Topic > The Impact of Covid 19 on the Music Industry

Covid-19 is an unprecedented global pandemic that no one could have predicted this time last year. Covid-19 has spread from the first outbreak in the capital of China's Hubei province to a pandemic that has so far killed more than 200,000 people, of which more than 3 million have contracted the virus. The virus has had a huge impact on many industries and at the moment no one is sure when things might return to normal and how we will recover. In this essay I will focus on the specific impact that Covid-19 has had on the music industry and musicians. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay The UK followed the lead of other countries and, shortly after introducing a social distancing policy, introduced a full lockdown policy. In an address to the nation on 23 March 2020, the Prime Minister ordered people to leave their homes only for a list of “very limited purposes”, banned public gatherings of anyone other than the same household and ordered the closure of non-essential shops. and businesses with immediate effect. Then, on April 22, England's chief medical officer, Chris Witty, indicated that the measures could be in place until the end of the year, unless a vaccine is found first, which, he added, would be unlikely. While the policies in place are entirely necessary to keep people safe, for those working in the sectors that have been closed, this has been devastating news. People working in the music industry are now facing an unprecedented financial disaster due to the coronavirus, as everything has changed. been canceled for the foreseeable future. Music data firm Viberate revealed that already over 300 festivals have announced cancellations or postponements, including some of the big names; Coachella, All Points East and for the first time in history the organizers of the Glastonbury Festival have decided to cancel the festival again this year. While this devastated fans, financially the effect was catastrophic with Vibrate estimating that $3 million would be lost in ticket sales, with an estimated direct economic impact of $9.7 billion. Among the festivals that have been cancelled, organizers Liverpool Sound City have made the decision to postpone the 2020 event until later in the year. To help artists who have had to cancel live shows, Sound City will launch a special live streaming platform and program called Guest House, a weekly live stream launching on April 2, 2020. Each episode features five acts, each with a 30-minute program a minute broadcast from their homes. It offers the opportunity for bands and artists to showcase their festival sets, as well as entertain fans from the comfort of their own home. Guest House will also provide a new revenue stream for shows, as well as offer fans the opportunity to financially support their favorite artists in a variety of ways. The platform has an introductory subscription price, with 50% of revenue shared with artists at the end of each month. It also gives artists the opportunity to offer merchandise, new music, and any other products, giving them another chance to maintain sales and bring in more revenue. Becky Ares, MD of Sound City, said: “The idea for Guest House was born as a response to the terrible situation we found ourselves in. We hope it will allow bands to maintain desperately needed income, as well as encouraging fans to get even closer to the artists they love and continue to support them where possible in this time withoutprecedents. Festivals aren't the only sector of the music industry that will feel an economic impact. Currently around 72% of people working in the music industry are self-employed and with workplaces closed due to lockdown, incomes are set to be devastated by the virus. (Malto, 2020). The Musicians Union has published research warning that tens of thousands of musicians are at risk from a financial crisis dubbed a “job loss pandemic”. The report reveals that 90% of those working in the sector have already been affected, with job opportunities down 69% compared to the same period last year. Horace Trubridge, general secretary of the MU, said: “Music is one of the few certainties we can rely on to provide happiness and relief in tumultuous times. But musicians – whether they work in theatre, teaching, orchestras or concerts – will feel the full financial force of this global disaster.” In March 2020, soon after the lockdown came into force, Olga Fitzroy, associate recording and mixing engineer at Associated Independent Recording Studios, described the UK government's approach to supporting "tone deaf" creative industries. They currently contribute £111.7 billion to the UK economy every year, however “So far the Government has only guaranteed around £95 a week in universal credit for the self-employed, compared to a maximum of £2,500 for employees” . Midge Ure, a well-known Scottish singer-songwriter, echoed Fitzroy's frustrations over the government's treatment of musicians, saying: “Most of these people are self-employed and now face a devastating future. The UK Government has not currently taken any measures to help the self-employed. It's time to lend a hand to polo to generate untold wealth for the country." Chief executive of industry body the Association of Independent Music (AIM), Paul Pacifico, reveals they are seeing immediate difficulties from AIM member companies who say they are "struggling to find a path through this crisis, and from part of the self-employed whose income dropped to zero overnight” (Lunny, 2020). In response to this, AIM launched its “hardship fund” to support contractors and freelance workers in the industry independent music artists who have so far lost revenue for April and May due to the Covid-19 pandemic The AIM Fund is open to all contractors working with new and developing artists currently signed to AIM member labels. lost committed income due to canceled artist projects and do not qualify for other hardship funds offered These workers will include the likes of; tour crew members, producers, engineers, radio pluggers, graphic designers, stylists, publicists and more. AIM President Peter Quicke (MD, Ninja Tune) also said, “In this time of global crisis it is so important for AIM to empower our community to provide help to those who need it most.” (Music Business Around the World, 2020). Paul Pacifico added: “The MU hardship fund is an amazing initiative, but, in reality, it has only scratched the surface for these hardworking, tax-paying people in the music field.” She also highlighted Olga Fitzroy's frustration at the lack of help from the government, saying: "The UK government must step up or face an even bigger crisis once these people can no longer afford to pay their bills and feed their families." With this in mind AIM has also created a petition to the government askingtemporary income protection