Survey Results Confirm Crisis in Australian Live Music Business
Formed in July and now representing over 600 small and medium enterprises in the live music sector, the survey shows the scale of business closures and job losses anticipated in the coming months.
The survey results point to anĀ imminent collapse of the Australian live music industryĀ and put a critical question mark over the sectorās ability to recover after COVID-19 shutdowns.
Key findings from the survey include:
āĀ 70%Ā of business members surveyed are predictingĀ closure within the next six monthsĀ based on cashflow projections and current government support measures. This represents overĀ 400 businessesĀ and an estimatedĀ 18,000 jobs in the sector across the ALMBCās membership alone, adding to the growing number of live music businesses that have already closed this year.
āĀ 73%Ā of members reported aĀ revenue downturn of 75-100%Ā in the past six months, with many reporting a 100% loss of income since March with no recovery in sight.
ā Many businesses have been overlooked by the existing government support withĀ only 17% of members expecting to benefit from the Federal Governmentās RISE package,Ā with a large proportion falling outside the eligibility criteria. OnlyĀ 4.4% of members expect to take up a Show Starter loan.Ā Neither package provides the immediate assistance and business confidence the sector desperately needs to operate.
ā Overheads such as rent are a key challenge facing ALMBC business members ā with 69% of businesses with rental commitments not receiving any form of rent relief, and 76% of businesses carrying commercial debt facilities have had no form of loan deferral.
When asked what would help their businesses recover, top requests from members were a clear roadmap for easing venue restrictions and re-opening borders , an extension of the JobKeeper program at the current rates, a survival package that provides additional cash flow support to help carry these businesses through to play a vital role in the nationās economic and mental health recovery.
Interim ALMBC chair, Select Musicās Stephen WadeĀ notes:
āIt is our urgent priority to find solutions for the 30% of members who are not expected to see out Christmas āĀ after 6 months of no revenue and gigs out to at least March 2021 still in doubt, we are almost out of time for a solution for these businesses.
Our sector has been uniquely impacted by the pandemic and the role of live music cannot be ignored as part of the roadmap to getting the country back to good commercial and mental health. But if live music businesses donāt make it through the knock on for the entire music industry and wider national consciousness will be immense.
You canāt remove 2/3 of businesses from an ecosystem and not have a flow-on impact to all the other businesses in the chain.Ā Tours canāt happen without engineers, road crew, marketing staff & countless others. Venues & promoters need agents to book acts and essential skilled technical staff to deliver the live experience.
What happens when festivals return but there are no production companies or crew to service them? What happens when there are no operators to handle production in local pubs and clubs? What happens when international artists want to visit Australia and there are no venues to play?Ā When the ecosystem collapses, itās the artists, the public, our culture and way of life that will ultimately pay the price.ā
The fiscal cliff is tragically matched by the mental health crisis currently gripping the industry. The ALMBC survey reports the economic uncertainty hasĀ impacted the mental health of 88.6% of members, with 32.9% of members already accessing professional mental health support. Music industry charity Support Act have reported a 52% increase in people accessing their Wellbeing Helpline since March and have recently announced a Manager Support Hotline and a dedicated Helpline for First Nations music workers. These services are free, confidential and can be contacted 24/7.
āWe strongly encourage anyone who is struggling with anxiety, depression, career concerns, financial issues, loneliness, relationship issues or any other aspect of their wellbeing toĀ call the Helpline on 1800 959 500,ā said Clive Miller, CEO of Support Act. āMaintaining good mental health and wellbeing is vital in such challenging times and talking to a trained counsellor can help to break the cycle of any negative thinking and assist you to make better decisions for the future.ā
To ensure that its members can play a vital role in the nationās economic and mental health recovery, the ALMBC is also involved in discussions with State Governments around tightly managed COVID-Safe events and touring that would allow the industry to safely carry out essential commercial activity in states where live music is returning ā albeit at considerably reduced capacities.
About the survey:
- Conducted via anonymous online survey between 8-10 th September 2020
- 247 Responses
- 70.4 % of business derive between 75-100% of their revenue from live music
- 73% of businesses have had a revenue decline of 75-100% in the last 6 months.
