State of the Music Industry: Don’t Forget the Impact on the Supply Chains!

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By Dominic Wren

When thinking of a concert, whether it’s held at a festival or a nightclub, the first things that will generally come to mind is the DJ/act, the music itself, the vibe, or even the location/institution where the event is being held. These are all very important parts to what makes a great music event, but one aspect that most concert attendees overlook is all the secondary businesses that are hired to actually make the event a reality and a success. Think of all the security, lighting, railing, PA systems (speakers), trailers, and even the assembly of the stages themselves. These are only a few of so many more crucial aspects of what makes a successful music event. Well with the live music industry coming to a halt, most of these companies are stuck in a position where they cannot sell their services anymore. Unfortunately, when looking down one section of the economy, it generally has much more collateral damage than we can think of.

In an interview with Zachary Monson, host of Stingray PausePlay and music producer, he stated: “Sadly a lot of the same fate of the venues will fall to the suppliers who, at the same time, have no events to supply to.” Other industry professionals have slightly different opinions on the effect of supply. Ali Shafaee, a director of Escapade Music Festival and DNA Presents, suggests that every industry is taking a hit, so those who are most innovative will breakout of this just fine. He states in an interview with EDM Canada: “It’s not about those with the deepest pockets who’ll survive, but those who are most innovative.” To give a bit a better perspective of the scale of the damage, according to the Daily Mail, Elton John, a musician that makes a gazillion dollars a year, has laid off his backing band and some staff members in the beginning of June. Some of those band members have even been part of the Elton John’s group since the early 70s.

Shut down of live music has unfortunately had some major consequences on not only the festivals and nightclubs but all the companies that make our favourite music events possible. Some areas are more affected than others but all companies that supply concerts have felt some damage. In the next article of the series, we will look at how the music industry has bounced back from past industry crisis’s and by consequence how the industry has evolved. Stay tuned! 

State of the Music industry: Realistic Timeline for the Return of Live Events

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By Dominic Wren

The return of large-scale music events has been a major point of discussion within the music industry. Some want to see the return of festivals by the fall of 2020 and others are wanting to hold out as long as possible for the health and safety of music event attendees. Generally, the consensus is of a hopeful return of our favourite Canadian festivals by summer of 2021. Concerts, such as VELD, Shambhala, Escapade, Ile Soniq, and so many more have been postponed or cancelled until 2021.

Data from a New York Times survey of 511 virologist, physicians and scientists that specializes in the study of viruses and infections, showed that 64% of them said that we are not going anywhere for at least a year. With this said, EDM Canada had the chance to have a chat over the phone with Ali Shaffaee, who is a partner at DNA Presents, the company that operates Escapade Music Festival. EMF is set to return in June of 2021 but he mentions that people should not expect that festivals will be operated just like before. There are many things to consider when reopening a large-scale event, such as Escapade. One of the first thing to think about is how to keep people separate and safe in front of stages, in service areas, smoking zones, bathrooms, and how to get people in and out of venues safely. Another important factor to consider is how much people are willing to pay for extra post-covid costs like extra insurance (not only for festival attendees but also for all the workers too) and increased hygiene services. It might not sound like a lot but for organizers having to manage 35 thousand people, the costs will go through the roof and one way to manage that is by increasing the cost of individual tickets.

In an interview with Allan Cross, recognized for his legendary contributions in music journalism in Canada and around the world, he mentions that organizers and promoters must also consider the PTSD that will come out of this crisis. He states: “how willing are fans to go back to these venues next to all these strangers and potentially get sick.” Many political and medical authorities from Canada and around the world have claimed that large gatherings for festivals and other sorts cannot happen before a vaccine has been properly tested but that is at least a year or two away.

Throughout our interview, Mr. Shaffaee suggested that he does not believe that waiting 2 or 3 years for the return of normal life is realistic. He states that we are not a society that can live without contact, sports, and live entertainment for that long because it is such a huge part of people’s lives. In the end, the reality is that no one can be sure when big concerts will return. Not yet at least… We can only plan to reopen for the festival season of 2021 but that is still only a possibility. The only way to accelerate the fight against COVID-19 and actually make this a reality is to help prevent the spread of virus by wearing masks in public, frequently washing your hands, and social distancing. 

