“Sleeping Beauty” Ii, a Relief Policy for the Arts

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Zurich Centre for Creative Economies

Research Note n°2 (2020)

“SLEEPING BEAUTY” II, A RELIEF POLICY FOR THE ARTS

By Simon Grand, Frédéric Martel, Roman Page and Christoph Weckerle

This research note is part of a series of four notes published by the Zurich Centre for Creative Economies (ZCCE) on the economic consequences of the coronavirus for the cultural sector.

Introduction – (Christoph Weckerle) Note 1 – The WPA, Roosevelt and Artist Relief in America 1936–1939 (Frédéric Martel) Note 2 – The Great Cultural Depression (Frédéric Martel) Note 3 – The Swiss Creative Economy: Some statistics-based reflections on the current debates in Switzerland (Roman Page, Christoph Weckerle) Note 4 – Beyond the current debates: Alternative strategies for analysing the creative economy (Simon Grand, Christoph Weckerle)

ABSTRACT | Since February 2020, the Covid-19 epidemic has affected entire sectors of the world economy. Differently and atypically, the creative economy is being hit hard, not only in economic terms but also in terms of its identity and organisation. Our four research notes aim: (1) to recall the history of the “relief” programmes set up in the past to aid the cultural sector, especially during the Great Depression of 1929; (2) to analyse the current situation of the cultural sectors, both as a whole and sector by sector; 3) to present the Swiss creative economy through some statistics- based reflections on the current debate in Switzerland; and finally (4), beyond the current debates: to consider alternative strategies for analysing the creative economy.

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Note II The Great Cultural NOTE II Depression II.I The creative eco- The Great Cultural Depression nomy, an economy unlike any other Americans for the Arts (a nonprofit organisa- II.2 The creative eco- In March 2020, a large number of coun- tion) has already calculated, based on an in- nomy, an economy tries around the world entered a period of itial survey of 120,000 American cultural in- unlike any other partial or total confinement. This sudden stitutions, a shortfall of around 4.8 billion dol- II.3 The sub-sectors of the creative economy “lockdown,” both unprecedented and large- lars among the institutions surveyed. This Conclusion scale, has had far-reaching consequences represents a “median” loss of $38,000 per for the entire global economy. Cultural life organisation to date, and does not take into and the creative industries have also been account losses for the period May–August impacted by this crisis in three different, yet 20201. often cumulative ways: 1. in a general way, like all economic sectors; 2. in a specific way, as the creative and cultural sector; 3. in a sectoral way, i.e. by sub-sector. This three- fold cultural crisis is also unique in that it has never been anticipated by any consulting, forecasting or similar agency, despite these existing in abundance and being so costly! Christiane Bourbonnaud, former deputy director of Avignon International Theatre Credits: Christophe Raynaud de Lage / Festival d’Avignon Festival, who, with the festival’s board of di-

rectors, has just decided to cancel this year’s This second ZCCE note therefore at- edition, scheduled to take place in July, ex- tempts to describe the current situation plains: “What strikes me most is the uncer- along three main dimensions — general, tainty, even the state of astonishment, in sectoral and sub-sectoral — based on the which we find ourselves: information that available quantitative data and studies2, as contradicts itself from one day to the next. well as on a series of qualitative interviews Our reasoning, now entirely short-term, can conducted internationally by ZHdK/ZCCE draw only on current data. This situation, between 14 and 28 April 2020. These inter- however, is untenable for cultural managers, views are not meant to represent the cultural who must project themselves into the fu- sector but to illustrate the current situation. ture.” (Most of the artists interviewed were first in- Although very limited quantitative re- terviewed for our “Positive Economy” report search is available on the economic impact in 2018; we have therefore, as far as of the coronavirus on the cultural sector,

1 Americans for the Arts, “The Economic Impact of Co- Backes & Hustedt GbR as well as “Künstler in der Co- ronavirus on the Arts and Culture Sector,” last updated rona-Krise: Ausgespielt,” Die Zeit, 22 April 2020; for 27 April 2020 Switzerland, see the third note in this series; see also Compendium Cultural Policies and Trends/ Covid 19: 2 See: for the US, data from the NEA and Americans https://www.culturalpolicies.net/covid-19/ for the Arts; for Germany, data from the u-institute

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possible, tracked them down and re-inter- pandemic, they have lost an average of 40 viewed them in order to follow and analyse per cent of their salary5. Note II their situation during Covid-19)3. Most of our interviewees agree that the The Great Cultural Depression mid- and long-term consequences of the II.I The creative eco- II.I – The creative economy, current health and economic crisis are barely nomy, an economy predictable at this stage. Its real effects, they unlike any other an economy like any other say, will only become evident later, this au- II.2 The creative economy, an economy tumn or winter — and perhaps even well be- unlike any other The cultural and creative sector (CCS) is yond. II.3 The sub-sectors of a disparate entity. It includes the “traditional” Tom Avendaño, a cultural journalist at El the creative economy arts as well as the cultural and creative in- Pais, who has been locked down in Madrid, Conclusion dustries (CCI), to which must be added a describes the situation as follows: “What cri- considerable number of “related” economic sis are we facing? A health crisis, an eco- activities (tourism, telecommunications, edu- nomic crisis, a combination of the two, some- cation, design, etc.). This cultural and crea- thing else? No one knows very well what the tive sector is itself divided into about ten sub- nature of this crisis is or how long it will last, sectors4. Despite these differences, this sec- even when the lockdown ends. Thus, there tor’s structures and actors have been im- is a paradox: an increased demand for cul- pacted by the current health crisis. The bru- ture in times of confinement and an in- tal economic slowdown, working from home, creased need to turn to artists for comfort social distancing and the closure of all public and perspective; at the same time, fewer venues have affected everyone — differ- consumers are willing to pay for traditional ently, yet similarly. forms of culture, to which they no longer Like other gainfully employed persons, have access. Such friction usually brings many artists or cultural professionals no forth new voices, new styles, new models in longer have a salary; those who were paid the face of an unknown situation. New con- fees no longer necessarily have contracts; tent, either cheaper or based on a different some are unemployed or have been fur- aesthetic, might emerge.” loughed; others receive no compensation at Beyond economic problems, cascading all. For instance, actors at the Comédie Fran- effects are the most difficult to measure and çaise, the acclaimed French public theatre, likely to endure longest. For example, the ad- are paid a fixed salary (about 60 per cent of vertising market is in sharp decline every- their income) and a variable salary depend- where, a development that will lastingly im- ing on their stage commitments (up to 40 per pact the media or audiovisual production cent of their income); as a result of the long after strict lockdown and, as a result, will affect several cultural sectors at the same

3 See “Positive Economy, Towards New Business Mod- existing classifications; see, for instance, Frédéric Mar- els for Artists,” Entrepreneurial Strategies for a “Posi- tel, State of the arts, Cultural policies: Mapping a field tive Economy,” 3rd Creative Economies Report, ZHdK in reinvention, ZHdK/ZCCE, 2020, 41p. See also Policy University, Zurich, 2018. Research Group, The Creative Economy: Key Con- cepts and Literature Review Highlights, Canada, 2013. 4 This is not the place to provide a history of the typolo- gies of the Cultural and Creative Sector (CCS) nor of 5 Michel Guerrin and Brigitte Salino, “Baîllon de cul- the Cultural or Creative Industries (CCI), nor to review ture,” Le Monde, 22 April 2020.

