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’S CONTRIBUTION TOWARDS INCLUSIVE AND THE CASE OF «THE MUSIC »

1 ’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND»

Strengthening the competitiveness, organizational perfomance and capacity of the Cuban music industry

SEPTEMBER 2017 PRESENTATION 5

CULTURAL AND FOR AN INCLUSIVE AND SUSTAINABLE DEVELOPMENT 7

Cultural and creative industries at global level and in the of Latin American and the 9

The music industry within the creative universe 12

UNIDO´s approach for creative industries 16

Cuba «the Music Island». Opportunities for developing its music industry 18

CURRENT CONTEXT Undertaking of this study counted on the participation of researchers, © ONUDI, MINCULT, All rights reserved. OF THE MUSIC specialists and officials of the system of institutions of the © On the present edition: Project ONUDI-MINCULT-KOICA (150354) INDUSTRY IN CUBA 37 Ministry of of Cuba (ICM, CIDMUC, CENDA, ACDAM, CUBARTE), its «Strengthening of competiveness, organizational performance and export record labels (EGREM, Bis Music, Abdala, Colibrí), the In- capacity of the Cuban music industry», 2017. dustrial Development and international consultancy Sound Potentialities of the music Diplomacy. With the information collected, drafting of this document was This document has been produced without formal United Nations edition. industry in Cuba 39 in charge of the following persons: The designations employed and the presentation of the material in this documents does not imply the expressions of any opinion whatsoever on Center for of the cuban music the part of the Secretariat of the United Nation Industrial Development Main challenges 44 Laura Vilar Álvarez, Tania García Lorenzo, Gloria Ochoa de Zabalegui Organization concerning the legal status of any country, territory, or Aguilera, Jolettne Rego González, Ailer Pérez Gómez area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designa- Cuban Insitute of Music tion such as «developed» «industrialized», or «developing» are intended Marta Bonet de la Cruz, Mabel Castillo Mompié for statistical convenience and do not necessary expresses judgement about the stage, reached by a particular country or area in the develop- PROPOSAL OF A NATIONAL United Nations for Industrial Development Organization ment process. Mention of firm means or commercial products does not STRATEGY FOR THE MUSIC Alejandro Rivera Rojas, Rebeca Gallardo Gómez, Mónica Mireles Torres constitute an endorsement by UNIDO. INDUSTRY 49 National project steering committee The proposal of development strategy for the Cuban music industry pre- Mario Escalona Serrano, Yolaida Duharte López sented in this document is in process of validation by the Ministry of Cul- ture and its system of institutions. Data and statistical analysis indicate Characteristics of the proposal 52 Edition Translation estimates and constitute a first approach in dealing with the Project and Yansert Fraga León Isabel Colomer la Rosa therefore will be submitted to revision and systematic update by the role Proposals for strategic actions players that conform it. for development of the Cuban Geordanys G. O’connor Publication is available in English and Spanish languages. music industry 55 Presentation

Music industry’s contribution towards inclusive and sustainable development. The Case of Cuba, «the Music Island» is a document constituted within the framework of the international collaboration project «Strengthening of the competiveness, organizational performance and export capacity of the Cuban music industry», developed by the United Nations Industrial Development Organization (UNIDO) and the Ministry of Culture of Cuba (MINCULT), with financial support from the Korea International Cooperation Agency (KOICA). This is the result of its first year of execution, sustained in research and educational training actions conducted by experts, directors, specialists, and other role-players of the sector in Cuba, joined by the Sound Diplomacy Agency. The first chapter,Cultural and creative industries for an inclusive and sustainable development, makes a description of the global context of this group of activities and its impact on Latin America and the Caribbean; its potentialities maker of income through and intellectual rights; its direct relationships with popular knowledge, culture, art, and ; and close link with other industries like . It is notable its ever increasing impact within the regional cultural policies and its visibility within the strategies of social and economic development, specifically of music as development tool and a result of the approach by UNIDO to contribute to the Objectives for Sustainable Development (OSD). In the specific case of Cuba, opportunities are seen within the music industry, being this one of the art forms more diffused in society which has made the country gain the world designation of «The Music Island». Likewise, its democratic cultural and inclusive policy and system of cultural institutions are noted as positive allowing the massive access to culture as well as to the diversity of and services it generates. In the second chapter, Current context of music industry in Cuba, describes the status of the Cuban music industry in a diagnosis that analyzed the accumulated knowledge regarding technical, technological, political, scientific, economic and legal aspects, related to all processes of the value chain of the music industry. Its potentialities are verified emphasizing on the significant development of the institutional system that promotes and protects diversity of music genres and expressions as well as professionality and high level of a great mass of music creators formed by artistic . In addition, it relates the main challenges to face for better use and functioning of the music industry. Finally, in the third chapter, Proposal of a national strategy for the music industry, it is proposed a particular view of development with an approach of value chain where the different role-players of the Cuban music industry participate from music creation up to consumption in which institutions and managing officials are the main responsible for its execution and systematic evaluation. The proposal is characterized by its values and general and specific objectives and each stage and strategic actions of its design are described as well as the specific actions to carry out.

