New York City music club The Bottom Line opened its doors in 1974 with a jam session between Dr. John, Stevie Wonder and Johnny Winters. Twenty-nine years later, the club’s landowners at New York University deemed it “undervalued real estate” and The Bottom Line, which has hosted luminaries from nearly every genre of music, was forced to close its doors for the final time at the end of 2003.

Other legendary New York City clubs, including CBGB’s, have also decided to close down, thanks to skyrocketing rent prices.

The truth is that none of these clubs were really forced out; they were just faced with a choice: remain wholly independent until completely bankrupt, or pursue corporate sponsorship to help pay the rent.

Yet while Los Angeles venues are beginning to accept this new paradigm, New York City clubs are having a harder time adjusting to increasingly widespread industry problems.

“Corporate sponsorship is becoming more and more common because ... the rent has become so off-the-wall that mom-and-pop places are having a harder time existing without help from someone,” said Allan Pepper, co-owner of The Bottom Line. “Unfortunately, when you do that kind of thing, you give up something in terms of the independence of your business.”

According to USA Today, in 2003 Sirius Satellite Radio offered the club financial assistance. The Bottom Line chose to stay independent, however, ultimately leading to its demise.

Small venues throughout Los Angeles are now making changes to avoid a similar fate.

The Hotel Cafe in Hollywood is one of Los Angeles' "mom-and-pop" venues, offering the intimacy of a small coffee shop and live performances by some of the most promising artists both inside and outside the music industry.

However, the venue has also expanded its visibility by sponsoring a 2005 tour that included many regular Cafe performers.1

“To compete, because of the presence of bigger companies, you need to find a way to survive with outside support,” said Marko Shafer, co-owner of the Hotel Café, regarding the tour. “Music is still music regardless ... but we’re walking the line on both sides (of independence and corporate sponsorship). It’s about balance.”

Part of that balance can be achieved by pursuing promotional support from companies complementary to the venue itself, such as the trend-setting radio station KCRW and MySpace.com. For certain performances, KCRW signs hang from the Hotel Café’s dark red walls and the wristbands allowing entrance into the club are covered in MySpace slogans and logos.2

Although society has already grown accustomed to sponsorship and ubiquitous advertising, the presence of such consumerism in music – which some believe is built from an ethos of independence and autonomy – is still risky.

“Product has certain goals and when those goals run counter, philosophically, to the artists you’re presenting, this could be a major problem,” Pepper said.

“That’s the intersection of arts and commerce.”

Nevertheless, each club works to maintain its charisma and its connection to artists and fans alike.

“It really feels like we’re a part of something,” said singer/songwriter Brett Dennen about the Hotel Café. “These artists are going to break out, and they’re going to do it right here. It’s like a family. And as a fan, that must be amazing.”

Other clubs around Los Angeles have also needed to work to preserve their own atmosphere, such as the artist-oriented Roxy on Sunset Strip.

“When the Roxy opened in ’73, it was one of three clubs, and now it’s probably one of 15 in the area, but it all comes down to keeping a good relationship with the bands,” said Nick Adler, the club’s owner.

The Roxy has made small changes along the way, such as taking a cut of proceeds made by bands at the merchandise table. But even that is not enough.

“Ten or 20 years ago, beers were $4 and tickets were $8. Now, 20 years later, everything else costs more but we’re still only charging $4 for beers and $8 for tickets, so that part is not computing,” Adler said. “But that’s the type of thing that can’t change. ... I do feel like I’m reaching out for corporate help sometimes.”

In addition to merchandising and seeking corporate sponsorship, venues of all sizes have also begun expanding through chains and franchised locations. The House of Blues may be the most prominent example, with 18 establishments throughout the United States and Canada.

New York City’s Knitting Factory has also recently opened a location on Hollywood Boulevard.

“(The Knitting Factory) was looking to expand and the thought was to get more and more clubs so that when someone’s booked, they can be given a series of gigs,” said Bruce Duff, the publicity manager of Hollywood’s Knitting Factory.

“We’re not quite there yet but that’s the idea.”

The Hotel Café has begun discussions about opening a venue in both San Francisco and New York City, and The Roxy is scheduled to open in Las Vegas in the spring with the goal of expanding across the West Coast. Even The Bottom Line and CBGB’s have considered franchising their clubs or moving them over to Los Angeles entirely.

The change is also a component of society’s transition toward chains and constancy; people know what their coffee will taste like from Starbucks, and they know what type of shows to expect from The House of Blues, or possibly, in the future, the Hotel Café.

The decision to either get external support or remain independent has become extinct. The choice has become simply how club owners want to go about pursuing sponsorship and to what extent they will let it change their club.

“No one’s involved in the music or the actual venue – that’s ours,” Shafer said. “As long as we keep one thing real, we can keep the doors open.”

1 CORRECTION: This sentence was changed for clarification.

2 CORRECTION: This paragraph was changed in order to clarify the situation presented.