Music biz reacts to U.K. votes to leave European Union
The historic referendum that saw 52 percent of the electorate vote for Great Britain to exit the EU – dubbed Brexit – caused the Pound fall to its lowest level against the dollar since 1985. P.M. David Cameron, subsequently, announced his resignation, with a new PM taking his place by the start of October. But the implications for the music industry are similarly grave with the decision to leave the economic stability of the EU anticipated to impact heavily on the live sector.
Before Brexit, British touring artists could freely travel and perform in Europe at will. Now there is the distinct possibility that acts will require separate working visas for each EU country they wish to visit.
John Reid, the president of concerts for Live Nation in the U.K. and Europe, says Brexit “won't affect overall business” for the leading promoter, producer and venue operator in the territory. "Billboard" reports he told:
We just have to pay continual and close attention to currency swings, both long and short term. The bigger picture is: I hope it doesn't tip the EU Into deeper economic recession.
The general manager of Evenbrite in the UK and Ireland tells "Billboard":
Like any other business, we cannot predict the precise impact of this outcome both on our company and the wider events industry in Britain. For the time being, that means business as usual for us.
Drew Hill, managing director of Proper Music Group, the country's largest independent record distributor (among other things), explained "Billboard" he would
be surprised if anyone knows exactly how this is going to play out. With the majority of British music actually manufactured in Europe, many UK labels will need to pay more to have their stock manufactured, and US labels will make less back from their UK sales.
The Brexit also carries serious implications for how copyright is protected and enforced throughout Europe. The European Commission is reviewing copyright legislation, including safe harbor provisions, as part of its Digital Single Market strategy and the UK stood to benefit from those regulations and, just as importantly, have a voice in how they are devised. That’s no longer the case.