5 MUSIC INDUSTRY’S CONTRIBUTION TOWARDS MUSIC INDUSTRY’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND» THE CASE OF CUBA «THE MUSIC ISLAND» CULTURAL AND CREATIVE INDUSTRIES FOR AN INCLUSIVE AND SUSTAINABLE DEVELOPMENT

6 7 Cultural and creative industries at global level and in the region of Latin American and the Caribbean

Within the international context, cultural and creative industries (CCI) are defined as «cycles of creation, production and of using intellectual capital and creativeness as primary inputs».1 They constitute a group of activities based on knowledge with a clear artistic component, and represent potentials for the generation of incomes from trade and right. The services and products –tangible and intangible– comprised by these industries also have an impact due to their social and cultural repercussion. Relationship between popular knowledge, culture, art and economy is evidenced, in addition of other multiple environments, in many developing CCIs generate total countries’ traditional festivals. While generating cultural value and projecting incomes by US$ a nation’s identity in the world scene, these festivals significantly impact on the local economy by means of marketable goods such as live or recorded 2.25 trillions, performances and indirect tourism expenditures, being their visit encouraged representing with the making of these performances. Such interconnections are also 3% of global GDP. moved by , currently based on information and the digital world, and therefore, CCIs also assume scientific and new industries. Undoubtedly, this is a key sector for economic growth and an important source of job creation. According to the last Cultural Times report, published in December 2015, CCIs generate total incomes by US$ 2.25 trillions, representing 3% of global GDP. Likewise, they encompass more than 29.5 million jobs in the whole world, being music the third of all industries offering more jobs (3.98 million jobs). 2 On the other hand, CCIs are also a key boost of digital economy; in 2013, creative content contributed with US$ 200 trillion digital globally, encouraging the sale of digital equipment and increasing demand of high bandwidth telecommunication services (See Infography 1).

1 The Creative Economy Report (2008, 2010) published by UNCTAD. 2 «Cultural Times, the First Global Map of Cultural and Creative Industries», World Creative, (2015), available in: http://www.worldcreative.org/wp-content/uploads/2015/12/EYCultu- ralTimes2015_Download.pdf

9 Third most important market of CCIs but first digital content consumer. Second market of CCIs and number one in publicity: • Number one in TV content and sales • Sole concentration of monuments of heritage, more than 5,500 schools of MUSIC INDUSTRY’S CONTRIBUTION TOWARDS • Leader in performing arts art, with 7 out of the 10 most visited museums in the INDUSTRY’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND» • Solid live music market • Leaders of the sector: , Publicis, WPP, Pearson, THE CASE OF CUBA «THE MUSIC ISLAND» Axel Springer, Vivendi, Ubisoft, Hachette.

