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.

Ladyhawke – Ladyhawke’s most recent album, Wild Things was released internationally in June. She was playlisted on UK Radio 2 and BBC 6, was the most played artist on Triple J two weeks in a row and across the UK Virgin Radio network, with features in The Guardian, Evening Standard, Pitchfork, ID Mag, VICE, Spin and sold out shows in Brighton, London, Bristol, Glasgow, Manchester, NYC, Chicago, Seattle and Portland.

Nadia Reid – Signed to Spunk Australia, Scissortail Records in the US and Melodic Records for Europe, her album Listen to Formation, Look for the Signs has had glowing international reviews in the New York Times, Billboard, Pitchfork, and four-star ratings in Uncut, Mojo Magazine and The Guardian. During May and June Nadia completed 22-date tour of Europe where she performed at The Great Escape in Brighton and had a sold show in London.

Marlon Williams – Marlon’s self-titled debut solo album was released worldwide in February through Dead Oceans / Secretly Group to international critical acclaim. Marlon played his first North American tour, performed for over 10,000 people in Australia and NZ, played US radio sessions with NPR Weekend, KEXP, WFUV, played 9 shows at SXSW 2016, performed on UK’s Later with Jools Holland and on the Conan O'Brien show in the US.

Orchestra of Spheres – The band completed a 27 date European tour, coinciding with their third album release on Fire Records (UK/USA), and including performances in seven countries. Promotion supporting the release included BBC Radio 6, Spanish National Radio, French National TV, live-to-air Resonance FM (UK) and featuring as The Guardian Band of the Week.

Ulcerate – The band’s fifth full-length record is due for release worldwide through Relapse Records in October 2016. The band has confirmed 26 shows across the USA and Canada in support of the album.

Yumi Zouma - Having signed to boutique label Cascine, the band toured extensively in the UK, US and Europe to support the release of their new album Yoncalla. It received rave reviews including Pitchfork who said of the album “Yoncalla highlights all the best elements of Yumi Zouma, wrapped up in some of the prettiest music they’ve made yet.” Previews and news items of the album were featured in media including Stereogum, LA Weekly, Nylon, The Fader, Impose, Gorilla Vs Bear, Line Of Best Fit, The 405 and Acid Stag amongst many others.

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 6 ABOUT THE NZ MUSIC COMMISSION

Nature & Scope of Functions: The NZ Music Commission Te Reo Reka o Aotearoa is a trust with a national reach that is funded primarily by Government through Vote: Arts, Culture and Heritage. Its purpose is to provide services and support to grow New Zealand music businesses. These services are not provided by other government agencies or through the music industry itself. The Music Commission is in a unique position to take a long-term developmental approach for the contemporary popular music sector as a whole.

Reporting Framework: The Music Commission reports to the Minister for Arts, Culture and Heritage via Manatu Taonga the Ministry for Culture and Heritage. The terms of the funding relationship are set out in an Outcome Agreement between the Music Commission and the Ministry. Further expectations of the Minister are communicated to the Music Commission in an annual Letter of Expectations.

Inter Agency Coordination: Across the Government, there are four agencies supporting contemporary popular music – the Music Commission, NZ On Air, Creative NZ and Te Mangai Paho. Collectively, the agencies comprise the Contemporary Popular Music Working Group. When formed in 2012, this inter-agency group reviewed their support of contemporary popular music. This was to ensure better coordination of support, with the roles of each agency defined, and to make sure that funding did not overlap.

The roles of each organisation were BROADCAST AND ONLINE defined, as illustrated in this chart. GOVERNMENT SUPPORT FOR NZ On Air Subsequently, an inter-agency contemporary popular → Recording singles strategy was developed to: New Zealand music → Making music videos • Assist the CPMG to take a Supporting and → Music promotion strategic and collaborative promoting a range WHO approach with common goals. of New Zealand Te Māngai Pāho contemporary DOES → Recording music in Te Reo Māori • Encourage each agency to ‘own’ popular music for for iwi radio specified aspects, incorporate in different audiences WHAT their own strategies as LIVE PERFORMANCE INDUSTRY SUPPORT / GROWTH appropriate, and report on progress. Creative New Zealand New Zealand

→ New Zealand tours Music Commission The CPMG has met twice a year and → International performances → Increasing expertise annually provides a report to the relevant Ministers on its outcomes, → Making recordings to support live → Music education and engagement performance and promotion and following years priorities. From → International market development 2017, the CPMG will meet once a year during the strategic planning period.

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 7 Collaboration: The Music Commission works with a range of other organisations to help us achieve the best value and reach for our services.

Organisations we collaborate with, and the collaborative activities undertaken on an annual basis, include:

Australasian Performing Right Association (APRA AMCOS): Contribution to economic impact research, partner for NZ Music Month, May Book contributor, various seminars nationwide, Songhubs 2016.

Christchurch Music Trust (CHART): Board membership of Music Commission representative, NZ Music Month partner, ongoing seminar programme.

Creative New Zealand: Contemporary Popular Music Working Group, May Book contributor, international grant applicant comparison, economic impact research, various seminars nationwide.

Independent Music NZ: Shared office services, the Going Global Music Summit, ongoing seminar and up-skilling programmes, various national networking events, RELEASE programme, May Book contributor.

Music Managers Forum NZ: Official NZ Music Month Summit, ongoing seminar and up-skilling programmes, various national networking events, CONTROL programme, May Book contributor.

Music Education Aotearoa NZ (MENZA): National songwriting competition and performance day ‘Hook, Line & Singalong’, national Music Teachers Conference.

NZ On Air: Contemporary Popular Music Working Group, NZ Music Month partner, Official NZ Music Month Summit, various seminars nationwide, various national networking events, grant applicant comparison, economic impact research, May Book contributor.

Te Mangai Paho: Contemporary Popular Music Working Group, economic impact research.

Radio Broadcasters Association (RBA): NZ Music Month partner, NZ Music Performance Code Committee.

Recorded Music New Zealand (RMNZ): Contribution to economic impact research, partner for NZ Music Month, May Book contributor, various seminars nationwide.

Smokefree Pacifica Beats: Bands Mentoring in Schools Programme.

Smokefree Rockquest: Bands Mentoring in Schools Programme.

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 8 STRATEGIC OBJECTIVES FRAMEWORK

The Music Commission Objectives contribute towards achieving the Government’s priorities for New Zealand, through the Manatu Taonga Ministry for Culture and Heritage goals for the cultural sector – or Sector Outcomes. Through achieving our Objectives, the Music Commission play a key role in furthering the Ministry for Culture and Heritage’s Strategic Priorities as they relate to contemporary popular music.

Build a more productive and Government Priorities: competitive economy

Deliver better public services

Rebuild Christchurch

Create: Cultural and sporting activity flourishes in Ministry for Culture & New Zealand Heritage Sector Preserve: Our heritage can be enjoyed by future generations Outcomes: Engage: Engagement in cultural and sporting activities is increasing Excel: Artists, athletes and organisations achieve excellence Ministry for Culture & • Fostering inclusive New Zealand identity Heritage Strategic • Front footing transformative technology • Supporting Māori cultural aspirations Priorities: • Improving cultural asset sustainability • Measuring and maximising public value

Contributions to Government Priorities and MCH Sector Outcomes

Music is a key component of New Zealand's distinctive culture and provides significant artistic, economic and social benefits for New Zealanders. The Music Commission believes that successful music companies and successful music exports grow cultural pride and cultural output. A successful music industry will also contribute to the Government's goal to build foundations for a stronger economy.

The Music Commission’s Objectives contribute to the Sector Outcomes Create, Engage and Excel. The specific initiatives in these areas are detailed in the table on pages 12 and 13.

The Music Commission does not directly contribute to the Sector Outcome Preserve.

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 9 Contributions to MCH Sector Priorities

Through a range of projects undertaken by the Music Commission, there is an ongoing direct positive contribution towards the MCH Sector Priorities for arts and culture in New Zealand.

Fostering inclusive New Zealand identity New Zealand music enriches the lives of New Zealanders, and strengthens our sense of ourselves, and of our place in the world. By supporting and celebrating the success of NZ artists, the Music Commission aims to foster New Zealander’s sense of identity. Additionally, New Zealanders excelling on the world stage is a direct source of national pride – a key characteristic of nurturing national identity. Success in offshore markets also encourages participation through inspiring New Zealanders; both to be active within the sector as practitioners, and by fostering supportive audiences at home.

Supporting Māori cultural aspirations Offshore contemporary music interventions can support the exposure of our unique Māori culture and generate business for Māori musicians and music businesses. The Music Commission enables professional representations at strategic relevant international trade markets that focus on indigenous music (i.e. the Womex World Music Expo and Australasian World Music Expo). The Music Commission is the sole agency that supports representation at these events.

