Eiszeit? Study of Musical Life in Germany before and during the Corona Period

This study was created together with the Center for Cultural Research ZfKf. It was commissioned by the German Music Council (DMR), the umbrella organization for more than 90 music associations in Germany.

DOWNLOAD: DMR_Eiszeit_Studie.pdf (kulturforschung.de)

The study paints a nuanced picture of the situation of musical life before and during the Corona period. The results summarized below are of particular relevance from the perspective of the German Music Council. They form the basis for an effective musical political discussion of the deficiencies and challenges currently faced by musical life.

Description of the situation

1.1. Significant activity profiles

The study identified three profiles of people active in the musical life: Profile 1, with predominantly musical educational activities, was represented in the survey at around 49%, Profile 2, with predominantly music business activities, at around 19%, and Profile 3, with predominantly artistic activities, at around 32%.

1.2. Type of employment relationships

Of the 2,851 people surveyed, 798 said they were partially employed and partially self-employed, making up about 28% of the total. 1,492 people said they only earned income from self-employment, and 561 people were only employed.

1.3. Income situation before the pandemic

The annual gross income from employment, calculated as a full-time job, was on average €31,290 before the pandemic, with below-average incomes being significantly more common than above-average ones. About half of these incomes were below €23,000. As a result, the gross salaries of employees were only slightly lower than the overall German gross annual income, which was an average of €36,360 in 2019.

The annual revenue of the self-employed was on average €35,856 before the pandemic, also calculated as a full-time job. However, about half of the respondents reported an annual revenue of less than €20,640. Business expenses must be covered from the revenue, and only the rest is available for private spending.

1.4. Income changes in the Corona year

Employed people did not experience significant income losses in the first shutdown, mainly due to the state's short-time work allowance. Self-employed people, on the other hand, had to accept revenue losses of an average of 44% in the first shutdown. One fifth of the self-employed respondents reported a 100% revenue drop. Profile 3 was particularly affected here: those mainly active in the artistic field suffered revenue losses of more than 60%.

During the easing phase, there were no significant changes among predominantly employed individuals. The revenue losses among predominantly self-employed individuals during this phase were on average 29% compared to the baseline. In the second shutdown, predominantly self-employed individuals had revenue losses of around 45% compared to the baseline. Profile 3 was the most affected here, profile 1 the least.

Overall, revenue losses among self-employed individuals in the pandemic year 2020/21 were around 42%. After taking into account the assistance provided, there remains a reduction in revenue of around 31%.

1.5. Utilization and evaluation of Corona aid offers

Around 38% of those surveyed have taken advantage of government assistance, while approximately 62% have not applied. Reasons for this included that aid was not necessary (38.7%), there was no eligibility for assistance (42.5%) or the application process was perceived as very bureaucratic and complex (6.6%). Instead of using public support, donations, savings, support from the private environment or funds from private pension plans were often relied on.

Consequences

2.1. Difficult income situation

In particular, self-employed individuals are expected to face a permanent worsening of their income situation, such as wage dumping in the face of an increasingly competitive situation in the future. According to the experiences of those surveyed, fees for freelance musicians have already fallen by around 30% in recent years. This trend is feared to continue. Furthermore, income from distributions from GEMA and GVL will also drastically reduce in the coming years due to the low number of events in 2020 and 2021.

2.2. Closure of event venues

It is feared that a large number of event venues will close due to Corona, which could lead to poverty in the performance scene in particular in middle centers, places with a central function for a predominantly rural environment. The current planning uncertainty contributes to the existential threat to many event venues: according to the experiences of those surveyed, many projects are being planned very cautiously and mainly only for the time from 2022 and later.

2.3. Shift from analog music offerings to the digital realm

Many of those surveyed evaluate digital options such as streaming or digital teaching positively, and in a few areas of the music industry, where digitalization is complete or far advanced, gains were recorded. However, as a possible consequence of the shift to digital offerings, a greater dependence on predominantly US-American platforms is assumed in the field of the music industry, which in turn would result in the financial resources flowing out of the German system.