UK music industry sounds alarm bells on leaving the EU

Image: UK artist Paloma Faith

Later today (June 23), the UK will hold a national referendum Brexit on whether it should leave the European Union.

Those wanting it to remain as one of the EU’s 28 nations are lead by Prime Minister David Cameron, who argues that remaining in the UK will strengthen UK’s economy. The “leavers”, led by former London mayor Boris Johnson, contend that Britain will once again regain control of its borders and cut back on migrants coming into the UK. It’s a neck-to-neck battle.

For the music industry, which contributed £4.1 billion (A$8 billion) to the UK economy in 2014, the choice is a no-brainer.

Leaving the EU would create issues regarding visas, copyright, trade agreements and "neo-liberal market fundamentalism." A survey of UK record labels found 78% support staying.

The major UK music associations have been urging their members to vote to stay in the EU as it would affect revenues of millions of pounds. These include the Association of Independent Music (AIM), the British Academy of Songwriters, Composers and Authors (BASCA), Featured Artists Coalition (FAC), Music Managers Forum (MMF) and Musicians Union.

The BPI (British Phonographic Industry) says the fact that one in every four albums sold in Europe is by a British act could be affected. Almost half of them say that a quarter of their revenues come from Europe. One fifth estimate Europe provides 75% of their earnings. Up to 90% fear they will lose out on EU copyright issues.

“Europe really matters for British music,” insists BPI CEO Geoff Taylor. “British music accounts for a quarter of the total market in Europe for recorded music.”

Artists and their managers fear that they would find it more difficult to travel for themselves (and their fans) around Europe freely to tour or promote their music. Up to 59% of labels have expressed worry about this too.

The booming multi-billion pound music tourism industry, where foreigners enter the UK specifically to attend a concert or festival, would be affected. It pumped £3.1 billion ($6 billion) for the UK economy in 2014, with a 39% rise in overseas tourists attending music events in the last four years

New bands would find it difficult to get working visas in some of the 28 European Union countries, and come up against the red tape they face when trying to play concerts in the United States.

The price of records and merchandise would rise. Currently British acts don’t have to register VAT (the British equivalent of Australia’s GST) in European countries on downloads they sell. That would most likely change. 

The biggest loss would be the EU copyright review, which forces video streaming platforms as YouTube, to pay artists fair rates for the music.

BPI’s Taylor added, “Our members want Britain to have a seat at the table when those rules are set because intellectual property and copyright underpins our ability to keep re-investing in new talent, which is essential if we are to sustain Britain’s proud record as the second largest exporter of music in the world.”

UK labels invest 25% of their annual revenues into new artists, a higher figure than R&D for biotech or the drugs industry.

Among acts battling for Britain to stay in the EU are Johnny Marr, Bob Geldof, Alt-J, Paloma Faith and Brian Eno.

A joint statement from Universal Music UK and the large independent Beggars Group warned. "A victory for Brexit would be economically, politically, socially and culturally disastrous – for all of us."