Do free concerts hurt clubs or build audiences?

This article suggests that while the free jazz concerts in Chicago increase the popularity of jazz, they hurt small club discouraging fans from going to them and by driving up prices for artists.

Chicago Tribune news, 7/01/07: Scatting from clubs to larger concert venues: "Perhaps no one did more to affect that change than Lois Weisberg, commissioner of the city's Department of Cultural Affairs under Mayor Richard M. Daley and a cultural advocate in previous administrations. By steadily expanding free concerts in Grant Park and helping to transform the old Chicago Public Library building into the bursting-with-music Chicago Cultural Center, Weisberg put the city's muscle and money behind music.

'There's no other city in the country that does so much free music,' says Weisberg, noting that the city now spends about $2 million a year on various music events, much of it jazz.

Furthermore, by joining forces with organizations such as the Chicago Jazz Partnership -- a collection of blue-chip corporate foundations that committed $1.5 million to Millennium Park's 'Made in Chicago' jazz series and other jazz events -- the city has leveraged additional resources to jazz concert-going."