620 000 4,7 million 709 000 7,7 million million USD of jobs million usd of jobs 28% 16% 32% 26%

JAPÓN Yomiuri Shimbu newspaper sells 10 thousand copies LATIN AMERICA AND THE CARIBBEAN per day is the star in this region, generating a third of total income of CCIs BOLLYWOOD • and Colombia are among first five world exporters 3000 Annual film of TV programs production • The film sector plays a key role in Argentina, and NOLLYWOOD • More than 400 are produced annually in that region 2000 Annual film production 124 000 1,9 million ASIA-PACIFIC million USD of jobs First market for CCI with the greatest consumers´ base and growing 6% 7% • No. 1 in videogames AFRICA AND THE MIDDLE EAST • No. 1 in architecture BRAZIL A cultural mosaic boosted by linguistic diversity, young population, • No. 2 in films Number one music connected and in full expansion market in Latin • African music promotes in Europe and the Americas America • Television is number one CCI in Africa 743 000 million USD • The is growing fast 33% Source: Cultural Times. First world map of cultural and creative industries. EY, December, 58 000 2,4 millon 12,7 million 2015. Available in: http://www.worldcreative. million USD of jobs of jobs org/wp-content/uploads/2016/03/ EYCulturalTimes2015_ES_Download.pdf 3% 8% 43%

INFOGRAPHY 1. WORLD MAP OF CULTURAL AND CREATIVE INDUSTRIES, 2015

In addition to the said economic benefit, development of CCI brings about In the case of Latin America and the Caribbean, creative economy is creation of cultural value. These industries promote social inclusion since the developing an increasing importance within regional cultural policies and of their activities enable to link social groups and strengthen cohesion greater visibility within the economic and social development strategies. among them. They also play a key role in the educational system, providing Success for programmes set up by some countries at global scale, particularly, inputs that facilitate social and cultural education. And it is important to bear the approach of «creative »,3 has drawn the attention of cultural in mind that transverse nature of CCIs makes these particular industries´ authorities and lawmakers of almost the entire region. Studies carried out developing policies have an indirect effect on other development areas.

