12/10/2020 | Le Bureau Export Paris

France | State organisation CNM gets invested in the French music market’s revival

On 28 September 2020, the board of the French National Center of Music (CNM) voted in favour of a 44 M€ recovery plan to rescue live events. This decision is part of a larger subsidy project, supporting the French music industry in the future years.

Since its creation, CNM aims at the building of a “music common house”, in charge of harmonizing and developing the different professions in this industry. Hence a contingency fund for live music, available since the 1st of October. There is much at stake here: the balance of ticket sales, but also the situation of promoters, songwriters and composers. Consequently, the impact of this fund goes beyond the concert field alone.

40M€ are granted to make up for the loss in ticket sales, due to the current pandemic. Live music venues especially suffer from mandatory reduced capacities, in order to respect social distancing or events’ reconfigurations. Live producers will be allowed to ask several times for financial assistance, under the limit of 500.000 euros.

2M€ are allocated for the recovery of private companies, promoting classical and contemporary music concerts. Indeed, those two genres do not benefit from the tax on modern and pop music. Each business can ask for assistance, as long as it does not exceed 35 000 euros. This fund will consider the loss in ticket sales for those shows until the end of 2020.

2M€ are also available for songwriters and composers, if collective management organization had to collect reduced ticket sales revenues.

Containing the crisis in 2021

CNM will keep investing to fight against the crisis. It has received a 200M€ budget for 2021 and 2022. According to CNM President Jean-Philippe Thiellay, it is essential to nurture the grants in 2021, in order to avoid a succession of bankruptcies over the years. 170M€ will be spent in 2021, against 30M€ in 2022.

The goal is to counterbalance the music industry’s massive loss in 2020, as underlined by the Sacem Director Jean-Noël Tronc during live producers’ trade-union PRODISS‘s general assembly. He evaluates a loss of 300M€ in 2020’s collection, that is to say 185M€ less for French publishers and creators.

CNM – a common house for the French music industry

Created since January 2020 by a State ordinance, Centre National de la Musique (CNM) is under supervision of the French Ministry of Culture. As for now, CNM has resumed the services provided by CNV – supporting live music and variety shows – and adapted its financial support to the sanitary crisis and needs of the music industry.
By the end of 2020, the following French organizations are to merge with CNM: Calif supporting independent record stores, FCM supporting music creation, resources centre IRMA and Le Bureau Export.
CNM will then be the first State organization dedicated to the music industry and variety shows. As a hub for all French music professionals, it aims at developing a wide range of genres and trades – from recorded music to live shows and publishing.