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time. Overwhelmed by colossal debts, what and all “emerging” artists are being hit and “relief” will governments, states and cities be are currently “in very great difficulty.” In able to offer? Lacking prospects, wealthy some artists’ residencies (The Artist Fund, philanthropists also seem to be cautious in Union of Actors, etc.), artists are no longer their donation policies, which translates into able to even pay their rent; elsewhere, in a decline in individual patronage and a “wait ghettos, favelas or slums, they are short of and see” attitude on the part of foundations. food. Gleason notes, however, that online Even donation or equity funding sites (e.g. courses have multiplied, meaning online mu- Patreon, Tipeee, My Major Company, etc.) sicians are able to moderately improve their seem to be on hold at the moment, particu- income at the moment due to increased de- larly as potential donors or investors are wait- mand: “I teach music via Zoom; it’s not the ing to see what will happen. The “snowball” same as face-to-face, but it’s better than effects are therefore numerous and poten- nothing.” tially devastating in this current crisis. This increased precariousness is a feel- Beyond cultural institutions and enter- ing shared by several of the independent art- prises, the individual situation of artists is the ists we interviewed. For instance, Miguel Ro- most complex to analyse. Brett Gleason, an jas Palencia, a Spanish “indie” filmmaker “indie” musician confined to his home in confined to Barcelona, states: “In general, Brooklyn, believes that artists are “doubly artistic work is poorly paid, except for certain victims of the coronavirus.” “Here in New recognised artists, and often it is not even York,” he says, “most young musicians, ac- paid directly. If we start from the precarious- tors, comedians or ‘DIY’ artists usually have ness of the cultural sector in general, then small jobs so they can keep pursuing their the consequences of this health crisis are passion. devastating, because it means the loss of the little income we still had. In other words, we are moving from precariousness to misery.” Swiss musician Hanspeter Kruesi sums up matters: “Artists and creators were hit first. As governments need to look after sectors they consider more vital, artists will be the last to receive help. In the meantime, they will have to take care of themselves — as always! Personally, I’m putting all my efforts Credits: Hans Vivek into my online activities, education and con-

certs. I’m working hard because offerings are They work as bartenders in cafés, give now abounding, and only professionalism will classes or play music in the subway to make make the difference.” tips. However, not only are their artistic ac- Our interviewees all believe that an on- tivities at a standstill, but their small jobs, es- going transformation towards the greater pecially because of the closure of cafés and digitisation of culture is occurring, a phenom- restaurants, have come to a halt. They are enon that, while predating the coronavirus doubly victimised.” According to Gleason, crisis, is now accelerating. “It’s a total para- the “New York underground art community” digm shift,” says Brett Gleason. Belgian

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musician and producer Elvin Galland (known professional life distinguish these social ac- in electro music under the pseudonym Jim tors. Comprising a mixture of subsidised cul- Henderson) analyses matters similarly: “I’m tural institutions and private creative enter- obviously aware of the consequences this prises, the cultural sector is already very crisis is having for me. All my concerts and atypical compared to the rest of the econ- studio appointments have been cancelled. omy. Semi-public, semi-private, the sector is The schedules and tours that had been set also characterised by enterprises that are of- up for releases or video clips have all fallen ten smaller than in the rest of the economy through. Financially, even though I hadn’t an- and involve more part-time employees and a ticipated using my funds this way, I’m lucky I younger workforce. Moreover, a higher per- saved a little bit so I could pay my rent and centage of self-employed people or “intermit- my bills. But it won’t last very long.” tent” employees contracted on a work-for- In conclusion, it seems that culture is be- hire basis distinguish the sector, as well as a ing impacted for the first time like any other higher level of education. The economic and economic sector, and this is already to im- social conditions of artists therefore vary poverish it. In return, its weakening is also considerably from the rest of the population, hurting the general economy because, as a fact that has significant consequences in the former French Minister of Culture, Aurélie times of crisis. Finally, digital technology also Filippetti, points out: “In France, culture rep- plays a major and increasing role in the arts resents about 3 per cent of GDP and and culture6. 800,000 direct jobs. That figure is much The former Minister of Culture of Mexico, higher if we count the indirect jobs. In some Consuelo Sáizar, who is currently locked cities, especially ones hosting major festi- down in the United Kingdom, says: “This cri- vals, culture keeps certain towns alive in the sis brings us back to our basic and frail con- summer thanks to tourism, restaurants and dition in the world. Curiously, many, if not hotels.” Now, amid the coronavirus, many most, of the ways in which we face this prim- others responsible for culture could make itive challenge come from the most ad- Note II The Great Cultural the same case for their countries, regions or vanced technologies we have developed. I Depression cities: if culture stops, whole areas of life dis- see ongoing further democratization of cul- II.I The creative eco- appear. ture through digital screens. This will make nomy, an economy unlike any other us relearn our approach to the enjoyment of II.2 The creative eco- the arts. In a time when hope and happiness nomy, an economy II.2 – The creative economy, are low, I am an optimist.” unlike any other an economy unlike any Mario von Rickenbach, a Zurich-based II.3 The sub-sectors of artist and video game designer confirms this the creative economy other view: “The sources of remuneration seem to Conclusion have a big impact on the economic situation If artist and cultural professionals, like of artists: those who rely on public money everyone else, have to pay rent or feed them- and media with no physical presence, such selves, if they fall ill or are threatened with un- as animated films, seem to be able to employment, then other aspects of their

6 See Roman Page and Christophe Weckerle, “Crea- Strategies for a “Positive Economy”, 3rd Creative tive Industries Switzerland,” in Entrepreneurial Economies Report, Switzerland, ZHdK/ZCCE, 2018.

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continue to work more or less normally and performance is encapsulated in the word to be financed, although it is not necessarily ‘live’: the magic of the theatre is the ‘pres- possible, or even easy, to work from home. ence’ and contact between actor and audi- On the other hand, those who depend on ence. So, the question is: how to organise ‘live’ performance or ticketing clearly have a this physical presence within the constraints problem.” of distancing? For the moment, it is impossi- Regarding the cultural sector, it is there- ble. fore important to analyse primarily “cultural,” often subsidised, institutions differently than predominantly “commercial” enterprises, which operate in the market sector, with many more hybrid cases existing in between. In addition, there is a second dimension, depending on the size of the organisation (small, medium or large) and, above all, on whether or not it is in contact with a “live” audience. Finally, belonging to this or that cultural and creative sub-sector seems to have Credts: Evgen Rom important consequences. Hence, we need to try to analyse events Festival directors, realising this, have by sub-sector, because “social distancing” cancelled everything. But if the situation per- and the closure of all public venues do not sists — and this unfortunately is likely — we affect “live” events, cinema or streaming in will have to conjure up solutions: leave every the same way. On stage, artists touch each second seat empty? Give everyone masks? other, dancers embrace, actors speak loudly Will the audience still attend performances — sputtering — and the audience sits in tight under these conditions?” rows of seats! An article in Le Monde quoted For instance, France’s 2,000 cinemas, Stéphane Lissner, the director of Paris 2,500 music venues, 3,000 bookshops, Opera, as follows: “We represent everything 1,200 museums, 16,000 libraries and 1,000 7 that shouldn’t be done.” Lissner does not theatres have all been shut since 17 March . know whether the much-anticipated produc- While bookshops and libraries are about to tion of Wagner’s Walküre, directed by Span- reopen, no dates have been announced for ish artist Calixto Bieito, will be performed this other cultural venues. As a result, the losses autumn. “Social distancing is by nature im- suffered by professional organisations are possible in a closed concert venue: concerts considerable: €300 million for French cine- are precisely there to bring people together mas after two months of lockdown; €590 mil- and avoid any distancing!” confirms musi- lion for popular music venues. Should some cian Brett Gleason. forms of lockdown last until autumn or winter, Christiane Bourbonnaud, of the Avignon or even continue during 2021, the damage Festival, agrees: “The very nature of live will be much higher. “For many cultural

7 Michel Guerrin and Brigitte Salino, “Baîllon de culture,” Le Monde, 22 April 2020.

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Note II The Great Cultural institutions, the situation is life-threatening,” view, lockdown is an opportunity because it Depression says Laurence Engel, the president of the allows you to get out of your routine, to re- II.I The creative eco- National Library of France. think your projects and priorities, and to cre- nomy, an economy unlike any other Worse than the last two months is the ate. It is enabling me to write my new album. II.2 The creative eco- concern among all cultural professionals But, of course, that’s only possible if you’re nomy, an economy about the future. Especially since some pub- not ill and can survive financially.” unlike any other lic health experts are suggesting that con- II.3 The sub-sectors of the creative eco certs, festivals and sporting events “may not II.3 – The sub-sectors of the nomy be possible until the autumn of 2021 at the creative economy Conclusion earliest.”8 No one, however, dares to imagine

such a scenario... Beyond the overall situation, we need to Another problem is that of senior citi- examine each cultural sector in turn. Specific zens. They are, for example, the core opera cases abound, depending on artistic disci- and classical music audience in the United pline, but also on geographical area, meas- States, according to NEA studies: will they ure or economic model. be willing to risk their health by sitting close

together in auditoriums hard-to-protect for Live events and festivals months on end?