Front footing transformative technology The Music Commission continues to explore initiatives that will enable more local music businesses to embrace new digital resources for borderless music production, promotion and distribution. Excellent online strategies are now the key to promoting artists internationally, and utilising new technologies will ensure NZ music businesses strategically target their markets and investments. Data set technology, which uses analytic information across a comprehensive range of networks and can provide unprecedented access to audience analytics, is an emerging tool which can give New Zealand artists a competitive edge at comparatively low cost. Additionally, the management of copyrights from remote locations, such as New Zealand, has become feasible with developments in the area of online digital rights administration. These recent advancements in burgeoning technologies will markedly assist music export growth in the coming years.

Improving cultural asset sustainability In addition to creating export revenue, Outward Sound investment directly assists NZ companies to retain copyrights, which may have previously been assigned overseas in order to gain the financial resources needed to reach international markets. Domestic retention of copyrights allows New Zealand music businesses to earn long-term income from their development investments, and to reinvest locally. Not only does this keep export revenue within New Zealand, but it preserves the cultural assets generated – the intellectual property of our music.

Measuring and maximising public value Broadly, continued support of contemporary popular Music via the Music Commission enhances perceived public value of the arts via the enrichment of national identity detailed previously, and provide tools for measurement through the data-technologies discussed above.

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 10 STRATEGIC DIRECTION

The New Zealand Music Commission Strategic Plan 2013 – 2016 was developed by the Board and staff of the organisation in consultation with industry stakeholders, via regular forums and round-table discussions focussing on where, and how, the Music Commission can deliver the best services for the wider music sector.

The Music Commission Board bring industry knowledge and networks to their positions as Trustees. All members are sector practitioners, from music managers to local record label owners, and songwriters to marketing and business specialists, with a balance of both local and international experience (see Board Directory on page 43).

Our Vision: A successful music industry in New Zealand Our Mission: Supporting the growth of the New Zealand music industry, both culturally and economically, at home and abroad

Our working principles are that all Objectives and Initiatives should:

Or V Demonstrate Excellence Our Encourage Investment Promote Awareness Utilise Innovation

An Auckland based organisation, the Music Commission has five full-time and three part time staff who work across three departments – Education, Domestic Growth and Export Growth.

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 11 KEY INITIATIVES

The Music Commission's strategic direction is focused on achieving its Mission through undertaking work in three Objective areas. The key projects that contributed to our Objectives, and MCH Outcomes, in the year from 1 July 2015 were:

MCH Outcome: Objective One: ENGAGE Our Projects in this area: ENGAGE Public Engagement with music • Operating the Musicians Mentoring from NZ is enhanced in Schools Programme • Operating the Bands Mentoring in Engagement in We do this because: Schools Programme cultural activities • New Zealand music enriches • Organising NZ Music Month is increasing the lives of New Zealanders, • Supporting significant cultural and strengthens our sense of recognition events – e.g. The Waiata ourselves, and of our place in Maori Music Awards, the Pacific the world. Music Awards and the Taite Music • Building future audiences Prize begins with young people. • Investigating research into the • Supporting the diverse range societal benefits of music, especially of contemporary popular NZ pertaining to young people. music.

MCH Outcome: Objective Two: EXPERTISE Our Projects in this area: CREATE The expertise of music industry • Supporting the Music Managers professionals is increased Forum NZ • Supporting Independent Music NZ Cultural activity We do this because: • Continuing to monitor emerging flourishes in New • Continuing to strengthen our income streams, including digital Zealand music industry’s infrastructure developments supports cultural and • Producing the Official NZ Music economic growth for New Month Summit in partnership with Zealand. the MMF • We need to be building our • Participating in and hosting internationally successful seminars and up-skilling events companies of the future now. • Facilitating Master Classes • Providing a free legal advice service • Producing the music industry handbook ‘The May Book’ annually • Maintaining a website with a directory of NZ musicians, artist news and a resources • Supporting capability growth for NZ music businesses • Contributing toward research on the economic value of the music industry • Providing quarterly reports on the performance of the NZ music industry regarding sales and airplay • Publishing information on key domestic and international events.

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 12 MCH Outcome: Objective Three: EXPORT Our Projects in this area: EXCEL Offshore market initiatives lead to • Operating the Outward Sound a thriving music industry Programme • Coordinating and managing the Artists and We do this because: representation of NZ music at organisations • NZ can achieve further offshore international music trade events – e.g. achieve excellence success for our music industry CMJ Music Marathon, The Great exports, which will lead to both Escape, BIGSOUND, AWME, WOMEX enhanced cultural pride and and SXSW higher levels of economic • Producing the Going Global Music return to our country. Summit in partnership with IMNZ • Leveraging across all NZ export • Providing networking opportunities and trade opportunities will for NZ music businesses with enhance the NZ music international counterparts i.e. industry’s reputation on the Country Connections world stage. • Investigate strengthening cultural diplomacy links, particularly in regard to WW100 commemorations.

Organisational Objectives: • Working with other government funded arts agencies to improve cooperation in the planning and delivery of government support for contemporary popular music • Identify opportunities for joined-up purchasing of services for both the Music Commission and the wider sector • Actively look for mutually beneficial partnerships and collaborations with other organisations.

The details of the initiatives for the Music Commission to help us achieve these Objectives and the results for the year ending 30 June 2016 can be found in the Statement of Service Performance on pages 18 – 34.

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 13 ORGANISATIONAL HEALTH & CAPABILITY

Organisational Capability: The Music Commission has a small staff and recognises that its people are its greatest organisational asset.

The operations of the organisation are managed by the Chief Executive, with input from two senior managers. Additional staff work in each outcome area with the full-time equivalent (FTE) staff projected to be 8.2 in 2015/2016, however staffing remained at 7.2 including financial management.

The organisational structure for the NZ Music Commission is:

Board Of Trustees

Chief Executive

Finance Manager Education Manager International Manager

Communications & Projects Education Assistant International Coordinator Officer Executive Assistant

Administration Assistant

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 14 Organisational Capability: The Music Commission has a small staff and recognises that its people are its greatest organisational asset.

The Board and staff of the Music Commission have maintained their programme of continual growth and development in the area of organisational capability.

Organisational Capability Goals

Goal 1: Actions: Progress To Date: The Music Commission • The Board undertake an annual • Achieved, with regular follow up has a committed and self-assessment to evaluate the scheduled resulting from this capable Board of Trustees effectiveness of its governance. year’s evaluation. that effectively governs the organisation. • The Board reviews its make-up to • Achieved for 2015-16 and ongoing. ensure the right balance of skills is around the table as vacancies arise.

• The Board reviews its policies and • Achieved, including the procedures on an annual basis. implementation of a new Risk Analysis policy.

Goal 2: The Music Actions: Progress To Date: Commission is committed • All staff have professional • Most staff have had this to being a good employer development plans to adequately opportunity, and this will be focusing on retention of support their goals revised on an progressed when the current staff staff and providing equal annual basis. have new job descriptions. opportunities to staff. • All staff will have training • Achieved for 2015-16. opportunities provided to them annually.

• That staff turn over is no more • Achieved – Staff turnover was 1 than 1.5 FTE annually. FTE in 2015-16.

Goal 3: Our office Actions: Progress To Date: environment is safe, well • Business Continuity Planning is • Achieved for 2015-16 and ongoing. maintained and fit for part of the ongoing life of the purpose. organisation and reviewed on a quarterly basis.

• Zero tolerance is maintained for • Achieved for 2015-16 and ongoing. harassment or bullying and all staff are aware of the serious misconduct policy.

• Any safety hazards issues are dealt • Achieved for 2015-16 and ongoing. with promptly and reported in a document controlled file.

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 15 Strategic Capability: The Music Commission has a strategic direction framework developed by the Board, in consultation with staff and external stakeholders, which responds to the current environment.

The strategic direction of the organisation will enable the Music Commission to be both proactive within the sector and reactive when the environment changes, and demonstrate the delivery of better public services in the impact measures we attain. The organisation will also investigate opportunities to collaborate with other agencies on programmes and initiatives that will contribute towards the Music Commission’s Mission and Objectives.

Strategic Capability Goals 2013-2016

Goal 1: Actions: Progress To Date: The Strategic Plan of the • The Music Commission can • Achieved for 2015-16 and ongoing. Music Commission undertake work it resolves is most provides a structure in valuable for the sector within the which the organisation can Objectives determined in the achieve its outcomes to Strategic Plan. contribute towards the sector. • The impact measures from the • Achieved for 2015-16 and ongoing. Strategic Plan will guide future decisions on allocation of resources.

