8 minute read
Analysis
from IQ109 Preview
by IQ Magazine
EURO MARKETS LIFT COVID RESTRICTIONS
At the end of two years of uncertainty and upheaval, there finally appears to be light at the end of the tunnel for the global touring business, as multiple European markets began to roll back Covid restrictions in the last month.
England’s live music industry hailed the removal of Covid-19 measures, necessitated by high immunity and falling death rates among the population, as a “huge, welcome relief” but warned of the need for ongoing government support.
“With spiraling costs and thousands of companies struggling with pandemic debt, it’s crucial that government does not abandon and set the sector adrift just as it starts to tread water again,” said a spokesperson for trade body LIVE. “We are calling for a reverse to the planned hike in VAT rates and the imminent end to business rates relief in order to avoid further business closures and job losses within our sector.”
Meanwhile, the Association of Independent Festivals (AIF) warned of a ‘perfect storm’ heading for the UK festival season, with the supply chain crisis, workforce shortages, and the effects of Brexit chief among its concerns.
“We may be emerging from the shadow of the pandemic in the UK, but this year will not be a case of ‘back to business as usual’ without critical support for festival organisers,” said AIF CEO Paul Reed. “That’s why we’re calling on the government to aid our recovery and maintain the current reduced 12.5% rate on tickets beyond the end of March, as well as looking at some form of government-backed loan scheme for suppliers to alleviate some of these pressures and encourage investment in the festival supply chain.”
England followed in the footsteps of Denmark, Sweden, the Netherlands, Finland, Germany, Austria and Switzerland in announcing plans to lift all remaining limits.
Promoters in Germany advised that “many questions remain unanswered” about the country’s reopening, despite the promise of a long-awaited so-called “Freedom Day” next month. Most Covid curbs will be axed from Germany’s Freedom Day – 20 March – although “low-threshold basic protective measures,” such as mask wearing, will still apply.
The Event Management Forum, which includes live music bodies BDKV and LiveKomm, expressed its relief at the “steps back towards normality,” but said the plans required “considerable clarity” from the government, particularly around capacity limits.
“Should it mean that capacity restrictions are perhaps only reduced but basically continue to exist, the event industry would still be a long way from a Freedom Day,” said Professor Jens Michow, president of live music association BDKV. “Cost-efficiency presupposes that we at least have the chance to generate 100% income with 100% costs. To do this, we must be able to use the hall capacities to the full. As long as we don’t have this chance, we will still not be able to speak of normality in our economic sector.”
LiveKomm chair Axel Ballreich added that certain assurances were still needed from the government.
“It must now be ensured that outdoor events can take place in summer without any restrictions,” he said. “This includes standing room, without a mask, dancing and partying. If we do not receive this security immediately, we will have to cancel events now out of fairness to our guests but also in the interest of minimising damage.”
DEAG CEO Peter Schwenkow acknowledged the myriad of issues facing the touring industry but shared his confidence for the months ahead.
“We are very much convinced we will see a record year, just by delivering the 5,000-plus shows we have on sale,” he told IQ. “Probably not with the full profit margins, due to lack of personnel and by accepting higher costs of ticket prices from 2020 and 2021, but still strong.”
Elsewhere, Switzerland lifted almost all pandemic restrictions from 18 February, with Austria following suit from 5 March.
“It’s about time, after two years of uncertainty, worries, and nearly no shows,” said Goodlive Artists Austria’s Silvio Huber. “On the other hand, we will face lots of challenges, and 2022 will be a tough ride for sure. The market is packed with shows, there is an immense lack of experienced local crews, and we will see a significant rise in production costs, rentals and more.
“Additionally, we shouldn’t forget that we are not used to a pre-pandemic workload yet! I guess
Silvio Huber | Goodlive Artists Austria
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this will be the hardest challenge for our industry this year. I’m really looking forward though as I’m convinced we will overcome all these difficulties.”
However, Italy’s live music sector was still waiting for the green light to restart, with Assomusica demanding a clear roadmap to recovery be set out in March to enable the summer season to go ahead.
“The operators in the sector are really tired, and we would all like to go back to doing our job – in the squares, in the stadiums, in the sports halls – and bring the audience back to relive the emotions that only live music can offer; to restart our sector,” said the trade body’s president Vincenzo Spera. “The situation of discrimination in the live sector is becoming unsustainable. If we do not have certain dates and clear rules very soon to [enable us to] face the spring and summer season, the live sector risks collapse.”