Yet another concern is the return of tour- If any sector is particularly affected by the ists, who account for the bulk of visitors at health crisis caused by the coronavirus, then major museums such as WOAgri in New it is first and foremost festivals, concerts and York, the Louvre in Paris, Madrid’s Prado “live” shows. The flood of cancellations is un- and the Vatican Museums in Rome. For in- precedented; and if one considers the prep- stance, an estimated 80 per cent of vistors at arations, the investments, advance fees, and the Palace of Versailles come from abroad: the number of professionals who should they are widely expected to be missing this have been working in these festivals, the summer and perhaps even this autumn. How cancellations are gut-wrenching. might this colossal deficit in ticket sales be A brief (and far from exhaustive) list of offset? The current health crisis will therefore cancelled festivals by country provides some affect the world of culture far beyond the sense of matters: Switzerland: Montreux strictest lockdown. Jazz Festival, Paléo Festival, etc.; Germany: Despite this bleak picture, there is still Rock am Ring & Rock im Park, Lollapalooza scope for optimism. Some of the interviewed Festival, Superbloom Festival, etc.; France: artists and writers acknowledge that, as Cannes, Avignon, Chorégies d’Orange, Fes- soon as they have enough means to eat and tival Radio France in Montpellier, Festival de pay their rent, the current lockdown might musique lyrique d’Aix, Solidays, les Vieilles turn out to be positive. Musician Brett Charrues, les Eurockéennes de Belfort, les Gleason says, “It’s usually quite difficult, Francofolies de la Rochelle, le Main Square, emotionally, to be creative. From this point of etc.; United Kingdom: Wide Awake, BST

8 Caleb Triscari, “Coronavirus: Healthcare expert pre- dicts concerts and festivals will not return until autumn 2021,” New Musical Express, 13 April 2020.

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Hyde Park, Download Festival, Glastonbury availability of artists for their programming, Festival, Isle of Wight Festival, etc.; The autumn and winter 2020 look perilous. Netherlands: Best Kept Secret, Pinkpop, These cancellations — of festivals, tours, Awakenings Festival, Down the Rabbit Hole, concerts and most “live” events — risk jeop- NN North Sea Jazz Festival, Zwarte Cross, ardising an entire industry consisting of frag- Milkshake Festival, Dekmantel Festival, Psy- ile and often independent companies. Be- Fi Festival, Lowlands, Mysteryland Festival, cause what is extraordinary about this sud- etc.; Spain: San Fermin Festival in Pam- den crisis is that the manifold links in the mu- plona; United States: SXSW, Burning Man sic value chain are affected across the world 2020, etc.; Denmark: Roskilde. Northside; at the same time (venues, clubs, producers, Sweden: Sweden Rock; Poland: Orange touring companies, technical service provid- Warsaw Festival; Belgium: Graspop; Pukkel- ers, artists, management teams, etc.). “This pop; Portugal: Rock in Rio Lisbon, etc. The is really tragic for ‘live’ events because con- list extends to hundreds of other events certs are based on short-term economic worldwide. models. A lot of small concert venues are going to close down,” says Matthieu Dartigue- nave, who heads the Music Export Office in Singapore, where he is currently locked down. He adds: “In Asia, all music tours in the region were down as early as February because they usually pass through China and the early stage of the epidemic there precipitated one cancellation after another. The problem is that there is little government support in Asia except in South Korea, Ja- Credits: Pexels pan, Taiwan, Australia and Singapore. Else-

where, such as Thailand, Vietnam, Indone- “It’s simple: in Japan all events have sia, the Philippines, Malaysia and Cambodia, been cancelled, including all summer festi- there are no funds. Everyone is left to their vals,” says Jonas Pulver, Head of Culture own devices!” The important tour of “Latino” and Communications at the Swiss Embassy musician Manu Chao in Asia, for instance, in Tokyo. began in India, only to end abruptly, after tak- Pulver knows what he is talking about. ing place in merely one of the six initially He has long been preparing the cultural side- planned countries. events at this summer’s Tokyo Olympics... “Here in Asia,” adds Dartiguenave, “we but everything has been cancelled. “The Cul- believe things will be better in the autumn, tural Olympiads, called Tokyo-Tokyo, have the traditional festival season. At this stage, also been called off,” says Pulver. Everything professionals are quite optimistic and believe has been postponed for a year. Expo Dubai things will go well. Overall, though, everyone 2020, this year’s World Fair, will be held from is expecting 2020 to be whitewashed.” September 2021 to March 2022 under a

new name: Dubai 2021! For all cultural dip-

lomats, who depend on air travel and the

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In Germany, for instance, the major pro- are already considerable and no one knows fessional music organisations have just an- whether they can be offset by philanthropists nounced the industry’s estimated losses: (in the United States) or by public authorities €5.4 billion for the next six months9. These (in Europe). “If the state intervenes to sup- overall figures, however, only imperfectly report larger structures and organisations, flect a reality that is difficult to translate. Indi- which is complicated in itself, then this fund- vidual situations are more “telling.” ing will inevitably come at the expense of the For instance, Belgian musician Eric budgets allocated to music schools or inno- Legnini, an internationally acclaimed jazz pi- vative artists,” worries Yves Riesel, who anist, observes: “The maths are fairly easy. founded the record company Abeille Mu- Between the end of June and the end of Au- sique and the classical music platform gust 2020, I had 26 concerts planned, in- Qobuz. cluding Jazz à Vienne, Montreux Jazz Festi- We must also consider the mid-term, val, Juan les Pins, etc. I had 26 bookings — even after lockdown. Will audiences have to and 26 cancellations! These two summer wear masks? And musicians? While violin- months amount to a loss of about 15 per cent ists, double bassists, cellists or certain per- of my annual income.” So instead of touring, cussionists could wear masks, this will be im- Legnini is concentrating on his music and possible for soloists, trumpeters or brass teaching: “I have my own studio, which gives players! Will classical music have to be lim- me more freedom. And since I teach at the ited for many months to chamber music or- Royal Conservatory in Brussels, I can con- chestras with string instruments? tinue to teach online. Eleven of my twelve Although “live” music is struggling, the students are doing fine online; only one has multiplication of online initiatives in the field is fallen behind.” He adds: “The more estab- noteworthy. Thanks to significant progress in lished musicians, like myself, are going to do the synchronisation and regulation of inter- okay. The current situation even allows us to net speeds, concerts are beginning to be get out of our routine, out of the incessant held online, with musicians and singers pre- flow of activities. We can recharge our bat- sent in different places. However, as this teries, reflect on our music, and work. I am economic model is almost non-existent on playing the piano twelve hours a day. But the internet, these are mainly communica- what about others?” tions operations, serving to boost morale In classical music, matters seem even among health workers, or rehearsals... more difficult because artists are “booked” In contemporary music, however, the several years in advance, and because or- multiplication of concerts on platforms such chestras are unable to rehearse. Interna- as Twitch, YouTube or even Zoom may in- tional festivals have all been cancelled and volve certain forms of monetisation. In any major institutions, such as national or re- event, this movement suggests that “live” gional opera houses, no longer have any out- music is not only one of the most heavily im- look for the 2020–2021 season. The losses pacted sectors, but also one of the most

9 According to a document published by the music in- and rights organisation (GEMA and VPL). The reve- dustry’’s trade associations representing the live in- nues losts amount to €5.4 billion and include artists, dustry (BDKV, LiveMuzikKommission, BVPop), record concert promoters and festivals, labels, music publis- labels (BVMI, VUT), music publishing (DMV), artists hers, retailers, venues. See MusikWoche.

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agile and innovative,” as Singapore-based shifting to cultural “services,” thus confirming Matthieu Dartiguenave remarks. dematerialisation. Online music sales, how- MIDEM, for example, the world’s largest ever, are also declining. In the mid-term, music market, has cancelled its “physical” iTunes as a store selling MP3 titles seems event in Cannes in June; it will, however, be doomed. Thus, the entire music chain has taking place in a completely recreated digital become destabilised. format, the Midem Digital Edition. This service will be available to all music professionals through live-streamed keynote sessions, talks and presentations, as well as online conversations and speed meetings as in its physical editions. In the same vein, Music Matters, the important Asian music industry trade show, to be held in September in Sin- gapore, will convene largely online for the benefit of foreign participants. Yves Riesel, who founded the record la- Thus, an interesting new model is bel Abeille Musique and the classical music emerging: it is not “glocal,” as it was once platform Qobuz, believes that the present called, i.e. a mixture of global and local, but crisis will “precipitate the death of the CD as what I would now call the “LOGO” mode: a product.” Moreover, “the music majors and “Local Outside, Global Online,” i.e. events independents should have taken more radi- held physically in one place for the “local” cal steps while CD prices kept falling and (“out” or “outdoors”), but only “online” for the production and logistics costs kept rising. “global.” Physical distribution became limited to These blended “LOGO” models offer a chains offered reduced choices or to Ama- small ray of hope and demonstrate that the zon. No one, not even in niche markets, is industry has very quickly reacted by turning interested in buying a CD in a supermarket to live-streaming while experimenting with anymore! Classical music labels are impov- new models of monetising online content erished. No one is asking why second- or (donations, subscriptions, etc.). third-rate artists are produced when the best recordings are available for next to nothing in Music (CD and vinyl sales) streaming? To be frank, I think that the dis- appearance of CD sales will create problems While stage and “live” performances are for the remaining classical music labels — completely at a standstill, the “physical” rec- and that’s good! This will be evident when ord industry is also declining. Concerts are shops reopen.” now prohibited, and shops closed! The rare data available for recorded music confirms a Cinema and the audiovisual sector dramatic slump in CD and vinyl sales since lockdown began. Still, disrupted physical dis- More than any other sector, the audio- tribution does not explain everything. visual sector — which includes film, televi- The coronavirus is accelerating the digit- sion and streaming audiovisual content — is isation of culture, with cultural “products”

