Four Walls
A venue rental arrangement where the artist pays for the space and keeps all revenue.
Definition
A four walls deal is a venue rental arrangement where an artist or promoter rents the space outright, paying a flat fee for the building while keeping all ticket revenue, merchandising, and concessions. This contrasts with traditional deals where venues share in ticket revenue.
Four walls deals can be profitable for confident artists who can sell out venues, but they carry full financial risk if ticket sales underperform.
Why It Matters
Four walls deals offer higher profit potential but require artists to assume all financial risk. Understanding this structure helps evaluate live performance business models.
Major artists often prefer four walls for their proven ability to sell out, keeping more revenue.
Examples in Practice
An arena tour using four walls deals at premium venues, paying $50,000/night but keeping all ticket revenue.
A developing artist accepting the venue's standard revenue split to avoid the risk of a four walls deal.
Four walls calculations balancing venue rental costs against projected ticket sales and margins.