Promusicae, a trade association that represents over 90 percent of the Spanish recorded music industry, expects the coronavirus (COVID-19) pandemic to inflict losses in excess of $108 million (€100 Million) on Spain’s music community.
Promusicae conducted a survey of the coronavirus crisis’ outlook, current economic signals, and the domestic music industry’s long-term prospects en route to reaching the conclusion. Additionally, Promusicae noted that recorded music’s financial damages could in fact surpass $108 million if the post-COVID-19 recession lasts longer than expected.
As part of its report, Promusicae also highlighted 2019’s encouraging industry figures and sales. Spain’s music industry earned 22.5 percent more last year than in 2018, with total sales of over $320 million (€296.4 million). Digital music experienced a major boost, including a 34.9 percent hike in paid subscriptions to audio-streaming platforms. Notably, physical music sales also grew in 2019, by 7.2 percent.
However, the domestic music sphere’s recent progress (following the 2014 recovery) could be lost, Promusicae warns, unless the Spanish government promptly provides financial support. With the country in lockdown and the COVID-19 pandemic showing few concrete signs of slowing down, new recordings sessions are essentially nonexistent, physical sales have plummeted, and, as in the United States and elsewhere, music streaming’s prevalence has dropped.
Assistance-wise, Promusicae is calling for a “compensation fund” to aid companies affected by mandatory closures and music-release postponements, including labels and record shops. Additionally, the trade association suggested a roughly $16.29 million (€15 million), two-year, no-interest credit line for small- and medium-sized music industry companies, as well as lower corporate taxes and rental assistance for entities that have sustained particularly heavy losses.
Medical professionals have diagnosed more than one million worldwide COVID-19 cases to date, approximately 110,000 of which have derived from Spain. One of the hardest-hit countries, Spain entered a full-scale lockdown on March 14th, and government officials recently extended the measure until April 12th.