Goal 2: Actions: Progress To Date: The Music Commission will • The Music Commission identifies • Achieved for 2015-16 and ongoing. collaborate with other common goals with other agencies See Collaborations, page 8. agencies, both and where appropriate government and non- participates in partnerships for government, to provide service provision. services to support the growth of the music • The Music Commission continues • Achieved for 2015-16 and ongoing. industry in New Zealand to collaborate with the joint- where appropriate. agency Contemporary Popular Music Working Group.

Goal 3: Actions: Progress To Date: The Music Commission will • The Music Commission will host • Four consultation sessions were consult with the wider external industry representatives held in this period – a Music industry on an annual every year, either in small focus Organisation Symposium with the basis to ensure our groups or wider forums, to gain CE and Board members from all strategic goals are aligned insight into sectoral issues and major national music bodies, two with the current opportunities. Specifically in 2015- sessions with music professionals environment. 2016, a music industry roundtable who work both domestically and will be held to inform the internationally, and a young upcoming four-year strategy for people feedback session for ages the organisation. 15 – 19 years.

• The staff and Board will be • Achieved for 2015-16 and ongoing. proactive in their roles as ambassadors for the Music Commission and provide feedback and ideas to inform the organisations strategic framework.

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 16 Financial Capability: The Music Commission receives 90% of its income from the Government. We continue to rely on the Government to fund our core activities, however we will also actively explore alternative sources of financial support.

The Music Commission will continue to seek opportunities to partner with other organisations for both in-kind and mutually beneficial financial agreements so that we can maintain our range of services and their sectoral reach.

Financial Capability Goals

Goal 1: Actions: Progress To Date: The Music Commission explores • The Music Commission • Ongoing. opportunities for increasing its advocates for greater income to leverage on the investment in contemporary current international spotlight on popular music, particularly to music from New Zealand. support New Zealand music businesses in the global market.

Goal 2: Actions: Progress To Date: The Music Commission explores • The Music Commission • The joined-up airfare supplier opportunities for joined-up investigates and executes at has not come to fruition this purchasing of services for the least one contract for joined-up year. We will continue to organisation, and where purchasing with a supplier. explore avenues, whilst applicable, the sector as a whole. undertaking joint projects to minimise costs.

• The Music Commission collates • Achieved with databases information on the most developed, which are added to commonly used offshore on a regular basis. suppliers for international market development initiatives.

Goal 2: Actions: Progress To Date: The Music Commission and its • The Music Commission gains a • Achieved for 2015-16 – Board of Trustees continue to minimum of three domestic Domestic sponsors included explore opportunities to partner and three international iHeart Radio, 2Degrees Mobile, with external organisations for financial or in-kind sponsors Baboom & MusicGlue for Going financial support of its services. per annum. Global; International sponsors included Spy Valley Wines at CMJ and SXSW, and DUB Pies at SXSW and CMJ.

• The Music Commission has at • Achieved - The NZ Music Month least one initiative that delivers May Book. a profit to the organisation per annum.

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 17 STATEMENT OF SERVICE PERFORMANCE 2015-2016

OBJECTIVE ONE: ENGAGE Public Engagement with music from NZ is enhanced Why: • New Zealand music enriches the lives of New Zealanders, and strengthens our sense of ourselves and our place in the world. • Building future audiences begins with young people. • Supporting the diverse range of contemporary popular NZ music.

Measurements 2013 to 2016

Goal: Music is recognised by the public as a significant part of NZ's 70% of survey respondents agree that culture, as measured by an annual survey. music is a significant part of NZ's culture. Results:

Do you think music is a significant part of NZ culture? 91% of survey respondents agree that music is a significant part of NZ's culture. 92% 91% 89% 86% 89%

GOAL – 70%

14% 8% 11% 11% 9%

July 2012 July 2013 July 2014 July 2015 July 2016

Yes No

Source: Perceptive Research Survey July 2016

Goal: Sectoral indicators show a thriving local music environment. Tracking Radio Play, Sales, APRA membership etc. Results: RADIO PLAY Industry Sector NZ Only NZ Only NZ Only Total 2013: Local Content On All Radio – 20.50% ($m) ($m) ($m) ($m) 2014: Local Content 2013 2014 2015 2015 On All Radio – 19.3% 2015: Local Content Retail $9.6 $8.9 $9.5 $94.6 On All Radio – 17.9% Music Radio Broadcasting $44.4 $45.2 $40.8 $227.8 Source: RadioScope Live Music $27.1 $28.7 $44.3 $158.0 Synchronisation $1.9 $2.1 $2.0 $4.0 Communication & Public Performance $10.6 $10.8 $11.1 $42.7 APRA MEMBERSHIP 2013: 9,541 Totals $93.6 $95.7 $107.7 $527.1 2014: 10,024 2015: 10,526 Source: PWC Economic contribution of the New Zealand music industry 2013, 2014 and 2015 Source: APRA AMCOS Year in Review

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 18 OBJECTIVE ONE: ENGAGE Public Engagement with music from NZ is enhanced

INITIATIVE 1: Musicians Mentoring in Schools Programme & Bands Mentoring in Schools Programme

WHAT IS INTENDED TO BE ACHIEVED? Teachers and students develop knowledge, skills and understanding of contemporary popular NZ music through a practical based framework in which professional musicians act as mentors in participating schools.

Participants in the Pacifica Beats and Smokefree Rockquest programme will be assisted to develop their live performance and event management skills through partnering them with a professional band that provides support, and shares their experiences and knowledge.

INTENDED RESULT • Number of schools participating in the programmes annually shows value in programmes.

• Number of students participating in the programmes annually indicates value in programmes.

• Participants rate the programmes to have had a positive or strong influence in the areas of song writing skills, performance skills, theoretical and practical musical skills and enhanced understanding of the NZ music industry and possible career paths.

ACHIEVEMENT MEASUREMENTS 2015-2016

Quantitative Goals: Quantitative Results: • 60 Schools participate in the Musicians • 63 Schools participated in Musicians Mentoring Mentoring programme. programme (2014-15=62 / 2013-14=70). • 1,200 Students participate in the Musicians • 1,787 Students participated in the Musicians Mentoring programme. Mentoring programme (2014-15=1,841 / 2013- • 40 Schools participate in Bands the Mentoring 14=1,400). programme. • 80 Schools participated in the Bands Mentoring programme (2014-15=43 / 2013-14=40).

Qualitative Goal: Qualitative Result: • 80% of participants rate the Programmes as • 84% of participants rate the Programmes as having a positive or strong influence in the having a positive or strong influence in the impact intended result areas. areas (2014-15=88.6% / 2013-14=82.2%).

Musicians Mentoring in Schools Programme Results 2014 • 89% of students surveyed reported a STRONG or POSITIVE influence on songwriting skills and understandings • 81% of students surveyed reported a STRONG or POSITIVE influence on performance skills and understandings • 82% of students surveyed reported a STRONG or POSITIVE influence in students’ personal commitment to future music participation •

Bands Mentoring in Schools Programme 2014 • More than 80% of students surveyed reported a STRONG or POSITIVE value in seeing a professional band perform at their regional events. • More than 80% of students surveyed reported a STRONG or POSITIVE influence on their understanding of the New Zealand music industry and possible career paths within it

Musicians Mentoring in Schools Programme Student Feedback Survey Results 2015-16

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 19 MUSICIANS MENTORING IN SCHOOLS PROGRAMME: PARTICIPATING SCHOOLS 2015-2016

Alfriston College, Auckland Panguru Area School, Northland Aotea College, Auckland Papatoetoe High School, Auckland Auckland Girls Grammar School Porirua College Aurora College, Invercargill Roncalli College, Timaru Avondale College, Auckland Rotorua Boys High School Baradene College, Auckland Rotorua Lakes High School Broadwood Area School, Christchurch Sacred Heart Girls' College, Hamilton Burnside High School, Christchurch Sir Douglas Bader Intermediate, Auckland Campion College, Gisborne South Otago High School, Balclutha Cromwell College St Andrew's College, Christchurch Dargaville High School St Mary's College, Wellington Dunstan High School, Alexandra St. Paul's College, Auckland Feilding High School Stoke School, Nelson Francis Douglas Memorial College, New Plymouth Stratford High School Gisborne Girls' High School Tahuna Normal Intermediate, Dunedin Hamilton Girls' High School Tahunanui School, Nelson Hauraki Plains College, Ngatea Tarawera High School, Kawerau Highlands Intermediate, New Plymouth Te Whanau a Apanui Area School, East Cape Holy Cross Schoo, Wellington TKKM Ngauria Maui, Gisborne Hutt Valley High School TKKM o Horouta Wananga, Gisborne Kaipara College, Helensville TKKM o Hurungaterangi, Rotorua King's High School, Dunedin Tokomairiro High School, Milton Koru School, Auckland Tuakau College Logan Park High School, Dunedin Twizel Area School Mana College, Porirua Waiopehu College, Levin Manurewa High School, Auckland Wairarapa College, Masterton Mt Aspiring College, Wanaka Wairoa College, Hawkes Bay Nelson College Waitara High School New Plymouth Boys' High School Wakatipu High School, Queenstown Ohinewai School, Waikato Wanganui High School One Tree HIll College, Auckland Wellington High School Otorohanga College Wiri Central School, Auckland Oxford Area School, Canterbury

