Economic Impact Study Results Show Live Entertainment Professionals Buried in the COVID-19 Mix
CONWAY, Ark., March 17, 2020 (Newswire.com) - The $34 billion Live Events industry has suffered a severe blow from the fight against coronavirus. Concerts, sporting events, trade shows, conferences, theatrical productions, and countless others have been canceled by the thousands, leaving a thriving industry aggressively and suddenly in shambles. The financial impact from this comes not in ripples, but in tall, devastating waves. A COVID-19 Live Events Industry Impact Study was conducted by Elite Core Audio from March 11-15. Over 1,000 industry professionals responded with granular details of the losses they have already taken, and expect to suffer.
The results are both staggering and sobering. The average American live event production company has already lost $157,573, which is 18% of their average expected annual revenue. Considering there are 78,000 of these companies nationwide, the total loss in the short term is expected to be well over $12 billion. Should the cancellations continue, this number will multiply quickly.
When it comes to how these companies are responding, the results are grim:
- 91% of all companies are being forced to take major responsive actions
- 49% of companies are anticipating facing layoffs
- 43% of companies are anticipating the need to liquidate assets
- 29% of companies are anticipating facing bankruptcy or closing operations
While the federal government has responded quickly to the needs of the large companies through SBA loans, paid-time-off tax credits and other incentives, there is a large group of individuals that face a difficult and uncertain future - the independent contractors. The provisions put forth by the government do not apply to independent contractors, who are widely considered to be the invisible fabric holding the entire entertainment industry together. It’s been estimated that upwards of 75% of the 269,000 workers in the live events industry are independent contractors, solely reliant on their next gig for securing their next paycheck.
The stats for the independent contractors are even more bleak, with an average reported loss of 37% of their expected annual income. These independent contractors are typically the first to go when a company is facing layoffs - companies currently anticipate, on average, laying off 84% of their contract laborers until the live event industry has resumed.
For complete results of the study, please visit https://elitecoreaudio.com/covid-19-impact-study.
- Contact: Chris Ward
- Phone: 855-276-2673
- Email: email@example.com
- Website: elitecoreaudio.com
Source: Elite Core Audio