The Music Federation in Spain, Es Música, has closed the financial year of 2020 marked by the coronavirus pandemic with losses of 1,000 million euros in direct billing, according to data provided by the entity.
To this calculation are added the 7,000 million indirect losses. This assessment takes into account both the live music, recorded music and exploitation of intellectual property rights, including the entire value chain and companies and professionals from other sectors that indirectly participate in the Spanish music industry.
The Music Federation, which prepares a report with the total economic balance, had already prepared its forecasts throughout the previous year. The negative figures that could be reached within a year – counting from the month of March, when the closures began due to the pandemic – oscillate around 1,200 million euros.
Other sectors such as music producers also provided their own forecasts. In this case, the Spanish record industrya has suffered direct losses of more than 100 million euros due to the coronavirus, according to Promusicae.
Likewise, the losses of concert halls Until the end of the year they add up to about 120 million euros due to the Covid-19 pandemic, according to the Concert Hall Platform (PSDC).
The concert halls have almost five thousand direct workers, the majority affected by ERTE since the beginning of March. During the months of closure and restrictions in 2020, about 25,000 concerts were canceled.
Some of the economic proposals sent to Uribes since the middle of last year by the Music Federation -various already launched- included those of guaranteeing the liquidity of companies, in particular SMEs and freelancers in the music sector, or the promotion of an ICO financing line for companies in this sector affected by Covid-19.
In addition, they demanded the postponement of the pAug of taxes such as Value Added Tax (VAT). The proposal included the approval of a crash plan to recover the activity of the sector, through the subsidy of entry amounts – in such a way that the organizer could reduce the box office price – or an increase in hiring by public entities, with advance payment or immediately after the celebration.
Recovery of capacity
Returning to normality in the capacity has become a priority issue for music venues, in addition to the festivals that have seen how many of them were postponed to 2021 for health reasons, but are still on the air.
The music sector has led many protests through associations such as Red Alert, which has twice taken hundreds of event technicians to the streets throughout Spain. Both theaters and halls have reopened with capacity limitations, depending on the region in which they are located.