The Impact of the Financial Crisis on the Performing Arts and Entertainment Sector in :

Some early thoughts and considerations from the member unions of FIA-FIM, drawing on their experience and the political outlook at national level. March 2009.

Introduction: A very brief email questionnaire was sent to the European member unions of FIA and FIM in March 2009, asking them to answer the questions in as much or as little detail as possible. It was clear that little statistical data would be available, so the idea was rather for the union to share their experience and views regarding the situation in their country. The answers received are available below by Union.

Questions: How has the current financial crisis impacted on your work, as regards: 1) Employment conditions and opportunities for performers and the ability of the union to work effectively? 2) Funding and subsidies (public funding to the cultural sector etc.)? 3) Third sources of funding (sponsorship from private sector, trusts, foundations etc.)? 4) Audiences and participation?

SECTION I: ANSWERS FROM MEMBER UNIONS OF FIA:

SDS, Hungary There is a deep cross-cutting social, economic and political crisis in Hungary at present, which it makes it difficult to predict what the situation will be like in the coming months. With no Prime Minister and no national budget at the present time, it is only possible to give a few indications as to the likely effects of the economic crisis.

Employment conditions in the theatres are largely unchanged at present. Contracts for next season are currently being negotiated and for the present at least, there has been no greater fluctuation than is normal at the end of a season.

The budget for the city of Budapest has been delayed and delayed and is now expected in April. The indications at present are that funding to theatres will be down about 10% across the board. It will vary from theatre to theatre, with cuts ranging from 4,5% to 12%. This is due to the economic crisis and will have a clear and definite impact.

As regards the situation elsewhere in the country, problems with the government have delayed political decisions regarding economic planning. However, once political changes have taken place, major cuts are expected in particular in the area of pensions and social security. These promise to have a severe impact in the coming months.

There was never much in the line of private sector backing of live performance in Hungary, but whatever small support there may have been in the past will certainly not continue in the present climate. The outlook on audience ratings is not promising either. Though attendance in the first quarter of 2009 has been average and steady, it looks as though there will be a clear fall off starting from April. SFA, Les conditions et les opportunités d'emploi sont directement conditionnées par les points ci- dessous: que ce soit dans le secteur public ou le secteur privé, une diminution des ressources disponibles pour la production affectent bien évidemment l'emploi des artistes et des techniciens. Même quand un lien direct ne peut être établi entre la crise financière ou économique et l'activité d'un secteur donné, elle sert de prétexte à certains employeurs pour justifier une pression salariale extrême. Pour le syndicat, des salaires moindres des artistes signifient des cotisations (fonction des salaires) en baisse. Par ailleurs, nous remarquons un nombre croissant d'artistes-interprètes abandonnant leurs métiers, faute d'emploi et/ou faute de ressources suite à un durcissement des conditions d'accès à l'assurance chômage. La flexibilité s'accroit, la sécurité décroit.

Dans le spectacle vivant, le désengagement de l'État et des collectivités territoriales en matière de culture a des conséquences évidentes sur les programmations des salles qui elles mêmes ont des conséquences sur l'emploi des artistes interprètes. La création artistique a été l'une des premières victimes du désengagement des pouvoirs publics dans le but de réduire le déficit budgétaire. Par ailleurs, la baisse des ressources issues de la redevance pour la copie privée, assise sur l'achat de supports d'enregistrement, conséquence de la baisse du pouvoir d'achat des ménages autant que de l'augmentation de la piraterie, affecte le montant des 25% de ces ressources consacrées à la production de spectacles, de certains disques et de courts métrages. En France, la décision du Président de la République de supprimer la publicité en soirée sur les chaines publiques a provoqué dès 2008 une chute dans le nombre de productions commandées, et ceci a été aggravé par la chute du marché publicitaire apparemment liée à la crise.

Suite à la "crise" financière, on a pu noter qu'un certain nombre de sponsors privés ont réduit leurs aides à certains festivals, ce qui aura également des conséquences sur l'emploi des artistes cet été. Dans l'audiovisuel, la chute du marché publicitaire, liée apparemment à cette fameuse crise, a entrainé une baisse dans les budgets des productions de télévision, avec une conséquence directe sur les conditions de travail (réductions du nombre de jours de tournage, intensification du travail par jour) et les salaires (en baisse).

