Inquiry into the Australian Music Industry
Factors contributing to the growth and sustainability of the Australian music industry.
Submission Yamaha Music Australia Level 1/80 Market St, South Melbourne, Victoria Date: 21/9/2018 Author: Cameron Tait Marketing Manager – Traditional Instruments
To: House Standing Committee on Communications and the Arts
Introduction
The Yamaha company originated in 1887, and is an internationally recognised brand that has a passion for music at the core of its company values and philosophy. Our company slogan ‘Yamaha - Sharing Passion and Performance’ underlines every activity of our business. Yamaha Music Australia has a keen interest in the vibrancy and success of the Australian music industry, both as a business that benefits from a healthy music economy, and as a company of individuals who participate in and understand the role of music in our society.
With our unique expertise and sensibilities, gained from our devotion to sound and music, we are committed to creating excitement and cultural inspiration together with people around the world. – Official Yamaha Corporate Philosophy
Yamaha Corporation Japan / Yamaha Music Australia
1. Yamaha Corporation Japan is a global corporation manufacturing music instruments, audio equipment and related componentry, as well as providing music lessons in its global network of music schools. The company originated in 1887 and is the largest musical instrument manufacturer in the world. 1.1. Globally Yamaha employs 28 113 people in 31 countries. 1.2. Major products and services include: Pianos, Digital Musical Instruments, Wind, String and Percussion Instruments, Music Schools, Audio products and PA equipment. 1.3. Yamaha Corporation Japan owns the following brands: Steinberg Media Technologies, Bösendorfer, Nexo, Line 6, Revo Labs and Ampeg.
2. Yamaha Music Australia (YMA) is a wholly owned subsidiary of Yamaha Corporation Japan. 2.1. YMA employs 80 permanent staff, and 114 casual staff 2.2. As a distributor of products, YMA supplies approximately 700 businesses and organisations within Australia, as well as supplying nominated sub-distributors in New Zealand. 2.3. In its music schools, YMA currently has 1100 student enrolments
7. The pathway to entry into the major segments of the Music Industry is heavily reliant on a successful experience in Music Education. Therefore, a lack of access to quality Music Education is by definition a barrier for access into the Music Industry.
Music Business: Global and Local Market Snapshot – Musical Instruments
8. The global market for musical instruments is $10.1 billion (AUD). 8.1. Yamaha Corporation Japan’s analysis of its global market share is 24%
9. According to statistics provided by the Australian Music Association: 9.1. Music Product Imports (excluding print music) is around $288 million (import value). 9.2. Broadly, the music products industry has grown an average of 5.97% per year in the last 5 years.
10. Factors and major events that have positively and negatively influenced the size of the industry 10.1. The GFC in 2008 had a delayed impact on the music industry, and it wasn’t until 2011/12 that the effects were felt in the form of a 12% contraction from a peak in 2007. 10.2. Conversely, the Government incentives handed out to families by the Labor government in response to the GFC provided a minor windfall for YMA. This is indicative of our industry being exposed to consumer sentiment around disposable income and discretionary spending. 10.3. The collapse of the national retail chain Allans Billy Hyde in 2011 brought with it a massive reduction in music instrument retail representation across the country. The company ended up being purchased by another music retailer, but during this period effectively 25% of the entire music retail business closed its doors. 10.4. The musical instrument industry is highly exposed to fluctuations in currencies, and the period of a highly valued AUD against USD brought with it a leaking of consumer purchases overseas, as well as an increase in import costs to Australian wholesalers and distributors. 10.5. The global ban on the importing of illegal Rosewood (CITES), primarily targeted at cheap furniture manufacturers, has had an unintended consequence for musical instrument manufacturers. Instruments such as guitars, clarinets, piccolo flutes and marimbas have traditionally used various species of Rosewood, and the industry was largely unprepared for the barriers this would create for the shipping and trade of these goods. The effects are impossible to quantify, but have been an ongoing challenge for these instrument categories and has resulted in significant loss of business for multiple manufacturers. 10.6. The contraction (and occasional expansion) of funding in music education within various states has directly affected Music Business. 10.7. Again in the music education space, the dilution of funding specifically for music has caused a contraction in the market. The trend over the past 10 years has been for State governments to fund ‘The Arts’ as opposed to music. Schools have discretion over the allocation of funding within ‘The Arts’, meaning it is possible for a music program to be entirely abolished in favour of a visual art program for example. 10.8. Conversely, pockets of funding initiatives, especially in Queensland, have provided stimulation of music programs, allowing school programs to upgrade equipment and resources, providing a subsequent boost to local businesses.
Music Education in Australia
11. The state of Music Education in Australia has been the focus of previous government studies, however in summary Music In Australia1 reports the following (2013): 11.1. GOVERNMENT PRIMARY- CURRICULUM BASED MUSIC 11.1.1. Most states do not know where music is, or is not taught. Best estimates are only around 20% have some form music education and these are paid from discretionary funds 11.1.2. Queensland is the exception, with specialist music teachers in 87% of primary schools 11.1.3. Western Australia is another notable exception, with around 50% of primary schools teaching music with discretionary funds, allowing them access to the state’s School of Instrumental Music 11.2. GOVERNMENT SECONDARY – CURRICULUM BASED MUSIC 11.2.1. Again, state governments do not have stats on exactly where music is taught. 11.2.2. Music is taught by specialist music teachers, but not all secondary schools offer music. 11.2.3. Best estimates suggest there is at least some music curriculum taught in a high percentage of schools. The quality of teaching is an open question. 11.3. GOVERNMENT PRIMARY & SECONDARY – INSTRUMENTAL TUITION There is huge variation between states in the provision of instrumental instruction under departmental auspices: 11.3.1. NSW – 1x school (Conservatorium High School) 11.3.2. VIC – Almost all secondary schools offer tuition, but almost no primary schools. Fees vary. 11.3.3. QLD - 90% of schools offer instrumental tuition 11.3.4. SA - 5.6% of students receive instrumental tuition 11.3.5. WA - 5.5% of students receive instrumental tuition 11.4. INDEPENDENT SCHOOLS – PRIMARY & SECONDARY According to Music Australia2 around 88% of independent schools offer instrumental tuition.
