Coronavirus Concert Cancellations Expose Vulnerability of Touring
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Bulletin YOUR DAILY ENTERTAINMENT NEWS UPDATE MARCH 24, 2020 Page 1 of 22 INSIDE Coronavirus Concert Cancellations • BMG Revenues Expose Vulnerability of Touring Grow 10% as Owner Bertelsmann Says It’s Industry’s Gig Economy ‘Well Prepared’ to Survive Coronavirus BY ANDREA DOMANICK Crisis • Spotify, Tidal, On March 13, Ta-Da! Catering owner Shelleylyn “It’s hard for us because of all the people that Pandora & More Brandler was out shopping in preparation for The depend on it — they work for us year after year, look Streaming Services Strokes’ highly-anticipated show the following night forward to and count on it,” Brandler tells Billboard of Donate to MusiCares’ COVID-19 Fund at the Forum in Inglewood, California. As the go-to the stacked spring-to-fall touring season at the heart backstage caterer for major venues, tours and festivals of her business. She has offered to help support her 50 • UTA Implements across the country, Brandler was concerned by the full-time and on-call staff members from her personal Pay Cuts Amid postponement of their gigs with Coachella and Stage- savings, but fears it won’t be enough. “The heart- Coronavirus coach earlier that week, but still had a robust slate break for me is the guys who stay with us all year and Pandemic, Leadership to Forgo of jobs scheduled to serve crews at The Forum, The count on the work to feed their families. They make 2020 Salaries Greek, Staples Center, Dodger Stadium and more in good money and work hard because rock and roll is the packed touring season ahead. Then the calls came consistent. But the work’s just not there right now. It’s • Tokyo Olympics flooding in. vanished. Stopped.” Postponed Due to Coronavirus “That’s when everything started really tanking and Behind every headlining act is a delicate ecosystem Outbreak shutting down,” Brandler tells Billboard. “Within 48 of freelance tour managers, front-of-house direc- hours, our calendar was wiped out.” tors, equipment techs, lighting designers, bus drivers, • Indie Country While artists and fans continue to findcreative cooks, photographers and more supporting the multi- Artists Make the to widespread tour and festival billion dollar global live music industry. Because of Best Of An Uncertain digital workarounds Coronavirus cancellations caused by the spreading coronavirus, the gig-based nature of their work, most operate with Shutdown the thousands of workers operating behind the scenes little, if any, employment protections, depending on of the live music industry — from construction and the increasingly busy spring and summer touring production to artist crews and hospitality — are left season that supports them year-to-year. But with live without recourse. (continued) Gotta Have It_07_032820.indd 1 3/23/20 11:45 AM Page 3 of 22 IN BRIEF events canceled or postponed for the fore- for a canceled event largely depends on the and restrictions for bailed out businesses. It seeable future, much of this workforce now artist they’re working for. While large head- remains unclear how far the new package faces months of uncertainty and financial lining acts may have insurance or contrac- will go to protect independent contractors hardship after losing work they depended tual clauses in place that could help provide and self-employed workers specifically. on in the wake of the industry’s winter off- partial compensation, the majority of artists The $100 billion coronavirus aid bill season. typically have verbal or emailed agreements signed into law March 18 may offer some “How am I gonna pay rent? I don’t have a with their crews, and must make a choice relief for gig workers. Those who are self- lot to fall back on,” says Austin Taylor, who to pay them out of pocket if work is nixed. employed are eligible for a tax credit in the runs merch for Los Angeles rock band Pa- For mid-sized or independent acts who rely amount of up to two weeks of paid sick leave laye Royale, which was suddenly forced to on tours and merch for income, many are at their average pay, or up to 12 weeks of cancel summer European and U.S. tours. As simply unable to pay their touring players paid family leave at 67% of their normal pay. the band spent the past six months record- and crew for work lost. The law offers a broad definition of “self- ing a new album, Taylor supported himself “When you have something canceled this employed on a regular basis”: If net earnings with savings and by running the group’s close to the tour dates, it really does affect from self-employment have totaled at least online