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Streaming Is Down, Festivals Are Dark: How Music Is Coping With COVID-19

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The Recording Academy is offering daily Q&A, an online informative information hub, in-depth webinars and more to keep music creators going
Nate Hertweck
Advocacy
Apr 15, 2020 - 3:59 pm

One month since many Americans began to live life altogether differently, COVID-19 continues to devastate the music world. From taking the lives of such pillars of its community as John Prine, Hal Willner and Adam Schlesinger, to the financial fallout created from mass cancellation of all tours, festivals and events, music creators have been hit hard and fast by the pandemic. Even the relief plan passed to provide critical aid to music makers has encountered issues, as creators struggle to navigate the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

An Industry Hit Hard

Making matters worse, new data shows that streaming is down, contrary to widespread hopes that more time at home during the era of social distancing would result in a listening boom. Sadly, music streaming was down 7.6 percent for the week of March 13 with digital album sales also down 12.4 percent. Even physical sales took a big hit, dropping 27.6 percent, according to Rolling Stone's Alpha Data.

On the live event side of the business, Forbes reports over 300 festivals have announced cancellations or postponements, affecting 90 percent of workers in the festival industry. To put the festival falloff in perspective, Coachella, which boasted a $700 million economic impact in 2016, was supposed to start this past weekend.

Cities that usually thrive on live music, like New Orleans, are most susceptible to the crisis. The Big Easy has 38,000 "cultural workers" with jobs in music venues and restaurants, nearly 10 percent of its entire population, and musicians make an average of just $17,800 a year according to the Washington Post.

As the industry reels from the ongoing effects of COVID-19, the Recording Academy has made it a priority to work with lawmakers to ensure that the nation’s recovery efforts are inclusive of music makers and the industry. The CARES Act established many new parameters that should help the struggling artists, songwriters, studio professionals, and other industry workers who are out of work, underworked, or simply unable to work.

Valuable Resources

With so many challenges facing music creators, many of whom were already struggling to make a livable wage, it is important to know what support resources are available to the music community. The Recording Academy has joined other groups in the music community by helping to launch the Music COVID Relief website, which contains the latest updates on the Federal Government’s response to the coronavirus.

Also, if you missed last week’s CARES Act webinar, a detailed discussion of how the new law affects music creators, you can watch it here. Additional webinars and programming will be announced soon to further dive into these new benefits.

The Academy has also started posting “COVID-19 Relief for Music Creators: Question of the Day” on its social feed. The daily Q&A has already provided insight on how songwriters can file for "gig" employment status, how and where independent contractors should file for unemployment, and more.

If you have a question regarding the CARES Act, what aid is available, or how it impacts you, please feel free to submit questions to the Recording Academy’s CARES Act Helpline here. A team of legal and policy experts will get back to you with answers.

Making The Stimulus Work For You

Even with a $2 trillion stimulus already passed into law, the fight for relief is far from over. The Recording Academy continues to raise the voices of the music community, letting officials around the country know how critical this time and their support is for creators.

Along with other members of the music community, the Academy sent letters to several Governors and State Labor agencies, and to US Secretary of Labor Scalia, regarding the CARES Act. The letters address implementation of the Pandemic Unemployment Assistance (PUA) program for self-employed individuals, including the need for clear guidance on how to file for unemployment, a full accounting of annual income when calculating the weekly benefit amount for self-employed individuals, and retroactive payments under the PUA program.

Looking ahead, Congressional talks regarding additional COVID-19 relief funding have stalled. To stay informed on the latest developments, visit the Music Covid Relief website.

To further support music makers during these difficult and uncertain times, the Recording Academy and MusiCares recently established the COVID-19 Relief Fund.

If you are an artist or music professional who has been impacted by this unprecedented circumstance and are in need of assistance, please visit our MusiCares page to learn more about the financial, medical and personal emergencies services and resources offered by the Recording Academy.

For more information and developments related to the coronavirus, visit the World Health Organization and Centers for Disease Control and Prevention for ongoing news and updates.

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Recording Academy Launches "CARES Act Helpline" To Aid Creators In Need

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Find out how creators can get the assistance they need in navigating the $2 trillion stimulus act, plus hear the good news for California creators regarding Assembly Bill 5…
Nate Hertweck
Advocacy
Apr 23, 2020 - 9:17 am

Music creators working for themselves are the smallest of small businesses, yet many have not yet fully benefitted from the promising $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law by President Trump late last month. But since its passage, many Federal and State agencies have struggled to consistently implement these newly funded programs. 

