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Governments from around Europe dedicate aid to cultural sectors, as collection societies further help the industry weather the Covid-19 storm
By Anna Grace on 30 Mar 2020
As the coronavirus does its best to ensure venues remain shuttered for as long as possible, a range of organisations are stepping in to ease the financial pressures faced by live entertainment businesses worldwide.
In Europe’s largest live music market, Germany, the government has dedicated €50 billion to its creative and cultural industries. The financial aid consists of grants for small companies and the self-employed to cover overhead costs such as renting venues and studio space, and loans for business premises and leasing instalments.
A further €10bn will be provided to facilitate access to social security for self-employed workers for a six-month period, including unemployment insurance and expenses for housing.
Culture minister Monika Grütters calls the aid package a “rescue umbrella for the cultural, creative and media sector”. All cultural institutions in Germany remain closed until 19 April.
“The cultural sector, in particular, is characterised by a high proportion of self-employed people who now have problems with their livelihoods,” says Grütters. “These multilevel protection measures show that the Federal government is determined to do everything possible to counter the devastating consequences of the Covid-19 pandemic in the cultural and creative fields. We won’t let anyone down.”
The funding is part of a wider €750m aid package, approved by the German parliament on Friday, to protect the country’s economy from the effects of coronavirus.
“A high proportion of self-employed people now have problems with their livelihoods”
Other aid set to benefit the creative industries includes short-term work benefits, tax liquidity aids and €550 billion worth of loans, available from state business development bank KfW, with no upper limit set on credit offerings.
The government in Switzerland has also recently announced a targeted package for the cultural sector, totalling CHF280m (€264.6m). The funding has been welcomed by Swiss promoters’ association SMPA and the wider cultural and events sector.
The financial support comes after the Swiss government unveiled a CHF20bn (€18.8bn) emergency loan programme for companies affected by the coronavirus outbreak at the end of last week. After a quick initial uptake in loans, the government is already in talks to increase the available funds.
In the Netherlands, the government is working with industry representatives to potentially bring in legislation to allow event organisers to refund ticketholders with vouchers to spend on future events, rather than cash refunds.
Dutch promoters’ association VVEM recently sent a letter to the government estimating the damage done to the industry by Covid-19 could be as much as €1.5bn over the summer months, and asking for more concrete support with regards to finance and cooperation from local governments.
Rights societies have also been playing their part, with the German music licensing society (GEMA)’s €40m crisis fund for song writers and the UK’s PRS for Music offering grants of up to £1,000 to each of its members.
“We know we need to get money into the pockets of our members quickly and efficiently”
Recent support for the sector in Australia has come from Apra Amcos (Australasian Performing Right Association and Australasian Mechanical Copyright Owners Society), which is bringing forward its live performance royalty payout from November to May.
Members will receive a full year’s worth of royalties using data from last year’s reports.
“The Covid-19 crisis has hit every segment of Australia and New Zealand’s music sector,” comments Apra Amcos chief executive, Dean Ormston.
“From our songwriter, composer and publisher members to the venues, events and festivals and the managers, crew and SMEs of the industry, the impact of necessary government regulations has been immediate and devastating.
“We know we need to get money into the pockets of our members quickly and efficiently.”
The news comes as Australia’s three biggest live companies, Live Nation Australasia, TEG and Frontier Touring/Chugg Entertainment, form a music promoters’ taskforce to call for government aid for small- and medium-sized businesses during the coronavirus shutdown.
“As industry leaders we want to ensure the survival of the many small and medium-sized businesses that support our industry, so that we can continue to make a significant contribution to the Australian economy when we eventually emerge from this crisis,” reads a letter from the taskforce.
“As industry leaders we want to ensure the survival of the many small and medium-sized businesses that support our industry”
Performing rights organisations in France have contributed to the National Centre for Music’s €11.5m emergency fund for the entertainment sector, with Sacem, Adami and Spedidam, each adding €500,000 to the centre’s initial €10m funding package.
Industry body Prodiss had previously deemed the government’s targeted funding for the music and performing arts sectors – which totals €15m – “completely divorced from reality”, although it welcomes the government’s wider €45bn aid package for businesses.
The French government has also dedicated €22 million to support the “intermittents du spectacle”, or freelancers working in the entertainment industry.
Funding for the UK’s cultural sectors has come from a range of places, including significant funding from Arts Council England, which has dedicated a £160 million package for cultural organisations, freelancers and individual artists, £5m from the Help Musicians’ coronavirus financial hardship fund, plus a £500,000 boost from the Royal Society of Musicians of Great Britain, and £1m from the Musicians’ Union’s coronavirus fund.
New Zealand music industry charity MusicHelps has launched MusicHelpsLive, an appeal to support those facing hardship due to the Covid-19 outbreak. The charity aims to raise NZ$2m (€1m) for workers in the live industry.
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