The exploitative nature of SXSW
The festival pays to bring high-profile politicians and business people from across the globe for speeches, panels, and networking events. Why should its performers be treated any different?
South by Southwest (branded as SXSW) has taken over the city of Austin, Texas, every year since 1987.
The festival is home to the latest in music, television and film, comedy, tech, and media, and drew more than 250,000 visitors to Austin in 2023 alone.
But beneath the glitz and glamor of the red carpets, concerts, and immersive events, there’s a pattern of exploitation that’s hard to miss.
In 2022, the festival brought in $78.4 million, with an economic impact totaling $280.7 million for the city of Austin.
The Penske Media Corporation may not be the public face of SXSW, but they most certainly are reaping the rewards of their investment as co-owner. Penske Media also owns Rolling Stone, Billboard, and Variety. The corporation’s CEO is the son of billionaire NASCAR team owner Roger Penske.
According to SXSW’s LinkedIn page, the festival employs between 200 and 500 people on a year-round, temporary, and seasonal basis.
But the vast majority of SXSW labor — like ushering, audio and visual tech, and streetscaping — is done by well over 3,000 volunteers.
If volunteers work for 56 hours over the course of the festival, they earn primary access to film and television events. It’s an incentive that drives people as young as 16 to Texas each March. But between hotels, food, and transportation, volunteers are paying out much more than they earn.
Experts have long argued that SXSW’s volunteer program violates mandatory minimum wage laws. Since SXSW is a non-charitable entity paid for by corporate sponsors, shouldn’t anyone working for the festival earn an income?
Reddit user BurnOutTheNight may have said it best in a Jan. 17 post:
"You can’t ‘volunteer’ for SXSW any more than you can ‘volunteer’ for McDonalds," they wrote, pointing out that Major League Baseball was sued for exploiting its volunteers.
Musicians call for fair pay at SXSW
Volunteers aren’t the only ones getting screwed out of a paycheck.
Of the 1,400 musical acts set to play at SXSW 2023, many are lucky to be paid a total of $250, according to one of the acts I spoke with Monday who opened for a big-name band before sleeping on a local’s living room floor.
The lack of compensation for performing at one of the country’s biggest festivals is why more than 2,000 people have signed an open letter calling on SXSW and Penske Media to stop exploiting performers.
The open letter, which notes "musicians have been the festival’s backbone and main draw" for nearly four decades, also raises concerns about high application fees that prevent many underfunded artists from even being considered for SXSW.
"For at least a decade, SXSW has offered its showcasing artists the same unjust compensation options: either take a wristband to attend the festival, or receive a one-time payment of $250 (or $100 for solo artists)," the letter continues. It should be noted that attendees with wristbands are considered to be in a lower tier than badgeholders.
Meanwhile, international performers aren’t even offered compensation. They can have a wristband for their labor — take it or leave it.
According to the letter, these "insultingly low wages" have been stagnant for 11 years. At the same time, the application fee has risen by 37.5 per cent, from $40 to $55. That’s more than half of a solo performer’s wage for their SXSW set.
"Even without accounting for skyrocketing inflation, these stagnant wages and growing fees have meant an actual decrease in wages for SXSW performers over the past decade," the letter reads.
The four demands from performers are relatively tame and would do little to damage the festival’s bottom line.
Performers have demanded that SXSW increase the compensation for showcases from $250 to at least $750. That amount is still $245 less than the music badge is sold for.
Musicians should also receive a complimentary festival wristband while also getting financial compensation. The move would end the practice of forcing performers to choose between being paid and attending a festival they’re featured in.
Artists are also pushing for pay equity for international artists, who they believe should be receiving the same compensation as domestic performers.
Lastly, they call for the end of the application fee.
The festival pays to bring high-profile politicians and business people from across the globe for speeches, panels, and networking events. Why should its performers be treated any different?