12. The National Review of School Music Education3 was published in 2005 by the Australian Department of Education, Science and Training. Its findings are below, and whilst over a decade old, are still largely relevant. 12.1. Music education is valuable and essential for all Australian school students. 12.2. Students miss out on effective music education. 12.3. Action is needed — "music education in Australian schools is at a critical point where prompt action is needed to right the inequalities in school music." 12.4. There is a need for immediate priority on improving and sustaining the quality and status of music education.
1 http://musicinaustralia.org.au/index.php/The Provision of Music Education in Government Schools in Au stralia
2 https://musicaustralia.org.au/discover/music-education/
3 http://researchrepository.murdoch.edu.au/id/eprint/9459
12.5. Quality teaching is a key. 12.6. Effective teacher education is essential. 12.7. The partners in effective music education need to take leadership and action roles. 12.8. Raising the status of music in schools will improve the quality of music in schools.
13. At a tertiary level, when considering courses available for Music Educators, there is a distinct absence of degree courses aimed at providing adequate preparation for teachers into schools. Training for instrumental music teachers typically is a bolt-on general teaching qualification on to a performance based degree. This conservatorium model is known to produce great musicians, but not necessarily effective teachers and the music teaching community has been struggling with this for over two decades. By point of comparison, the USA has degrees focussed on music education, setup for that specific purpose (not an add-on to a performance degree).
Submission
Yamaha Music Australia submits the following recommendations to the inquiry:
14. The success of ‘The Music Industry’ is dependent on the vibrancy and sustainability of each segment (see 1.). Although Music Education is not our primary business activity, YMA would strongly recommend the inquiry reference Music Education as a critical factor. Not doing so would ignore the single biggest factor effecting sustainability and long term growth of each segment of the industry.
15. Yamaha Music Australia would like to see: 15.1. A national mandate for the delivery of specialist music curriculum in all primary schools throughout the country, following the Queensland example. 15.2. A national mandate for the delivery of instrumental tuition in all primary and secondary schools throughout the country. 15.3. The implementation and support of specific tertiary music teacher education courses to support this. 15.4. Adequate funding of equipment and resources for schools, beginning with Equipment Grants being awarded to schools who are proven to already have access to adequate space, teaching staff, supportive leadership and supportive parent communities, but are lacking equipment. Through our own grant activities, YMA have proven there to be dozens of schools in this position, and this investment will provide immediate outcomes, and a platform from which to launch further initiatives. 15.5. Creation of an overarching entity that will bring together all of the voluntary disparate groups that operate either in individual states, or in sub segments of music and music education (teaching, conducting and instrument groups: some examples in Music Australia directory, but would extend to micro organisations such as multiple state based ‘Clarinet Society’ groups, Australian Trumpet Guild, piano competitions etc.). These groups are providing an excellent service and resource to Music Education, but in many cases struggle to be effective and sustainable. The objective would be to build capacity for these organisations, build audience reach, manage aspects of administration and digital presence, lobby government, provide resources and foster partnerships with business. This activity would sit well within ‘Music Australia’.
16. Providing access to sequential, continuous Music Education removes the barrier for entry into the Music Industry. 16.1. If our national objective is to enjoy a vibrant and sustainable music industry, Australia needs to compete on an international level with the standard of music education in other countries. It stands to reason that an internationally competitive live performance industry will thrive, over time, from a generally greater participation in music during formal education years. 16.2. As these school age students who have studied music progress into adulthood, whilst they may not become active participants in Music Industry, they are far more likely to be supporters, audience members, and consumers of music. 16.3. More participants will grow the market for Music Business, allowing retailers and distributors in turn to grow, creating more employment and new business opportunities. 16.4. Raising the profile of music education makes it a more attractive career choice and provides pathways for musicians into education.
This requires a long-term and national commitment to a well-supported and funded Australian music industry. Government support for the Australian music industry encourages increased private investment, trains further talent and assists market development as well as creating music that Australians love to see and hear.
Yamaha Music Australia is doing what it can to increase quality and participation in music education
17. Yamaha Music Australia has a policy of being an advocate in this space, and is expressly committed to increasing QUALITY and PARTICIPATION in music education. 17.1. Over the last two years, Yamaha Music Australia has provided $150 000 in equipment to schools as part of its Yamaha Great Start Grant program. The grants is an annual, by- application award of musical instruments and equipment, gifted to a school in order to get their music program off the ground. 17.2. Yamaha runs a year-round education advocacy program called Off To A Great Start, providing resources to teachers, parents and students. The objective is to encourage young people to learn, and to support music teachers in the work they do. 17.3. Yamaha Music Australia conducts an Education Outreach program and employs Dr. Rob McWilliams, an internationally recognised band education specialist, to attend schools, Professional Development programs, tertiary music teacher education and conferences. This is a full-time, national role, reaching hundreds of teachers and thousands of students each year.
Conclusion
Having conducted business for over 130 years, Yamaha is one of the great participants in the music industry, and understands the important role of music education in society, and within the business domain.
The single biggest factor that will influence a vibrant music industry in Australia, is the implementation of a national priority for Music Education.
YMA are grateful for the opportunity to create a submission to the inquiry and would be pleased to offer additional information if the Committee requires it.