Our favourite artists are also stuck at home and having to social distance just like us. This is especially hard for DJs that need crowds to find exposure and grow their brand. The next article will look at what DJs and producers have been up to during their time in confinement. Stay Tuned! 

State of Music Industry: Article Series to understand the Impact of COVID-19 on the Music Industry

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By Dominic Wren

The novel coronavirus has hit 2020 like a bus. Most parts of the national and the international economy have taken a beating like never before and it there doesn’t seem to be much end in sight. The music industry is in no way protected from this crisis and some even argue that it is one of the hardest hit sectors of the economy. During these uncertain times, so much of information is circling around of the impacts of the virus and it can become somewhat confusing to wrap your head around. In an attempt to clarify all this at least a little bit, a series of articles have been created for you all to read at your own leisure with the hopes that it will make the current situation slightly clearer. The next few articles will look at some of the main topics of this mess, such as realistic timelines for the return of music events, what artists are up to during quarantine, effects on the supply chains that support the industry, how the music industry has rebounded in the past, and the future of nightclubs. Please keep in mind that the information presented only scratches the surface of the reality facing the music business. Hopefully this upcoming string of articles will be of use to your comprehension of this worldwide crisis.

Starting with General Facts and Numbers 

During these crazy times, to say that the global music industry has been turned upside down is still an understatement. Unfortunately, the music business has taken a hit like never before and unless there is a sudden a major change in the course of this virus; it is only going to get worse. Though this might sound depressing, keep in mind that this crisis will also drastically change the way we consume music and that might not be such a bad thing (on the long run at least…). Before addressing these changes, let’s look at the numbers. In 2019, the global music industry was worth over $50 billion according to the World Economic Forum. Half of that total revenue comes from the live music scene alone. With a lasting ban on large-scale gatherings makes the concert business almost worthless. In the case of EDM specifically, the International Music Summit (IMS) reported that even though the global value of the electronic music industry grew 2% in 2019, the estimated total value of the industry is expected to fall 56% from $7.2 billion to $3.3 billion by the end of 2020. Though some small events, such as car raves and social distancing concerts have popped up across the board, it still only represents a very small fraction of the overall live music industry. The IMS has even stated that the club/festival alternatives are unlikely to see long lasting commercial success. With no large scale live events and limited alternative live music experiences, advertising and sponsorship deals, a core part of what makes music festivals and more a reality, is also seeing their share of troubles. According to the Interactive Advertising Bureau, a quarter of advertisers and sponsors have halted completely their advertising efforts while another 46% have reduced spending in the first half of 2020. Adding to this, a 6 month closure of live music has estimated to cost the industry $10 billion in sponsorship deals, the

IEG reports. The main revenue for music artists in the 21st century has come mainly from touring so with no shows and no advertising; artist revenue has also seen a significant decrease. Analysts at IMS have announced that DJ and artist income could fall 61% from $1.1 billion in 2019 to $0.4 billion in 2020. There is a bright side though. Even if this situation seems dire, some sectors have seen much growth. Live streams have been a sort of savior for music fans around the world. When no live performances are available, fans turn to the web for their fix of live music. Reports from the IMS show that 70% of the most watched music channels on Twitch were EDM focused, totaling at about 6 million viewing hours. The same analysis shows that DJs who performed a live set on Fortnite has increased their Instagram follower growth by ten folds during and after their event. Streaming is undoubtedly a promising medium for the future of the music industry though it is only expected to generate about $0.1 billion in 2020. This year is going to be a very hard year for the music industry but it is to be expected in a situation like this. Coming back from these losses will be a long and hard road but one thing that is for sure is that music will never die.

Most ravers around Canada and the world are for sure wondering when the next concert will happen. The answer to that question is unfortunately more complicated than simply assuming that concerts will return as they were on a future date. In the next article, we will be discussing what a realistic timeline for the return of live music event really looks like.

What to do this weekend (August 4th - 6th)

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If you want to keep track with what's going on electronic dance music wise in your city, especially if you live in Calgary or Toronto as Chasing Summer and Veld are happening this weekend. Just click below and start planning!