystem by extending 25% of the service fees it charges on ticket sales to independent venues and promoters.
Launching its app earlier this year, Dancefloor intends to be the ultimate destination for finding electronic music in your area. Its new program aims to save local, grassroots venues across the UK. Dancefloor claims this “one-of-a-kind profit-sharing model” is meant to help operators need of revenue, and it may well prove to be a lifeline.
According to a recent report by the Night Time Industries Association (NTIA), the UK is on target to lose three nightclubs per week — a rate that would theoretically lead to them vanishing altogether by 2030 if sustained. Dancefloor believes its first-of-its-kind profit sharing method is a remedy. The platform pools and redistributes the 25% of its service fees, creating a new revenue stream. Eschewing the exclusivity of one app or portal for ticket purchases, Dancefloor aims to introduce a model in which both venues and promoters can reap the benefits.
“Our night-time ecosystem is at breaking point, we’ve all seen incredible local venues and promoters struggle or disappear. After working at two music ticketing companies previously I saw firsthand how the old way of doing things is not sustainable, and it’s clear the system has to change. I started Dancefloor because I wanted to do things differently… with The Nightlife Dividend we’re putting money back into the hands of the people who make nightlife possible. It’s about rebuilding the ecosystem from the ground up.”
Ben King, Founder and CEO of Dancefloor
Something New
This could be a game changer for an industry in decline post pandemic. The new program may prove to be a boon for UK nightlife in London, but it will take more effort by venues and promoters — as well as a conscientious clientele — to make such profit sharing models a mainstay in the industry.
In conversation with Pollstar, CEO Ben King explained the eccentricities of the model. “Partners are free to choose how much allocation they sell through Dancefloor,” he said. “Their share of the dividend pool each month is calculated based on their sales contribution. So, for example, a partner selling 1,000 tickets would earn a greater share of the pool than a partner selling 100 tickets.”
King continued: “However, this weighting tapers off eventually to prevent massive venues from receiving an overwhelming share. Partners always receive 100% of their ticket face value, and in markets where the Nightlife Dividend is available, 25% of just the booking fee is contributed to that city’s pool.”
While this is only the beginning of the program, it speaks to the need for change in an ailing industry. The shrinking budgets and razor-thin margins of one’s favorite local venue are on the chopping block. With the Nightlife Dividend Programme, Dancefloor’s trying to be part of the solution.