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both one of the big winners and one of the catalogue of old or heritage films has defini- big losers of the crisis. tively switched to the internet. To compound On the one hand, the demand for films matters, most international releases have and TV series has rarely been so high, as a been deferred to the autumn and often, as result of coronavirus lockdown; on the other with the big blockbusters, to 2021. Even if hand, production has slowed (television), some cinemas might reopen in certain coun- and even completely stopped (cinema, se- tries, they will hardly be able to screen films ries), due to the health risks on film sets10. able to attract large audiences. Their costs Both unprecedented and massive, this great will rise, yet their revenues will not. dichotomy in a rapidly evolving sector might Obviously, the situation is very different be a turning point in the history of the cultural for online video content. Streaming is grow- industries and might accelerate the con- ing rapidly, even if difficulties lie ahead. Ac- sumption of films, series and streaming pro- cording to data for the first half of 2020, an grammes.11 estimated 16 million new paying subscribers Here are some details. Cinemas are have joined Netflix worldwide — a record. closed, almost everywhere and indefinitely. Netflix shares jumped 11 per cent on Wall Even if they are not strictly speaking a “live” Street. Lockdown measures have pushed sector, cinemas welcome audiences: this is viewers towards streaming video and Ama- their magic — and now their tragedy. Will zon Prime Video, Apple TV+ and Disney+ are they be able to reopen this summer, at least also benefiting. in some countries? This is highly doubtful un- However, if lockdowns remain, audiovis- der the circumstances. Cinemas can, on the ual content could start to run out. The inter- one hand, halve their seating, a measure that ruption of all shooting during lockdown or has already been approved by several cin- other protective measures, is severely hand- ema federations. It will, however, be difficult icapping the entire audiovisual production to go beyond that; and for small cinemas with chain. While certain post-shooting (special less than 50 seats, further reducing capacity effects, etc.) and post-production activities will not be financially viable. have been able to continue via teleworking As a result, cinema professionals are on films at a sufficiently advanced stage, the sounding the alarm. At the European level, industry will be very disorganised, even in most producers and actors in the film indus- disarray, for many months to come. Televi- try have jointly called for radical public sion series, which require long-term shooting measures12. schedules, sometimes in several countries, In cinema, however, concerns go be- will also be at a standstill for several months. yond auditoriums: content itself could be The production chain will be highly destabi- lacking. Cinema continues to attract audi- lised at least until early 2021. ences because it offers exclusive films; the

10 Joe Flint, Benjamin Mullin and Lillian Rizzo, “With America at Home, the Streaming War Is Hollywood’s 12 The signatories of the joint statement are Animation Ultimate Test,” The Wall Street Journal, 11 April 2020. in Europe, CEPI, EUROCINEMA, FIA, FIAPF, FERA, FSE, UNI MEI. 11 Erich Schwartzel and R.T. Watson, “The Hollywood Premiere Is Moving to Your Living Room,” The Wall Street Journal, 11 April 2020.

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Lebanese Mazen Hayek is the official from home, our productions, video clips and spokesperson for the Dubai-based media even advertising require casting and shoot- group MBC. The leading free television en- ing, which has simply become impossible.” terprise in the Arab world, this network dom- inates the market in the Middle East, the Gulf The Digital Sector Region and the Maghreb, thanks to its eighteen channels, including: MBC 1, MBC 2, Whether through streaming, or using MBC 4, MBC Drama, MBC Bollywood, MBC mixed models such as LOGO (“Local Out- Max, MBC Masr (in Egypt), MBC Iraq, MBC side, Global Online”), culture is seeking to re- Persia (in Iran), or the 24-hour news channel invent itself in accelerated fashion. As ob- Al Arabiya. “The Arab television market served, those interviewed agree: the Covid- peaks during Ramadan, from 24 April to 24 19 crisis will spur the digitalisation of culture. May this year. Fortunately, we were pre- New consumption habits are taking hold, and pared as early as March: we had almost fin- will to some extent remain after the crisis. ished shooting and producing our biggest ti- The figures, moreover, show the impudent tles just before lockdown. So, we have all the success of digital platforms, which represent right programmes for the month of Ramadan an exception amid the current health and that will follow... months of lockdown,” ex- cultural crisis. And what an exception! The plains Hayek, via Zoom, from his home in Du- sector’s leaders (Amazon, Netflix, Spotify, bai where he, too, is locked down. The Deezer) are all experiencing soaring turno- streaming sites of the MBC group have also ver. Even more remarkable are the results of seen spectacular results since March: Sha- e-commerce sites, food delivery services, hid, free VOD, and especially fee-paying online healthcare, education or even video Shahid VIP, a kind of Arab Netflix, are making conferencing applications (Zoom skyrock- strong progress. “The audience for our chan- eted from 10 million users at the end of 2019 nels and digital platforms has never been so ... to 200 million today ...). Sales of physical large,” says Hayek. books online have also exploded, for exam- Producers of more artistic or independ- ple, at Waterstones, the leading bookseller in ent content are not as optimistic. For smaller the United Kingdom, which has grown 400 art film producers or directors, the situation per cent13. even seems desperate. Miguel Rojas Palen- Noteworthy among the GAFA, however, cia, an independent filmmaker, confirms this are the relative difficulties of Apple, which outlook: “My sector, film, differs from the rest took the hit in March: its shares were unset- of culture. Not only can we no longer release tled, its future iPhone was pushed back and films with a premiere at festivals or in cine- its assembly lines in China were paralysed. mas, and not only can we no longer get paid, Since mid-March, Alphabet (Google) has but above all our productions can now only also been experiencing difficulties, as has be shown on the internet; we virtually have Facebook, due to the significant drop in the no economic model. While some artists such advertising market. The economic recession as musicians, writers or painters can work immediately led to a remarkable contraction

13 https://www.bbc.com/news/entertainment-arts- 52048582

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of the advertising market. Even YouTube’s Europe (the famous “unicorns”), thus con- revenues are depreciating sharply (although firming that the European digital sector and its audience is growing). For countless art- its global ambitions are in good health15. ists, this unexpected side-effect has resulted Hernan Botbol, who founded a major in significant financial losses. Taringa! streaming platform in Argentina, Equally disappointing is the fact that mu- and now runs a price comparison site in Aus- sic streaming services such as Spotify, Apple tin, Texas, comments: “We are watching the Music or Deezer have not seen any signifi- market and price evolution on Amazon in real cant audience growth. In fact, figures are lev- time; since lockdown we have witnessed a elling off. Against all expectations, yet with- significant increase in purchases in the US out being dramatic at this stage, listening for beauty products (+60 %), sports and fit- times on these platforms even seem to have ness equipment (+100 %), as well as baby decreased by about 5 to 10 per cent. Ac- products (+600 %). With the notable excep- cording to analysts, these disappointing re- tion of jewellery and luxury goods, which ex- sults are due to a sudden decline in public perienced a decline (–40 %), e-commerce is transport ridership and private vehicles growing very significantly. Electronics are (“drive time”), with consumers, now at home, selling better, as are computers, not to men- preferring video streaming sites to keep tion a spectacular increase in book sales. All themselves entertained14. Deezer reports entertainment sectors, streaming and social that its “rush hour time,” previously at 7 a.m., networks are growing very strongly. All tech- has shifted to around 9–10 a.m. nological fields are exploding, with some very Although the tech sector is currently ex- few exceptions.” Botbol is also expecting periencing strong economic development, business practices in the tech sector to shift: there are exceptions. Start-ups linked to “We have set up shop here in Austin, Texas, travel, transport, tourism or travel, as well as as it is now the second US capital for start- e-bikes, e-scooters, etc. are all struggling ups and technology after Silicon Valley. Ap- (Expedia, Trip Advisor, Kayak, etc.). Uber, ple and Google are opening their second too, is going through a difficult period, alt- campuses in Austin and the city is one of the hough Uber-Eats is compensating for a small ‘fastest cities’ in America. I believe the coro- part of these losses. Airbnb sees its model navirus will further accentuate prominent suddenly called into question. Finally, and trends: more and more people will be work- more generally, some analysts are con- ing from home. This was already our way of cerned about the current caution of venture doing things, even before the coronavirus, capital investment funds, as this might pose with daily checks and weekly meetings, but problems for financing the digital sector in this approach will become widespread. the mid- term. The digital sector, however, Working at home enables saving precious does not seem too troubled: the European time on transport — sometimes two hours a Union recently listed a hundred companies day here in Austin — as well as eating health- whose value exceeds a billion dollars in ier and taking better care of your children.