For instance, the Small Business Administration’s Paycheck Protection Program – where musicians, engineers, mixers and other creative professionals engaged in an independent contractor capacity could apply to receive loans and grants – quickly ran out of money last week after distributing $349 billion in emergency loans. On Tuesday, the Senate approved an additional $484 billion relief package to restart the PPP and other necessary programs that also needed more financial support—the House is expected to follow suit before the end of the week, and President Trump has already signaled he will sign the new funding into law. Music makers now have an additional tool to  help understand and apply for these programs aimed at easing the financial burden of COVID-19…

CARES Act Hotline

The Recording Academy announced its "CARES Act Hotline" to provide aid to creators in need. In coordination with Greenberg Traurig law firm, the Academy is opening the line to provide music makers with the tools to navigate the ever-changing landscape of COVID-19 related programs. Everyone’s situation is unique, and accessing government benefits and new programs can be challenging, but the Academy is here to help get creators the aid that they need.

If you are a Recording Academy member in need of assistance, please fill out our helpline and continue to monitor our social channels for any new updates.

Additionally, the Academy will be holding regular webinars during the pandemic to answer some of your questions.

The new Recording Academy CARES Act Hotline is the latest in the organization’s ongoing efforts to keep creators informed during the pandemic. Each day, the Academy posts Questions & Answers on Twitter, and creators can always find information regarding the CARES Act and its funding at MusicCovidRelief.com.

CA Assembly Bill 5 Amended

Good news for the music community arrived from the West Coast late last week, as the California Assembly has announced that it will be updating Assembly Bill 5 in order to better protect music creators. Originally intended to add protections for gig workers, the bill would’ve fundamentally changed the landscape for music creators in California, requiring them to be treated as employees and threatening to create barriers for studios, production companies and venues to hire them.

In a time where many music creators are in desperate need for financial relief and assistance, this change will allow musicians to quickly get back to work once normalcy returns after the COVID-19 crisis.

Giving Back & Seeking Help

To further support music makers during these difficult and uncertain times, the Recording Academy and MusiCares recently established the COVID-19 Relief Fund.

If you are an artist or music professional who has been impacted by this unprecedented circumstance and are in need of assistance, please visit our MusiCares page to learn more about the financial, medical and personal emergencies services and resources offered by the Recording Academy.

For more information and developments related to the coronavirus, visit the World Health Organization and Centers for Disease Control and Prevention for ongoing news and updates.

Learn More About What The CARES Act Means For Music Makers

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Advocacy Questions And Answers: The Latest On COVID-19, CARES Act & More

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Keep up with the latest on how the stimulus affects music makers, what's next for Congress' "Phase Four" and how you can help support the music community
Nate Hertweck
Advocacy
Apr 8, 2020 - 3:45 pm

Across the U.S., this is a critical week in the fight to flatten the curve of coronavirus, and it's also a time when many music creators are figuring out their next steps through the crisis. Between the new $2 trillion stimulus, understanding the implemented law, and upcoming legislation, the path can be daunting to navigate for professionals who've made their life—and their living—in a creative field. The Recording Academy is providing resources to help creators access the much needed financial relief that they are entitled to under the CARES Act and other laws.

The $2 Trillion Stimulus, Unpacked

To help creators find their way forward, the Recording Academy kicked off this week by hosting a virtual panel to discuss the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Moderated by the Recording Academy’s Chief Industry, Government and Member Relations Officer Daryl Friedman and featuring Congresswoman Linda Sánchez (D-Calif.), Recording Academy Chairman and Interim CEO Harvey Mason jr., and experts from the Greenberg Traurig law firm, the one-hour discussion covered many timely topics for music creators.

The group unpacked the CARES Act and its key protections and provisions that put music creators in a better position for immediate and long-term financial relief. These include authorizing a new pandemic unemployment assistance program for eligible self-employed workers, creating new Small Business Administration loans for self-employed workers, and establishing a $75 million supplemental fund for the National Endowment for the Arts. If you did not have the opportunity to join us on Monday, the webinar can be viewed here.

Your Questions Answered Daily

To keep the information flowing, the Recording Academy will be sharing daily "Advocacy Questions and Answers" to help update our members on any changes to the CARES Act’s programs and benefits. As these programs are implemented, there will be a shifting landscape as to how to receive the benefits that creators are eligible for under the new law. Additional information regarding the CARES Act and its funding can still be found at MusicCovidRelief.com.

A Look Ahead At What’s Next

While the CARES Act is being implemented, Congress is continuing to look forward to other legislative solutions to relieve the financial burden on Americans. Already Congressional leaders are looking to quickly bolster one of the key SBA loan provisions in the CARES Act with additional funding, and beyond that Congress is actively beginning to form a “Phase Four” bill to continue to combat issues in the economy and the workforce. Again, you can stay closely posted at how upcoming legislative activity impacts music creators at MusicCovidRelief.com.