Pour l'instant, il est trop tôt pour voir l'effet sur les audiences. Le cinéma pourtant semble pour l'instant se porter bien (comme pendant les années 30?)…

ENL, Estonia All the freelancers have fewer opportunities to work in theatres. Conditions are the same. Our union ability to help them is the same as what it was.

Funding and subsidies have decreased by about 20% .

Third sources of funding have not very big influence in Estonia.

As regards audiences and participation - at the moment(!) – there is no difference...

FNV-Kiem,

For this year it won't make a difference for a lot of groups in the Netherlands. The subsidies were already arranged and are save for the moment. However. For next year there will be a couple of problems. One of the bigger sponsors, the VSB fund, is dependent on the market and they cut down their subsidies by half. So originally they gave about 31 million and now they only have around 16 million for next year. And they are very important to a lot of groups to complete their budget for their productions. The second big thing is that the CAO's (collective agreements) are already discussed and will be a lot more expensive for a lot of groups but their costs go up and their income's going down....So they have a lot less money to spend on productions.

SAI, Italy Financial Crisis Effects in Artistic and Creative Sector in Italy The financial crisis effects involve all the production and services system, including our fields, that represent a wealth for our country and democracy, essential to the growth of knowledge and critical consciousness of our workers and citizens. The artistic and creative field is the most at risk. Actors, musicians, dancers, authors and writers don’t have any income support.

To the economic crisis effects, that undermined the access to credit for the funding of material assets, the Government added cuts to the FUS (Fondo Unico per lo Spettacolo – Unique Fund for the Arts), to education and to publishing. Therefore, the local authorities had to drastically reduce the cultural production. The result is the increase of unemployment and the risk to lose important parts of our artistic, cultural and historic values. The Ministry for the Cultural Heritage, instead of safeguarding the interests and the future of this sector, endorses its cuts.

On the contrary, in other European countries, even in a recessive economic stage, the concerning Ministries encourage strategic funds for the cultural production, for education and for “innovation&research”. In Italy, the allocations for the cultural production are around 0.3% (of Pil – Prodotto interno lordo – Gross Domestic Product), against 1.5% in France, 1.4% in , 1% in Greece, and so on. Sector Rates FUS Rates 2009 FUS 2009 FUS 2009 2008 without pre- allocation allocation in included € 20 favour of milions in opera- favour of symphonic opera- foundations symphonic foundations Opera Foundations 46,6952 47,5000 179.566.815,95 199.566.815,95 Music Activities 13,7416 13,7416 51.948.112,80 51.948.112,80 Dance Activities 2,1008 2,2500 8.505.796,55 8.505.796,55 Theatre and Prose 16,2722 16,2722 61.514.676,68 61.514.676,68 Activities Circus and 1,4888 1,5262 5.769.576,31 5.769.576,31 Entertainment Activities Film Activities 19,5000 18,5000 69.936.549,37 69.936.549,37 National Council for Entertainment

Entertainment 0,1450 0,1800 680.463,72 680.463,72 Observatory Minister’s Integrative Fund 0,0114

B.N.L. (Theatre and Music)

Func. Expenses 0,0450 0,0300 113.410,62 113.410,62 Committee Comm. Totale 100,0000 100,0000 378.035.402,00 398.035.402,00 Government has also cut other € 60 milions fundings extra-FUS. With such assets, the Italian Government should support: 14 Foundations 075 Music Activities 135 Dance Activities 422 Prose Activities 72 Circus 56 Travelling Theatres 1173 Film Initiatives

We are facing an Executive that considers the culture not an investment but a superfluous expense. We cannot provide a number assessment about the impact of the crisis, yet, but we noticed a significant decrease of theatre and concert season and repeats, a long wait to find a placing in the artistic field, a decrease of what concerns the demand of labour (wardrobe assistants, technicians, and so on) and a significant falling-off of public at the live-performances.

ZZAP, Poland We could notice some individual actor’s dismissals since January this year, what wasn’t very common before. There are closed down all “unnecessary” workshops in theatre like shoe’s workshops, costume’s workshop etc. So people working there (if they don’t have any good idea for own business) lost the job. The law in cultural sector hasn’t been changed since 60’s or 70’s and it’s still on the debate’s level here in Poland. Right now there are lots of discussions about changes in theatre’s management and administration what will have huge influence on ways of actor’s employment. There is a proposition to change full employment on 1 to 5 years contract. Changes are good, but we don’t have solve problems with social securities for artists and lot of things like this. The main duty for the unions/our union is to protect performers against sudden changes to our disadvantages and to be ready and up-to-date to advantage every opportunity to push cultural committee in our government to change or lay down the law for performers without that we have no possibility to fight for our rights. This strategy we chose.

