What Are Three Walling And Four Walling In The Music Business?

In my blog yesterday, I talked about "Pay-To-Play" structure in the music industry. 

If you're unsure about what it is, or how it works. You can read my blog <Here> 

Today I'm going to talk about "Three-Walling" and Four-Walling". 

In the music business, three-walling and four-walling are terms related to venue rentals and promotions, often used in live concert events.

Here is a short & simple explanation about what the two structures are.

Three-Walling

The venue covers some costs, such as security, ticketing, or promotion.

The promoter or artist is responsible for additional expenses like production, marketing, and staffing.

The profit is usually split between the venue and the promoter based on an agreement.

This arrangement is common in situations where a venue partners with an artist or promoter to share risks and rewards.

Four-Walling

The artist or promoter rents the venue outright, covering all costs, including security, staffing, and ticketing.

The venue does not share in ticket sales; instead, they make money strictly from the rental fee.

The artist or promoter keeps 100% of the ticket sales but also assumes all financial risks.

This model is often used for independent artists, comedy acts, and special events where full control over the event is desired.

Now that I've discussed what Pay-To-Play, three-walling, and what four-walling are. 

In my blog tomorrow. I'm going to be talking about where are the three types of structures most commonly used at in the music business.

Have A Rock'N Day!

GE