3 http://en.unesco.org/creative-cities/home

10 11 to measure the impact of these industries4 show two relevant facts: greater the last years and incomes have been estimated to reach a CAGR (Composite availability of statistics and information and the growing readiness from Annual Growth Rate) of 3.0% by 2020, according to Global governments in promoting initiatives in this sector, for example, in 2015, a 6% and Media Outlook.8 MUSIC INDUSTRY’S CONTRIBUTION TOWARDS 5 MUSIC INDUSTRY’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT of total income from CCIs was reached at a global level. Such contribution INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND» THE CASE OF CUBA «THE MUSIC ISLAND» varies considerably from one country to other of the region, showing each´s 25 cultural richness as well as the availability of statistics and methodologies for 0,0 0,0 their measurement. 1,0 Tourism linked to heritage generates important incomes for local INCOME 1,1 1,0 0,0 20 1,2 0,0 and also represents an opportunity for creative expression and 2,1 0,0 1,3 0,3 0,3 0,3 0,3 0,3 0,4 social integration of the different cultural and ethnic communities of the 2,9 1,3 countries of the Caribbean. In 2015, this activity grew by 7%, chiefly in Cuba 15 3,7 1,4 1,4 1,6 1,8 2,0 2,1 (+18%), Aruba (+14%), Barbados (+14%), (+11%), and 4,1 6 4,3 Puerto Rico (both with +9%). In and growths 4,9 5,5 5,8 were also by 7 %, representing incomes of 65 trillion USD for the whole region 10 17,9 6,1 6,7 of Latin America and the Caribbean in 2015. 16,2 14,0 Figures show that the region´s could benefit to a great extent 11,8 10,3 from the enormous capacity of creative industries to generate wealth and 5 8,9 8,1 7,5 and that, despite the great cultural value of the region, the role 6,7 6,1 5,8 played by these industries in the global market is still a modest one. 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 TOTAL: 20,0 19,3 18,1 16,8 15,7 14,9 14,8 14,8 14,6 14,5 15,0 The music industry Physical sales Digital sales Comunication to the public Syncronizacion within the creative universe GRAPH 1. WORLD SALES OF RECORDING MUSIC, 2005-2015 Music is one of the art forms with greater presence and social impact. It is a (THOUSANDS OF MILLIONS USD) spread cultural practice to which a diversity of goods and services are linked. Source: MUSIC WORLD REPORT, IFPI, 2016 Being a generator of economic benefits and employment, the music industry contributes to the development of all countries significantly, with incidence Music can also be a tool for sustainable urban development as evidenced by in multiple sectors. It likewise encourages online and digital innovation, approaches of creation of «musical cities»9 or of «night economy»,10 recently contributing to the inclusion of and employment for young people. adopted by several countries. These initiatives involve representatives from At world scale, recorded music in 2015 generated incomes amounting the local government, lawmakers, academics, music industry agents and urban up to US$ 15 billions (See Graph 1), showing a growth by 3.2% in relation to planners aimed at boosting: the previous year, representing the most noteworthy increase since 1995, ••creation of jobs; according to the International Federation of Phonographic Industry (IFPI). ••increase of local economic incomes; Currently, income per digital sales are more than half of the recorded music ••enhancement of tourism management; market; rights of public performance increasing as another profit source, ••reinvigoration of urban areas; being 14% of total incomes of the industry which have doubled over the last ••retention and attraction of talent and investment; decade.7 By concept of live music, an increase has been also evidenced over social integration and rationalization of urban infrastructure. ... the music industry •• contributes to the development of all 4 The Creative Economy Report (2013) published by United Nations/UNDP/UNESCO, availa- countries significantly ble in: http://www.unesco.org/culture/pdf/creative-economy-report-2013.pdf. ... It likewise encourages 5 «Cultural Times, the First Global Map of Cultural and Creative Industries», World Creative online and digital (2015), available in: http://www.worldcreative.org/wp-content/uploads/2015/12/EYCultu- innovation, contributing ralTimes2015_Download.pdf to the inclusion of and 6 UNWTO Tourism Highlights, July 2016 Edition, available in: http:// www.e-unwto.org/doi/ employment for young /10.18111/9789284418145 8 PwC Ovum (2016), Global Entertainment and Media Outlook 2016-2020. people. 7 Ifpi.org. (2016). IFPI Global Music Report 2016, available in: http://www.ifpi.org/news/ 9 https://blogs.iadb.org/ciudadessostenibles/2016/04/29/music-cities-2/ IFPI-GLOBAL-MUSIC-REPORT-2016. 10 http://www.hypebot.com/hypebot/2017/08/music-cities-as-infrastructure-.html

12 13 Latin America, for the fifth year running, spent more money in music than any other region in the world. Latin consumers are willing to pay for digital music and online reproduction more than ever before, according to an IFPI MUSIC INDUSTRY’S CONTRIBUTION TOWARDS 11 MUSIC INDUSTRY’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT report published in 2016. Growth was positive for all but total growth INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND» for Latin America was eight-fold greater than that of North America, the biggest THE CASE OF CUBA «THE MUSIC ISLAND» world music market (See Graph 2).

2,0

1,75 1,74 1,5 1,65 1,54 1,42 1,25 1,29 1,16 1,0 1,16

0,75

0,5

0,25

0 2015 2016 2017 2018 2019 2020 2021

GRAPH 2. MUSIC INCOME GROWTH FORECAST IN LATIN AMERICA. Source: The Statistics Portal