Public funding to the theatres were cut - on average 9-11% less, on the provinces even more. Specific subsidies and grants from local governments or city councils have been stuck until further notice.

All agreements of sponsoring were terminated. Private sponsoring doesn’t exist in Poland right now. This trend started in October 2008.

Audiences seem to be becoming bigger and bigger. We think that the reason is tiredness of television. People are looking for new experience and theatre still can give some irreplaceable amusement. But still, income from tickets can cover only 25% of expenses of repertory theatre per year. We’ve noticed that current financial crisis is not only bad for us. We try to see also bright side of this for us. Our history shows that crisis time is very good for changes and sometimes it’s easier to do it. We want to try advantage this time.

STE Portugal : The opportunities for performers went down drastically, except for a privileged small number of actors in long “soaps” in TV. They have been there for ages and still go on, and never change. With the crisis the public stays more at home and follows all the episodes of these long soaps, so all of them become a success. And in result of the crisis more and more non-actors, amateurs; models…cheaply paid, are taking over the roles in television that should be given to professional actors, which are left out. Theatres are reducing to the minimum their fixed cast and mostly presenting plays with no more than 3 to 4 roles. Union work is becoming more and more difficult, and fees are not collected. Having so few actors in each theatre, and with the diffusion of many little theatres with people coming out of bigger theatres is leading the Union to an impossible mission of reaching them all.

Yes there is a big impact of the financial crisis in funding and subsidizing. In spite of the fact that the subsidies competition has come to an end, the Minister of Culture has not yet paid the first part of the money that was ascribed to each company. So, since December companies have no money left, and many of them had to get loans from the banks, in order to carry on their planning, with which they applied for the subsidies. Funding for the public cultural sector decreased. Our National Budget for Culture went down from 0.4% to 0.2%.

Private funding barely exists in Portugal. Only for big events (visual and audiovisual) like Contests; Festivals or musical tours of very well known, national or international, singers and groups. But never in a continuously or permanent way. The exceptions are the National Theatres. They, of course, are sponsored by private sector.

Audiences in cinema are decreasing very, very much. So much so that they are practically offering the tickets. The prices went down and everywhere you can get some kind of discount. In theatre it is slightly different. There is not a very big offer, so the ones that still are open, being small sized theatres, always have at least 70% of seats occupied. And the ticket price is still increasing! Big theatres have from 50% to 100% occupation. It depends on how long is the play staying in stage. As for the big music concerts, most of them are sold out. The same goes for the Festivals (Cinema / Theatre).

HAU Greece Our Union achieved Collective agreements better for our colleagues succeeding raises 6% for the theaters. However it remains major issue how the Collective agreement is followed strictly by all the theaters. Generally they are fewer opportunities for actors especially in the Television sector since in this season many serials have dropped down.

The Ministry of Culture still owes money for the theatrical season 2007-2008.

The other sponsorships from private sectors are fewer too.

Less audience.

Slovenia, Glosa At the very moment it is not possible to overview all the statistical data about the financial facts and changes in policy development work, because in Slovenia the changes began later than in other EU members. It is characteristic, that in Slovenia the employees in culture and consequently in live performance and audiovisuals, as for artists and technical and administration workers, deal their destiny with the whole Public Sector as a result of the new Law of Payment Relations and the Collective Agreement of Public Sector, brought definitely in June 2008, after six years of negotiations. Both the acts have brought to live performance and audiovisuals 20% higher payments for employees, what Trade unions recognized as a success of the development, that should end in March 2010.

In January 2009 CA of Public Sector was changed in two ways. First, there were cut some beneficiaries for workers, as lower additions for regular holidays, for successful work, harder conditions for professional promotion and some other, and secondly, the delay to finish the development to equalize the payments from March 2010 to January 2012. TU signed the act as a recognition of the crisis. Our trade union Glosa did not join, but the decision depended on the TU members, 22 TU of Public Sector signed the act, 5 members rejected to sign. This will lower the payments approximately for 4-6%.

