State of the Music Industry: State of Clubs

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!

State of the Music industry: Realistic Timeline for the Return of Live Events

By Dominic Wren

The return of large-scale music events has been a major point of discussion within the music industry. Some want to see the return of festivals by the fall of 2020 and others are wanting to hold out as long as possible for the health and safety of music event attendees. Generally, the consensus is of a hopeful return of our favourite Canadian festivals by summer of 2021. Concerts, such as VELD, Shambhala, Escapade, Ile Soniq, and so many more have been postponed or cancelled until 2021.

Data from a New York Times survey of 511 virologist, physicians and scientists that specializes in the study of viruses and infections, showed that 64% of them said that we are not going anywhere for at least a year. With this said, EDM Canada had the chance to have a chat over the phone with Ali Shaffaee, who is a partner at DNA Presents, the company that operates Escapade Music Festival. EMF is set to return in June of 2021 but he mentions that people should not expect that festivals will be operated just like before. There are many things to consider when reopening a large-scale event, such as Escapade. One of the first thing to think about is how to keep people separate and safe in front of stages, in service areas, smoking zones, bathrooms, and how to get people in and out of venues safely. Another important factor to consider is how much people are willing to pay for extra post-covid costs like extra insurance (not only for festival attendees but also for all the workers too) and increased hygiene services. It might not sound like a lot but for organizers having to manage 35 thousand people, the costs will go through the roof and one way to manage that is by increasing the cost of individual tickets.

In an interview with Allan Cross, recognized for his legendary contributions in music journalism in Canada and around the world, he mentions that organizers and promoters must also consider the PTSD that will come out of this crisis. He states: “how willing are fans to go back to these venues next to all these strangers and potentially get sick.” Many political and medical authorities from Canada and around the world have claimed that large gatherings for festivals and other sorts cannot happen before a vaccine has been properly tested but that is at least a year or two away.

Throughout our interview, Mr. Shaffaee suggested that he does not believe that waiting 2 or 3 years for the return of normal life is realistic. He states that we are not a society that can live without contact, sports, and live entertainment for that long because it is such a huge part of people’s lives. In the end, the reality is that no one can be sure when big concerts will return. Not yet at least… We can only plan to reopen for the festival season of 2021 but that is still only a possibility. The only way to accelerate the fight against COVID-19 and actually make this a reality is to help prevent the spread of virus by wearing masks in public, frequently washing your hands, and social distancing. 

Our favourite artists are also stuck at home and having to social distance just like us. This is especially hard for DJs that need crowds to find exposure and grow their brand. The next article will look at what DJs and producers have been up to during their time in confinement. Stay Tuned!