MUSICIANS MENTORING IN SCHOOLS PROGRAMME: PARTICIPATING MENTORS 2015-2016

Anna Coddington Jed Parsons Maisey Rika Annie Crummer Jimmy Christmas Matthew Salapu Bella Kalolo Jon Toogood Ora Barlow Brooke Singer Julia Deans Priya Sami Grayson Gilmour Karl Thomas Rio Hemopo Hani Totorewa Katie Thompson Rob Ruha Hera Kim Halliday Shayne Carter Hollie Smith Lavina Williams Tali (Natalia Sheppard) Horomona Horo Lisa Tomlins Thomas Oliver Indira Force Louis Baker Troy Kingi Jane de Jong (Ruby Frost) Malcolm Lakatani Tyna Keelan

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 20 BANDS MENTORING IN SCHOOLS PROGRAMME: PARTICIPATING SCHOOLS 2015-16 Alfriston College, Auckland Naenae College, Lower Hutt Aorere College, Auckland Nelson College For Girls Aotea College, Wellington Onslow College, Wellington Aranui High School, Christchurch Otamatea High School, Northland Auckland Grammar Otumoetai College, Tauranga Bethlehem College, Tauranga Palmerston North Girls' High School Bream Bay College, Northland Papamoa College, Tauranga Burnside High School, Christchurch Porirua College Cambridge High School Queen Charlotte College, Marlborough Campion College, Gisborne Rangi Ruru Girls' School, Canterbury Cashmere High School, Canterbury Rangiora High School, Canterbury Central Southland College Rangitoto College, Auckland Chapman College, Rotorua Raphael House Rudolf Steiner Area School, Wellington Craighead Diocesan School, Timaru Rodney College, Northland Dunstan High School, Otago Rotorua Lakes High School Edgewater College, Auckland Scots College, Wellington Feilding High School Springbank School, Northland Freyberg High School, Palmerston North St Andrew's College, Christchurch Garin College, Nelson St Hilda’s Collegiate, Dunedin Gisborne Boys High School St Margaret's College, Christchurch Gisborne Girls High School St Peter's School, Cambridge Green Bay High School, Auckland Taieri College, Otago Hagley Community College, Christchurch Tauhara College, Taupo Hamilton Boys' High School Taupo-nui-a-Tia College, Taupo Hamilton Girls' High School Te Horo School, Whangarei James Hargest College, Southland Te Kapehu Whetu Charter School, Whangarei Kaikorai Valley College, Dunedin Te Kura Hourua o Whangarei Terenga Paraoa Kamo High School, Northland Te Kura Kaupapa Maori o Hoani Waititi, Auckland Kerikeri High School Sir Edmund Hillary College, Auckland Kings High School, Dunedin Te Kura-a-iwi o Whakatupuranga Rua Mano, Manawatu Kingsway School, Auckland Timaru Boys’ High School Lincoln High School, Canterbury TKKM o Hoani Waititi, Auckland Logan Park High School, Dunedin Upper Hutt College Long Bay College, Auckland Verdon College, Southland Massey High School, Auckland Waihi College Green Bay High School, Auckland Waikato Diocesan School For Girls Mountainview High School, Timaru Waitaki Boys' High School, Otago Mt Albert Grammar School, Auckland Wakatipu High School, Otago Mt Aspiring College, Otago Western Heights High School, Rotorua Mt Maunganui College Whangaroa College

BANDS MENTORING IN SCHOOLS PROGRAMME: PARTICIPATING MENTORS 2015-16 Aaron Tokona Dave Baxter Joe’s Van Mark De Jong Ryan Beehre The Van Grafs Annie Crummer El Jay Hall Laughton Kora Neihana Harrison Shayne Carter Tom Larkin Bella Kalolo Gana Goldsmith Leroy Clampitt Nomad Soda Boyz Uni-Fi Benny Tipene Georgia Lines Levi Sesega Paul Dodge Steve Abel Victoria Kelly Brad Banks Hollie Smith Lukas Wharekura Priya Sami Steven Marr Chris Mac Jeremy Toy Marcus Powell Rio Panapa Te Awanui Reeder

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 21 INITIATIVE 2: New Zealand Music Month

WHAT IS INTENDED TO BE ACHIEVED? Promotional activities lead to increased coverage celebrating NZ music and the people who create it.

INTENDED RESULT • The volume of live music events nationwide during May shows engagement by artists.

• Level of coverage of NZ music during NZ Music Month in the traditional media and by the public through social media indicates public engagement.

ACHIEVEMENT MEASUREMENTS 2015-2016 Quantitative Goals: • Volume of live music events that occur nationwide. • Number of traditional media stories covering NZ music and artists as tracked by an alert system.

Qualitative Goal: • Social Media engagement grows as shown through a combination of social media analytic data.

Results 2015-2016: 3,500,000+ 1,200+ TWITTER REACH FOR #NZMUSICMONTH LIVE MUSIC EVENTS

9,500+ 9,500+ TWEETS TAGGED #NZMUSICMONTH 1,150+TWEETS TAGGED ARTISTS#NZMUSICMONTH & BANDS PERFORMED OVER AT OVER 1,000 LOCAL TRADITIONAL ALBUMS MEDIA STORIES IN THE 500 TRACKED NZ TOP 23% VENUES TO DATE 40 CHARTS IN MORE THAN 93 CITIES & TOWNS

21% of New Zealanders said they had attended a live music show/event by an NZ artist in the past year, an increase from 16% in 2015 (2014=24%).

When asked which artists they had seen, the answer was varied:

Source: Perceptive Research Survey July 2016

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 22 INITIATIVE 3: Supporting significant cultural recognition events

WHAT IS INTENDED TO BE ACHIEVED? Supporting events that celebrate excellence in Māori Music, Pacific Music and independent music showcase to the public the importance of their contribution to the contemporary popular music industry.

INTENDED RESULT • That the events such as the Waiata Māori Music Awards, the Pacific Music Awards and the Taite Music Prize continue to be recognised as culturally significant events, and supported annually by the Music Commission.

ACHIEVEMENT MEASUREMENTS 2014-2015

Quantitative Goal: • That three events are supported annually.

Quantitative Result: • This year we did not support the Waiata Maori Music Awards, due to a change in the management and categories. However, we have already committed to being a supporting partner for the Waiata Awards in September 2016.

TAITE MUSIC PRIZE 20 April 2016 in Auckland Silicon won the Taite Music Prize for the album Personal Computer.

The IMNZ Classic Independent Album Award was won by Upper Hutt Posse for E Tu.

PACIFIC MUSIC AWARDS 9 June 2015 in Auckland Vince Harder won the NZ Music Commission Best Pacific Male Artist Award.

NZ MUSIC MANAGERS AWARDS In May 2015-2016, we also presented the International Achievement Awards at the New Zealand Music Managers Awards, won by Alastair Burns of Heartstop Music.

Qualitative Goal: • That the three events produce positive media results.

Qualitative Result: • All three events showed positive media results, although the NZ Music Managers Awards are an industry only event, and only promoted to the music media. Both the Taite Music Prize and Pacific Music Awards had extensive media coverage in their post event reports.

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 23 OBJECTIVE TWO: EXPERTISE The expertise of music industry professionals is increased Why: • Continuing to strengthen our music industry’s infrastructure is an important and vital function of the Music Commission. • We need to be building our internationally successful companies of the future now.

Measurements 2013 to 2016

Goal: NZ artists are demonstrably export ready as evidenced by the Percentage of high potential (or 'export percentage of high potential Outward Sound applications (those that are ready') Outward Sound applications suitable to fund - whether or not there are sufficient funds available to received increases on the previous year. fund them) received annually.

Result:

2012-2013 2013-2014 2014-2015 2015-2016

Export Export Export Export Ready! Ready! Ready! 94%! 94%! Ready! 72%! 91%!