14 See the data compiled and analysed by Music Busi- 15 According to data provided by Pēteris Zilgalvis, who ness Worldwide, based on information from Spotify- heads the European Commission’s Unit for Digital Inno- Charts.com. vation.

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Developers enjoy this freedom, as well as be- Social networks and video games ing able to choose their own schedule. For our start-up, it’s also much cheaper: our Social networks and video games are seven employees are now all working in re- doing well. They have the advantage of being mote mode, meaning we no longer need to digital and are facing almost none of the dif- rent offices!” ficulties encountered by filmmaking. Egyp- These digital trends, which are acceler- tian community manager Hady el Hady, who ating during lockdown, might become the is currently locked down in Berlin, is a com- rule after lockdown and thus affect more tra- munications specialist at Instagram and is ditional cultural actors who are experiencing also observing the changes in culture on so- an almost entirely virtual artistic world. Lau- cial networks: “What is happening is quite rence Engel, president of the National Library spectacular. Artists are using social net- of France, comments: “Going forward, we works as an outlet for their art and people are will have to reason in economic terms and interested in them online. The most-used question our models to identify the best way networks seem to be Instagram Live Feature of maintaining the production capacity and, (which belongs to Facebook) and Twitch even more so, the distribution capacity of our (which belongs to Amazon). Interestingly, creations. It will not just be a question of Twitch was originally designed for video passing the test amid a rationale of one-off, games and gamers, but since the corona- quick-fix compensation. We will also need to virus it is being used for all kinds of content.” sustainably preserve the so-called diversity In recent weeks, Twitch has seen a of creation, if we want to avoid the trend to- spectacular — 31 percent — increase in its wards concentration and mainstreaming audience. Besides, it is currently used by overtaking everything. The risk is now even musicians (to hold concerts and hopefully greater as digital broadcasting will have monetise their performances) and by teach- completely taken over broadcasting during ers (to give online classes), which might also the crisis. I consider this the fundamental ob- explain this audience increase16. jective. It also marks out what seems a prom- Even more revealing are “in-game con- ising path. It might involve developing new certs.” This phenomenon, though not new forms of broadcasting in the physical world. (DJ Marshmello used this mode successfully Thus, not giving up venues, not giving up ex- last year), is also setting new records: Amer- hibitions, but, for example, providing more in- ican rapper Travis Scott just performed a timate forms with more space. For culture, concert on the Fortnite video game platform this amounts to the idea of slowing down, by to launch his new single “The Scotts” (featur- embracing a logic of sustainable developing Kid Cudi). The concert attracted 12 mil- ment. The principle can be applied to all sec- lion online viewers. Even if the format obvi- tors.” ously did not equal a live concert, it was still quite successful visually. Four more concert dates are planned. Thus, while we wait for

16 The same audience growth is evident on Huya, a video games, which, in addition to video games, is also kind of Chinese Twitch specialising in live streaming a leader in sports competitions, cooking and education.

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live concerts to return, “in-game concerts” way video games are produced. I have my might be an interesting alternative. And yet, own studio and work with people who are of- will it last? ten abroad. My sources of income, both di- Egyptian techie and marketer Hady el rect and indirect, application sales and gov- Hady adds: “I am also observing the devel- ernment support, have changed little, if at all. opment of TikTok, which has adapted per- I would even say it’s ‘business as usual.’ Ac- fectly to lockdown, as an article in The cording to some, there is now even greater Guardian recently analysed17. All of this is demand for video games, but I haven’t seen significantly changing the uses of social net- that at the moment. I wonder if people really works. For example, content that was pro- have more time for themselves, even if they duced for Instagram is now moving to TikTok are staying at home.” to reach wider audiences. These platforms offer artists new spaces to show and even Media and advertising monetise their work (Twitch has a ‘tips’ service that enables viewers to pay artists). Initially, the health and economic crisis However, I am also seeing some rather ab- caused by the coronavirus was expected to surd rules on platforms, in terms of what can mainly impact “live” culture. However, sev- be said, shared, or even how to dress. Many eral recent studies show that the media, ‘drag performers, for instance, have been broadcasting and press are also affected by banned from Twitch because their apparel is the sharply contracting advertising market. considered too provocative.” Henry Finder, the editorial director of The New Yorker, has tentatively analysed the situation in the United States: “The big picture for the news media is now clear. Website traffic is up for news media; subscriptions are up; advertising is down. I gather The Guard- ian is anticipating a twenty-million-pound drop in revenue this year, for instance. Newsstand retailers are in trouble, and advertising categories like travel, hospitality, and retail have cratered. The Tampa Bay Credits: Florian Olivio Times, a daily newspaper since 1912, recently announced that it would print only two The video game sector, unlike other fields, issues a week. Local magazines have closed seems to have managed to continue devel- or suspended publication, including the city oping during the coronavirus; its production publications of the Time Out group. For has not been as severely impacted as cin- online-only media properties like Vox and ema. Mario von Rickenbach, a Zurich-based Buzzfeed, we’re seeing layoffs and furloughs game designer, explains: “Things haven’t (along with ‘explainer’ pieces on the shifted much. Nothing has changed in the

17 Coco Khan, “TikTok is the social media sensation of lockdown. Could I become its new star?”, The Guar- dian, 14 April 2020.

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difference between layoffs and furloughs). the situation is likely to be even more severe. For magazines that have a strong and loyal Specialists predict that a number of small or paying readership, the crisis is bound to have medium-sized museums may be unable to the effect of accelerating existing trends: survive. ever greater reliance on revenue from read- Does the visual arts sector need help? ers, less support from advertisers.” And should institutions or individual artists be The dwindling advertising market is favoured? Sean Buffington, vice-president of therefore a reason for concern, although lo- the Henry Luce Foundation, who is currently cal situations vary. In Dubai, for instance, locked down in New York, explains: “The Mazen Hayek is also worried about plummet- Henry Luce Foundation primarily supports ing advertising revenues despite the Arab museums—as opposed to individual artists television market performing well during the or performing arts organizations. Almost im- crucial Ramadan period: “Advertising for mediately it was clear that museums would what jargon calls ‘FMCG,’ Fast-Moving Con- be profoundly adversely affected. Most US sumer Goods — or mass consumer goods, museums support themselves with a combi- i.e. basic necessities, food, soft drinks, pur- nation of admissions fees, gifts and grants, chased mainly in supermarkets — is doing and endowment income. With facility clo- well. There are, however, genuine concerns sures, admissions fees disappeared entirely. about advertising for airlines, cars, house- Expensive exhibitions—which might have re- hold goods, luxury goods or beauty prod- couped some of their costs from admissions ucts, which is also declining. The 2020 ad- or from traveling to other venues—became vertising market can be saved if Ramadan financial burdens. The stock market collapse revenues turn out good. A priori, our adver- led to huge declines in endowment value. tising campaigns during Ramadan will be And many museums’ principal fundraising correct. We have limited the damage.” events, which take place in the spring, were cancelled.” Fine and visual arts Beyond institutions, whether large or small, the fate of individual artists does not Museums and galleries, on the other really seem to be more fortunate. “Artists are hand, have been strongly impacted by the in a different position. The vast majority of crisis. For them, it is about squaring the cir- artists do not earn most of their income from cle: operating costs remain high even with- their art. They are employed as service work- out visitors; staff costs remain except for fur- ers, as teachers—in universities, in muse- loughing; ticketing has crashed to zero; phi- ums and arts organizations, and in primary lanthropy is drying up. “Balancing museum and secondary schools, as casual workers budgets will be impossible in 2020,” as Au- who earn income from a variety of sources. rélie Filippetti, the former French Minister of Many have lost their primary income source Culture, sums up the situation. because of COVID-19. Many are unable to In the United States, many museums practice their art form under lockdown con- have been forced to lay off or dismiss their ditions—which may result in lost income and staff. Will they be able to reopen soon, or per- also affects artists personally, spiritually, psy- haps in June, which would help limit the dam- chologically. Many do not have adequate age? If closures continue until the autumn, health insurance and so may not be able to

