announced that she was canceling a leg of her fall European tour due to the "extreme uncertainties of traveling throughout the [European Union], so soon after Brexit," it brought attention to one of the most pressing issues facing the live-music business.
"The big concern is that businesses with smaller margins are going to find it more difficult to withstand changes," saysThe live sector is most at risk: UK Music estimates that additional costs and administrative charges could reduce income by up to 40% for touring artists. The impact on financial markets is likely to be just as volatile, with the value of sterling expected to tumble in the event of a hard Brexit. "If you're a U.K. artist and you're touring the U.S. and Europe next year, getting paid in euros and dollars, great, you'll earn a lot more money," says, director of music and entertainment at finance specialists Centtrip. "International artists playing the U.K., paid in sterling, can expect a lot less.
Nevertheless, the industry is bracing for delays in physical distribution. "We do not expect new tariffs on CDs or vinyl, but we do expect administrative formalities, delays and costs, as with imports and exports to many non-EU countries," saysRetailers also fear that a no-deal Brexit could restrict availability and ramp up production costs of new vinyl titles, the majority of which are manufactured in Europe.