Risky business
Jon Collins , CEO of Live music industry umbrella organisation LIVE , provides his view on how the risk-based live music industry can benefit from three simple steps by Government .
The cellist , Yo-Yo Ma once said , “ Passion is one great force that unleashes creativity , because if you ’ re passionate about something , then you ’ re more willing to take risks ”.
One year into my role at LIVE and passion and risk are two of the big themes that have emerged ( beyond confirmation as to the truly worldclass nature of our live music sector ). The interplay between passion and risk drives us forward .
Prior to LIVE I worked for many years across the hospitality sector , so I know plenty of people passionate about delivering great experiences . In my view , people in live music take that passion up several notches … pursuing careers and building businesses founded upon passiondriven risk taking .
That openness to risk is apparent in our musicians embracing an often precarious career requiring them to put their work out into the world to be judged . It is apparent in our venues and festivals – from the grassroots striving to break new acts on a 0.2 % profit margin to the arenas committing hundreds of millions over multiple years before they have even opened their doors , and the festivals laying it all on the line each year . Perhaps it is most apparent in our promoters , who cut deals that are a cocktail of risk involving artist , venue , customer and more .
How do we , as LIVE , clearly convey this risk profile to policymakers ? Politicians , officials and other regulators have the ability to change
Jon Collins
SUMMER | OPINION
our trading environment , heightening or mitigating risk and , in the process , stifling or accelerating our potential to grow . Their concept of risk tends towards the regulatory – risk to life , risk of injury , risk of a disturbed night etc . Translating ‘ risk ’ and explaining how it is viewed by our sector is an important step in having politicians understand our work .
Passion increases our tolerance of risk . Risk , in turn , drives economic growth . So when Government asks , as they are now doing , how they can help us to grow , the answer lies in creating an environment in which we can all take more risks . To do more , we need :
• a talent pipeline to fill the wealth of roles across live music
• touring support to give emerging artists greater access to the EU
• a tax regime that incentivises investment in more performances
UK VAT on tickets is anticompetitive , four times the typical rate across Europe and puts an artificial ceiling on the number of viable shows . Put simply , there are gigs that would go ahead at 5 % that are not at the current 20 %. The impact of those decisions is felt in every town and city of the country each night a venue lies quiet . The grassroots venues not giving an opportunity to an unsigned band through to the concert halls and arenas not bringing thousands of people into the area . Fix that , and as National Arena Association research shows , you put £ 1million per 10,000 attendees into local economies from Inverness to Newquay .
A truly world-class industry , primed for growth ( as long as we support the grassroots ) and the best advertisement for the UK around the globe . Three relatively simple , relatively cheap steps that the Government can take and we can all be doing more . Do they understand the risk of inaction ?
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