Q. With the UK having a major influence in today’s electronic music industry, how will leaving the EU alter or shift the practice of promoting British music and artists in Europe and throughout the world?
A. There are still a lot of unknown consequences for the UK leaving the EU that haven’t been identified yet (i.e. how EU Members and or UK Members will be treated between the different Member States) The one thing we do know is that in the short term the value of the British Sterling Pound “GBP” has weakened considerably as a result of the Brexit. As a result of this weakness, it is my prediction that unless there is change in the value of UK Currency, the practice of promoting British Artists and Music throughout the rest of the world should increase due to the reduced cost of paying a British Artist for their performance and or their music (i.e. decrease in value of GBP vs buyers local currency creates a value purchase for buyer).
Q. Will we be seeing a boost in new markets in the music scene while the arrangements for the UK’s exit are finalized?
A. I do think we will see a boost in new markets in the music scene do to the Brexit. As I indicated in your first question, the decrease in cost for a British Artist due to the weakness in the GBP will allow new markets like Asia, Africa, Middle East and South America to continue to grow their music scene and have better access to amazing British Artists whom they may not have been able to afford previously.
Q. Music tourism’ generated £3.1 billion (approximately $4.5 billion) for the UK economy in 2014. With the UK being a key location in the European music scene, do you anticipate this number to deviate or remain for the most part unaffected by the changes proposed?
A. In my opinion, the weakness in the GBP will help increase the amount of tourism into the UK from foreigners, as a result of this increase, it is my prediction that there will be more travelers able to attend UK events and in effect generate more revenue than in previous years.
Q.What kind of affect will this have financially on UK emerging and touring artists? What about for artists touring within the UK? What kind of issues do you think we will see arise with respect to visas and touring?
A. As a follow up to your question #3, if UK events are seeing more customers due to the increase in foreign tourism, this should result in more pounds that can be invested in artists. That being said, the contrast to the positive result of weakness in the GBP is that foreign artists will be more expensive than in previous years and as a result not as attractive to UK event providers as UK artists. Though I do think that if the UK event providers are able to sell more tickets due to the increase in foreign tourism, it will allow them to spend a little more on talent.
Q. According to a recent British Phonographic Industry survey, 68% of participating British record labels wish to see the UK remain in the EU and that British music accounts for a quarter of the total market in Europe for recorded music. TMG works with many European record labels, including several within the UK. How do you predict relations with UK-based labels will change while the country is in this transitional phase? Can we expect to see a change in the value of royalties and rights? Any specific tax implications?
A. This is a great question and the answer is, it is too early in the process to tell. It is my prediction that there will be many changes that take place as a result to the Brexit. Here are a few examples as follows;
– How VAT “Value-Added-Tax is handled among the UK and other Euro Member States
– How European Visas and or UK Visas are treated between the UK and other Euro Member States
– Economic Trade is handled between the UK and other Euro Member States
– Just to name a few..
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