German Industry Associations Estimate COVID-19 Damage At $6.1B

CTS Eventim/FKP Scorpio
Matthias Rhomberg – CTS Eventim/FKP Scorpio
One of many festivals whose future is in jeopardy.
Germany’s main industry associations have worked out estimates of the total damage that the country’s music industry will be suffering in the coming six months if the government doesn’t loosen its COVID-19 policies.
The findings are summarized in a joint report that calls for immediate, unbureaucratic help from government – which has emphatically pledged its financial support for the cultural sectors.
The live sector is represented by the promoters association BDKV, the club association LiveKomm and BV Pop.
BDKV estimates that between March and May, around 80,000 events generating a projected $1.4 billion in revenues, will have been affected by the political measures imposed in reaction to the Coronavirus.
The associations lay out the intricate links within this industry, with artists, their representatives, promoters, venues, suppliers, security and ancillary businesses all being dependent on each other.
Update: CTS Eventim has made a projection of losses in the coming six months for the sector as a whole, which includes losses already incurred from cancelled shows as well as losses from missing ticket sales in the coming six months. The projections stands at €3.7 billion ($4.1 billion).
The country’s small festivals, up to 10,000 cap, will suffer estimated losses of €232.6 million ($260 million), the major festival sector will lose €451.4 million ($502.6 million) during this six-month projection.
The report continues to list the various sources of income of the other sectors making up the business, including publishing, recorded music and the performing rights societies.
The shut down of what governments have deemed “non-essential retail” means that the recorded music sector could lose some €100–€150 million ($111–167 million) over the coming six months, while the sector for musical instruments and equipment could lose some €300 million ($334 million).
Adding up potential losses of all segments, the report arrives at an overall estimate of €5.5 billion ($6.1 billion) losses in sales over the coming six months – if the government’s restrictive measures persist.
Update (April 6, 3.17 a.m.): The phrase “sector as a whole” was added to the following sentence, to make it clear that CTS Eventim did not make any loss projections pertaining to the company’s own business, but the wider sector in Germany.