Global promoter Live Nation is reducing fees paid to artists by 20%, as it aims to renegotiate the terms for thousands of shows postponed to 2021.

A memo released by the company to talent agencies said: “We are in unprecedented times and must adequately account for the shift in market demand. In order for us to move forward, we must make certain changes to our agreements with the artists.” That includes across the board pay cuts “adjusted downward 20% from 2020 levels.”

The memo announced other changes to the promoter-artist relationship. If a festival is cancelled due to low ticket sales, the artist will now only receive 25% of the guarantee, as opposed to 100%.

If an artist cancels their appearance at a festival and is found to be in breach of the agreement, the artist will pay the promoter two times the artist’s fee.

The fee changes come during a difficult period for the live industry. AEG Presents, one of Live Nation’s main competitors, announced a series of staff layoffs earlier in June.