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secure adequate medical care in the event distancing and better viewing quality could they become sick. Artists are resilient, of prove to be a good thing.” course. Many confront unemployment and Jacob Bromberg, an American visual- underemployment on a daily basis as artists. artist/multimedia poet/translator, is locked All sacrifice a great deal—financially, person- down in a rural area with his wife and their ally—to pursue their art. So, I expect that art- young son. His analysis of the current situa- ists will survive this crisis—but not without tion is mixed: “On the one hand, I had my great pain and cost.” main exhibition postponed because we no Buffington concludes: “On the other longer had the companies to produce the vi- hand, confronting this emergency and hurry- nyls that are indispensable for making my ing to shift our grantmaking to address it has tree poems. Everything is on hold. Schedules also forced us to ask questions about our are in disarray, and it will take months to re- grantmaking strategies. Although we haven’t establish stability. On the other hand, when reached any conclusions, we are asking it comes to writing, I’m much less affected. I whether we should re-think our grantmaking can write, take time to think and work. The in the future. What is it that our partners need visual artist in me is doing badly, but the most; how can we advance our goals most writer is doing well.” He adds that “lockdown effectively given what we’ve learned and are helps us to think about what our lives might learning from this crisis?” Thus, very many be like in a few years’ time with climate questions remain unanswered. change.” Accordingly, museums are stepping up their online initiatives. Among countless ex- Theatre amples is the Proa Foundation in Buenos Aires, which “is not trying to compete with As they are, by nature, open to the public, the giants in the sector, but is relying entirely theatres are also affected. This is true espe- on online art education,” as its president, cially in the United States: “We are observing Adriana Rosenberg, confirms. The founda- a similar situation in the performing arts as tion is offering “dozens of free art classes we are with museums. These institutions are online via Zoom” (the programme is called also underfunded and heavily dependent on “Proa en Zoom”). This initiative is enjoying their box office,” says Sean Buffington. some success in a country where the eco- A study by the leading entertainment nomic crisis was hitting millions of people company Stage Entertainment shows that without jobs and unemployment insurance audiences do not seem to consider returning already before the pandemic. The economic to theatres, musicals or concerts until Sep- crisis is now compounded by the health cri- tember 2020 at the earliest; moreover, very sis. few people are considering buying tickets in Former French minister of culture Aurélie advance, even if they are promised a refund Filippetti also believes that “we need to rein- should they cancel18. vent things and can do so digitally. In the long Joe Melillo is one of the most famous the- term, rethinking exhibitions with more social atre and dance producers in the United States, and was for many years director of

18 Stage Entertainment Corona Study, April 2020.

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programming at Brooklyn Academy of Music down in his home in Venice, says: “I am really (BAM). His analysis of the US situation is fearful of how screwed our fragile free-lance compelling: “Arts programmers and artists performing arts world - from commercial to are discovering the magnitude of the disas- more experimental- is by this debacle... es- ter. All salaries are being cut by 20 to 50 per pecially for emerging artists. It was so pre- cent in the best of cases, if you’re not fur- carious already. Not too worried for me; I loughed or fired... Drastically reduced budg- know I will lose at least a year of income...to- ets mean artistic quality will suffer. And since tally... but hopefully it will recoup some by fall we have fewer artists and fewer cultural ad- 2021. Too many theatres and universities ministrators, or since we can’t pay them, have been telling me in-person teaching and we’re going to be short of everything. There performing arts this fall is unlikely (my main

Credits: Manuel Nägeli

is a lot of pressure on private philanthropy, gig time). We shall see. The world will look but no-one will write us blank cheques! The very different 18 months from now.” reality is that American culture is going to Christopher Kriese, a member of the Zur- shrink in all areas for at least a year.” ich-based theatre activist collective “Neue Individual artists are paying a high price Dringlichkeit” analyses the situation in two for this unexpected situation. In the United ways: “At the moment, I am seeing two main States, they are rarely salaried and most of- consequences. On the one hand, there is fi- ten “freelance.” They were the first to lose nancial insecurity, financial losses and un- their engagements and resources. Tim Mil- certainty in already precarious fields of em- ler, a Los Angeles performance artist locked ployment. On the other, there is a certain

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push towards implementing and experiment- many artists work process-based and not ing with digital technologies. For example, product-based). Let me illustrate this: if art- streaming theatre, interactive theatre for- ists were shoe-sellers, they should not be mats online. Since our art collective is receiv- paid only if they sell a shoe, they should be ing a two-year grant from the City of Zurich, paid for working at the shoe-store. In my which is not directly linked to output in the view, the best way to do this would be form of live performances, we have more through some form of basic income for art- freedom in deciding how to deal with the sit- ists. This would also be useful without con- uation financially. At the moment, we are sidering the corona crisis, but it would be es- evaluating the possibility of moving a produc- pecially helpful in times like these, when live tion scheduled at Gessnerallee to an online performances are not a good idea.” format. The greatest challenge is that our Despite new ideas and a certain opti- piece heavily relies on audience participa- mism that nevertheless persists, at least at tion. We are thinking about how to involve the times, many actors are wondering whether audience in an online format.” this crisis will not lastingly affect their artistic With the Avignon Festival in mind, Chris- careers: not simply in terms of lost income tiane Bourbonnaud also believes that digital but also in terms of lost career opportunities. initiatives must be taken, even if they fall Or as Consuelo Sáizar, Mexico’s former Min- short of what constitutes theatre: “Using dig- ister of Culture, puts it: “From what I know ital technologies is essential at the moment; about arts management, I am deeply con- they can make a considerable contribution. cerned about all the opportunities that will be All of the mini-concerts being broadcast live lost by performance artists, whose corporal- via the internet open up opportunities and ity is crucial; for instance, dancers, for whom paths for artists and theatre programmers to even a six-month career break could affect dig deeper. Although it is unable to replace their development. This will be a tragic prop- physical presence, digital theatre can mean- osition for emerging artists.” while recreate proximity. Olivier Py [the current director of the Avignon Festival] has de- Architecture & Design cided to organise a virtual mini-festival in July with broadcasts of recorded performances. In architecture and design, the situation This is a good initiative despite possible res- is more diverse: “Lockdown came at a spe- ervations about recorded shows, which cial time for all of us. Some are doing well; rarely stir audience emotions.” others are not,” says Bernard Dubois, a But do the theatre’s funding processes young architect (who is already a star in his need to be changed? Christopher Kriese native Belgium) locked down in Brussels. “As thinks so: “Instead of giving money to artists far as I am concerned, most of my projects based on their ‘output’ (i.e. rehearsals, per- were in the development phase. Thus, the formances), artists should receive money fact that building sites are at a standstill has based on their ‘input’ (artistic research, ex- only limited effects for me; it pushes back perimentation with new formats, group dis- deadlines a bit. In general, 70 to 75 per cent cussions or whatever else they do). They of an architect’s work takes place well ahead should receive money for working as an art- of execution. In other words, you can con- ist, not for producing artworks. (Also, since tinue working normally from home. It even

