The music industry has taken an exponential blow due to the coronavirus pandemic. Live music, in particular, has suffered a hefty amount of hardship. From canceled shows to festivals and venue closures, the future has been uncertain for how the live music industry will recover. Bands like The Black Keys and The Flaming Lips have had to cancel their anticipated tours. Every day, more festivals and shows are getting postponed or canceled due to the coronavirus pandemic.
Venues are fearing that they may not be able to reopen, as iconic venue Troubadour may not survive the long-term coronavirus closure. Additionally, industry giants like iHeartMedia are struggling to stay afloat. In released report earlier this week, iHeartMedia stated that they suffered over $1.6 Billion in losses in the first quarter of 2020. Additionally, Sony Music reported that their 2020 income would be down 25%-40% versus 2019.
With the present looking grim, the future may be better. Investment bank Goldman Sachs sent mixed-messages regarding music industry revenue this year. According to Rolling Stone, the bank is lowering original forecasts for the music industry. As a whole, Goldman Sachs predicts a 29% loss overall for the industry combined. Live music alone will suffer a 76% decrease. Though 2020 may provide significant losses, Goldman Sachs predicts 2021 a comeback year with a robust and quick rebound.
Goldman Sachs wrote in their report that: “We expect a strong rebound in outer years, with the live music industry nearly returning to its pre-COVID-19 level by 2022.” Specifically, a 26% bump in 2021 and an 18% jump in 2022. Though 2020 may be rough, the Goldman Sachs prediction is a ray of hope for individuals struggling with the current state of the music industry.
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