If having live music meant increased income, the venues would support it.
- higher drinking age (and stricter enforcement) took away a lot of the market (no high schoolers and college kids packing the bars)
- stricter enforcement of more stringent dwi ( when I was in college, it was .15, and it was rare for someone to get arrested unless there was an accident)
- no smoking (I used to have a set of clothes and jacket just for gigs, since you could never get the stink out)
- with phones, more people are creating their own entertainment. Getting a driver's license is not the big rite of passage it used to be for many.
- less band-friendly pop music
Agree, except that I'm not so sure about the smoking thing. I get it that there was a big dip in bar attendance when public smoking bans went into effect, but I doubt that this was responsible for long-term changes. Most people don't smoke and going to spend the evening in a smoky bar would be a negative for them, so it seems to me that bans on public smoking would make venues more appealing, not less. It may be, though, that the bans "broke the momentum" of venues, if they had a dip in revenue from smokers staying home and weren't able to maneuver to attract new customers. That could disrupt a scene. Seems like the cycle would run its course by now though.
But the difference between CBGB's and most local dives is that they booked up and coming acts, and original acts. How many dives stick their neck out like that? Not many. Most just hire the local old blues/rock cover band. And if you ask me, that's what's really stifling local scenes and young musicians. There's often times no where for them to play, and the bands in the bars are the same guys that have been playing the same basic set for years. Young people don't want to bar and see people older than their parents playing wet blanket versions of the same songs they've been playing for years. I'm not trying to point fingers, if you enjoy doing that, great, but it shouldn't come as a surprise when people don't pack a bar for that sort of entertainment. People my age go out and listen to live music, at least where I am, but it's usually not for your standard blues rock stuff, it's for exciting stuff. That's not to say I don't understand why bars usually get the old standards, it's a safe business decision, it's usually a pretty known variable, taking a bet on an unknown isn't the smartest move. There's plenty of other factors as well, but that's a pretty big one in my book.
But that's exactly my point - yes, CBGB's was willing to book unknown and upcoming acts. But in all of New York City, they were practically the only bar that did. Most of the bars in the city were only booking cover bands then, too. So how should we expect much more if we're in second- or third-tier markets like Manchester or South Bend or Boise? And from what I've read, I don't think it was because the management had a forward-thinking master plan. They knew they wanted music, but the name stands for "country, bluegrass and blues." The managers didn't know how to book the kinds of acts they wanted, so they handed the job to musician friends, who went and invited all their punk friends in.
I think you're also right, though, about the problems with a lot - maybe most - cover bands. I'm just now trying to launch a band to cover 21st century alternative and indie music, resorting to CL because most musicians I know are either already busy, don't want to gig, or live too far away. I've gotten some responses, and from some, right off the bat, I start getting people saying they want to do older music. Yes, there's a lot of Geezer Rock out there, badly played, that isn't at all appealing to younger crowds who actually go out. I think a lot of the problem is guitarists, honestly. If being in a band doesn't pay the bills, then they want to play music that they feel good about playing, and that's inevitably going to be guitar-hero stuff, which if not what modern music is about. So they insist on playing all this music that nobody in the crowd gives a dam about.
Any business is risky, and I'm sure there are a lot of dominoes that need to fall in the right order for them to work. For some, the scuzzy vibe may work. A place like CBGBs was a response to the disco era, sort of a anti-disco, anti-decadence sort of thing. If you are Bob's Bar and look like CBGBs only don't have the vibe on purpose, or the bands to go along with it, that isn't a good sign.
But some businesses are riskier than others. I don't hear that insurance agencies have the same fail rate as bars. And no - CBGB's wasn't a dive out of some smart artsy purpose. CBGB's was a dive because it was a dive and no one knew what they were doing. Maybe later on they kept it more dive-y deliberately, but that was after it had become the hip underground place to go. Disco came a few years later, CBGB's wasn't reacting to it.