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allows you to take a step back, not to rush cultural system, for both music and theatre from one building site to another, which (GEMA in Germany, SACEM, SCAM and makes the quality of my work suffer. I have SACD in France, SOCAN in Canada, PRS for even managed to sign four new contracts Music in the United Kingdom, etc.). These during lockdown,” he says. “If the situation structures, which generally have considera- lasts two months, we’ll be able to manage. If ble financial reserves, are currently reflecting it lasts longer, I don’t know.” Since architects on how best to help artists. Some agencies tend to be paid stage by stage (signature fee, have set up emergency relief funds: by draw- concept design, schematic design, design ing on their reserves, they are helping artists development, tendering, execution, follow- amid the crisis. However, they are also find- up, etc), their business model seems to be ing themselves in difficulty. Concerts and less affected than that of other artistic pro- festivals have been cancelled, discotheques, fessions. clubs and bars have closed, businesses Abbas Saad, a consultant and urban have been closed and music-related rights planner now locked down in his native Beirut, will be significantly and lastingly reduced for Lebanon, agrees: “We need to distinguish several months. Private copying rights are between work that needs human interaction also waning sharply. “But we will only really and work that does not. Personally, I am find- feel the effects of this crisis in about eighteen ing this a great opportunity to explore all the months, that is, the time it takes us to collect political and philosphical topics I have been the rights,” explains the director of one col- wanting to dig deep into. However, a big part lecting society19. of my work, which requires interviewing However, one wonders whether these groups of people and collecting fieldwork private companies, which often manage bil- data is absent now and I actually received a lions of euros in rights, might not be able to 20% cut on my salary due to the decrease in mount a more significant “relief” plan for all work activities and the inability to finish some their members under such exceptional cir- projects without fieldwork. But again, for cumstances. someone who is into intellectual stuff and likes to research and write, this is a great op- Publishers and writers portunity for me to teach myself new things, read all the books in the world and not feel Significant differences are also evident in bad about it!” In Lebanon, the economic cri- publishing, depending on whether one is a sis has long prevailed and the current situa- bookseller, a publishing house, a library, an tion is exacerbating tensions. e-book platform or a writer. “Reading remains one of the safest and most satisfying Collecting societies activities imaginable, so while the current situation is hard for everyone, we remain opti- Less well-known and less publicised, collect- mistic. Sales may be lower for the foreseea- ing societies are another essential link in the ble future, as long as retailers aren’t able to

19 Emmanuel Legrand, “Creative sectors assess the impact of C-19 and their needs to get through the global crisis,” Legrand Network, 6 April 2020.

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operate or attract as many customers as be- upside down since lockdown! But libraries fore, but the essential act of reading isn’t have found a way to keep going, and to keep likely to change. If anything, people may contributing, through dematerialising their have more time or occasion to read now,” services: online resources, digital loans, web says Jonathan Karp, director of the large conferences, presenting their collections American publishing group Simon and online and via social networks... These offer- Schuster (owned by CBS). ings have seen visits explode. In the Covid For booksellers, on the other hand, crisis, as previously and probably also after- months of closure represent a considerable wards, libraries will therefore remain land- loss of income, even more so as March and marks and resource centres. Even if the cri- April are important times for literary publica- sis will doubtless make libraries rethink their tion. For publishers, books published in Feb- role in the digital world, in order to develop it ruary and March were sacrificed while the further, I am sure that they will also remain, rest of the publishing season was postponed and as soon as possible, places of refuge, in- to the autumn or winter, at the expense of habited by their readers, who often choose great difficulties. Concerns remain, however, to set up residence there. In other words, for summer and even autumn sales. “We’re while the crisis is strongly disrupting libraries, going to pay for this crisis for more than a it is not profoundly destabilising them. This is year,” suggests one publisher. far from true for all cultural sectors. We are Henry Finder, editorial director of The rather resilient.” New Yorker, comments: “In the short term, E-book platforms, in contrast, have seen we’re seeing the publication of many books the lockdown as good news. Activity on most being postponed. Wholesale book deliveries e-book platforms has increased from 75 per have been affected. But again, what we’re cent to 200 per cent, coupled with a real seeing, more broadly, is the acceleration of plebiscite for freely accessible e-books and previous trends. Many independent booming digital lending, forms of provision bookstores, which have always operated on that libraries are struggling to cope with. All thin margins, have shuttered for the moment platforms are benefitting: Amazon Prime, and may not survive. Purchase decisions are ePagine, Youboox, Vivlio, Tite-Live, Glose, increasingly not being made in the bricks- etc.20. and-mortar retail space. Demand remains The situation also appears to be quite strong; book publishers continue to get sub- positive for writers, even if many authors missions and continue to buy them. But pro- have had to cancel reading tours, which are moting new authors remains a difficult chal- now core to their economic model21. Mexican lenge.” publisher Consuelo Sáizar states: “As a pub- Regarding libraries, Laurence Engel, lisher, I can see no major disruption for writ- president of the National Library of France, ers, but the publishing industry will definitely observes: “Everything has been turned change: book fairs, for instance, involve a

20 See Livres Hebdo, “Le livre numérique explose sur Strategies for a “Positive Economy,” pp. 5-45 (40p), toutes les plates-formes,” 1 April 2020. 3rd Creative Economies Report, ZHdK/ CreativeEcono- mies Research Venture, Switzerland, 2018. 21 See Frédéric Martel, “Positive Economy, Towards New Business Models for Artists,” in Entrepreneurial

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social element that is currently unsustaina- Emmanuel Neisa, who runs Click Arte, a ble; besides, publishing and commercialisa- publishing house for educational and chil- tion might accelerate under the new condi- dren’s books in Bogotà, says: “I didn't see tions.” this crisis coming. But we immediately Benny Ziffer, the internationally re- adapted by moving online. We understood nowned Israeli writer and translator, who ed- that the demand for online educational con- its the literary supplement of Haaretz, the tent would be massive, and began working reputable daily newspaper, also expresses on audio books and subscription-based edu- mixed feelings: “On the one hand, all cational micro-content; above all, we bookstores are closed in Israel, as are thea- launched laaldea.co.” The project involves tres and beaches. On the other, my newspa- producing original content aimed at explain- per has never been so popular, but advertising the coronavirus and lockdown to chil- ing has almost been wiped clean. As a writer, dren. Success was immediate: “New oppor- I have to say that the situation is not that bad. tunities have opened up for us. UNICEF ap- Thanks to lockdown, I have been able to proached us to distribute our books to all translate two books by Gérard de Nerval and schools in Colombia, and we managed to Huysmans!” Locked down in his kibbutz in produce original content in a few weeks. We the Jezreel Valley, Ziffer adds: “Lockdown is have hired graphic designers, authors and the ideal state for a writer!” developers. This is a moment of strong He adds that authors spend several growth for us. I also believe that children’s months a year confined in order to write. books and schools need to reinvent them- Thus, the present health crisis changes noth- selves in the digital age, and the crisis ing. Most writers have begun writing their brought about by the coronavirus can help next book, sometimes ahead of their summer us do precisely that.” work. Lockdown, then, seems like a godsend Other publishers, including prestigious of sorts. With secondary activities now sus- ones, are experiencing far more serious diffi- pended, such as teaching, consultancy and, culties., City Light Books, for instance, which as mentioned, readings and lectures, some is both a famous bookseller and publisher in authors might still find themselves in eco- San Francisco, recently launched a fundrais- nomic difficulty. ing campaign in its attempt to avoid bank- Another question is, once bookstores re- ruptcy (GoFundMe: https://www.go- open, whether new authors can be intro- fundme.com/f/aeany-keep-city-lights-books- duced amid these difficult times: “It’s hard to alive). $450,000 have been raised so far. imagine throngs of readers congregating in They are also offering advance purchases, small stores and casually browsing books which customers will be able to collect as without either wearing gloves and masks, or soon as the bookstore reopens. having a bottle of hand sanitizer nearby. “What strikes me,” says Tom Avendaño, Online sales for well-known authors may re- a cultural journalist at El Pais, “is how quickly main stable, but publishers and booksellers we have moved on from the previous situa- may have to find new ways to attract atten- tion and the traumatic period we are now ex- tion to newer or less obvious authors,” wor- periencing. Right now, the barrier between ries Jonathan Karp, director of Simon and the traumatic present and the very recent Schuster. past is so big, so we are going to see a race

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to publish new works of art (pieces of culture, know. Perhaps support for bond issuance by rather) to gap these two realities. The Slove- cultural non-profits? But that. would benefit nian philosopher Slavoj Zizek has already only organizations with assets against which published a book explaining the pandemic, bonds could be issued. States could issue so has Paolo Giordano. There are audiovis- such bonds themselves and distribute the ual projects already going on in HBO or in the money but I suspect they will want to keep Spanish public television to 'fictionalize' life that powder dry for the economic recovery. during the quarantine. These works are very Certainly, cultural non-profits should be in- rarely interesting, the same way books and cluded in and eligible for stimulus/recovery art produced immediately after 9/11 failed to monies that become available in the coming find anything new to say -- there were over months. Some have spoken of a new WPA 1,000 nonfiction books about the attack pub- Federal Art/Writers/Theater Project. It just lished in the five-year aftermath, and 30 nov- seems very hard to imagine under the cur- els (one by John Updike, other by Don De- rent administration.” lillo), and a most them have been outdated. Central to discussions in the United Ken Follet wrote a book about the cathedral States is the National Endowment for the of Notre Dame in the week following its tragic Arts (NEA), the US federal agency for cul- fire last year, and it was only interesting be- ture. It has just released $75 million for a pro- cause it wasn't a journalistic description of gramme called CARES (Coronavirus Aid, the tragedy to what extent this role now be- Relief, and Economic Security), which is longs to social media is something we will aimed indirectly at cultural organisations, via