In a zone, very affected by piracy, live and recorded music contribute significantly to the creative industry. Just like in the rest of the world, music streaming is growing very much and increasingly counting with more pay users, since it is an easy way of having access to big music catalogues. In 2015, 40% of incomes from digital music in Latin America came from streaming.12 Currently, in many countries it has been consolidated as the major source of musical income. Surprisingly, and despite its music great attraction in the whole world, the region of Latin America and the Caribbean is a small role-player in Under the impulse of new , music development increasingly the world recorded music market. Mexico is the region´s greater exporter, claims more sophisticated production systems in general and, particularly, followed by Argentina. Brazil is also an important music producer, with a industrial ones. Within this context, developing countries need to have new great domestic market but with a relatively low contribution to music means available to be able to incorporate themselves to the currents that in its trade balance. The case of these countries evidences an example of the generate that world´s wealth. The reality of Latin America and the Caribbean commercialization and distribution structural problems suffered as well illustrates as well the difficulties these countries have to cope with in their by some Caribbean to receive incomes from music o calypso, efforts to attain their own music´s benefits. An important part of the music is among others. recorded in studios abroad, where it is published and from where is distributed to world markets, and thus, the world´s sales of the final product are declared in other places rather than the country of origin of the artist. Similarly, are collected in the country where the music is reproduced, and therefore, on 11 Ifpi.org. (2016). IFPI Global Music Report 2016, available in: http://www.ifpi.org/news/ occasions income from royalties and copyrights do not reach the country of IFPI-GLOBAL-MUSIC-REPORT-2016. origin of musical pieces. 12 Ifpi.org. (2015). IFPI Global Music Report, 2015.

14 15 economy that influences positively the rest of industries. In addition, CCIs can UNIDO´s approach adapt themselves easily to the principles and objectives of sustainable matter since they hardly demand a heavy infrastructure. MUSIC INDUSTRY’S CONTRIBUTION TOWARDS for creative industries MUSIC INDUSTRY’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT Therefore, UNIDO promotes a holistic approach based on interaction INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND» THE CASE OF CUBA «THE MUSIC ISLAND» among economy, culture and technology, deployed in technical cooperation CCIs can have a very positive impact in achieving the Sustainable Development activities carried out by the organization through its CCI programmes, in Goals (SDG), particularly in countries with developing economies in SDG 8, 9 which the strategy and methodology applied in its implementation have and 11. undergone a continuous progress. Aimed at identifying such areas in which UNIDO looks for contributing in this case to SDG 8 (decent job and entrepreneurs and enterprises may obtain a greater impact, UNIDO’s activities economic growth) by means of strengthening the local industry, economic imply an approach based on the creative , incorporating elements of diversification, promotion of exports and job creation. It also looks for analysis of value chain and development of clusters, but without the restrain of promoting innovation clusters, digital economy and the efficient use of geographic vicinity. resources in urban zones that link local with global markets By applying these concepts, UNIDO has successfully designed and and supply chains and foster sustainable urban development, associated to implemented a number of projects for the CCI development, and its SDG 11 (sustainable cities and communities). And even more associated to interventions oriented to promote of technical cooperation and the mandate of the Organization, it also intends to contribute significantly training in the beneficiary countries can be structured as follows:: to implementation of SDG 9 (industry, innovation and infrastructure), in At macro level, supporting development of policies and legal framewor- this case, with the support to the of local productive capacities •• ks that adequately promote these industries and meet their needs; de- in an inclusive way, which provides more opportunities for women and the veloping systems for reporting and monitoring indicators that enable to young, the access to advanced technologies and markets and encouragement evaluate the sector’s performance and thus improve its productivity and of strategic alliances and with key players for the inclusive and competiveness. sustainable industrial development (see infography 2). •• At meso level, evaluating the offer and demand trends, identifying mar-

NO ZERO GOOD HEALTH QUALITY GENDER CLEAN WATER AFFORDABLE AND ket niches and promoting cooperation among enterprises and educatio- POVERTY HUNGER AND WELL-BEING EDUCATION EQUALITY AND SANITATION CLEAN ENERGY nal and research institutions to facilitate innovation and insertion in in- ternational value chains. •• At micro level, providing technical assistance to enhance creative REDUCED RESPONSIBLE goods and developing commercialization strategies for these products, INEQUALITIES CONSUMPTION DECENT AND AND PRODUCTION ECONOMIC GROWTH INDUSTRY, INNOVATION improving their insertion in the national market and promoting their AND INFRASTRUCTURE export. SUSTAINABLE CITIES AND COMMUNITIES