Significant growth was seen in the volume of export ready Outward Sound applications received in the past four years. There is little capacity for further growth.

Goal: Increased use of support, tools and resources provided by the Tracking membership of MMF and IMNZ, Music Commission. and usage of Music Commission resources.

Result: 100% budgeted capacity in Music Law clinics in 2015-2016.

Stable membership has been reported by both the MMF and IMNZ.

Source: Google Analytics

0.3% Increase in website resource use – from 2,517 in 2014-2015 to 2,525 in 2015-2016.

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 24 OBJECTIVE TWO: EXPERTISE The expertise of music industry professionals is increased

INITIATIVE 4: Provide support to Independent Music New Zealand (IMNZ), and the Music Managers Forum (MMF)

WHAT IS INTENDED TO BE ACHIEVED? Providing support to independent music companies via IMNZ and professional artist managers through the MMF enables the delivery of important industry support and professional development initiatives for the benefit of the wider industry.

INTENDED RESULT • The Music Commission through providing an annual operating grant to the MMF and IMNZ will receive services, including an upskilling schedule based on membership surveys and feedback, to benefit both their memberships and the wider industry.

• The paid membership of both organisations remains at least stable showing value perceived in the organisations’ services.

ACHIEVEMENT MEASUREMENTS 2015-2016

Quantitative Goals: • The paid membership of IMNZ remains stable or grows. • The paid membership of the MMF remains stable or grows.

Quantitative Results: • The paid membership of IMNZ has remained stable, showing value in IMNZ’s services. • The paid membership of the MMF has grown, showing value in the MMF’s services.

200 MMF Membership 2011 - 2016 120 IMNZ Membership 2011 - 2016 180 191 185 100 160 174 100 164 159 140 90 80 85 120 82 82 100 60 80 40 60 40 20 20 0 0 2011-12 2012-13 2013-14 2014-15 2015-16 2011-12 2012-13 2013-14 2014-15 2015-16

Qualitative Goals: Qualitative Result: • Both organisations show a positive result in a • The MMF & IMNZ have engaged their membership survey regarding their services. memberships in surveys and informal feedback. Both organisations showed that • The Music Commission receives a positive report members value the organisations. of the organisations’ impacts via a range of agreed performance measures. • All agreed key performance measures for both organisations were met in 2015-16.

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 25 INITIATIVE 5: Delivering professional development opportunities and resources for the NZ music industry

WHAT IS INTENDED TO BE ACHIEVED? Supporting and participating in upskilling events across NZ from grassroots learning through to higher professional development opportunities, and producing practical information and resources, will provide industry practitioners with useful and high quality information with which to expand their skill base and help to grow the industry's expertise.

INTENDED RESULT • Usage of services and attendance at upskilling events indicates the value of our range of resources to music industry practitioners; new audiences at seminars and first time users of services show that the industry is aware of resources.

ACHIEVEMENT MEASUREMENTS 2015-2016

Quantitative Goals: Quantitative Results: • A minimum of five upskilling events occur • Achieved in 2015-16 with the NZ Music Month annually. Summit, Going Global Music Summit, Smokefree Rockquest and Pacifica Beats mentoring days, IGNITE programme, Going Local and YAMI in Wanaka. • 0.3% increase in access of the resource section of the Music Commission website, • That usage of resources is maintained or grows therefore usage is maintained. annually. • 71% of event audiences were first time attendees, showing new audiences are being • 25% of event audiences or resource users are gained. first time attendees or clients.

Qualitative Goal: Qualitative Result: • At least 75% of upskilling event attendees rate • 81% of attendees rated upskilling events the events as good or excellent. rated the event 8 out of 10 or higher based on overall satisfaction.

1! 2! 3! 4! 5! 6! 7! 8! 9! 10! Overall, how would you rate the sessions?! With 1 being Poor and 10 being Excellent!

Source: NZ Music Month Summit 2016 Participant Survey

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 26 INITIATIVE 6: Improved research on the performance of the NZ music industry.

WHAT IS INTENDED TO BE ACHIEVED? Facilitating the collection of data relevant to the NZ music industry will provide the industry (and the Music Commission) with important knowledge about the economic performance of the industry and greater societal benefits of music. Research and development will lead to greater investment, as returns can be better documented.

INTENDED RESULT • A quantifiable figure of the financial value of NZ music is published annually via a sectoral report produced in partnership with the key national music organisations to show the economic impact of NZ music businesses.

• Useful empirical evidence regarding the societal value of music is gathered and disseminated to strengthen the understanding of the non-economic contribution music makes to New Zealand.

ACHIEVEMENT MEASUREMENTS 2014-2015

Quantitative Goals: Quantitative Results: • One sectoral report is produced in partnership • Achieved 2015-16. The PWC report The with the key national music organisations. Economic Contribution of the NZ Music Industry 2015 has been completed. • Again this year a wider range of organisations contributed towards the research. The partners were Recorded Music NZ, APRA AMCOS, NZ Music Commission, NZ On Air, Creative New Zealand and Te Mangai Paho.

2. Introduction Qualitative Goal: Qualitative Result: • A growing number of users access dataThe and purpose of this• studyNot is to estimateachieved the contribution in 2015 of- 16the .music Due industry to difficulty to the New Zealandin economy. It provides a snapshot of the industry using data for the 2014 calendar year. statistics collected and published online. gaining useful statistics, we have changed the In addition the report providesdata some collection broad insight system on the trends for occurthering coming in New Zealand’s year, music industry that are affecting the impact of the industry on New Zealand’s economy. which will enable us to publish new and more This report has been commissioned by Recorded Music New Zealand supported with funding from its project partners, the Australasianuseful Performing information Right Association/Australasian in the coming year. Mechanical Copyright Owners Society (APRA|AMCOS) and the New Zealand Music Commission in order to better understand the economic role of the New Zealand music industry. It should be read in conjunction with the Restrictions in Appendix B. pwc.co.nz

Economic contribution of the New Zealand music industry 2015

Estimating the direct A report for the New Zealand and indirect economic impacts of the music industry Purpose and scope of this report New Zealand music industry

October 2016 This report examines some “bottom-line” measures of the music industry’s impactHon. onMaggie the Barry Minister of Arts Culture and Heritage national economy. In this respect, it differs from other analyses that focus onHon. the total Amy revenue Adams Minister of Broadcasting earned by the industry (eg sales of recorded music or royalties related to communication rights), Hon. Te Ururoa Flavell Minister of Māori Development a “top-line” measure that does not account for factors such as intermediate inputs purchased from other industries or imported from overseas. Freepost Parliament By estimating bottom-line measures, this report enables comparisons between the music industry, other industries, and the economy as a whole. It is intended to providePrivate industry Bag 18888 Hon.participants Maggie and Barry policymakers withMinister a robust of basis Arts for understandingCulture and the HeritageimportanceParliament of the Buildings Hon.industry Amy to Adams the New Zealand ecMinisteronomy. of Broadcasting Wellington 6160

Hon.We Tehave Ururoa estimated Flavellthree measures Minister of the New of Zealand Māori music Development industry’s economic contribution:

gross output – the total sales of all music industry participants, provided by industry 17 December 2014 bodies Freepost Parliament Private value Bag added 18888 – the industry’s contribution to New Zealand’s GDP, whichDear is calculated Ministers as the total returns to labour and capital in the industry NZ MUSIC COMMISSION ANNUAL ParliamentREPORT 2015Buildings – 2016 27 Wellington 6160 Contemporary Popular NZ Music Group: annual report to Ministers 6 Our four agencies – Creative New Zealand, NZ On Air, the NZ Music Commission and Te Māngai Pāho 17 December 2014 – share common interests in aspects of New Zealand contemporary popular music. As the inter- agency Contemporary Popular Music Group (CPMG) we undertake a simple, practical, joint work Dear Ministers programme to improve delivery of government support for contemporary popular New Zealand music. Contemporary Popular NZ Music Group: annual report to Ministers This report updates you on progress under the CPMG banner. We are pleased with the work we are Our four agencies – Creative New Zealand, NZ On Air, thedoing NZ togetherMusic Commission and are confident and Te that Māngai we can Pāho achieve more for New Zealand by collaborating in this – share common interests in aspects of New Zealandway. contemporary popular music. As the inter- agency Contemporary Popular Music Group (CPMG) we undertake a simple, practical, joint work programme to improve delivery of government supportBackground for contemporary popular New Zealand music. The CPMG partners are the chief executives of the following four agencies.