Note II discover in the next months.” state and regional arts agencies (40 %) and The Great Cultural Will we soon be reading novels about the directly at non-profit organisations (60 %). Depression coronavirus, along the lines of Thomas However, shortly before the health crisis, II.I The creative eco- Mann’s Magic Mountain (about tuberculo- President Trump called for the NEA, and an- nomy, an economy unlike any other sis), Daniel Defoe’s Journal of the Plague other agency, the National Endowment for II.2 The creative eco- Year (about the bubonic plague) or Hervé the Humanities, to be disbanded as part of nomy, an economy Guibert’s Un ami qui ne m’a pas sauvé la vie budget cuts for the 2021 fiscal year, which unlike any other (about AIDS)? We will see. begins in June.... II.3 The sub-sectors of the creative economy The federal “Stimulus Relief for the Arts” Conclusion plan, recently adopted by Congress, ear- Conclusion marks $300 million for culture. Although this amount seems considerable at a glance, it is Unprecedented and sudden, the current quite modest by American standards. Thus, health and economic crisis will lastingly im- hopes are being pinned on states and cities. pact the world of culture. What might be In New York, while various forms of support done? What might governments, foundations have been established, their distribution has and the private sector do? Sean Buffington, already raised tensions: although “emerging” vice-president of the Luce Foundation, which artists are among the neediest, the schemes, is heavily involved in the field of culture in the being based on venues rather than individu- United States, has suggested a few ideas: “Is als, are barely accessible to them. “The peo- there anything that could be done—given the ple who need help most will be the least culture of funding culture in the US? I don’t helped,” laments Brett Gleason. More

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generally, the “relief” systems currently be- programme, amounting to 280 million Swiss ing devised target the most visible offerings francs and co-funded by the cities. In the city — approved venues, major museums and of Zurich, for instance, it includes interest- large orchestras — rather than vulnerable in- free loans for all requesting institutions; cash dividuals. advances for subsidised institutions; emer- Henry Finder, editorial director of the gency aid up to 186 Swiss francs per day for New Yorker, sums up matters: “Federal aid artists suffering hardship; as well as substan- may enable some vendors and publications tial compensation for financial losses as a re- to survive. Nonprofits and foundations have sult of cancelled or postponed cultural provided help to some newsrooms. But events, etc.23. American political culture isn’t quite accus- In Japan, the city of Tokyo has set up a tomed to extensive public support of media relief programme, to provide roughly €1,000 institutions and publishers. America’s Corpo- in immediate aid for every cultural venue and ration for Public Broadcast operates with a for every applying artist; the guidelines for budget that’s a fraction of that of the BBC. qualifying for these “relief” grants seem to be The U.S. stimulus bills that are being passed fairly flexible and open to everyone, including are in the name of propping up the overall the youngest or most bohemian artists. economy and softening the economic devas- In Germany, a federal plan has been put tation for affected individuals. There’s little in place by the Deputy Minister of Culture, talk about the value of local reporting, say, or Monika Grütters, while the states (Länder) maintaining our cultural infrastructure, and I have introduced their own schemes, some don't know that, in the halls of Congress, the very ambitious, others less so24. political will can be found to direct financial In France, a relief and recovery plan, as assistance specifically toward those sec- yet modest, has been drawn up by the Min- tors.” ister of Culture, Franck Riester, who intends Outside the United States, economic to widen the scale in May. On the other hand, stimulus programmes, “stimulus plans” and significant aid has already been granted to other “relief” plans are multiplying. Countless affected enterprises, in form of tax exemption initiatives including a cultural component or loans, and to les intermittents du specta- have been devised by public authorities or cle, as persons working intermittently in the private foundations. An initial survey has performing arts or the audiovisual sector are been concucted by the think tank KEA Euro- called in France25. pean Affairs22. In Spain, however, no serious announce- In Switzerland, a relief programme re- ments have been made. This is a source of cently launched, both at the federal level and disappointment for young independent by certain cantons or cities. The Federal filmmaker Miguel Rojas Palencia: “Artists in Council swiftly approved an ambitious relief our system are not recognised as workers:

22 https://keanet.eu/collaborative-map-covid-19-policy- 23. April 2020. See also the data provided by the u-in- measures/ stitut Backes & Hustedt GbR.

23 https://www.stadt-zuerich.ch/kulturleitbild-20-23 25 “Franck Riester détaille les mesures en faveur du secteur culturel,” Le Monde, 17 April 2020. 24 See, for instance, “Grütters: Politik muss Künstlern in der Corona-Krise mehr Mut machen,” Mdr.culture,

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they simply spend their time making art, at Together at Home” concert organised by their own risk. In Spain, no subsidies and aid Lady Gaga on 18 April: even if this global are available in the current situation. Re- event did not primarily serve to raise funds, it cently, the Minister of Culture even stated did at least provide a “feel-good” moment that the cultural sector is not important and artistic solidarity amid the constant enough to be helped as a priority in this cri- health alerts. sis... .” Despite these numerous public and pri- In Mexico, the government has set up a vate initiatives, often generous or original, no mechanism that Antonio Martínez Veláz- large-scale “relief” plan exists — or not yet. quez, the chief of staff at the Ministry of Cul- If it were to materialise, would it mark, as ture, sums up as follows: “In the case of the many hope, a time of refoundation? A mo- Mexican government, we have undertaken ment of reinvention for a new cultural world? three main actions for the cultural sector. In the meantime, and at the beginning of an First of all, the launch of the program ‘Con- unprecedented mass economic crisis, the tigo en la Distancia,’ which consists of a dig- Works Progress Administration set up by ital repository of all the aesthetic production President Roosevelt after the 1929 crisis has of the Mexican State and a temporary em- not yet found its modern-day counterpart. ployment space for artists and groups; second, a call was opened for independent sce- Frédéric Martel nic spaces. This call gives the opportunity to these spaces, now closed, to access financ- Translated from French by Mark Kyburz ing of $ 6,000 (USD) to overcome the pandemic; third, we have established the ‘func- ______tion bank’ so that today it is possible to pay for plays or concerts that will be presented in This first research note is part of a series of four the future.” notes published by the Zurich Centre for Creative Almost everywhere, collective aid funds, Economies (ZCCE) on the economic conse- characterised by original forms and atypical quences of the coronavirus. structures, are being conceived or have been established. Examples include the Art- ist Relief project in the United States or the SUGGESTED FURTHER READING: Covid-19 Music Relief Fund launched by Spotify26. Under its public service remit, Ra- Introduction – (Christoph Weckerle) dio France has launched a major solidarity Note 1 – The WPA, Roosevelt and Artist Re- programme with artists by increasing the lief in America 1936–1939 (Frédéric Martel) number of commissioned works, by bringing Note 3 – The Swiss Creative Economy: Some cancelled festivals to life on its stations and statistics-based reflections on the current by broadcasting public theatre and concert debates in Switzerland (Roman Page, performances in order to offset artists’ lost in- Christoph Weckerle) come. Not to forget the “One World,

26 https://www.artistrelief.org/ et https://covid19mu- sicrelief.byspotify.com/fr-fr

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Note 4 – Beyond the current debates: Alter- native strategies for analysing the creative economy (Simon Grand, Christoph Weckerle)

Zurich Centre for Creative Economies

ZURICH CENTRE FOR CREATIVE ECONOMIES (ZCCE)

The Zurich Centre for Creative Economies The Zurich Centre for Creative Economies (ZCCE) is an international research centre of (ZCCE) is part of Zurich University of the Arts excellence dedicated to studying and analys- (ZHdK). ing the creative economies and to transfer- ring this knowledge into higher education Frédéric Martel, Academic Director and practice. Our fields of expertise are: Cul- Eva Pauline Bossow, Managing Director tural Policies, Digitalisation, Smart Cities, Art and Design Careers, Criticism & Theory and CONTACT Entrepreneurial strategies. Zurich Centre for Creative Economies We work closely with our international part- Zurich University of the Arts ners, researchers, academics and Toni-Areal, Pfingstweidstrasse 96 startuppers. 8031 Zürich, Switzerland [email protected] www.zhdk.ch/zcce

May 2020