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Final NZ Music Commission Annual Report 2015-16

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Final NZ Music Commission Annual Report 2015-16 NEW ZEALAND MUSIC COMMISSION TE REO REKA O AOTEAROA ANNUAL REPORT 2015 – 2016 Fall 08 SUPPORTING THE GROWTH OF THE NEW ZEALAND MUSIC INDUSTRY CULTURALLY AND ECONOMICALLY, AT HOME AND ABROAD NZ MUSIC COMMISSION TE REO REKA O AOTEAROA ANNUAL REPORT 2015 – 2016 For the period starting 1 July 2015 Contents: Introduction from the Chair Page 3 Key Highlights for the Music Commission Page 5 Key Highlights for Outward Sound Recipients Page 6 About the Music Commission Page 7 Strategic Objectives Framework Page 9 Strategic Direction Page 11 Key Initiatives Page 12 Organisational Health & Capability Page 14 Statement of Service Performance Objective One: Engage Page 18 Objective Two: Expertise Page 24 Objective Three: Export Page 28 Financial Statements 2015-2016 Page 35 Variances of Note in the Financial Statements Page 36 Audit Report Page 37 Statement of Financial Performance Page 38 Directory Page 43 The NZ Music Commission Te Reo Reka O Aotearoa is funded by NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 2 INTRODUCTION FROM THE CHAIR 2015-16 was the final year of the three-year strategy devised by the NZ Music Commission’s Board and staff in consultation with stakeholders in 2013, and reviewed on a regular basis since. Key developments over the course of the year, as anticipated in the Strategic Plan, were the continued rapid growth of the uptake of streaming, and the consequent need for expanded global perspectives, skills and networks to ensure vitality in the NZ music industry. Recorded music saw growth in 2015 both worldwide (+3.2%) and in New Zealand (+12%) with streaming becoming the consumer’s preferred source of music and the industry’s top source of revenue (45.2% worldwide/35% NZ). This must however be tempered by 2015 being the first year of growth in NZ recorded music revenues for 15 years, and the ‘value gap’ the industry is experiencing as ad-supported upload services (You Tube et al), with over 900 million users globally, return only 4% of revenues. During 2015-16, the NZ Music Commission continued to take a sector-wide view of the music industry, being at the forefront of developments and actively consulting with our stakeholders. We were very pleased with the level of engagement over our extensive consultation programme, with 46 industry practitioners giving feedback on the industry’s opportunities and challenges, and the goals, work programme and support provided by the Music Commission to assist with developing our Strategic Plan 2016-2020. Two key messages were reinforced during the consultation sessions: • Creating sustainable careers, for artists and industry, is vital for the future development of the music sector. • A global focus is necessary for NZ based music companies – to survive locally, but thrive globally. There was no feedback calling for a change in focus or overall work plan for the Music Commission, but a strong message was received that more resource is needed in these priority areas of the work we undertake. International interest in artists from NZ was highly apparent in the social media metrics on page 29, with 21 Outward Sound funded artists each having over 1 million plays on Spotify, and musicians we supported in the past year having a combined social media impact of 98 million. The opportunity – and challenge – was and is to enable and support our music businesses to translate exposure to export growth, whilst retaining them in New Zealand. Despite all applications being vetted prior to submission, export ready applications to Outward Sound in 2015-16 totaled $771,735 against the $400,000 pool available. Although we managed to support three-quarters of these, we could only partially fund the majority of projects. 59% of successful applicants received a portion of the requested funds to undertake international opportunities. The Music Commission is the only agency charged with supporting NZ artists and music businesses who have genuine international opportunities. The Price Waterhouse Coopers report ‘Economic Contribution of the New Zealand Music Industry 2015’ was completed and shows growth in the recorded music sector for the first time in 15 years. Across the five parts of the sector measured, three show growth with a particularly strong result for the live music sector. Again, this report was supported by both the members of the Contemporary Popular Music Group (CPMG) and national music organisations. NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 3 The Board of the NZ Music Commission had no changes in personnel during the year and continued to bring the breadth and depth of their experience and expertise to industry consultation, strategic planning, the outputs of the organisation and their own self-assessment. I am delighted to report that the vast majority of objectives set in the Strategic Plan for 2015-16 were achieved or considerably