Subject: The impact of the COVID-19 crisis on the music sector
The COVID-19 crisis is having a devastating impact on the whole music value chain, including authors and performers, the live sector and the recording and publishing sectors. It is a value chain that employs 12 million full-time workers in the EU, mainly on a self-employed basis or through small and medium-sized enterprises.
Due to the confinement measures, physical music and live music sales are paralysed. Public communication rights are also affected as they are directly linked to music being played in public spaces. In the same way, revenue from synchronisation rights will be severely reduced as the audio- visual sector will not need any new licences. Lastly, revenue from platforms will also be reduced. The music industry has lost its dominant position, mainly due to its reliance on transportation, and if revenue from streaming does not increase, the proportionate share of revenue among songs will be lower.
While some initiatives are being taken at national level, a common EU response is crucial. The Commission has adopted an EUR 37 billion Coronavirus Response Investment Initiative. How will it ensure that the music sector has access to these funds?
This crisis will also affect habits and future consumption patterns. Is the Commission considering a long-term recovery plan to help the music sector?
Answer given by Ms Gabriel on behalf of the European Commission
(9 July 2020)
The Commission has put forward the Corona Response Investment Initiative (CRII) (1), CRII Plus (2), and the temporary Support to mitigate Unemployment Risks in an Emergency (SURE) (3).
Those proposals have been adopted by the Council of the EU and the European Parliament. CRII and SURE can provide financing to national short-time work schemes and similar measures to preserve employment, such as subsidies to employees whose working hours have been reduced or income support to the self-employed.
The Commission has also adopted the Temporary Framework for State Aid measure s (4) to support the economy in the current difficult times.
Member States can use those measures for the benefit of their cultural sectors and the Commission encourages them to do so. In this regard, the Commission is facilitating the sharing of experience and the exchange of information between Member States through a new platform.
⋅1∙ Regulation (EU) 2020/460 of the European Parliament and of the Council of 30 March 2020 amending Regulations (EU) No 1301/2013, (EU) No 1303/2013 and
(EU) No 508/2014 as regards specific measures to mobilise investments in the healthcare systems of Member States and in other sectors of their economies in response to the COVID-19 outbreak (Coronavirus Response Investment Initiative) — OJ L 99, 31.3.2020, p. 5‐8
⋅2∙ https://ec.europa.eu/regional_policy/en/newsroom/news/2020/04/04-02-2020-coronavirus-response-investment-initiative-plus-new-actions-to-mobilise-essential-
investments-and-resources
⋅3∙ Council Regulation (EU) 2020/672 of 19 May 2020 on the establishment of a European instrument for temporary support to mitigate unemployment risks in an
emergency (SURE) following the COVID-19 outbreak — OJ L 159, 20.5.2020, p. 1‐7
⋅4∙ Communication from the Commission — Temporary framework for state aid measures to support the economy in the current COVID-19 outbreak,
19 March 2020, OJ C 91I, 20.3.2020, p. 1-9, as amended by Communication from the Commission C(2020) 2215 final of 3 April 2020 on the Amendment of the Temporary Framework for state aid measures to support the economy in the current COVID-19 outbreak, OJ C 112I , 4.4.2020, p. 1-9 and by Communication from the Commission C(2020) 3156 final of 8 May 2020 on the Amendment of the Temporary Framework for state aid measures to support the economy in the current COVID-19 outbreak, OJ C 164, 13.5.2020, p. 3-15.
| | ) A second platform, called Creatives Unite (5), has been launched for organisations from the cultural and creative sectors. It offers a common space for those looking for information about cultural and creative sector initiatives responding to the coronavirus crisis.
It gives access to the multitude of existing resources, relevant networks and organisations and offers a curated space to co-create contributions towards finding solutions together.
In addition, the Commission is exploring actions to help support the sustainability of the music sector in the recovery phase.
The Commission, in cooperation with the European Investment Fund, is exploring ways to enhance the Cultural and Creative Sectors Guarantee Facility to allow more flexible repayment schemes, credit holidays or to increase guarantee coverage on individual loans.
⋅5∙ https://ec.europa.eu/commission/presscorner/detail/en/mex_20_808
http://creativesunite.eu/