General national economic measures
*small business relief or other financial support
*income support for employees
*income support for freelance workers
*unemployment relief for freelance workers
*business rates payment holiday
*employer social security payment holiday
*loan repayment holiday
All existing support measures for businesses are available on the dedicated website of the French Ministry of economy: https://www.economie.gouv.fr/coronavirus-soutien-entreprises
Here is an overview of some of the main measures put in place since the start of the crisis:
-Solidarity fund of €7bn for micro and small enterprises, as well as freelance workers. Those who had lost over 50% of their turnover year on year between March 2019 and March 2020 received a €1,500 flat fee while those facing bankruptcy could receive between €2,000 and €5,000. (More information about the fund here).
-€8.5 billion for keeping people employed for 2 months: If companies paid their workers 70% of their gross salary, or 100% for minimum wages or less, the State reimbursed them entirely for all salaries paid, up to €6927 monthly, gross.
-€32 billion for deferral and cancellation of taxes and social security contributions for companies and independent workers facing difficulties.
-€180 billion, debt repayment moratorium: corporate loans repayments were deferred by six months.
-€3 billion, deferral of utility fees (gas, electricity and water) and rent, for small companies with a revenue of less than €1 million, who had lost 70% or more of their revenue in March 2020, compared to March 2019.
-Public guarantee of loans made between 16 and 30 March 2020, up to €300 billion total.
National measures specific to the music sector or to culture in general
The music sector could benefit from the above-mentioned general measures.
On top of this, specific measures were introduced for the music and culture sector. Below is an overview of some of the main measures.
The French ministry of culture keeps updated its information on the impact of the health situation on the cultural sector and on support available for professionals: https://www.culture.gouv.fr/Aides-demarches/Covid-19-l-impact-de-la-situation-sanitaire-sur-le-monde-de-la-culture#/
-CNM (Centre National de la Musique) emergency plan announced in March 2020: €11,5m emergency fund for micro and small live music companies (up to €11.500 with incentive to compensate artists for cancelled show and to show solidarity with composers/songwriters). It was announced in May 2020 that the CNM would receive an additional €50m for that year's budget. The CNM's various support measures are available here.
-Action plan for authors and performers, March 2020 (see here): €1,500 to €5,000 flat fee under the solidarity fund for micro and small enterprises (see above); reporting of rent, water & electricity/gas bills; no penalties for unpaid rent or bills; staggered tax and social security obligations; health insurance benefits for people having to stay at home and/or to look after a child who had to stay at home; companies having to take out a loan to pay collecting societies for authors/performers rights were able to benefit from a state guarantee; all actors were invited to honour their contracts with authors/artists; sector operators (in the case of music the CNM) were asked to ensure that the budgetary measures put in place could benefit to authors/performers and some of the grants will be conditioned upon the payment of rights to authors/artists; the scope of use of private copying monies by collecting societies was widened to ensure they could be used for direct support to authors/artists.
-For temporary workers (« intermittents »), it was announced on 19 march 2020 (see here) that the coronavirus period was frozen, which means it wasn't taken into account for calculating the period of reference which opened their rights and wouldn't impact those who were arriving at the end of the unemployment benefits. Early May 2020 the President announced that this frozen period was extended for a year, which meant that temporary workers would receive their unemployment benefits until August 2021.
-More measures for the cultural sector were announced on 6 May 2020 by the French President and his Minister of Culture, see here.
-On 1st July 2020, the Ministry of Culture published an overview of how the €5bn mobilised for culture since the beginning of the crisis were allocated between sectors.
-A new €100bn recovery plan was announced by the government on 3rd September 2020 with €2bn specifically dedicated to the cultural sector (see here):
-Cultural heritage: €614m
-Creation & distribution: €426m
-Artistic employment & education: €113m
-Strengthening strategic cultural sectors: €428m
-Long-term strategy for CCIs: €419m
Of these €2bn, €210m went to the music sector via the Centre National de la Musique.
-The tax credit for music production was also extended until 31st December 2024 (see here, here and here, as well as IMPALA member UPFI's statement welcoming the news here).
-On 26 October 2020, the French government pledged a further €55 million in financial support for the live music sector (see here).
Covid-19 measures and restrictions in the country can be found on the government's website: https://www.culture.gouv.fr/Aides-demarches/Covid-19-l-impact-de-la-situation-sanitaire-sur-le-monde-de-la-culture#/
Measures taken by local collecting society organisations
-SPPF, the French independent music companies’ collecting society paid a €4m advance to its members which wouldn't be recouped before end of 2021. (statement)
-SACEM, the French authors society, set up a €43m rescue fund (see here):
€6m emergency plan: grants of €1,500 to €5,000; advances; and additional support for publishers from cultural action fund.
Up to €36 million in exceptional royalty advances.
€1 million reinforcement of its support programme for publishers.
-SACEM also introduced special remuneration schemes for livestream performances. (see here and here)
-On 1st October 2021, SACEM announced providing financial assistance to discotheques and clubs to relaunch their music activities (see here).
-ADAMI, the French artists society, put in place a number of measures. (see here)
-Authors and performers societies also contributed to the CNM emergency fund.
Support from national radio and other media
-French network of public radios "Radio France" announced on 15 April 2020 an initiative to support the French music scene by playing more French music, promoting cancelled festivals via different radio programmes and launching the #RadioFranceAvecLaScèneFrançaise campaign (see here).
-Public broadcaster France Télévision launched Culture Box, a TV channel dedicated to culture which would stay open as long as cultural venues remained closed (see here).
Social media and other campaigns to promote music during the crisis
-#CultureChezNous campaign by the ministry of culture : listing all cultural initiatives that citizens could access from home.
-Campaign to support Independent records Stores: www.loverecordstores.com
Business and other expected losses
-According to a report published in October 2021 by the CNM (Centre National de la Musique), in 2020 the number of live music performances collapsed by -71% and the value of tickets sold by 83%. (see here)
-An EY study commissioned by the French music sector organisation "Tous pour la musique" in 2020 estimated losses for the music sector at €4,5bn for 2020, which represented 43% of the sector's turnover. (see here)
-An EY study commissioned by French record labels' associations UPFI and SNEP in 2020 foresaw a 21% decrease in turnover for recorded music, representing €235m. (see here)
- The Ministry of Culture published a study in 2020 estimating the sector's year on year turnover losses at €22,3bn (or 25%). (see here)
- A 2020 study by FELIN (French federation of independent labels) showed that many French independent record labels had to cancel most of their projects for the year (touring, releases, etc): they were postponed to 2021 for 73% of the respondents and cancelled for 32%. 49% had to adapt their structure (partially unemployed staff, reduction in fixed costs, caution, etc).
For more info:
UPFI - Union Des Producteurs Phonographiques Français Indépendants - https://www.upfi.fr
FELIN - Fédération Nationale des Labels Indépendants - http://fede-felin.org/