Creative New Zealand, a Crown entity, is the national arts development agency developing, This report updates you on progress under the CPMG banner. We are pleased with the work we are investing in and advocating for the arts. doing together and are confident that we can achieve more for New Zealand by collaborating in this NZ On Air (the Broadcasting Commission), a Crown entity, is involved in multimedia and public way. broadcasting cultural content. The NZ Music Commission, a non-government organisation funded by the Ministry for Culture Background and Heritage, is focused on supporting the growth of the music industry in New Zealand, culturally and economically, at home and abroad. The CPMG partners are the chief executives of the following Te four Māngai agencies. Pāho , a Crown entity, contributes to Māori language revitalisation through Creative New Zealand, a Crown entity, is the nationalbroadcasting arts development agency developing, investing in and advocating for the arts. The CPMG meets every six months. The next meeting is scheduled for 3 June 2015. NZ On Air (the Broadcasting Commission), a Crown entity, is involved in multimedia and public

broadcasting cultural content. In accordance with our terms of reference agreed in 2012, we provide you with a short annual The NZ Music Commission, a non-government organisationreport on the funded outcomes. by the This Ministry is our third for report. Culture and Heritage, is focused on supporting the growth of the music industry in New Zealand, culturally and economically, at home and abroad. Te Māngai Pāho, a Crown entity, contributes to Māori language revitalisation through broadcasting

The CPMG meets every six months. The next meeting is scheduled for 3 June 2015.

In accordance with our terms of reference agreed in 2012, we provide you with a short annual report on the outcomes. This is our third report.

OBJECTIVE THREE: EXPORT Offshore market initiatives lead to a thriving music industry Why: • NZ can achieve further offshore success for our music industry exports, which will lead to both enhanced cultural pride and higher levels of economic return to our country. • Leveraging across all NZ export and trade opportunities will enhance the NZ music industry’s reputation on the world stage.

Measurements 2013 to 2016

Goal: Percentage of Outward Sound recipients offered subsequent Percentage of Outward Sound recipients international opportunities after undertaking an Outward Sound offered subsequent opportunities increases supported project therefore increasing their business. annually.

Result: Tracking across the past five years, the percentage of Outward Sound supported 100! recipients that have gained international opportunities as a result of their in- 97% 95% 80! 92% 88% market initiaitves has maintained a high 81% percentage rate. 60!

40!

20!

0! 2011-12! 2012-13! 2013-14! 2014-15! 2015-16!

Goal: Artists we work with internationally receive greater coverage Monitoring the impact of offshore market and engagement. initiatives via social media metrics.

Result:

TOP TEN MOST PLAYED ARTISTS ON SPOTIFY 97,908,577 Artist funded via Outward Sound Spotify Plays

Ladyhawke 22,629,178 This figure is the combined Gin Wigmore 20,245,140 Soundcloud plays and followers, Avalanche City 8,770,145 YouTube views, Facebook likes and French for Rabbits 8,248,306 Twitter followers of the artists Maala 6,355,766 funded through Outward Sound in Yumi Zouma 6,323,292 2015-2016. Leisure 5,223,268 The table is the combined amount Maya Payne 5,024,933 of streams for each artist’s top ten Nadia Reid 4,117,941 most played Spotify tracks. Tiny Ruins 4,104,902

Total Plays 91,042,871 21 artists funded by Outward Sound in 2015-2016 have had over

1 million plays on Spotify.

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 28 OBJECTIVE THREE: EXPORT Offshore market initiatives lead to a thriving music industry

INITIATIVE 7: Operation of the Outward Sound Programme

WHAT IS INTENDED TO BE ACHIEVED? Through providing a robust and transparent grants assistance programme that invests up to 50% of costs for representatives or artists to undertake offshore music market initiatives, NZ music projects will have an increased chance at success in overseas markets, foreign exchange earnings from NZ music will increase, and the profile of NZ music in international markets will improve.

INTENDED RESULT • Outward Sound continues to operate in a robust and transparent manner with positive results from two independent applicant project audits.

• A growing number of Outward Sound supported export initiatives that gain foreign investment annually.

ACHIEVEMENT MEASUREMENTS 2015-2016

Quantitative Goals: Quantitative Results: • Four funding rounds are held annually and • Four funding rounds were undertaken and a random audits are undertaken for a minimum of random audit of four applications were two completed Outward Sound projects. undertaken. There were no issues found as a result of the audit. • 100% of projects funded through Outward Sound • 100% of projects funded through Outward have robust plans and demonstrate capability to Sound had robust plans and demonstrated the achieve increased overseas earnings, as assessed capability to achieve increased overseas by industry advisory group. earnings.

OUTWARD SOUND INVESTMENT VS REPORTED OFFSHORE EARNINGS IN THE SAME PERIOD

$2,500,000!

$2,000,000!

$1,500,000!

$1,000,000!

$500,000!

$0! 2011-12! 2012-13! 2013-14! 2014-15! 2015-16! OS Investment! $380,000! $400,000! $430,000! $427,000! $414,200! Export Earnings! $608,591! $2,173,304! $1,357,487! $2,146,282! $2,154,944!

Qualitative Goals: Qualitative Results: • Four applicants take part in a survey to assess the • Four applicants took part in a survey to assess funding process and management of the the funding programme. No issues were raised. programme. An expanded survey with 57 applicants was held in 2014-15 as part of the preparation for a new four-year Music Commission Strategic Plan.

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 29 OUTWARD SOUND RECIPIENTS 2015-16

Between the 57 recipients of Outward Sound grants in 2015-16 (2014-15=61 / 2013-14=47), their achievements include: • 33 international tours (204-15=43 / 2013-14=27) • 10 deals for international record releases (2014-15=11 / 2013-14=3) • 21 commitments of international investment via sync, distribution or publishing deals (2014-15=23 / 2013-14=17).

OUTWARD SOUND INTERNATIONAL MUSIC MARKET DEVELOPMENT GRANTS The International Music Market Development Grants provide assistance for market development initiatives to encourage the entry of New Zealand music and musicians into global markets. New Zealand music industry practitioners (artists, managers etc) and firms (record companies, associated businesses) can apply for assistance. The programme is inclusive of music from all genres, styles and niches and applicants may target relevant markets around the world. The sucessful applicants in 2015-16 were:

Aldous Harding for touring Europe / UK in March - April 2016, and working with UK producer John Parrish on a second album in London.

Anthonie Tonnon for a USA/Australian tour to promote the release of his album Successor through Misra Records/Flippin Yeah Industries. Includes showcasing at BIGSOUND.

Aston Rd for a 21-date Aston Rd Australian showcase tour, featuring artists Louis Baker, Thomas Oliver and Estère.

Avalanche City to showcase and tour around at Canadian Music Week 2016.

Ciaran McMeeken to travel to UK & Europe to co-write with leading songwriters, explore recording collaborations and networking opportunities utilising producer Greg Haver's connections.

Delaney Davidson for showcasing in and around the US Folk Alliance (FAI) Festival/trade fair. Delaney Davidson to tour in support of the European release of Delaney's new album Lucky Guy.

Devilskin for a return tour to the UK and Germany in support of the UK/European release of their debut album We Rise.

Flying Nun Records / Flying Out Music / Arch Hill Recordings towards international marketing costs for first half of 2016.

French For Rabbits towards attendance and performance at Iceland Airwaves Festival in Reykjavik in November 2015, meeting with Swiss booking agents and others.

Gate for a promotional tour of the USA in support of the release of new album Moonrise through label Kye Records. Meet with current and potential business partners for future solo and Dead C related opportunities.

Gin Wigmore for the 2015 worldwide tour to support the release of her album Blood To Bone through Universal Music.

Hollie Smith for a promotional tour of Australia, performing shows to promote the release of her new single, and album Water Or Gold.

Jakob for a European tour in April / May 2016.

Ladyhawke to assist in taking the new album Wild Things into major markets around the world.

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 30 Leisure for showcasing in Australia, USA, Canada, and UK and to meet with potential labels, publishers and booking agents.

Lontalius towards setup for the worldwide release of Lontalius' debut album in 2016, including showcasing in and around CMJ 2015.

Lord Echo for a promotional tour of Japan to setup the release of forthcoming album.

MAALA for international showcases February 2016.

Marlon Williams for a USA/Canada trip to set up label/publicity/agent team to support the North American release of Marlon's debut album. Marlon Willams & The Yarra Benders to perform at SXSW 2016 and to promote the international release of Marlon's debut album through Secretly Canadian/Dead Oceans. Marlon Willams & The Yarra Benders to perform on BBC’s ‘Later … with Jools Holland’ in London, the Conan O'Brien show in Los Angeles and at Latitude and Longitude Festivals in the UK – capitalizing on opportunities gained from SXSW showcasing.