bettered, for which much appreciation must go to the Chief Executive, Cath Andersen and her team. The year was not without its challenges, as nine years of static funding, and hence the forecast depletion of all available reserves at the beginning of the year, led to further financial constraints in the face of increased demand. The Music Commission are proud however, to be able to report here a number of accomplishments that made a difference to the growth of the NZ music industry in 2015-16 and plan to continue to build on these during the year ahead. Victoria Blood Chairperson NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 4 KEY HIGHLIGHTS Some of the highlights for the Music Commission during the year ending 30 June 2016 were: • This year saw the fifteenth anniversary of the Musicians Mentoring in Schools programme. Since the Programme began in 2001, over 21,000 students from across New Zealand have participated with 200+ professional musicians acting as Music Mentors. • The Going Global Music Summit continued to grow, with sixteen international speakers this year. The results from the event included Australian and USA booking agents being secured for NZ artists, a publishing deal for a NZ artist, offers of label representation for the USA, and business to business reciprocal deals being established. 86% of attendees rated their overall satisfaction with the event as 8 out of 10 or higher. • 95% of all Outward Sound recipients this year reported subsequent opportunities being offered after undertaking their offshore Outward Sound supported projects. • 91% of all respondents in our annual Perceptive survey agreed that music is a significant part of New Zealand’s culture. • 1,787 students from 62 schools participated in the Musicians Mentoring in Schools Programme. 84% of those students rated the Programme as having a positive or strong influence in the sought impact areas. There has been excellent media engagement with the Mentoring programme, including a feature on Seven Sharp for the student song of NZ Music Month and coverage in various newspapers across New Zealand. • In NZ Music Month 1,200 live music events occurred around the country. 1,150 artists and bands performed at over 500 venues, with a very high national spread of 93 cities and towns. • There were 9,500 uses of the hashtag #nzmusicmonth, which was a 3,000 usage increase on the previous year, and the Twitter reach grew from 2.9m to 3.5m. There was also significant television coverage for NZ Music Month this year, with both major evening news programmes covering events around the country. • The up-skilling initiative ‘The NZ Music Month Summit’ was very successful this year, with the largest number of attendees ever – it was fully subscribed over three weeks prior to the event. Over 120 came to the Summit, with very positive feedback – 81% rated it 8 out of 10 or higher – and 71% were first time attendees. • Three independent record labels participated in the second bi-annual RELEASE programme, funded by the Music Commission and the Australian Government – an intensive five-stage business development scheme for mid-career label owners. • 42 NZ music businesses attended or showcased at an international trade event (detailed on page 33). This year, the events were BIGSOUND and AWME in Australia, CMJ Music Marathon and SXSW in USA, Womex in Hungary, and The Great Escape in England. • We were pleased to support the APRA AMCOS initiative SongHubs, where three world-class songwriters travelled to Auckland to work with ten New Zealand artists for a week of intensive songwriting workshops. The success of the programme sees it likely to become a regular event. NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 5 KEY HIGHLIGHTS FOR OUTWARD SOUND RECIPIENTS In the past year, the Music Commission allocated 57 Outward Sound grants, comprising 37 International Music Market Development Grants, 4 Business Development Grants and 16 Delegate Grants. Between these recipients, there have been 33 international tours, 10 album deals signed and 21 commitments of international investment via synch, distribution or publishing deals. Some of the achievements of the 2015-16 Outward Sound recipients are: Devilskin – The band’s debut album We Rise is scheduled for release in November through Right Track Records, through Universal UK and RodeoStar for 13 territories, and the band have also signed with major booking agent, TKO, in the UK. The band played their first European shows in April and May 2016. Estere – Signed to taste-making French label No Format. Estere performed shows in Africa; support shows across the UK for Mgonwana Star, a slot at Glastonbury and shows in France including festival and club performances. Gin Wigmore – Named at Big Sound 2015 as “a truly global synchronisation superstar”, Gin had the most synchs of any artist on the Native Tongue worldwide music publishing roster last year. Following the release of her album Blood To Bone Gin went on an extensive US tour.
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