Written evidence submitted by the Musicians’ Union Musicians Union’ response to DCMS call for evidence ‘The future of UK music festivals’ The MU represents over 32,000 professional musicians working across all sectors of the UK music industry. 1. What is the economic and cultural contribution of the UK’s festival industry? 1.1 UK music festivals attract audiences in excess of 4.9 million annually (2018 figure). i This has increased from 2.79 million in 2012. They generate international as well as domestic tourism and provide an important boost to local (and in particular rural) economies. 1.2 Festivals are an important part of the live music ecosystem and its talent pipeline. They play a key part in the career path of many musicians whether a) an emerging artist playing a small stage or b) a headlining act on the main stage. You don’t get to b without first starting at a. 1.3 The UK’s large and diverse festival circuit ensures that artists can develop and grow their audiences, which boosts the economy and the cultural footprint of the UK. 1.4 Many festivals are programmed around a particular genre or theme, which is invaluable for niche artists who may otherwise struggle to have a full touring itinerary across music venues. Such events feed into the diversity of UK music, and allow artists to sustain a career without compromising their musical output, and also for fans to access and discover their favourite kinds of music. 1.5 Playing outdoor festivals in the warmer months to larger audiences can also boost audiences across the UK to attend indoor gigs during the colder months, again supporting local communities, culturally and economically. Gig goers will benefit surrounding businesses such as hotels, pubs, restaurants and shops. 1.6 Between 2014 and 2017 members of the Association of Independent festivals (AIF) contributed £1billion to the UK economy. ii 1.7 These statistics demonstrate the importance of a healthy and vibrant festival scene in the UK, and show that demand for them is strong. 1.8 According to the UK Music’ 2020 Music By Numbers report, festival attendance in 2019 increased to 5.2 million, an increase of 6% from 2018.iii 1.9 Across the Live music sector ‘domestic visitors’ grew to 11.7 million in 2019 from 10.3 million in 2018 [UK Music - Music by Numbers 2020]. Music tourism fluctuates, however the ‘overall picture for music tourism in recent years and in 2019 specifically has been one of consistent growth and strength’. Music tourists spent £4.7 billion in 2019. The UK festival sector is a significant contributor to those headline figures. 2. What is the impact of cancellations on local economies and those who derive income from festivals during 2020? 2.1In 2020 virtually all festivals were cancelled due to the pandemic. This meant that anyone who was reliant on bookings lost out. Very few were able to claim either cancellation fees or compensation. 2.2 Many artists rely heavily on festival performance fees and have therefore lost a big part of their annual income for 2020. For high profile and featured artists, these fees are significant, and the festival season can therefore represent the most lucrative part of the year for many musicians. These featured artists will often be using festival appearances to promote an album release. The different parts of an artist’s career e.g., recorded and live, are interlinked and firmly dependent on one another. Festivals in particular are useful for sales, as they allow artists to reach not only their own established fanbase, but also newer and more casual fans. 2.3 Emerging artists rely on festival appearances to reach new audiences. The emerging artist status requires constant activity and engagement, and many of those who were on the cusp of breaking through at the start of the year had festival slots in their 2020 touring schedules. As an example, a festival like Kendal Calling will book approximately 150 emerging artists to perform on their stages over the weekend of the event. Many of these artists will also be unsigned, managing themselves and booking their own shows. Appearing at Kendal Calling, where a large part of the crowd are repeat attendees who are open-minded in terms of discovering new music, offers a real career and fanbase boost. Losing a festival season at such a pivotal career point can affect an act’s ability to sustain their momentum and break through into the next stage of their career. 2.4 Festival appearances offer promotion to artists through festivals’ official social media platforms, wider media, fans’ coverage and through associations with other artists on the bill. This kind of promotion is far-reaching and can help to elevate an artist. 2.5 In addition to performance fees, artists can use festival appearances to sell merchandise to existing and new fans. Further down the line, artists can receive royalties from their festival performances, which are derived from the box office revenue. Similarly, as some festivals broadcast coverage live or after the event, artists are sometimes also entitled to media fees. These revenues are very much part and parcel of a musician’s earnings, and help to sustain them in the short-, medium- and long-term. The loss of the 2020 festival season will therefore be felt financially by artists well into 2021, and this will impact those from emerging status all the way up to household names. 2.6 For most festivals, and particularly those that aren’t site-based, there’s a healthy financial return to the local economies, be that through accommodation bookings, food and drink sales or the use of local music venues, facilities and crew. Artists also benefit from this, as they can showcase to potential bookers and make industry connections. 2.7 In 2016 the Arts and Humanities Research Council produced a dedicated report into UK Festivals stating; ‘The total direct and indirect spend generated by ‘music tourism’ for all medium to large- scale music festivals in the UK in 2014 was estimated at over £1.7 billion, sustaining 13,543 full time jobs (UK Music 2015).’ ‘Over 350 UK folk festivals generated spending of over £77 million each year (Morris Hargreaves McIntyre 2004); the spend by the Association of Independent Festivals member festival-goers between 2010 and 2014 was estimated to be approximately £1.01 billion (Webster 2014); and during 2006-2007, an estimated £41.8m was spent by arts festivals in the UK (SAM 2008). Economic impact assessments use different methodologies, hence the variation in numbers: see Appendix 2 for an overview of economic impact assessment reports into a number of British music festivals. ‘ The festival sector in the UK has continued to thrive since then, until the pandemic hit in early 2020.iv 2.8 When lockdown took effect in March 2020, Musicians’ Union members lost all their work, income and bookings overnight. In April 2020, the MU surveyed its members and found that 19% were considering leaving the profession and 38% were not eligible for the furlough scheme or SEISS. 2.9 The most recent poll of Musicians’ Union members shows that the impact of the pandemic on their careers has worsened: 47% musicians have been forced to look for work outside the music industry 70% are unable to undertake more than a quarter of their usual work 36% musicians do not have any work at all 2.10 The outdoor festival circuit in the UK provides work for members from early spring to early autumn with indoor festivals providing work all year round. Small local festivals often provide work for local artists. Performing locally gets you noticed, can increase your fanbase and help boosts your career. It’s a vital part of the journey an artist undertakes from early songwriting and practicing to, perhaps, headlining the Pyramid Stage at Glastonbury. 3. What are the risks to festivals taking place in 2021 and beyond and how can these be mitigated? 3.1 The MU has campaigned for government intervention to support the UK’s live music sector. In order for festivals to be economically viable, they have to sell at around 90% capacity. Therefore, the risks involved in mounting a festival during the pandemic, and the subsequent mitigations and social distancing, make it very difficult for them to take place. 3.2 We will defer to our colleagues at the Association of Independent Festivals and the Association of Festival Organisers to provide further detail around the economics of producing a festival. However, it is clear that if festivals are to take place this year with social distancing and/or mass testing in place, subsidy from the Government will be crucial. We have supported the ‘Seats Out to Help Out’ proposal or similar, which would involve the Government paying for tickets that can’t be sold due to the pandemic and/or funding a discount scheme that would encourage consumers to book. Festival organisers may also have carried over tickets from cancelled events in 2020, which will obviously impact further on their economic viability in 2021. It is important that audiences have the confidence to attend live events and the festival sector will no doubt work with the Government to produce and follow appropriate health and safety guidance. 3.3 Support and encouragement from local authorities to get festivals going in 2021 will be necessary and a relaxation in local authority licence fees would be very helpful. 3.4 Festivals, like the rest of the live sector, will need insurance that provides for any Covid-related cancellations or postponements in 2021.