Maya Payne for song writing workshops and collaborations in and around the Santorini Song writing camp in Greece.

Nadia Reid for a tour across Europe/UK/USA from March - July 2016 to support the release of the album Listen to Formation, Look for the Signs.

Orchestra of Spheres for a European tour during May/June 2016 to promote the release of forthcoming album through Fire Records.

Saiko Management Limited for artist Georgia Campbell and management to travel to London UK to meet with business partners.

Shocking Pinks towards a USA, UK, Europe and China tour to support international re-release of album Dance the Dance Electric.

Sorceress for a 8 date UK tour including performances at Glastonbury Festival and The Jazz Cafe in London.

Streets of Laredo for a month-long North American tour in support of their debut single and release of their second album including support slots for Shakey Graves & their own headlining dates.

Tami Neilson to take advantage of the success of the licenced released of Dynamite in Canada, and showcase for the Label Outside Music, to the music industry and the public.

The Phoenix Foundation for a European/UK tour in support of the release of the album Give Up Your Dreams through Memphis Industries.

Tiny Ruins & Hamish Kilgour to tour Europe in May 2016 following the release of their collaborative EP Hurtling Through through label Bella Union, including showcasing at The Great Escape.

Trinity Roots for a follow-up tour of Australia including performances at Mullumbimby, Queenscliff and Woodford Festivals.

Ulcerate for an 11 date UK tour in support of the release of their album Vermis through label Relapse.

Villainy for a promotional tour of Australia to support the release of second album Dead Sight.

Will Wood for a European tour in 2015 in support of album Broken Man.

Yumi Zouma for a US and European May/June 2016 tour to promote the release of their debut album.

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 31 OUTWARD SOUND BUSINESS SUPPORT GRANTS The Business Development grant enables up to two representatives to undertake a market development visit. This involves traveling to the desired market (or markets) and meeting with companies/individuals and to capitalise on opportunities created. It supports managers, artists, and companies undertaking business-to- business meetings as well as attending tradeshows and associated events. The recipients of Business Development Grants in 2015-16 were: Devilskin Aston Road Southbound Distribution Fishrider Records Ltd

OUTWARD SOUND INTERNATIONAL DELEGATE GRANTS The Delegate grants enables one applicant to attend a supported tradeshow. The current supported tradeshows are BIGSOUND, AWME (Australian World Music Expo) and WOMEX (World Music Expo). The grants offer successful applicants 50% recoupable support up to a event specific value to cover flights, accommodation, registration and per diems. The recipients of International Delegate Grants in 2015-16 were:

BIGSOUND 2015 AWME 2015 WOMEX 2015 Triple M Management Limited Aston Road Crescendo Management A Low Hum (CALH Trading Ltd) Toni Huata Creations Ltd Moretone Music Sucker DJ Productions Limited Jumping Gypsy Ltd Sol De Sully Management/Black Pearl Ltd Crescendo Management Moretone Music Toni Huata Creations Ltd & Waahuu Mucho Aroha Music Creations Sugarlicks Mucho Aroha Music Homespun Music Management

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 32 INITIATIVE 8: Coordinating and managing the representation of NZ music at strategically identified international music trade events

WHAT IS INTENDED TO BE ACHIEVED? The offshore business potential for NZ music businesses will be increased through a coordinated, professional and territory-relevant national representation promoting New Zealand as a source of repertoire.

INTENDED RESULT • The number of NZ music businesses who chose to attend international trade events shows the value of investing in offshore market initiatives, and the number of trade shows attended by the Music Commission acting as an export office is driven by interest in attendance and perceived value.

• The engagement with NZ music businesses (including artists) as a result of attending offshore trade events correlates investment with impact of export initiatives; and the volume of new business connections shows the value of different trade events.

ACHIEVEMENT MEASUREMENTS 2015-2016

Quantitative Goals: Quantitative Results: • Number of NZ music businesses (including artists) • 42 NZ music businesses (2014-15=61) attended that attend music markets or trade fairs to a music market or trade event this year to showcase New Zealand artists and promote New showcase or grow their networks and business. Zealand as a source of repertoire. • Number of international trade events hosting a NZ • 6 international trade events (2014-15=8) presence. hosted a NZ presence this year. These were: BIGSOUND, CMJ Music Marathon, Womex, Australasian World Music Expo (AWME), SXSW, The Great Escape and Liverpool Soundcity.

Qualitative Goals: Qualitative Results: • Increase in volume of social media metrics for • 75% reported an increase in social media or artists attending or represented at international media. trade events. • 64% attendees reported future offers and new • Volume of new business connections reported by connections (2014-15=75%). attending NZ music businesses.

New Zealand Music Businesses Trade Show Attendees 2015-16 – showcasing artists noted in bold

AWME – Melbourne, Australia THE GREAT ESCAPE – Brighton, UK Aston Road; Jumping Gypsy Ltd; Thomas Oliver; Aldous Harding; Tiny Ruins; Homespun Music Latinaotearoa; Moretone Music; Mucho Aroha Music; Management; Nadia Reid; Kingston Road; Anthonie Toni Huata Creations Ltd; and WOMAD NZ. Tonnon

BIGSOUND – Brisbane, Australia SXSW – Austin, USA Aldous Harding; Anthonie Tonnon; Crescendo Diaz Grimm; Marlon Williams; Rhythm and Vines; Management; Flying Nun Records; A Low Hum (CALH Sohum Music Management; and Truth. Trading Ltd); Triple M Management Limited); Sucker DJ Productions Limited; The Shocking Pinks; and Tiki WOMEX – Budapest, Hungary Taane. Moretone Music; Crescendo Management; Sol De Sully Management/Black Pearl Ltd; Toni Huata CMJ MUSIC MARATHON – New York, USA Creations Ltd; Waahuu Creations; Sugarlicks; Anthonie Tonnon; Flying Nun/Arch Hill; 95bFM; Mucho Aroha Music; and Homespun Music Marlon Williams; Carb On Carb; Lontalius; and RPM Management. Management.

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 33 INITIATIVE 9: Facilitating the availability of offshore expertise to local practitioners

WHAT IS INTENDED TO BE ACHIEVED? Facilitating opportunities for international specialists to pass on knowledge to local music businesses via seminars and networking opportunities will enable NZ artists and professionals to make more informed plans and decisions with regard to overseas market initiatives, improving their chances of success.

INTENDED ACHIEVEMENT • That experts participate in upskilling or networking opportunities annually both in New Zealand and offshore providing useful information and contacts for NZ practitioners.

ACHIEVEMENT MEASUREMENTS 2014/2015

Quantitative Goals: Quantitative Results: • That at least 50 NZ music businesses participate • 88 local music businesses or artists participated per annum. in the Going Global Music Summit. • That three local companies undertake an extensive • 3 NZ independent record companies – Cape business development programme. Road from Christchurch, Crescendo from Dunedin and Quirky Bird from Christchurch – participated in the RELEASE business development programme in partnership with the Australians Music Industry Network and the Australian Government. • That at least 15 international professionals • 16 international speakers participated in the participate per annum. Going Global Music Summit 2015.

Qualitative Goals: Qualitative Results: • Percentage of attendees / participants surveyed • 86% of attendees rated the Going Global Music that rate their satisfaction with events as good or Summit 2015 as 8 out of 10 or higher in their excellent, and beneficial to their businesses. overall satisfaction with the event. • 57% of the attendees also said they will be able to use the information gained at the event. • The speakers providing a good mix of information was rated 10 out of 10 by 70% of the attendees.

Overall, how would you rate the session?

Will you be able to use the information your heard?

Did the speakers provide a good mix of information?

1/10 2/10 3/10 4/10 5/10 6/10 7/10 8/10 9/10 10/10

Source: Going Global Music Summit 2015 Attendee Survey

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 34

FINANCIAL STATEMENTS:

For Year End 30 June 2016

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 35 VARIANCES TO NOTE IN THE FINANCIAL ACCOUNTS

Top-level analysis of the Music Commission Financial Accounts continues to be positive, with the full year financial report showing income at 99% of the budgeted projection, and expenses at 90% of the budgeted expenditure.

As noted in the Annual Report for 2014-15, the Music Commission had forecast to use all its available reserves at the beginning of this financial year. In response, the organisation undertook a full financial performance review. Each manager and project leader did a line-by-line analysis of project costs and proposed reductions, with an assessment of the impact the reductions would have on each initiative and the overarching goals of the organisation.

The ensuing cost reduction plan resulted in a decrease in expenditure across the board, with some projects being restructured in the short-term (i.e. no national stand or NZ showcase at SXSW 2016, less international promotional collateral produced for trade events, no NZ Music Month events produced as reflected in the cost centre Events).

