German concert organisers warn of virus-led recession
mainThe Bundesverband der Konzert- und Veranstaltungswirtschaft (BDKV) – the Federal Association of Concert and Event Management – has isued a warning of a sectoral slump due to the corona virus. Its president, Jens Michow, speaks of a significant slump in ticket sales’ over the past few days, and a surge in people wanting to cancel their tickets.
The concert bans in northern Italy and Switzerland have sent shudders throught the sector. Michow warns that numerous impresarios and concert organisers would go out of business if similar measures were to be applied in Germany.
Highly plausible, unfortunately. In economic jargon, the virus presents the risk of both a supply (fewer concerts organized, necessary inputs (musicians, etc.) cannot arrive as supply chains are disrupted) and a demand shock (people don’t want to go to social events); this is very tricky to manage. Perhaps more livestreaming concerts to recoup some of the lost revenue?