How Can You Help?

To further support music makers during these difficult and uncertain times, the Recording Academy and MusiCares recently established the COVID-19 Relief Fund.

If you are an artist or music professional who has been impacted by this unprecedented circumstance and are in need of assistance, please visit our MusiCares page to learn more about the financial, medical and personal emergencies services and resources offered by the Recording Academy.

For more information and developments related to the coronavirus, visit the World Health Organization and Centers for Disease Control and Prevention for ongoing news and updates.

Learn More About What The CARES Act Means For Music Makers

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Get The Facts: What A $2 Trillion Stimulus Package Means For Music Creators

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Find out what's in it for you right here, and tune in for a special webinar on how the new CARES Act, now law, will positively impact creators
Nate Hertweck
Advocacy
Apr 2, 2020 - 8:18 am

These are hard times for many music professionals, but knowing how to find the support you need right now can make a huge difference. Last Friday, President Trump signed the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act into law. Fortunately, the bill contained some key protections and provisions for music creators, which the Recording Academy fought to be included in the final draft. So, what's in it for you?

On Monday, April 6 at 3 p.m. ET, the Recording Academy will be hosting a webinar on how the CARES Act can positively help creators. The webinar will be moderated by Chief Industry, Government & Member Relations Officer Daryl Friedman and will feature Congresswoman Linda T. Sánchez (D-Calif.), Recording Academy Chairman and Interim CEO Harvey Mason jr, and experts from the Greenberg Traurig law firm, Kelly Bunting and Monica Schulteis. The conversation will go deeper into the unemployment assistance, small business loans, and stimulus payments included in the CARES Act. Find out more here. 

Now let's look at what the $2 trillion stimulus package means for creators…

Pandemic Unemployment Assistance

Self-employed music professionals who, due to the effects of the Coronavirus, are out of work or unable to work are eligible for pandemic unemployment assistance program. This is crucial support for touring musicians stuck at home, everyone affected by local venues closing, and producers, engineers and studio players, owners and managers with canceled sessions.

In addition to standard unemployment benefits, individuals will also receive an additional $600 per week for four months, ending July 31. Eligibility for unemployment benefits is retroactive and the duration of unemployment benefits is extended for an additional 13 weeks (beyond the standard 26 weeks) through the end of the year.

How to get started: Like typical unemployment insurance you apply though your state of residency—select  your state on the Department of Labor’s CareerOneStop to learn more about how to apply. Be sure to have all relevant tax documents (like 1099s) ready.

Small Business Loans & Paycheck Protection

More good news for creators as individual, self-employed music makers are eligible to apply for “paycheck protection” loans from the Small Business Administration. These loans may even qualify for full loan forgiveness if they are used to provide income support. Additionally, individual, self-employed music makers are also eligible to apply for Emergency Injury Disaster Loans (EIDL), including a special $10,000 grant that can be used to pay for expenses and does not have to be repaid.

Because traditional small businesses are incentivized to use these loans to continue payments to independent contracts that they work with, this portion of the stimulus bill opens up the possibility for musicians, engineers, mixers and other creative professionals engaged in an independent contractor capacity to continue getting paid. 

How to get started: For the paycheck protection program, more information can be found here for borrowers, and the application can be found here.

The application for Emergency Injury Disaster Loans can be found here.

Stimulus Payments

The CARES Act also promises to put money in the pockets of Americans with stimulus payments. In short, eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples who file jointly. Additionally, parents also receive $500 for each qualifying child under 17

For music makers with an adjusted gross income up to $75,000 ($150,000 for married couples), you will receive the full payment. For those with income above $75,000, the payment amount is reduced, and those with income exceeding $99,000 (or $198,000 for married couples) do not qualify.

How to get started: Learn more about who is eligible for stimulus payments here.

NEA Funding

Many music makers are employed or contracted by education and non-profit organizations. Fortunately, the CARES Act also establishes a $75 million supplemental fund for the National Endowment for the Arts (NEA), with 60 percent of the funds dedicated to direct grants for non-profit organizations and other eligible recipients to respond to the coronavirus.

The remaining 40 percent will be distributed to state and regional arts councils, which also can go to fund and assist local musicians and artists. Funds are available through September 2021 and are in addition to the $162 million appropriated for the NEA in the current fiscal year. 

How to get started: To learn more about grant opportunities visit the NEA here.

Need More Information?

