Brexit Is Having Immediate Effects On The Entertainment Industry

For those of us in the United States watching, we were witness to the slow and steady trainwreck of the UK leaving the European Union (EU) aka the Brexit. As Europe woke up they were brought into a whole new world that had immediate effects on them and their way of life. Combined with David Cameron stepping down and whispers that Scotland and Northern Ireland might leave the UK, the value of the British Pound and EU Euro have dropped dramatically compared to numerous worldwide currencies. This change in value has had a major impact on numerous fields ranging from global finance to even the entertainment industry.

Of those major companies affected a few stand out in particular. In the UK TV conglomerate, Sky experienced a 9.1% drop in share prices. The drop in share price for Sky is particularly concerning because it is partially owned by 21st Century Fox, an American company with strong ties to the music and film industry through it’s sub-label Fox Music. Aside from these two powerhouses, Entertainment One, owners of label EMP Music, experienced a sharp 12.0% drop in trading as well.

The most damage, especially to the US music industry, is seen by the 7.9% drop in share prices for French media conglomerate Vivendi. You might have never heard of the company Vivendi, but they are the owners of major label Universal Music Group and all their sub-labels as well. It’s unclear what the trickle down effect will be to UMG and those artists and employees affiliated with it, but it could result in layoffs, album cancellations, and reduced investment in artists.

The world certainly did not expect the UK to leave the EU, but this is an unfortunate reality our world must live with. The next two years of negotiations between the UK and EU are going to be rough and we can most certainly expect more bad news for affairs of the home and affairs relating to music. Just because I want to end the article on a good note, the drop in the Pound and Euro does mean that it will be significantly cheaper to visit Europe. So get planning for that Eurotrip you’ve always wanted to go on!

STAY IN THE KNOW! FOLLOW US ON SPOTIFY

—

Read more from Ravi and check him out on Soundcloud, Twitter, and Facebook

 

[Photo Credits: Twitter/Garethr3008, Spectator UK, Sky TV]

Brexit Is Having Immediate Effects On The Entertainment Industry