And despite Denmark having become the first country in the EU to lift all coronavirus measures, live association Dansk Live warned reopening would not be a “silver bullet” for the sector.
“Not only has the audience not yet fully returned to the concerts, many places are challenged on the crucial voluntary commitment and also the prices of things like materials, which are sky-high,” said head of secretariat Esben Marcher.
Outside of Europe, Australia reopened its international border for the first time in nearly two years and has announced Under the Southern Stars, the country’s first concert series featuring international artists since the lockdown of March 2020.
Promoted by Andrew McManus’s One World Entertainment, Under the Southern Stars comprises 12 shows across Australia in March, with Black Rebel Motorcycle Club, Cheap Trick, Stone Temple Pilots and Bush serving as rotating headliners across the tour.
And in Japan, where restrictions are gradually being loosened, leading promoter Creativeman confirmed that its marquee festival Summer Sonic will return to Tokyo and Osaka this summer for the first time since 2019.
The 1975 and Post Malone were recently announced as headliners of the festival, due to take place on 20–21 August simultaneously at ZOZO Marine Stadium and Makuhari Messe Event Hall in Chiba, a suburb of Tokyo, and at the Maishima Sonic Park in Osaka. Other international artists lined up for the event include Carly Rae Jepsen, Kasabian, The Libertines, Måneskin, Megan Thee Stallion, The Offspring, Primal Scream, St. Vincent, and Yungblud.
“More and more artists are reaching out and eager to visit or revisit Japan,” said Creativeman’s Layli Odamura. “We, as a promoter, are ready for the live market to return, and we will continue to assess the situation with the government. There will be multiple headline shows happening towards the autumn onwards too.” B en Lovett‘s TVG Hospitality announced the closing of $50million (€45m) in new funding to expand its team and venue portfolio in the UK and US, backed by a heavyweight list of investors.
The financing round was led by Nat Zilkha and Gibson Brands, with music industry participants including C3 Presents, Irving Azoff and Oak View Group (OVG), Mike Luba, Don Sullivan, Justin Kalifowitz, Andrew Bergman, Coran Capshaw, Ron Laffitte, Adam Tudhope, Lucy Dickins and Tom Windish; alongside musicians Ryan Tedder, Maggie Rogers and Ted Dwane.
Founded by the Mumford & Sons musician and his brother, Greg Lovett,
TVG currently operates three London venues, with multiple sites under development in the US, including the Orion Amphitheater in Huntsville, Alabama.
“We are thrilled to be working with TVG on this next chapter of their venues,” declared Irving Azoff, chairman/CEO of The Azoff Company and OVG co-founder. “Ben and his team are approaching the venue space in exactly the right way – you have to put the artist and the fan at the centre of every thought process. That’s the key, and TVG are both artists and fans whilst also knowing a thing or two about hospitality. We hope to support them on their mission in any way we can.”
London venue The O2 was forced to close for a week after its roof was damaged in one of the worst storms to hit the UK in decades.
An estimated 1,000 people were evacuated from the AEG-operated building on 18 February after Storm Eunice ripped a hole in its exterior tent fabric.
“There has been no actual collapse or structural damage to the building, but due to the nature of the canvas material that covers The
O2, it has come loose in high winds and looks quite dramatic,” said station commander Chris
Kamara of London Fire Brigade.
Rapper Dave’s two-night stand, set for 21-22 February, was rescheduled to 28 February/1 March, but all other shows went ahead as planned, starting with UB40 featuring Ali Campbell on 25 February.
The hole in the fabric caused by the storm will remain visible for some time while a permanent solution is put into place, but the venue clarified that damage is limited to an isolated area within The O2’s Icon Outlet shopping centre, a section of which will remain closed while essential works continue into the coming weeks. A new entrance tunnel has been constructed near Entrance H to allow guests to enter and exit the venue safely, protected from the elements.
“Confirming our reopening after such a short closure is a huge testament to everyone who is working so hard to get us open again,” added Steve Sayer,
The O2’s VP and GM. “Safety will always be our number-one priority.”
HEAVYWEIGHT INVESTORS FLOCK TO TVG
STORM EUNICE BATTERS THE O2
© Sharon Forbes