CLIMATE ACTION

LIFE PEACE, JUSTICE PARTNERSHIPS ON LAND AND STRONG FOR THE GOALS INSTITUTIONS

INFOGRAPHY 2. CONTRIBUTION OF UNIDO TO THE OBJECTIVES OF SUSTAINABLE This approach has DEVELOPMENT (SDG). been successfully Source: http://www.unido.org/fileadmin/user_media_upgrade/Who_we_are/Mission/ISID_SDG_brochure_final.pdf applied in a number of countries such as , , Bhutan, Haiti, A dynamic creative sector will help to empower women and the young, rural Ethiopia, Pakistan, Iran groups and even isolated communities, using the of their and Thailand, where countries of origin and their own knowledge and creativeness. Indirect effects inclusive and sustainable derived from the growth of CCIs are clearly visible in development of local development of CCIs has economy, generating better jobs opportunities for the population and a scale been promoted.

16 17 At present, among the most outstanding projects in the CCI sector, undertaken by UNIDO, we can find the following: Development of thirteen clusters in the creative and cultural industries MUSIC INDUSTRY’S CONTRIBUTION TOWARDS •• MUSIC INDUSTRY’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT in seven countries, south of the Mediterranean (Algeria, Egypt, Jordan, INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND» , Morocco, Palestine, and Tunisia)13 with funds from the Euro- THE CASE OF CUBA «THE MUSIC ISLAND» pean Union and amounting up to U$ 6.9 millions. •• Programme for Industrial Upgrading and Modernization in two coun- tries (, Tajikistan)14 with funds from the Russian Federation and the People’s Republic of China amounting up to U$ 2.7 millions. •• Strengthening of competiveness, organizational performance and ex- porting capacity of the Cuban music industry,15 with funds from the Korea International Cooperation Agency (KOICA) amounting up to U$ 1.3 millions. First project developed by UNIDO oriented to the mu- sic industry.

Cuba «The Music Island». Opportunities for developing its music industry

Cuba is known in the world as «The Music Island» and several of its artistic results are contribution and undisputable part of universal culture. Among its authors, it has its main strength which is also expressed in the increasing development of its young movement, deploying new forms and ways of expression in all art forms. Its bet for development of cultural and creative All the aforementioned is in correspondence with the programmes that industries is based on recognition and preeminence of cultural and identity’s from MINCULT and ICM are carried out for music development, on the basis values of creation and its benefit for personal growth, potentiation of capacities of the guidelines of the economic and social policies of the Communist Party and general wellbeing of the population. and the Revolution for the term 2016-2021, approved on the 7th Congress As a country, it deploys and defends a social project affiliated to democracy of the PCC and by the National Assembly of People’s Power in 2016,16 and principles for the access of culture with the purpose to facilitate access to defined in conceptualization of the Cuban economic and social model of cultural goods and services for the population and promote active participation socialist development; as well as in the strategic axis of the National Plan of of the different role-players in the sector. It has been an eager advocate of Economic and Social Development of Cuba up to 2030, specifically those strengthening cultural institutionalism, which with its wise or unwise choices, referred to production Transformation and international insertion and human has brought about and encouraged a great number of results. This cultural policy Development, equality and justice.17 has been the expression of the national will, and as one of its main instruments, it In the Cuban industrial economy scenario, cultural production is a relevant has committed the allocation of state resources of 4.3% of current expenditures sector of the GDP, reaching together with the sport sector an average of of the Cuban State and of 3.9% of its total expenditures. These magnitudes have 3.6% and 4% in the last years;18 though having a variable performance, it ensured an important part of the national network of artistic education which is significant for the creative processes in all art forms and the processes that 16 make up the production chain blocks for a professional movement This document is in correspondence with what is stipulated in the Guidelines 133 and 134 for Culture referred to «[…] encouraging defense for identity as well as artistic and literary crea- qualitatively greater with respect to many countries of the region. tion […]» and «[…] the defense of tangible and intangible cultural heritage of the Cuban na- tion»; respectively. See: «Actualización de los lineamientos de la política económica y social del Partido y la Revolución para el período 2016-2021, aprobado en el 7mo Congreso del PCC en 13 http://www.unido.org/clusters/cultural-and-creative-industries.html abril de 2016 y por la Asamblea Nacional del Poder Popular en Julio de 2016», p.30. 14 http://www.unido.org/iump/iump-armenia.html; http://www.unido.org/iump/iump-taji- 17 See: «Conceptualización del modelo económico y social cubano de desarrollo socialista y ba- kistan.html ses del Plan Nacional de desarrollo económico y social hasta 2030», June 2017. 15 http://industriamusical.es/cuba-pretende-incrementar-en-mas-de-un-20-la-produc- 18 Chapter «Cuentas nacionales y finanzas» ofAnuario Estadístico Nacional, available in: http:// cion-y-exportacion-de-musica-en-formato-digital/ www.onei.cu, 2014 y 2015 years.

