Montag, 8. Januar 2024

FEATURE: The catastrophic Covid consequences in the live industry

 Finally, finally, finally, finally! Every musician, whether amateur or professional, has longed for nothing more than the end of the coronavirus restrictions in the live sector. Countless artistically oriented careers have already been destroyed by the various shutdowns, countless frustrating purchases have been made and countless pounds have been eaten away in Netflix mania, but now, now everything will finally go back to the way it was in 2019, the tours, the festivals, the solo shows, everything will go back to the way it used to be ... the way it used to be ...
Not at all! Even if you don't notice it immediately as a concertgoer, the live industry is on the brink of total collapse for various reasons. Whether it's a small local festival or a world-famous mega-event, everyone is struggling with the same problems. But read for yourself.

Problems? What kind of problems?

Well, there are several problems that have been caused or significantly accelerated by Covid. The total standstill in the live industry for over two years has completely disrupted the lives of musicians, promoters and concertgoers, forcing the majority of the live music industry and all associated professions to completely reorient themselves. But let's first take a look at the basic problems.

1) Planning for 2020

We've all seen it since March 2020: one festival after another, one tour after another, one show after another were postponed over and over again, first on a monthly basis, then on a six-monthly basis and finally on a yearly basis, with fans pinning their advance tickets to their ever-filling pinboards at regular intervals. In the best-case scenario, the message was "tickets remain valid"; in the worst-case scenario, the tour was canceled, the musicians lost money, the promoters lost money and the fans had to go through the annoying process of getting a refund. And not to forget, of course, the advance booking fee is also gone. I myself had to reschedule our European tour a total of three times, which also meant that a very good package had to be put on hold.

However, the organizers of the rescheduled shows are now under pressure to realize a show / festival / tour at the same conditions as 2 years ago, which is simply not possible. Whether it's the murderer from Moscow, China's non-covid madness or the exploding inflation, nobody could have expected these events at the beginning of 2020, which caused the costs for everything and everyone to explode. Whether transport, travel, personnel or spare parts costs, many areas that are needed for the professional realization of a show have risen in price by up to 50%, or even worse, are no longer available for an indefinite period of time. The promoter can no longer adjust the ticket costs retroactively and has to work with the income from two years ago, which means that many promoters can no longer cover their costs and are trying to pass on the reduced income to the artists in the form of renegotiated fees. The mood is correspondingly tense and many names change almost daily on the concert posters.

2) Where is the professional staff?

Anyone who has ever seen a large stage from behind or below can get a rough idea of the gigantic effort involved in the planning and realization of such a monster. In Germany in particular, it is well known that you need a corresponding certificate or training for every job, no matter how small, that takes place in public, which means that only trained specialist personnel are allowed to set up, convert and dismantle the stage or manage it during operation. There are other ways, as I was able to "admire" several times in South America, for example, but that's another story.

I don't know how long experts warned about the following situation. For months, it was mentioned over and over again in all the media like a prayer wheel, but the decision-makers, as so often in the past, once again played it cool in the sense of "it won't be that bad". So it came as it had to and, as predicted, the consequences are catastrophic. We no longer have any specialist staff! There is a shortage of everything that has to take on responsibility in any form, light operators, riggers, FOH, backliners, security staff, even bar staff, simply everything! Why is that?

Well, if you forbid tax-paying citizens from practicing their profession, but in return do not ensure that they can continue to earn a living, you are forced as a family man/mother to look for a new job beyond all artistic fields of activity after reducing your personal nest egg. Whether train drivers, office workers or vaccination assistants, many live music professionals have at some point given up in discouragement and signed new employment contracts which, apart from better and more secure pay, paid vacation and state-guaranteed social security contributions, make even the occasional help-out in the live business impossible.

What is happening now can be seen in every live corner. Many small to medium-sized festivals have already had to be canceled due to staff shortages and now the problem is spreading to the big mega-events. I'm not allowed to mention exact names, but a lot of established and large festivals in Europe are on the verge of pulling the plug. In some cases, specialists have to be flown in from all over the world in order to somehow implement the event, which of course also drives up the event costs. In addition, the few specialists who have stuck with it have of course raised their rates by up to 70 - 80%. Experienced stage technicians for less than €400 per day? No way!

3) Covid and no end in sight?

Even if you really can't hear it anymore, Covid is still not over, strictly speaking. Even if Omicron allows a consistently more moderate course, anyone who tests positive for corona is still out for a week. Even now, colleagues of mine are still constantly falling ill, which means that shows have to be canceled time and again. Making up for these shows is not so easy, however, as most venues are fully booked until the end of 2023. I myself had to experience in my environment how the partner of a colleague was tested incorrectly for Covid by a rapid test during a visit to the gym, the colleague then had to take a PCR test, which took several days to process, which meant that a sold-out festival in Spain had to be canceled due to the lack of negative proof of vaccination. Flights paid for free, organizers without a headliner, fans pissed off, only losers on the whole front. Oh yes, both PCR tests were of course negative.