Last week the government announced further restrictions in Public Sector, what can reduce payments in Public Sector for next 10%. The Trade Unions rejected these plans and the preparation for a strike has started.

In these circumstances Glosa cannot be more effective, because the fight for better payments and working conditions depends on collaboration with other TU in Public Sector, what is restricted in Law and CA of Public Sector. Of course Glosa has besides that its own CA of Culture, where we can specify a lot of regulations and we do it, but payments relations are out of it.

In that CA should be placed problems of self-employed artists and other specific workers of the field. These workers, comparatively with the employees, work in worse conditions, they earn for the same work 30-50% less and in addition they have to pay for social and health security by themselves, unless they are not registered at Ministry of Culture, that pays for them the minimum until a certain amount of their income per year, which is very low. We do not speak about some rights that the employees have, like additions for transport to work, for meal during the working time, for holidays, some reimbursements at work, that are provided by our Labour Law for all workers.

On the other hand the theatre institutes, founded on public interests, enlarge their programmes, but the funding and subsidies do not rise. This process is happening for fifteen years already. The programmes were doubled in the time, the number of workers stayed on the level of the year 1991, what is significant for the working and payments policy in Slovenian Culture.

The third sources, sponsorship, donations from private sector was not a significant source in the past. In the last six months have practically stopped.

What is amazing, the audiences have increased, the main theatre institutes are practically sold out. The average theatre ticket cost 10-20€, for operas and classical ballet are about 20% higher. For season tickets are available 10% discounts, 40% for seniors and 50% for secundaries and students.

Finland, SNL There is no effect yet for Finnish actors. There is almost no increase in unemployment rates among our actors. But we don't have any numbers how economic situation has affected for freelancers and especially their salary level outside theatre work. I have to stress that this is the situation at the moment. Next year might be more difficult.

Almost no effect yet regarding funding and subsidies. Our ministry of culture is having a program that will increase state funding for theatres about 20%/year in three year. Now is second year of that program. But: more than government local municipalities (i.e. cities) give public funding for theatres. And that funding is under serious pressure because economic situation in municipalities is worse than government’s situation. We are really worried about next year’s funding. Luckily we have that program with ministry of culture. Already in some cities with city theatre own directly by the city there has been laid offs for hole city employees.

As part of our government’s efforts improve economic situation and employment film sector will get more money this and next year. I don't remember how much but the increase is remarkable.

Sponsorship is weakening rapidly. Fortunately its role is quite small in theatres but bigger in film industry. My guess is that in film industry sponsor money is lowering a lot.

Trusts and foundations normally get their money from investments, especially from stock market and income from dividends. These sources are now in difficulties. That will effect quite much in future. Trusts and foundations have some savings from past good years and that will help a little in next couple of years.

In the last recession in mid 90's increase spectator figures in theatres. We hope that same will happen this time.

FAEE, Spain The film production during last three months of 2008 and first two months of 2009 has been reduced over 15% compared with same period 2007 -08. For this reason film opportunities for work have been reduced accordingly. TV production have no been affected in terms of productions of running series but have not come up with new projects when a series finishes or is taken off the screen. Spanish TV channels ( Included the state TV) move towards more new production of reality shows, Competition programmes, instead of fiction (drama or comedy) programmes. This does not fit in with the high audience that some of the home produced drama series have reached, of more than 5 million viewers. Nor with the cutting down in fees that producers make in offers to performers, or with the increase in working hours that they try to justify because of the crisis. The theatre has not been affected, on the contrary. It is enjoying a golden season from expensive musicals productions, to normal commercial theatre shows, from subsidized theatre plays, to off – fringe- companies and performances are all having great attendances. Probably the crisis is pushing people to get away from personal and social problems going to the theatre.

All this does not affect the ability of the Union, except in the fact that actors tend to accept less money or more hours without complaining, in order to get the job because they are concerned specially if they haven´t worked for some time. Union gets to know when it is too late, and on top of that gets the blame for not taking measures.

Funding and subsidies have not been reduced, nor increased this year. The funding for our cultural activities has not been affected so far. The funding from private sources, for instance the sponsoring for our year awards ceremony, have been cut drastically. According to the sponsors their budgets have been cut also. The same is true of some projects that we have been working on from our Foundation for actors and dancers.

There is a big reduction on cinema audiences affecting Spanish films more than foreign (American) films, but is not only consequence of the crisis but also of changing habits in the cinema goers to some other kind of film viewing at home.

