ECONOMIC IMPLICATIONS OF THE PANDEMIC ON LOCAL MUSIC SCENES
The economics of local music scenes are shaped by several factors, from the shift in revenue streams within the music industry to the effects of external disruptions like the COVID-19 pandemic. Local music scenes, defined as "a social activity taking place within certain geographical spaces over a specific time frame where members—musicians, producers, fans, etc.—recognize their common music taste and philosophy" (Bennett & Peterson), have experienced significant challenges in recent years. These challenges include the rise of digital media, changes in revenue models, and the devastating impact of the COVID-19 pandemic.
Historically, the shift from recorded music to live performance as the primary source of income for musicians has been one of the most significant changes in the music industry. As Connolly and Krueger explain, "the main source of income for artists is generally concerts rather than recordings." This transition marks a major departure from previous decades when album sales were a dominant source of revenue. The spread of networked digital media has "splintered the economies and organizational structures of the media and culture industries,"(Holt) leading to a decline in the value of conventional content like physical recordings. As a result, concerts have become increasingly important, priced as "single-market monopoly products" (Krueger), which positions live performances as central to musicians' economic survival.
However, the COVID-19 pandemic exposed the vulnerabilities of this concert-centric model. Live music, which had become a lifeline for many musicians, was severely disrupted, creating a precarious economic situation for artists and the broader creative industry. “Preliminary research shows that 58.3% of musicians were making a living primarily from their concert activities before the pandemic, underscoring the extent of the crisis when live performances were halted.” (Buchholz, Fine, & Wohl) This led to widespread unemployment across the industry, with many artists forced to reconsider their careers or change industries entirely due to the lack of economic support.
In Australia, for example, emerging artists were hit particularly hard by the pandemic. As Donoughue and Shneier observe, "COVID decimated the music industry," not only resulting in lost wages but also stalling the careers of artists who had begun to gain momentum. This setback has long-term implications for the Australian music industry, as experts speculate on how long it will take for the industry to recover from the pandemic-related disruptions. The uncertainty surrounding the future of national and international tours only adds to the economic challenges facing musicians post-pandemic.
The pandemic also proved the importance of face-to-face interactions and the unique challenges of replicating the live music experience in a digital format. “While some entrepreneurs were able to adapt and find new alternatives, many within the industry plunged into economic chaos.” (Buchholz et al.) The decline in live music performances revealed the fragility of local music economies, which depend heavily on the in-person connection between artists and audiences.
In conclusion, the economics of local music scenes have been shaped by the transition from recorded music to live performances as the primary income source for musicians, as well as by external factors such as the COVID-19 pandemic. While live music has become a driving economic force, the pandemic exposed its vulnerability and raised questions about the long-term sustainability of this model in the face of global crises.