18 19 PARA UNAINDUSTRIAMUSICALCUBANA ESTRATEGIA DEDESARROLLO INCLUSIVA YSOSTENIBLE DEVELOPMENT PROGRAMS OF CUBANINSTITUTE OF MUSIC 20 markets ofthesector. All theaforementionedsustains andfavors sales atthedomestic and foreign musical instruments factories, 4record labelsandseveral recording studios. of music,303facilitiesforlive performances, 286stores forphysical sales, 4 growing, countingonmorethan16,000 professionalmusicians, 33schools 2018 isevaluated,focusingonthedevelopment ofthemusicindustry. Development Programmes. Currentlytheinclusionofanewprogramme for methodologic pointofview, set tofollow thepolicy foritsinsertionintheCultural which theCubanmusicexpressesitself. its effortatnationallevel andcovers allthetechnicalandartistic spectrumin executes dozens ofdevelopment programmesfortheCubanmusicthatensures forincreasingmusicaltalent popular andconcertmusic.TheICM,initspolicy authenticity andcreative diversity withinthefieldoftraditionaloral,folk, and contemporarygenres, repertoiresandperformers, characterizedby their jobs. Its main attraction results from the stock and diversity of traditional contributes tothecountry’s economy, economicbenefitsand generating industry. cultural Cuban the with foreign links agents having interested in new education. many agreements have allowed an with results These tourism generate relevant inputs for production the such as of other services and goods consumption evidences its potentialities to of productionsThis direct well as as GDP of that total the of country. the trend than higher demonstrates agrowing Thus, thequalitative andquantitative level of Cubanmusicalcreationis These programmeshave apositive impactontheterritoriesandfrom Music isoneofthemost spreadartformsinCubansociety andrelevantly

HERITAGE RESCUE, CREATION AND OFCUBANMUSICAL DEVELOPMENT OFSYMPHONICMUSIC DEVELOPMENT OFMUSICALCREATION DEVELOPMENT OFMUSICEDUCATION DEVELOPMENT OFMUSICOLOGY DEVELOPMENT OFMUSICPOPULAR DEVELOPMENT OFMUSICSHOWS ASSISTANCE TO BANDS DEVELOPMENT OFCHORALMUSIC DEVELOPMENT OFCAMERAMUSIC of copyrights amounted up to 51,073,492 Cuban pesos. sales ofphonograms(physical andydigital),recordingstudios and collection employment andincomesfromintellectualproperty. 20 19 Source OF THECUBANMUSICINDUSTRY. INFOGRAPHY 3.PRESENCEPERPROVINCEOFKEYPLAYERS have animpactontourism that, atthesame the Cubancultureandofrichmusicheritage time,will economic andcommercialblockadeimposedonCubaby theUnitedStates. well asthedistributionamongother problemsgenerated, factors, duetothe requirements for production as well as the markets where it is expressed; as development, whichneedstobeupgradedallow ittocopewiththenew an importantfigure,takingintoaccounttheunsatisfactory technologic Commercial Statements of institutional record labels and ACDAM, 2016. ACDAM, and labels record of institutional Statements Commercial This document gives a comprehensive view that can be used in the Culture-Tourism rela Culture-Tourism the in used be can that view a comprehensive gives document This 2021 aprobados en el 7 aprobados 2021 2016- el período Revolución yla para del Partido ysocial económica política de la neamientos de li los «Actualización Revolution». See: Cuban of the policy Cultural the to respond truly activities tourist to linked forms for art seek «to 214 for Tourism: Guideline under tionship Poder Popular en julio de 2016», en julio p. 45. Poder Popular As preliminary estimate, incomes obtained in 2016, only by record labels in As preliminaryestimate, in incomesobtained in2016,labels onlyby record