KMSFB – Austria In Österreich hatte die Finanzkrise bei den Gehalts- und Gagenverhandlungen bis jetzt keine für uns sichtbaren Auswirkungen. Bei der letzten Verhandlungsrunde im Winter 2008 hat es keine Abstriche gegeben. Es wurde ein sehr gutes Ergebnis erzielt.

Bis jetzt wurde uns nichts mitgeteilt, daß es bei den Subventionen für die Theater Kürzungen gibt.

Aus privater Hand gab es in Österreich bisher nur sehr geringe Unterstützungen für die Theater.

HERECKA ASOCIE - Czech Republic: The answers to all the questions is that so far the crisis has not affected work in theatres , neither the number of audiences in the Czech republic. Concerning sponsorship that should be asked those who run theatres. However, I would like to add some more information about the funding of live art that I have received only now. In this year’s budget, the ministry of culture has cut out 35% of funds for the live art. The art community is planning a demonstration next Wednesday. It seems that there is no link to the financial crisis, the crisis is only exploited as an argument for this reason.

LKDAF LATVIA Just short information about social dialog in Latvia:

1) since August 2008 there is no more dialog between LKDAF and Ministry of Culture, we tried many times to speak about state budget for Ministry of Culture for 2009 but due to financial crisis the answer was always: We have no fugures , we can not negotiate because nobody knows what will happen etc. Employment conditions for union's members are more or less O.K.. We have in Latvia reduced employees in theatres but not members of union, we have in Latvia reduced additional payments but not the wages till now. The LKDAF and its' member organizations in theatres are able to react to the government's proposals and to protect the rights of our members.

EQUITY UK – Live Performance As a result of the ‘credit crunch’ the UK Government has been directly intervening in assisting the financial sector especially the banks. As a result the UK Government is likely to be short of funds.

The Culture Secretary Andy Burnham has already warned the arts sector that it needs to be realistic and has indicated that the third year of the current comprehensive spending review will be difficult. The third year of the current comprehensive spending review was going to be the best for the arts and any change will have the potential of severe cuts. All cuts have a serious effect on a sector that exists on very tight margins to begin with.

Equity with other industry bodies has been lobbying the Arts Council and the Minister to attempt to persuade that continued support for the arts is exactly the kind of useful ‘public works’ that are needed in this difficult economic time.

In our variety sector many pubs and clubs where our members work appear to be going to the wall and there is strong concern from our variety members through a recent Equity survey that economic conditions are responsible for this situation. Much variety work is done in traditional working communities and these communities are usually hardest hit by any economic difficulties.

Most live performance organisations are concerned that corporate sponsorship will decrease as a result of the credit crunch but it has to be said thus far it hasn’t impacted largely because it’s the next round of deals that people are worried about. In the West End of London audience numbers appear to be holding, in the English regions and the nations the impact from the credit crunch specifically is unclear just at the moment.

So to sum up live performance in the UK is worrying but not yet in across the board crisis.

EQUITY UK – Audiovisual In relation to audiovisual it has had a significant impact. The share price of the UK’s largest commercial broadcaster has fallen rapidly taking about 90% off the value over the last year or so. They have cancelled a number of productions and made numerous redundancies. The publically own national broadcaster is also making redundancies and has a significant £200m whole in it’s budget doe to the fall in property prices. Other broadcasters are equally suffering particularly if they rely on advertising revenue.

On advertising, yes companies are cutting back dramatically but there are also some logistical problems following some mergers that took place some years ago and the regulator effectively setting rates to avoid a monopoly challenge. On the employment question I kind of covered it. Reductions in production means reduction in work. The Union doesn’t have a problem negotiating but if nothing much is being made it makes no difference. Having said that the agents will say that fees are reducing. They are still above union minimums but they have reduced in real terms. In relation to subsidies, the BBC had their rates set for a 5 year period but the opposition party are currently questioning where the below inflation increases (it was below when they were agreed) should still happen given the economy. If they didn’t there would be an even bigger whole in budgets and effectively it is only the subsidised broadcasters likely to be making anything new.

