The Brexit, "stone in the shoe" for the British music industry

Beatles and David Bowie at Arctic Monkeys and Franz Ferdinand, pop music was one of the main Export products from the United Kingdom. Almost a denomination of origin to test the changes of generations and the transformations of the market.

However, Brexit could be a stone in the shoe for this market valued at 4 billion 400 million pounds, a figure similar to the cost that would imply the cancellation of the NAICM (120 billion pesos, according to the current exchange rate), according to the report Measuring Music 2018, produced by the UK Music organization.

The Capital Crown 2018 -Which will be held next weekend in Hermanos Rodríguez Autodromo- has a wide British offer: almost a third of the 48 cartel groups.

The proportions are similar to Coachella (EU), Lowlands (Holland), Sónar (Spain), Rock Am Ring (Germany) and Lollapalooza (France, Germany, EU, Chile, Brazil and Argentina) . But they could diminish in the coming years if the government of Theresa May does not make the necessary agreements with the European Union allowing the free movement of people and capital, as well as the tax zones where the groups can go in Europe without tariff barriers or tedious procedures. , say the experts consulted by The financier, as well as a study done last month by activist Bob Geldof, who sent a letter – signed by a hundred musicians, such as Bernard Summer, Sting and Ed Sheeran – to Downing Street to prevent the British music is locked in "a cultural prison".

"There is a difficult moment for the British artists. The main problem will be bureaucratic because they will have to process a work visa for every European country in which they will play. In Mexico, on the other hand, they are only asked for an invitation letter handled by a lawyer in coordination with the National Institute of Migration, said art programmer Diego Jiménez Labora, who will organize the Sónar festival in 2019.

In this way, the interviewees coincide, the Brexit this could be a window of opportunity for Latin American festivals, as the groups would not need so much paperwork to show up.

In the Capital Crown 2018 they will play bands – among them The Kooks, The Chemical Brothers and The Jesus and Mary Chain – which enjoyed their greatest success in the '80s and' 90s, just as United Kingdom it benefited from the fiscal and trade policies of the European Economic Community, which in 1993 became the European Union.

"If the necessary agreements are not concluded, the tours will have to be planned with more time in advance, which could increase costs and cause logistical problems," explains Jimenez.

But in case the government of May reaches an agreement on the issue of visas, artists will still have to pay up to 20% of their social security costs, which they are currently exempt, observes Ivan. Heweet in his column The telegraph. "The formalities to invite a European orchestra – are an example – require an hour of administrative work, but with Brexit, it could be 100 hours," he says.

In Mexico, the formalities are fewer and if the artists have a US visa, everything is easier, says Leizer Guss, music programmer at EDC. "This could be a window of opportunity for Latin America, even if the reality is that we still lack many festivals to compete with the summer season in Europe."

Musical debate

The new order, Bernard Summer, a 62-year-old anti-Brexit leader, said: "Leaving Europe is a stupid decision". He was one of the beneficiaries of European multiculturalism. The successes of New Order would not have existed without the Berlin electronic scene or the Italo disco. In 1988, Blue Monday reached the top of rankings in Germany, Holland, Belgium and Switzerland, when Europe was no longer a neighborhood of nationalism.

"What will be interesting will be the political implications.In the case of rock, there will undoubtedly be groups interested in expressing their repudiation of Brexit.It would be interesting to open doors in Latin America to express their anger, because in Europe, the procedures are perhaps more complicated, "said Leizer.

According to Mr. Geldof, the effects on the industry will be multiple, ranging from reduced royalties to copyright and intellectual property issues to reduced physical and digital disk sales.

In its latest report, the British phonographic industry also warns: "The Brexit threatens the impressive revenues generated by the music industry in the UK, the country that exports the most music after the United States". According to this agency, 2017 was the most popular year of British music for a century. Sales of record companies operating in the United Kingdom increased by 12% to 408 million pounds.

And is this the Beatlemania there has not been a decade in music free of British figures. The pop of the 90s could not be understood without Robbie Williams – one of the highlights of the Corona – who told Talkradio that he would like to see "a tough and firm Brexit". Unexpected words from someone whose tours are taking place mainly in Europe have earned him $ 46 million a year, according to People. His contract with EMI in 2002 – valued at 94 million – is the second most juicy for a soloist in the UK, according to The Sun.

And if there is no agreement?

The industries most affected by a Brexit without agreement – indicates the legal and fiscal claims regarding KPMG's Brexit – will be those that depend on the use of community passports for the free movement of goods and services and which benefit from the tax laws of the European Union.

The consulting firm confirms what Geldof warns in his letter: the artistic tours or the organization of festivals could be affected because the groups could no longer benefit from the VAT in force all over Europe. "The study warned that the immediate departure of the United Kingdom would have the immediate effect of no longer being part of the territory of application of VAT and customs union, which could result in the 39, the existence of tariff rates and indirect taxes on imports / exports which has not been applied so far ".

The study goes on to say: "This could also lead to the lifting of common duty rates applicable to third countries and, in parallel with the VAT effect, the harmonization of special taxes or initiatives to introduce a transaction tax would be reduced in the United Kingdom. Financial Institutions (FTT) in the European Union. "