A recent study by EY on the state of the cultural and creative industries in Europe shows that this industry is ahead of COVID-19
- employed more than twice as many people as the telecommunications and automotive industries combined,
- has grown faster than the EU average,
- represented 4.4% of the EU's gross domestic product.
The study shows that the cultural and creative industries are among the hardest hit by the pandemic: stronger than tourism and almost as strong as air transport. All the more reason why the cultural and creative industries can play an important role in solving the crisis at a time that is calling for political unity, strong impulses for the economy and social regeneration.
31% less revenue in 2020
In 2020, the cultural and creative industries (CCIs) in the 28 countries of the EU will see their revenues fall by €199 billion or 31%. This means that their losses are higher than those of the tourism industry (-27%) or the automotive industry (-25%). The economic impact of the pandemic is being felt across all sectors of the cultural and creative industries, with the performing arts (-90%) and music being particularly hard hit, with a 76% year-on-year drop. Although online uses of music have increased, the absence of live events has not been compensated for in any way.
Long-term consequences along the value chain
The effects of the crisis will continue to severely slow down the growth of the industry throughout Europe for several years. In the area of collecting societies, which will not pay out the 2020 performance monies to rights holders until this year, the decline in music uses means a loss of revenue of around 35%. Sales of physical recordings continue to decline and are also down -35%, while digital sales will only grow by a low 8%. Only when there is a clear perspective for the resumption of regular production and play operations will investments and innovations also take place again.
The situation of music authors in Austria
COVID-19 has also caused a massive drop in income for creative artists in Austria. Authors and music publishers will receive the royalties due for the previous year in the course of this year and have to assume a reduction of the distribution sum by 20.2% to € 85.2 million. The live performance division will reach a negative record with a minus of 70%. For 2021, due to the ongoing restrictions in the cultural sector, a declining revenue total of € 86.3 million (- 9.8% vs. 2020) is again expected, which is thus more than 25% below the revenue figures of 2019.
Mastering the future together
The cultural and creative industries have been hit extremely hard by the pandemic and it will take years to recover from the effects. On behalf of its 27,000 members, the rights holders of musical works, the AKM once again calls on the governing parties to increase support for music creators in line with their economic importance and to use creative creators as multipliers for the future.
Study & Client
The study Rebuilding Europe: The Cultural and Creative Industries before and after COVID-19 was commissioned by the European umbrella organisation of collecting societies GESAC from EY and covers the ten most important areas of the NPP. GESAC comprises 32 collecting societies from across Europe, collectively representing over one million creators and rights holders - from music and literary creators to visual artists, film directors and many other creative professionals in the fields of music, audiovisual content, visual arts and literary and dramatic works.