We have also seen a reduction in film investment both indigenous and from inward investment with many studios being almost empty. SECTION II: ANSWERS FROM MEMBER UNIONS OF FIM:

ACOD, The impact is negative overall. Hereafter, a few examples of tours/concerts that have been cancelled for financial reasons: - Concert tour in Poland by the Belgian National Orchestra; - Concerts by the Orchestra of the Brussels Opera House, B. Britten War-requiem; - Mahler concerts; - 2 concert tours by Jo Lemaire (commercial music).

DMF, Denmark

Generally there are more calls from members concerning cancellations of their engagements. People tend to cut live music out of their business parties and so on.

Some of the small theatres, which are not included in the public funding system, have problems right now. They are dependent of private sponsorship, and when they loose the sponsorship, there is a risk that they may close down. This means, that the labour market for musicians playing in musicals and music performances becomes smaller.

Our collecting societies report that they already last year experienced a slight decrease in income from “other public performances” i.e. use of music in stores, in discotheques, hotels and so on due to the financial crisis.

We have not yet experienced cut downs or firings in permanently employed orchestras.

Suomen Muusikkojen Liito ry, Finland No significant effects on employment yet in the music sector. Companies have reduced hiring musicians/bands for their PR/social functions, but so far that seems to be the only noticeable thing. No effects whatsoever so far on the union’s ability to function.

No effects yet on the publicly funded sector. Ministry of culture is quite well funded as of now mainly due to the good result of the national lottery company in 2008. If the recession continues until 2010, which is very probable, the communal orchestras could be in trouble along with all other communal sectors where cutbacks are necessary eventually. The National Opera is in its best economic shape ever.

No effects yet in this area. Sponsoring in culture and music is on a quite insignificant level anyway, so any cuts would not be easily noticeable. There is no direct relation with funds etc. to the economical situation, but of course, with extended crisis over several years, we could see detrimental effects there.

So far there are no noticeable effects in audiences in the public sector (symphony orchestras, opera etc.), but in the private sector, for example restaurants and clubs, there seems to be a slight (but hardly noticeable so far) decrease.

SNAM, France Nous sommes au début d'un processus, il est donc trop tôt pour établir des règles statistiques valables concernant l'effet de la crise financière sur le spectacle vivant en France. Néanmoins des premières tendances suivantes semblent se dessiner :

1) Aujourd'hui, les subventionneurs n'augmentent en aucun cas leur part de financement sur les projets culturels. Les coûts par ailleurs étant en augmentation constante, on peut constater que la stagnation des apports financiers équivaut à une réduction mécanique de l'amplitude du projet : pour toute manifestation culturelle, lorsqu'il y a réduction des apports financiers, celle-ci se traduit immanquablement par une réduction de la masse salariale consacrée à l'emploi d'artistes ;

2) certaines Villes (premiers subventionneurs de la culture en France), subissant le durcissement des conditions de prêt faites par les banques, se retirent du cofinancement de Festivals et autres projets culturels, mettant ainsi en danger une partie de la programmation ;

3) au niveau de l'Etat, le financement des certains ensembles permanents est affecté par une idéologie "du compte de résultat" qui souhaite voir indexer le financement qu'il apporte sur le nombre effectif d'auditeurs-public. Une telle idéologie met à mal toute entreprise innovante et signifie, à plus long terme, la fin de toute politique publique de création.

Dans un tel contexte, le SNAM, comme d'ailleurs un grand nombre d'autres acteurs culturels y compris certaines représentations d'employeurs, résistent fortement, mais la partie est loin d'être gagnée.

Voilà quelques pistes pour aujourd'hui, elles n'ont pas la prétention d'être exhaustives, et certainement dans quelques mois, en particulier à l'approche des grandes et nombreuses manifestations culturelles de l'été 2009, on pourra faire une analyse beaucoup plus pertinente.

FNV-KIEM, The Netherlands Employment conditions are getting worse. Last week, the Dutch government has agreed with the parliament and social partners (employers and unions) on a large package of measures to cope with the current financial crisis. Part of this package is that the wages in the public and commercial sector are allowed to grow from zero to maximum inflation level. In the subsidised sectors of the music business, there will be probably budget cutbacks in 2010 and maybe in 2011. How much depends on the recovery of the Dutch (and therefore de global) economy. This could mean loss of jobs in the sector of classical music. The commercial sector (as well as the subsidised sector) has to deal with the withdrawal of sponsors. That affects festivals, orchestras both popular and classical. For instance, the famous old musician conductor Ton Koopman stopped all his activities in the Netherlands. Music stages are also affected, etc.