Additionally, a senior staff member departed the organisation in February 2016. A managed delay in filling the role, and the costs associated with that position, has added to a overall positive variance for the organisation. This is reflected by a positive variance in Salary and Wages and Personnel Expenses. It should be noted that this position has now been filled.

For the Music Commission to continue achieving its objectives, many of these reductions are not sustainable. However, we will continue to constantly review expenditure and be reactive to changes and opportunities as they occur.

Again the Outward Sound scheme had far greater demand (i.e. applications that had genuine opportunities) than could be supported within the $400,000 annual budget. A modest transfer of $14.4k was made to Outward Sound to assist in supporting offshore projects.

Overall, the Music Commission performed well against budget in 2015-16 and is in a better than projected cash position for the coming year.

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 36

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 37 NEW ZEALAND MUSIC COMMISSION Statement of Financial Performance – by Expenditure For the year ended 30 June 2016

Trading Account 2016 2015 Variance Income NZMC Contributions 21,204 19,607 1,597 Dividends and Interest Received 18,800 31,490 (12,690) Government Grants 1,178,004 1,178,004 - Services / Fees 12,370 12,304 66 Other Income 11,658 8,500 3,158 1,242,036 1,249,905 (7,869) EDUCATION Contributions - - - Government Grants 267,000 267,000 - 267,000 267,000 -

OUTWARD SOUND Government Grants 399,996 399,996 - Other Income - 4,646 (4,646) 399,996 404,642 -

Total Income 1,909,032 1,921,547 (7,869)

Less: Deductible Expenditure NZMC Salary & Wages 406,498 393,689 (12,809) Personnel Expenses 25,846 34,237 8,391 People Expenses 81,650 145,148 63,498 Administration Expenses 60,101 61,110 1,009 Communication Expenses 10,146 11,718 1,572 Manufacturing / Resources 20,582 17,744 (2,838) Professional Services 31,129 37,994 6,865 Property Expenses 42,437 43,427 990 Repairs and Replacements 2,879 3,770 891 Events 66,936 92,378 25,442 Education & Research 37,333 39,082 1,749 Advertising & Promotions 339,611 341,509 1,898 Other Expenses 2,942 3,476 534 1,128,090 1,225,282 97,192 EDUCATION Salary & Wages 107,992 95,512 (12,480) Personnel Expenses 5,723 11,298 5,575 People Expenses 96,249 95,622 (627) Administration Expenses 5,969 5,288 (681) Communication Expenses 1,957 1,677 (280) Manufacturing / Resources 1,773 581 (1,192)

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 38 Professional Services 82,172 81,476 (696) Property Expenses 11,462 11,653 191 Repairs and Replacements 178 60 (118) Events 850 924 74 Education & Research - 300 300 Advertising & Promotions 4,099 3,136 (963) Other Expenses - - - 318,424 307,527 (10,897) OUTWARD SOUND Instant Action Fund - - - Travel & Accomodation - Domestic (1,182) 4,946 6,128 Travel & Accomodation - International 251,847 402,093 150,246 Administration 36,288 1,684 (34,604) Production 83,204 15,035 (68,169) Events 4,514 4,733 219 Advertising & Promotion 39,529 (1,619) (41,148) 414,200 426,872 1,186

Total Deductible Expenditure 1,860,714 1,959,681 98,967

Net Profit/(Loss) Before Taxation 48,318 (38,134) 86,452

Taxation - Current Year 3,223 - (3,223) Taxation - Prior Year - - - Net Profit/(Loss) After Taxation 45,095 (38,134) (83,229)

Less: Non Deductible Expenditure NZMC 2,178 4,384 2,206 Education (2,010) 2,206 4,216 Outward Sound - - -

Total Non Deductible 'Expenditure 168 6,590 6,422

TOTAL COMPREHENSIVE INCOME 44,927 (44,724) 89,651

NEW ZEALAND MUSIC COMMISSION Statement of Movements in General Funds For the year ended 30 June 2016 2,016 2,015 General Funds as at 1 July 2014 334,369 379,093

Plus Net Surplus (Deficit) for Year 44,927 (44,724) Prior Year Adjustments - -

General Funds as at 30 June 2015 379,296 334,369

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 39 NEW ZEALAND MUSIC COMMISSION Statement of Financial Position For the year ended 30 June 2016

Trustee Funds 2,016 2,015 Accumulations Account 379,296 334,369 Prior Year Adjustments - - Education Reserve - - Outward Sound Reserve - - World Series Reserve - - TOTAL TRUSTEE FUNDS 379,296 334,369

Represented by: Fixed Assets 5,650 5,098 Investments ANZ - Term Deposit 175,000 313,813 175,000 313,813 Current Assets ANZ - General Cheque Account 29,391 32,135 ANZ - General Call Account 129,771 14,599 Petty Cash 300 300 ANZ - Term Deposit # 1027 150,000 30,000 Debtors and Prepayments 188,938 211,394 GST Refund 4,011 2,292 Taxation 3,805 8,559 Payroll Clearing - 25,803 Petty Cash Clearing 300 - 506,516 325,082 Non Current Assets Preliminary Expenses 14,681 14,681 Outward Sound Formation Costs 11,176 11,176 Logo - - 25,857 25,857 Total Assets 713,023 669,850

Current Liabilities Trade Creditors 99,502 81,213 Accruals 233,255 254,268 Income in Advance - - GST Payable - - Taxation - - 332,757 335,481 Term Liabilities 2 Degrees Mobile 970 - 970 -

Total Liabilities 333,728 335,481

Net Assets 379,296 334,369

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 40 NEW ZEALAND MUSIC COMMISSION Statement of Financial Performance – by Departme nt For the year ended 30 June 2016

Trading Account 2016 2015 Income NZMC Domestic 803,745 786,493 International 438,291 463,412 Outward Sound 399,996 404,642 Rugby World Cup 2011 - - 1,642,032 1,654,547 EDUCATION Making Music - - Mentoring 187,000 187,000 One Off Projects 80,000 80,000 Sweet - - Administration - - 267,000 267,000

Total Income 1,909,032 1,921,547

Less: Deductible Expenditure NZMC Domestic 781,614 776,414 International 346,476 448,868 Outward Sound 414,200 426,872 Rugby World Cup 2011 - - 1,542,290 1,652,154 EDUCATION Making Music - - Mentoring 193,316 185,576 One Off Projects 80,000 80,000 Sweet - - Administration 45,108 41,951 318,424 307,527

Total Deductible Expenditure 1,860,714 1,959,681

Net Profit/(Loss) Before Taxation 48,318 (38,134)

Taxation - Current Year 3,223 - Taxation - Prior Year - -

Net Profit/(Loss) After Taxation 45,095 (38,134)

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 41 Less: Non Deductible Expenditure NZMC Domestic 7,128 585 International (4,950) 3,799 Outward Sound - - Rugby World Cup 2011 - - 2,178 4,384 EDUCATION Making Music - - Mentoring (442) 533 One Off Projects - - Sweet - - Administration (1,568) 1,673 (2,010) 2,206

Total Non Deductible Expenditure 168 6,590

TOTAL COMPREHENSIVE INCOME 44,927 (44,724)

NEW ZEALAND MUSIC COMMISSION Statement of Movements in General Funds For the year ended 30 June 2016

2016 2015

General Funds as at 1 July 2014 334,369 379,093

Plus Net Surplus (Deficit) for Year 44,927 (44,724) Prior Year Adjustments - -

General Funds as at 30 June 2015 379,296 334,369

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 42 DIRECTORY Board of Trustees: Staff:

Victoria Blood Cath Andersen Chairperson Chief Executive Music Consultant Alan Holt Paul McLaney International Manager Deputy Chairperson Native Tongue Music Publishing Michelle Ladwig Williams Education Manager Ben Howe Arch Hill & Flying Nun Records Simon Woods Communications & Projects Officer Greg Bonnett Finance Trustee Vicki Walker ANZ Commercial Finance Manager

Lorraine Barry Westley Holdsworth Lorraine Barry Management International & Administration Assistant Maisey Rika Artist Angel Guan Education Assistant Nick Atkinson Artist & Manager

Scott Maclachlan [email protected] Saiko Management www.nzmusic.org.nz

Wairere Iti Phone: +64 9 376 0115 Music Managers Forum NZ Fax: +64 9 376 0116 Freephone: 0800 469 642

7 Great North Road, Ponsonby 1021 PO Box 68-524, Newton 1145 Auckland

NZ MUSIC COMMISSION ANNUAL REPORT 2015 – 2016 43