The Recording Academy has partnered with other organizations in the music community to create the Music COVID Relief website. The site will serve as the go-to landing page for members of the music community and will contain frequent updates, a list of resources, and answers to the most commonly asked questions from music makers.

Want to learn more? Remember to join us for Monday’s webinar!

The Recording Academy and its affiliated charitable foundation MusiCares continue to raise funds to benefit creators in need. 

If you are a creator facing financial hardship due to this global pandemic, please visit MusiCares’ COVID-19 Relief Fund page here.

If you would like to support the relief fund, you can donate here.

Learn More About What The CARES Act Means For Music Makers

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Coronavirus Relief Bill Includes Assistance for Music Creators

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The bill extends small business loans and unemployment insurance to music makers, plus gives a boost for the National Endowment for the Arts amid COVID-19
Nate Hertweck
Advocacy
Mar 26, 2020 - 9:23 am

The Recording Academy applauds Congress and the President for stepping in and providing some much-needed economic relief and protections for music creators. Late last night, a stimulus bill of over $2 trillion passed the Senate and is expected to soon pass the House and be signed into law. The even better news is that the bill includes many priorities that covers music creators and other self-employed workers.

Reeling from the devastating economic effects of the Coronavirus, music creators are in need of increased economic relief following wide-spread closures and cancellations of tours, performances and gigs. Like many freelance or self-employed workers, music creators typically don’t enjoy the normal employment protections afforded to salaried or hourly workers, which puts them in jeopardy of not having access to many key protections in the relief package. Fortunately, thanks to the Recording Academy’s extensive advocacy, the spending package includes protections and provisions that put music creators in a better position for immediate and long-term relief.

Among these key protections, the Academy worked to grant new eligibility for self-employed workers to apply for “paycheck protection” loans from the Small Business Administration that can later be forgiven if they are used to provide income support. The bill also incentivizes traditional small businesses to use these loans to continue payments to independent contractors they work with. Self-employed individuals will also be able to apply for special Emergency Injury Disaster Loans.

The Academy also successfully lobbied for new pandemic-related unemployment insurance to be included in the bill, and to ensure that eligibility requirements were extended to self-employed workers. Music makers who qualify will now be entitled to four months of unemployment insurance through their state of residency.

In addition to supporting music creators with these individual protections, the stimulus bill also included a $75,000,000 boost to the National Endowment for the Arts. This big win for music and the arts marks a 50% increase from the 2009 stimulus package, and will go to provide funding and grants to state arts organizations and help fund new projects across the country   

These important victories follow the recent surge of support for music creators to be included in the stimulus, led by the Recording Academy's letter to Congressional leaders outlining the need for relief efforts for the music community. In the letter, Academy Chairman and Interim CEO Harvey Mason jr appropriately stated, "music is the original 'gig economy.'"

The Academy also sent letters with leading entertainment industry organizations, associations and unions outlining a set of shared priorities impacting workers in music, television, film and theatre. The Academy also joined dozens of non-profit arts and culture organizations to advocate for key provisions for artists and arts organizations.

The message to the Hill was amplified by Academy members and music fans via the Academy’s call-to-action online tool, which sent tens of thousands of letters to Congress in support of providing critical assistance and relief for creators..

Members of Congress, heard that call, and weighed in, writing letters of their own advocating for creators' rights. Rep. Adam Schiff (D-Calif.), along with 36 of his Congressional colleagues, sent a letter to Speaker of the House Pelosi (D-Calif.) and Republican Leader McCarthy (R-Calif.) urging Congressional action for creators. The Congressional Arts Caucus and the Congressional STEAM Caucus co-signed a letter to House Leadership with more than 50 signatures.

Additionally, both House Judiciary Chairman Jerry Nadler and Congressman Doug Collins sent separate letters to House leadership urging support for the creative workforce. 

Last week, the Recording Academy’s Chief Industry, Government, and Member Relations Officer Daryl P. Friedman appeared on SiriusXM’s P.O.T.U.S. Press Pool with Julie Mason. On the program, Friedman discussed the impact of coronavirus on creators, including the cancellation of big and small concerts, the financial impact on artists’ bottom line, and the potential solutions Congress could enact that would add some financial relief for creators.

The Recording Academy and its affiliated charitable foundation MusiCares continue to raise funds to benefit creators in need. Leading music streaming and tech companies Amazon Music, Facebook, SiriusXM and Pandora, Spotify, TIDAL, and YouTube Music have announced that they are contributing to the MusiCares COVID-19 Relief Fund to support music industry workers in need.

If you are a creator facing financial hardship due to this global pandemic, please visit MusiCares’ COVID-19 Relief Fund page here.

If you would like to support the relief fund, you can donate here.

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