Impact of Coronavirus on Scotland's Music Industry
Total Page:16
File Type:pdf, Size:1020Kb
SMIA Research Report: Impact of Coronavirus on Scotland’s Music Industry (18/07/20) Page 1 of 21 Impact of Coronavirus on Scotland's Music Industry This is an initial report (compiled on 18/07/20) from research conducted by the Scottish Music Industry Association in July 2020. This first report contains data from 51 responses provided by industry professionals from across the music industry ecosystem including sole traders, micro businesses, SMEs and corporates. Have you been able to access any financial support since lockdown began? SMIA Research Report: Impact of Coronavirus on Scotland’s Music Industry (18/07/20) Page 2 of 21 If yes, where was the funding from? SMIA Research Report: Impact of Coronavirus on Scotland’s Music Industry (18/07/20) Page 3 of 21 If yes, how much funding did you get? If no, have you tried to access funding but failed? SMIA Research Report: Impact of Coronavirus on Scotland’s Music Industry (18/07/20) Page 4 of 21 If you answered yes to the question above, please tell us about your experience (selection of responses) BBLS and Furlough have been fairly easy to access, but as a Limited Company Director, the furlough scheme has helped me only in a very small way. My income is generated through dividends. Our rateable value too high for first round of grants. Tried for Pivotal Scheme too. Pleased to get the money, but very little time given to get application in I applied to the pivotal enterprise resilience fund administered by south of Scotland enterprise and was unsuccessful. I have had no feedback or reasoning for the lack of award, and feel the administering of the fund was very poor - even more so when viewed in relation to our industry. I applied to creative Scotland under the open project fund, and was also unsuccessful. Assessment seemed thorough and fair, and I understand the fund is simply massively oversubscribed. I’m under 50% self employed for the years that count, despite being 70% self employed now so I didn’t qualify for SEISS. My wife makes above the threshold for JSA and I am on a zero hours contract for teaching which kept making money until June but has now stopped, they also refused to furlough. Rejection from Creative Scotland, currently re applying Major issues with trying to deal with Glasgow City Council Non-Domestic Rates department I tried to apply for hospitality grant & resilience fund but it closed too quickly SMIA Research Report: Impact of Coronavirus on Scotland’s Music Industry (18/07/20) Page 5 of 21 What would help you access funding? Dedicated staff Clear funding structure to continue to support the industry until we can open fully Relaxation of the criteria. Esp about nos of employees. Non domestic rates and home based businesses. Help for LTD Company directors. Generally, on a practical level, help with applications would probably be a good starting point. I submit weak applications for strong cases for funding as this is not within my skill set. From government, more sector specific guidance in assessing need for grants. Also, a shift in focus from big employers or traditional business models. I strongly feel I am unsuccessful in attracting public money because of the scale of my business, as I am a sole trader/micro business, even though my turnover is substantial in relation to place. Sector specific knowledge in assessment, like creative Scotland have, would assist here. Also, consideration of impact on local area would greatly assist. For example, I run the only commercial recording studio, and am one of around 3 or 4 professional sound engineers in the whole of Dumfries and Galloway. If my studio closes, access to that type of facility is gone within the region for the foreseeable future. Changes to criteria. We feel The Skinny (and other media) fall into a unique category that doesn't have access to funding from bodies such as Creative Scotland. The broadening of criteria to include freelance workers, without whom the industry couldn't function. Remove the 50% cap for SEISS and allow employers to furlough from the start of July. Less restrictive funding criteria would be helpful. Most importantly, a sea-change in the perception of independent music festivals and independent events is required within arts and events funding bodies in order for them to understand and better respect the work we do: A better understanding of how independent and grassroots festivals and events work, both financially and administratively along with wider recognition of how impactful these events actually are for the economy, our nation's health & wellbeing, our cultural identity, and that we, as an industry, can deliver these positive impacts consistently if supported properly to do so. Allowing event hire companies to be given rates relief and the rhl grants would significantly help Change in criteria either to include 2019/20 income or to consider PAYE earnings alongside self employed earnings when calculating average quarterly income. I've been registered as a sole trader for 10 years, I was on a FT contract until July last year, then returned to FT freelance work. Since last tax year was not considered by the SEISS scheme, I'm entitled to nothing as my PAYE income for the last 3 years previous were not considered. knowing that it isn't just venues bricks and mortar it is support services crew transport equipment sound lighting design catering SMIA Research Report: Impact of Coronavirus on Scotland’s Music Industry (18/07/20) Page 6 of 21 From which areas(s) of the music industry does your revenue come? Did you have any financial reserves before lockdown began? SMIA Research Report: Impact of Coronavirus on Scotland’s Music Industry (18/07/20) Page 7 of 21 Have you had to use those reserves? What is the current value of the business you have lost during lockdown (23/03/20–21/06/20) or had to cancel as a result of the coronavirus crisis? SMIA Research Report: Impact of Coronavirus on Scotland’s Music Industry (18/07/20) Page 8 of 21 What projected losses can you estimate for the next three months (until the end of September 2020)? How many full time equivalent (FTE) jobs are at risk as a result of the economic impact of the coronavirus response? Responses show an average of 29 per music business (with a low of 1, a high of 270 and 13.7% answering 0). How many contractors/freelance staff that you employ directly will lose out on work as a result of cancelled projects? Responses show an average of 78 per music business (with a low of 2, a high of 600 and 29% answering 0). SMIA Research Report: Impact of Coronavirus on Scotland’s Music Industry (18/07/20) Page 9 of 21 Have you considered any digital alternatives? If so, what? Can't, we provide digital stages or crew or transport. I have attempted to find work in remote editing, but would require a significant financial outlay in software and time to create a suitable portfolio, which I cannot finance at this time. I teach online a bit but my broadband is very poor (I live in a rural village) so cant facilitate live streaming and struggles with uploading big files. Live streaming — there’s not much money in it. No, I run or work events, as far as I’m aware there isn’t any digital alternative. None — would likely need funding support to diversify into such areas. Not possible. We supply equipment to live events. Not with any serious regard to replacing the events we organise in any meaningful way. The financials do not make any sense and the audience is no longer likely to be at home as much as lockdown lifts. Online busking and gigs. Online music lessons. Programming. Some live streaming work but it's a poor alternative. There is no digital alternative to live music. Video support for online performances. We are digital only at the moment, as we have had to pause print as a result of the pandemic. We have commissioned some new work and a number of music videos and a film which will be broadcast this week (festival week). Yes — streaming but there's little chance to make income due to the amount of free content available and the fact in the past the audience received it for free and merchanidse — once we gte back to the office — but it's low turnover. Yes, had to pivot and have launched an online music school. Yes, pushing the record label, selling A&R services digitally, online gigs. Yes. We have already run online version of cancelled physical events. We have a number of new digital events in the pipeline. Yes... invest in existing ecommerce. SMIA Research Report: Impact of Coronavirus on Scotland’s Music Industry (18/07/20) Page 10 of 21 Would you like to learn about or discuss digital interventions? Would learning about any of these topics be helpful to you as and when you can start trading again? SMIA Research Report: Impact of Coronavirus on Scotland’s Music Industry (18/07/20) Page 11 of 21 If your business can survive, what will you do differently when you reopen? 75% less capacity, table service, food drink only, increased hygiene and PPE. Any necessary safety precautions Ask for payment in advance to avoid potential bad debts Bookings by appointment only, staggered appointments, more time for cleaning in between Build up more cash reserves than investing in equipment- I had to sell equipment to survive.