The fan understandably loses interest in the VVK at some point and waits until the last day to buy tickets at the box office. However, this in turn means that many tours are canceled in advance for security reasons, as the supposedly poor advance booking means that the number of visitors is expected to be poor, which in turn reinforces the fan's behavior. It's a classic death spiral that constantly feeds off each other.

4) The threat of oversaturation

Every day, every city, at least 3 shows - that's the current approach in the live sector. Every, really every band is on the road somewhere at the moment, desperately trying to make up for their failures of the last two years. The resulting effect should be clear to everyone. Even if fans go to a few more shows than usual at the beginning to cover their pent-up demand, saturation will set in by the fall at the latest. Aside from the fact that inflation will knock your personal credit into the ground, you can only go to a certain number of concerts.

Large and established festivals are still comparatively well booked, but quite a few experts are already predicting the end of solo show tours. Nightliners, which only 2 years ago cost €1,700 per day, have now already broken the €2,300 mark, assuming you can get one at all, because as I said, every band is on the road at the moment.


Conclusion

Probably no one realized the extent of the Covid catastrophe two years ago, when Germany's second largest industry after mechanical engineering was sent completely into the desert within a few days without any plan. However, only the real experts saw that this catastrophe would have such repercussions.

In conjunction with the other opponents of art, such as the criminal streaming remuneration, those responsible have succeeded in giving the industry a further blow that will send the professional "art body" tumbling further towards the abyss. Only time will tell whether this blow will be the final death blow that finally reduces the profession of professional musician to absurdity.


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The Comprehensive Impact of COVID-19 on the Economic Landscape of Germany

Abstract:

The COVID-19 pandemic, caused by the novel coronavirus SARS-CoV-2, has had profound and far-reaching effects on economies worldwide, and Germany is no exception. This report provides a detailed analysis of the multifaceted impacts of the pandemic on Germany's economic landscape, encompassing various sectors, policy responses, and future outlook.

Introduction:

The emergence of COVID-19 in late 2019 marked a turning point in global history, triggering an unprecedented health crisis that quickly evolved into an economic challenge. Germany, as one of the world's leading economies, faced a myriad of challenges as the pandemic unfolded.
Impact on Key Economic Sectors:

a. Manufacturing and Export: Germany's manufacturing prowess and export-oriented economy were significantly hampered by disruptions in global supply chains and a decline in international demand. The automotive industry, a cornerstone of the German economy, experienced production halts and reduced consumer spending.

b. Tourism and Hospitality: The lockdowns and travel restrictions imposed to curb the spread of the virus dealt a severe blow to the tourism and hospitality sectors. Popular destinations, such as Berlin and Munich, witnessed a sharp decline in visitors, leading to hotel closures and job losses.

c. Retail and Consumer Spending: Social distancing measures and economic uncertainty prompted consumers to cut back on discretionary spending. Brick-and-mortar retailers faced challenges as foot traffic dwindled, while e-commerce experienced a surge.

d. Finance and Banking: Financial markets experienced volatility, impacting banks and financial institutions. The German government implemented measures to stabilize the economy, but concerns about non-performing loans and reduced investment persisted.
Government Response and Economic Stimulus:

The German government implemented a range of measures to mitigate the economic fallout from the pandemic:

a. Financial Aid Programs: Extensive financial aid packages were introduced to support businesses, employees, and the self-employed. These included grants, loans, and tax deferrals.

b. Kurzarbeit (Short-time Work): The Kurzarbeit scheme, which allows companies to reduce employees' working hours with the government compensating part of their lost wages, played a crucial role in preventing mass unemployment.

c. Economic Stimulus Packages: The government launched stimulus packages aimed at boosting domestic demand, investing in infrastructure, and fostering innovation.

Challenges and Future Outlook:

a. Public Debt: The extensive economic support measures led to a surge in public debt. Balancing the need for stimulus with fiscal responsibility remains a challenge for policymakers.

b. Structural Changes: The pandemic accelerated existing trends such as digitalization and remote work. Adapting to these changes will require investments in technology and skills training.

c. Global Economic Uncertainty: Germany's economic recovery is closely tied to global economic conditions. Trade tensions and geopolitical factors add an element of uncertainty to the future outlook.

Conclusion:

The COVID-19 pandemic has left an indelible mark on Germany's economic landscape, affecting diverse sectors and prompting unprecedented government intervention. As the nation navigates the path to recovery, policymakers and businesses must remain adaptive to the evolving challenges and opportunities presented by this global crisis.

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