This was published 4 years ago
International acts might not tour for another year, says music promoter
Australia may not see international acts touring through this country until next year according to one top music industry executive.
Michael Chugg, executive chairman of Chugg Entertainment, has been in the music business for 55 years and said he has never experienced anything quite as devastating to the industry as the current coronavirus crisis, which has halted all live touring and shuttered venues around the country.
CMC Rocks Qld at Willowbank was one event Michael Chugg had to cancel, costing him more than $1 million.Credit: Discover Ipswich
As the industry counts the cost of cancelling and postponing hundreds of gigs, thoughts have already begun to turn to the recovery and what that might look like. Chugg said the the touring market for Australian acts would be able to get back on its feet quickly after the virus is eradicated in Australia but bringing international acts in was going to prove more of a challenge.
"I might be being pessimistic, but the way America and the UK are going... if we clean up the virus here why would you then start letting people in to start it all over again?" he said. "We might not see any international acts in this country for a year."
Planning for the industry to restart when the crisis ends is already underway, but the viability of ancillary industries that exist to support the live entertainment industry is a key consideration.
The three largest tour promoters in Australia – Live Nation, TEG, and Frontier Touring/Chugg Entertainment – contract to 600 small businesses and employ thousands of people for live shows around the country. When the government implemented a ban on public gathering, all those people found themselves without a source of income.
"I hope not, my fingers and toes are crossed, but I think it is inevitable that we will lose some of these businesses," TEG's CEO Geoff Jones said. "They are small businesses, they live tour to tour, they are people that depend on a vibrant touring market."
TEG was touring Lenny Kravitz in Australia in April but has postponed until next year.Credit: Evan Agostini/AP
"The live entertainment industry was the first industry that was hit the day the bans went on for public gatherings, so we were the first to lose all revenue completely," Jones said.
The promoters themselves are also feeling the pain. Most spend between $500,000 and $1 million marketing a show before it begins and already hundreds of tours have been cancelled or postponed, bleeding millions out of the industry.
"We have no revenue coming in," Jones said. "Nothing is coming in, it is all going out. That isn't a good business model to have."
The three companies have sent a joint letter to Prime Minister Scott Morrison in support of Live Performance Australia's request for a targeted $650 million support package, suggesting funding could be divided between wage subsidies for people who work in the live entertainment industry, cash injections for performing arts companies and regional venues, and additional funding for mental health charity Support Act.
"The live entertainment industry stands up and does big events for bushfires and floods and natural disasters and raises millions for kid's charities and hospitals," Chugg said. "We give a lot and I think all those people do deserve some support during this time."