for self-employed workers. The petition states: “There are five million freelancers and self-employed workers in the UK who have so far not been supported by government measures to help the workforce through the Covid-19 crisis and yet in many cases their sources of income they have stopped completely. cases." It goes on to say: “They must be a dedicated source of direct income support to compensate self-employed workers for loss of earnings due to preventative measures against Covid-19.” The Music Association isn't the only company that has raised money to support people in the music community. Since the start of the Covid-19 pandemic, Spotify has engaged partners from across the industry to discuss how to support artists and the creative community who have been deeply affected by the effects of the virus. While streaming continues to play a key role in connecting creators with their fans, numerous other sources of revenue have been disrupted or stopped altogether by this crisis. Spotify is collaborating with other verified organizations around the world, including; MusiCares, PRS Foundation, Help Musicians, Unison Benevolent Fund, Center National de la Musique, Deutsche Orchesrer-Stufttung, Initiative Musik and more, Spotify continues to add and work with more partners around the world. Spotify itself has contributed $10 million to the cause so far and has updated its app with a banner at the top of the home page to raise awareness of the issue and encourage users to donate to the fund where possible. British music licensing company PPL also announced on 15 April 2020 that it will donate £700,000 to three different UK music industry hardship funds set up as a result of the Coronavirus pandemic. The three funds they are donating include: The Help Musicians Coronavirus Financial Hardship Fund, The Musicians' Union Coronavirus Hardship Fund and the AIM Covid-19 Crisis Fund (already mentioned). PPL chief executive Peter Leathem said: “At PPL, we recognize the role of these hardship funds in providing a lifeline to those in the music industry who have been most affected by the current crisis and we are delighted to be able to contribute to the established funds, to ensure that financial support reaches those who need it". Responding to the donation, Help Musicians chief executive James Ainscough added: "We gratefully welcome PPL's ​​financial contribution and continued support." He continued, “The demand for financial support has been overwhelming and we are seeing first-hand how the money is supporting the many thousands of people in the music community who desperately need it.” Meanwhile, the British music industry has also stepped up its call for government support. Numerous industry trade organizations including; UK Music, ISM, Help Musicians, MU, MMF, The Ivor's Academy and Music Producers Guild, have signed a letter urging the Chancellor of the Exchequer, Rishi Sunak, to promote specific measures to support the large number of freelancers and self-employed workers to work in the broader music community. The letter states that “Covid-19 is having a dramatic impact on the music industry workforce, particularly those working on zero-hours contracts or who are self-employed. From live performers, to peripatetic music teachers, to composers, to managers, to engineers and producers, their work has come to an end overnight. Although the government has announced some economic support measures such as loans, grants and 100% interest rate cuts in some sectors, although thiswill help some music companies, there has been little tangible support for freelancers and the self-employed. The letter also states that “the current welfare system is not designed for a situation where the government strongly advises the music industry to stop working. Much of the workforce is not entitled to any notice or severance pay.' So, basically “If they don't work, they don't get paid”. The letter also goes on to highlight how “other countries such as Italy, Ireland, Norway and Canada have put in place emergency funds to support self-employed workers in these uncertain times”. As well as specific issues for the self-employed and freelancers, the letter to Sunak from the music industry also calls for more measures to support the music industry generally, stating: “The UK music sector, which contributes 5.2 billion pounds a year to The UK economy needs urgent help from the government to prevent large parts of the sector from being wiped out.” Suggested measures include an extension of tariff relief to all music companies, VAT exemptions and other schemes to help music companies continue to pay their staff. On 26 April 2020, in response to various calls for more financial help for the self-employed, the government announced its economic support plans for the sector, an announcement which was widely welcomed by the music industry, although the sector has also expressed concern that support will not be available until June 2020. The Chancellor of the Exchequer, Rishi Sunak, announced a benefits package for the self-employed, insisting it took more time to put together economic measures for such a “different” population. The scheme will benefit people formally registered as self-employed with the UK tax authorities, earning less than £50.00 per annum and who earned at least half their income from freelance work in the 2018 tax year. 19. This means they can apply for a grant equal to 80% of their average monthly profits. The measures will help many people working in the music industry, including; musicians, songwriters and producers. However, the grants will not be available until June 2020, meaning many people whose income was immediately hit by the lockdown are likely to still face hardship in the coming weeks. Responding to this CEO of cross-industry trade group UK Music, Tom Kiehl said: “the package will be a vital lifeline for thousands of people in the music industry where 72% of the workforce is self-employed.” However, critically, he added: “We need immediate and urgent help – people desperately need bills to pay. They need financial support now and cannot wait until the end of June for the program to come into force.” UK Music has also raised concerns by asking the Government to answer questions on issues such as: “how this support program will affect women who have been on maternity leave and may lose out because their earnings would be misrepresented. And “There remains a need for support for those in the music industry who have not been self-employed for a long time, including recent graduates, who will not be eligible for this grant.” The Government is yet to respond to various issues that may prevent some self-employed workers who need support from getting it. Other music industry organizations also responded to the Government's announcement on financial help for the self-employed, including the Secretary of.