FIRST TAKE
Canada ' s Live Music Industry is Determined
& Resilient , But Needs Urgent Help
By Nicole Auger
For this issue , we ’ re handing the first page over to Nicole Auger , a project consultant at the Canadian Live Music Association ( CLMA ). The CLMA represents concert promoters , festivals , talent agencies , venues , clubs , arenas , performing arts centres , ticketing companies , industry associations , and networks , as well as suppliers to the sector . Its mission is to entrench the economic , social and cultural value of live music – creating the conditions for concerts to thrive , from coast to coast to coast . www . canadianlivemusic . ca .
In to national GDP and created
the last 9 months , the live music industry – which previously contributed approximately $ 3 billion
72,000 jobs nationwide – has largely been dark . Most companies and organizations in the sector have earned zero revenue since March 2020 while still attempting to manage significant overhead and operational costs . Without additional government intervention , a staggering 96 % of live music venues and stakeholders say they will not be able to remain open in the near future .
The impact of the shuttering of live music has initiated an unstoppable domino effect on the broader industry , as well as on cities and businesses – both directly and indirectly . The CLMA ’ s recently-released report , Re : Venues : A Case & Path Forward for Toronto ’ s Live Music Industry , highlights the devastating economic , social , and cultural impacts of music venue closures in Toronto as a result of the COVID-19 pandemic . According to the report , each venue that closes costs an average of $ 575,000 in annual GDP contributions , and $ 148,000 in provincial and federal taxes . From March to October 2020 , Nordicity estimates the shutdown of music venues in Toronto cost the city ’ s economy $ 99 million in gross provincial product ( GPP ), the equivalent of 1,480 jobs . While the report features Torontocentric data , the results and recommendations serve as a model for municipalities from coast to coast to coast .
The live music community is profoundly resilient . In the face of a near total shutdown , many in the sector have found innovative ways to pivot beyond traditional concert presentation . Our members have adapted and , in some cases , completely transformed their business models since the spring in an effort to drive ( even small amounts ) of revenue , and keep workers and artists employed . This has included live streaming shows from inside venues ( from small clubs to performing arts centres ), with no audience and crew limited to allowable numbers . For many months now , venues have developed , adapted , and painstakingly applied rigorous health and safety protocols , and respected gathering numbers , to protect the public , artists , and employees . They have done so to ensure they can still connect artists and their fans , and to help workers put food on the table for their families .
However , with no immediate prospect of a return to “ business as usual ,” the live industry faces an imminent risk of permanent venue closures and a significant loss of cultural infrastructure . In particular , insurance has been identified as one of the most significant challenges impacting music venues and small businesses , with many venue operators experiencing astronomical increases in policy rates – in some cases well over 200-400 % – or an outright inability to secure liability coverage at any cost . A survey of CLMA members in September 2020 revealed that nearly 60 % of respondents would face serious repercussions if an insurance solution was not reached within 60 days , including bankruptcy or closure , job loss , inability to access funding , or inability to use their space . As well , 30 % of respondents reported a full or partial cease of operations due to inability to obtain insurance .
And the journey is far from over . Live music is among the hardest hit industries that will not be able to recover while ongoing COVID-19 restrictions remain in place . It is fully recognized that the live music industry will be one of the last to return and urgent issues of liquidity threaten the survival of many of our most beloved and important venues , companies , and organizations . The CLMA continues to lobby for immediate prioritized support for live music , while recognizing that medium- and long-term government support and programs will be essential to the recovery and rebuilding of the sector .
To address these issues moving forward , the association has recommended — in addition to the great deal of government support already provided — the continued extension of federal relief programs such as the Canada Emergency Response Benefit ( CERB ), Canada Emergency Wage Subsidy ( CEWS ), and Canada Emergency Commercial Rent Assistance ( CECRA ), tailored to the needs of the hardest hit . To supplement these programs , the development of a Canadian Live Music Fund would augment ongoing annual support for the live music ecology . These measures will help the sector to bridge the gap and ensure that when COVID measures are lifted , Canada continues to have the artists and live music experiences they know and love .
Ð CANADIAN MUSICIAN 9