merch shop. But he was counting you more because you block out that time $400 in at least two of the last three con- on the $7,000 he anticipated making on the for the work — a lot of us don’t have a Plan secutive taxable years, a worker falls within tours ahead to replenish his bank account B at that point,” says touring and session this category. and stay afloat. Though Taylor will continue guitarist Emily Rosenfield. “Stay-in-place is Just how much this may benefit gig work- to helm the band’s online shop, he expects the right move, but having to delete $12,000 ers in the live industry remains unclear, as sales won’t be enough to sustain him as the from my accounting spreadsheet — the many have had significantly more than two economy worsens and the general public next two-plus months of work — was pretty weeks of work canceled and pay can vary curbs spending in the face of the pandemic. crushing. from job to job. Further complicating mat- “I don’t know if I’m gonna be able to keep “We’re pretty much independent contrac- ters has been California’s AB5 freelancing my place,” Taylor says, noting his only im- tors for all these things. It’s not like we can law, which went into effect in January and mediate option to supplement his income is just get paid out if something goes wrong. which music industry professionals say has to sell his clothing through resale website There’s no real insurance on that. The vast made it harder to find steady work. They Depop. “And people aren’t going to be majority of artists can’t or don’t want to say the vague language of the law, which buying as many things because everyone is be liable in these situations, and we don’t is designed to ensure large companies like watching their money. Everyone is feeling it. qualify for many government protections Uber and Lyft provide employee benefits It’s the first thing I see on Instagram every- because we’re freelancers.” and other protections for their independent day — all my friends dealing with the same On Monday (March 23), Senate Demo- workers, doesn’t make sense for the live problems. It’s more than just a paycheck, it’s crats blocked action on a $1.8 trillion music industry — where an artist would be an emotional thing too.” economic stabilization package, citing the saddled with benefit and payroll costs for Whether or not a crew gets compensated need for stronger protections for workers crew members, even if they are only with DECISIVE INTELLIGENCE. DELIVERED DIGITALLY. CLICK HERE FOR FREE DELIVERY DIGITAL NEWSLETTERS Page 5 of 22 IN BRIEF them for one event. Rather than providing a obstacles as the industry scrambles to rejig- recorded for 2019). safety net in tough times, industry workers ger its calendar and compete with events The record label and publisher’s operat- say, the law has only made gigs more scarce. already scheduled for later in the year. ing earnings before interest, taxes, depre- “Work has already been slower because “Even if a gig is postponed, you still have ciation and amortization (EBITDA) were no one seems to know what to do with this to make it to October,” says Elmo Lovano, up 12.7% to €138 million ($155 million), ac- law, and then combined with what’s hap- a producer, musical director and drummer cording to Bertelsmann’s year-end financial pening with coronavirus, it makes more who is also the founder of the professional report. sense for agencies and artists to cancel tours musician gig social network Jammcard. “A BMG is the first label to announce earn- altogether,” says L.A. touring and session lot of those people who were gonna do that ings since the coronavirus outbreak shut- bassist Allee Futterer, who has lost all of already had their year lined up, and were down large parts of the music industry. her touring work and steadier in-town gigs planning on doing work with other artists. Reflecting on the pandemic,Thomas at corporate events, weddings and theme The postponement of that cycle means that Rabe, chairman and CEO of Bertelsmann, parks for the foreseeable future. Though she no matter what, you’re going to make half of said the Germany-based media company has savings to live off of for the immediate what you were.” had taken many measures to protect its em- future, Futtterer says she’s more concerned In the meantime, workers continue to ployees’ health and well-being and was well about what the reality for gig workers will band together for support and share re- prepared financially to weather the storm. look like three to four months down the line. sources in their communities to chart a path “We are profitable, have high liquidity, a “Right now is scary, but there’s no guar- forward.