State of the Music Industry: State of Clubs
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By Dominic Wren
Nightclubs have long been at the core of the electronic music scene. Without nightclubs, EDM might not have thrived as much as it did. Well in 2020, nightclubs are facing one of its biggest challenges for survival as clubs stand against the health and economic challenges of a pandemic. This article focuses on clubs specifically as I have mainly talked about music festivals in the past articles of this series. Since March, clubs have been forced to shut down due to safety concerns for the attendees during a pandemic. In Canada, clubs have stayed closed and have no sign of reopening until later deconfinement stages, though those stages depend on the province you live in. Generally, for large gatherings in large clubs, it will be the last sector of the economy to open again. Though other countries have tested models where clubs can remain open, such as in South Korea. Unfortunately, as reported in Time Magazine, that glimmer of hope for Korea is dwindling as spikes in coronavirus cases have sourced from nightclubs and forced them to shut down again.
“Nightclubs are gone. Gone. One million per cent. Until a vaccine is found. Maybe.”
In Canada, the situation does not seem much better. Much of Canada’s nightlife is facing closures left and right and it does not seem like there is anything to stop it until a vaccine comes around. Charles Khabouth, owner of some of Toronto’s biggest nightclubs, doesn’t have high hopes for the future of Toronto’s nightlife. He told the Financial Post “Nightclubs are gone. Gone. One million per cent. Until a vaccine is found. Maybe.” In cities where rent is through the roof (pun not intended), like Vancouver and Toronto, clubs facing the even harsher situations as some establishments are having to pay million dollar rents with no income, says Nate Sabine to Vancouver Is Awesome, director of business development for This Is Blueprint, which itself owns 4 nightclubs in downtown Vancouver. Sabine adds that he expects that 50% of nightclubs in the city won’t even reopen. In the same article, Dave Kershaw, owner of Cabana Lounge in Vancouver, mentioned that for the clubs that will be able to open again, proper operation would not happen before 2021. To help these incredibly tough times, the Canadian government has come forward with some relief packages to help clubs pay rent, though access to funds came later (too late for some).
Canada’s Emergency Commercial Rent Assistance for small business requires landlords to offer a 75% minimum rent reduction for the months of April, May, June, and an extension to July. Adding to this, on July 8th, the Canadian government announced that for-profit live music organizations could gain access to a $20 million fund. This is great news many clubs and other live music organizations. Some believe that this crisis will force nightclubs to adjust their “terms and conditions” when buying concert tickets in the future. Ali Shafaee, director of Escapade Music Festival, discussed in an interview with EDM Canada the future of ticket purchases. In those next acquisitions, extra insurance costs will have to be considered on top of extra costs for hygiene appliances and more. When buying your next concert tickets, it is highly suggested you read through the “terms and conditions” to be aware of what you’re paying as there will be new costs. Nonetheless, clubs need our help and we are the only ones who can actually save them. When it is safe to attend clubs again, going out and buying those tickets is the revenue streams that clubs desperately need.
DJ Kärl K-Otik, a well-established Montreal trance DJ, told EDM Canada in a interview: “I believe that supporting the small clubs around you can keep the base afloat and gradually rebuild the industry.” This is definitely one of the hardest times facing nightclubs and their survival. Though the idea that new clubs and venues will appear in the future is a reassuring one, the support for the current clubs is crucial for keeping the culture that we love alive and authentic. Their future is in your hands!