So far, the current economic situation has not really affected the participation of the public. However, by the end of 2009 we could get a clearer picture of the consequences of the crisis in the audience’s ability to go to concert.

BMU, UK – Live Performance The Association of British Orchestras (ABO) has released research detailing the public’s greater appreciation for the arts during a recession.

In a random sample of more than 1,000 adults, the survey of popular non-essential activities showed the arts (purchasing tickets to a concert, play, opera or ballet) with 16 percent of the vote. This came ahead of computer games and sports events, which sat at 12 percent and 7 percent respectively. The only more popular expense was eating out with 27 percent.

These figures, along with the fact that 53 percent felt it was important to support the arts in a recession, provide more important evidence that the arts are essential both socially and economically in these times of financial downturn.

More worryingly, however, were the figures suggesting that 55 percent of people will take part in none of the above activities.

The Society of London Theatres (SOLT) has reported record box office takings. There are currently 24 musicals in the West End employing 230-250 musicians.

Funding for the subsidised sectors has been hit mainly because of cuts to the Arts Council budget. The 2012 Olympics are the main cause of budgetary constraints. We are hearing of anecdotal evidence of corporate sponsors pulling their support and organisations finding it difficult to attract new sponsors.

Over 60% of our members teach and this is increasingly a major source of income for musicians of all genres.

Teaching for music services and schools seems pretty stable at the minute but again we have heard of evidence of parents giving notice of lessons as their finances are increasingly stretched.

BMU, UK – Orchestras

Employment conditions and opportunities: Two orchestras have settled their pay claims for 2009 with one theatre orchestra accepting a 3% offer whilst the members of a freelance chamber orchestra which offers 99 days work per year, voting to accept a pay freeze until October 2010, but with an interim review by 31st May 2010. One large regional symphony orchestra has offered to increase 2008/09 salary levels up to 5% and make a back payment of 2½% for the same period in compliance with the complicated bonus system agreed as part of the 2008 pay settlement. Two other large regional symphony orchestras are both offering a 2% increase for 2009/10. The orchestras of two touring ballet companies have been offered increases of 2.7% and 1.5% respectively. These two are still in negotiation. The Association of British Orchestras (ABO) has offered an increase of 2% this year, although half of that was already agreed last year as a further 1% contribution towards holiday pay. The ABO Agreement includes the four self governing London orchestras: LPO, LSO, Philharmonia and RPO and is also still in negotiation. Welsh National Opera (WNO) is in the third year of a 3 year settlement and is paying an increase to its orchestra of 2½% whilst the Bournemouth Symphony Orchestra (BSO) is in the second year of a 2 year agreement and is paying an increase of 2.6% for 2009/10. However, Scottish Opera (Glasgow), Northern Sinfonia (Newcastle) and Ulster Orchestra (Belfast) managements have all intimated that they would wish to implement a pay freeze for 2009/10. The negotiating climate is extremely difficult as the effects of the recession begin to bite and it is hard to extract much hard financial information from orchestra managements at present as they continue to try to juggle their budgets. There have so far been no attempts to reduce the work force in orchestras, although one or two managements have asked to temporarily ‘freeze’ orchestral posts for a year or two in order to save money.

Funding and subsidies The Arts Council of England (ACE) is in the second year of the 3 year funding cycle and is honouring its promised increase to clients for 2009/10 of an increase of 2.7%. However, it has been widely rumoured that the further increase of 2.7% promised for 2010/11 will not be honoured and will be reduced but there is no definite news of by how much. The Scottish Government has offered an increase in funding of 2% for 2009/10 but has not yet set a budget for 2010/11. Local authority funding has been maintained at current levels in or with small increases of 1% to 2 % in large cities such as London, Manchester and Birmingham but funding from smaller authorities that support a large number of smaller orchestras has declined. One of the larger orchestras likely to be affected by the reduction in local funding has been the Bournemouth Symphony Orchestra which has relied on support from 16 different small local authorities. The BBC appears to be in better financial shape than at first thought. The anniversary for the pay settlement for the five BBC orchestras is not until August 2009.

