I've been in and around the music business since the 90s. This is not new. There's even a term for it, it's called an "underplay".

Just a preference for the artist. If you go for bigger venues and stretch a little bit, you might end up filling it, and then you'd make more money. If you underplay, then you're guaranteed to have a good vibe at the show, which musicians care a lot about.

That's really, I think, the dynamic that most people use. There is an aspect of it that is public perception-facing, but I've been around a lot of musicians ranging from just starting out to household names, I think it's mostly a trade-off between those two options. Just about every musician prefers smaller venues because they're more fun to play, and less financial risk.

Like anything there are exceptions. For example, an artist who wants to headline Madison Square Garden for the first time might make a different choice. But I don't think the strategy is that much about cleverness. It's just about preference.