Sponsorship from private sector, trusts, foundations Those UK orchestras that rely on the banking industry for financial support - either as sponsors or for the provision of interest on endowments and trust funds - have all suffered badly over the past six months. One full-time chamber orchestra has reported a £140,000 shortfall in endowment income whilst the Ulster Orchestra has been widely reported in the press as having lost £150,000 in bank sponsorship which has prompted it to cancel a concert series in Dublin. Both orchestras are asking for pay freeze this year as reported above. Only one orchestra has reported good news as it is due to be the beneficiary of a £1 million VAT rebate for cultural exemption for the period 1990-97 which has enabled it to offer the back-dated settlement described above.

Audiences and participation Generally it has been reported that audiences are holding up well due perhaps in part to the assumption that people need entertainment and the comfort of music in a recession. Only one opera company has reported a serious decline in audiences which it attributes to ‘adventurous programming’ rather the effects of recession. A number of orchestras have reported that they have no difficulty in selling the top price tickets at £30 and over but there is more resistance at lower prices. This is attributed to the fact that many of the middle class are actually better off where they are in secure jobs because the cost of housing in the UK has fallen dramatically over the past six months. According to UK Government figures a person earning £70,000 per year is richer by £8,500 because the cost of bank rate linked mortgages has fallen from 6% last year to 0.5% at the present.

BMU, UK – Public Sector Broadcasting On March 19 2009 Mark Thompson, BBC Director General, announced the need for the corporation to make £300 million in ‘painful cuts’. He went on to say that “The BBC is one part of the public sector that has not been and will not be immune to job losses.”

This news comes after 7,200 job cuts at the corporation over the past four and a half years, with another 1,200 to be made this year. As the BBC is the largest employer of musicians in the UK, these developments are of great concern to the Musicians’ Union and its members. The UK government’s decision to sanction a much reduced licence fee settlement in January of 2007 led to a £2 billion shortfall in BBC funding over the next six years and the Conservative Party leader, David Cameron, has spoken out in favour of a freeze to the BBC licence fee for one year in response to the recession.

The position of the UK’s other principal broadcaster, ITV, is also greatly troubling. ITV, (legal name: Channel 3), is a public service network of British commercial television broadcasters which is legally required under the terms of its licence to provide a certain level of public service content.

As ITV is funded almost exclusively through advertising and overseas programme sales, it has been particularly affected by the slump in advertising. In March 2009 it unveiled a major round of cost cutting in what it contends is a bid to survive the recession. The measures include the loss of some 600 jobs (13% of the workforce) and a freeze in fee levels paid to, amongst others, musicians.

The current state of the advertising market has been described by ITV Executive Chairman, Michael Grade, as the worst he has experienced in over 30 years in UK broadcasting and contributed significantly to a £2.73 billion pre-tax loss for 2008. The prospects for 2009 look no better with UK TV advertising forecast to be down 17% year on year in the first quarter.

These latest actions are in stark contrast to ITV’s previous ambition to deal with the decline in advertising through revenue growth for its online and TV production businesses and it now plans to cut its content investment by £65 million in 2009 and a further £70 million in 2011. It hopes to achieve this through concentrating its investment on light entertainment programming and its peak time evening schedule whilst cutting back in areas such as drama.

Whilst Channel 4 (publicly owned, commercially funded) has managed to outperform many of its commercial competitors, it too announced 200 job cuts in December of 2008 and appears to be relying on a future tie in with BBC Worldwide (commercial subsidiary of the BBC) to safeguard its future. The other UK PSB, Five, announced that up to 87 jobs of its 354 workforce could be affected by its plans for a major restructuring which they maintain is required in the current economic climate.

The 1990 Broadcasting Act compelled the BBC and ITV to obtain at least 25% of their broadcast content from independent producers who are represented in the UK by the trade body PACT. PACT maintains that its members are under pressure from broadcasters and others to keep costs downs and have seen both falls in commission fees and changes in the types of commissions, with a shift away from drama toward light entertainment, which traditionally attracts significantly lower budgets. PACT therefore contends that there is currently no scope for any fee increased paid to, amongst others, musicians.

In summary, the prospects for both employment levels and associated fees for musicians working in the broadcasting side of the audiovisual industry appear far from encouraging at the moment and the Musicians’ Union is concentrating its efforts on maintaining existing employment and, where possible, endeavouring to make the case for increased fees. Somewhat paradoxically, many broadcasters and producers are looking toward obtaining more rights to allow for greater exploitation of their content as a means to increasing revenues and yet cannot obtain these from musicians without appropriate remuneration which they appear unable, or unwilling, to provide.