Greater development ofthesepotentialities willallow awiderappraisal of PINAR DEL RÍO : Information system and analysis (CIDMUC, 2017) 2017) (CIDMUC, analysis and system : Information

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ARTEMISA mo Congreso del Partido en abril de 2016 y por la Asamblea Nacional del Nacional de 2016 Asamblea la ypor en abril del Partido Congreso LA HABANA 20 andprovide opportunitiestostimulate exports, MAYABEQUE

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GRANMA Record Labels Recording studios instruments Factories ofmusical products Store forthesaleofmusic performance Facilities forlive Schools ofmusic Musicians

HOLGUÍN

SANTIAGO DE CUBA

GUANTÁNAMO International collaboration project This project is part of the Country Programme Framework UNIDO-Cuba for the strengthening of the Cuban music industry 2016-2020 subscribed by Mr. Li Yong, General Director of UNIDO, and Mr. Salvador Pardo Cruz, Minister of Industries of Cuba, on December 2nd, 2015 in MUSIC INDUSTRY’S CONTRIBUTION TOWARDS MUSIC INDUSTRY’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT , , during the XVI Period of Sessions of the General Conference INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND» UNIDO, KOICA and the Ministry of Culture of Cuba have launched the THE CASE OF CUBA «THE MUSIC ISLAND» of UNIDO.22 The Country Programme has been formulated in conformity with project «Strengthening of competiveness, organizational performance and the economic and industrial transformations promoted by the Government export capacity of the Cuban music industry» during the International and the United Nations Development Assistance Framework, (UNDAF) «Cuba Industria», held on June 2016 in .21 subscribed for the period 2014-2018.

It includes three main axis: 1 2 3 Development of All concerning Promotion of industrial policy and its competiveness, investments aimed strategy value chains, at attracting direct updating, industrial capital and technology upgrading, energy and injections to the environment country

REPRESENTATIVES OF UNIDO AND OF THE CUBAN GOVERNMENT DURING THE PRESENTATION OF MUSIC GROUP FRASIS, WITHIN THE FRAMEWORK OF THE STEERING COMMITTEE OF THE COUNTRY PROGRAMME

22 https://www.linkedin.com/pulse/mr-salvador-pardo-cruz-minister-industry-cuba-addres- 21 https://www.linkedin.com/pulse/strenghtening-cuban-music-industry-unido-lac ses-unido-lac?trk=mp-reader-card

22 23 This is the first project in which UNIDO participates, oriented to the music industry as well as promotes the «industrial» perspective of this sector as a way to sustainable and inclusive development: MUSIC INDUSTRY’S CONTRIBUTION TOWARDS MUSIC INDUSTRY’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT •• made up of «several players of the industry that participate in a material INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND» production», instead of the traditional view of a network of artists that THE CASE OF CUBA «THE MUSIC ISLAND» only generate a cultural product; •• not only includes players of music creation and interpretation, but also a significant group of activities associated to production and musical diffu- «It is important for sion; me as well as for all oriented to how to make things, how the different players interact, the •• INTERVENTION musicians that the incentives of direct players who produce and distribute music and the LEVEL OF THE MAIN PLAYERS project supports the intermediaries who shape and transform the cultural products; PROJECT INTERVENTIONS INVOLVED work that from the •• fosters development of sustainable trade relationships among entities institutions is made linked to the music industry (tourist agents, , dance festivals, res- MACRO Strengthening of economic MINCULT and ICM with the artists to make taurants where music is played, IT providers as well as of the radio, TV , performance of value chain of the Cuban music visible la radio, TV channels, etc.); the music industry through worldwide. Now I am •• seeks to support the policy-makers, legal advisory and standards com- formulation and approval of a working and making a pliance actors so that the music industry can operate more efficiently. new strategy for its development. great effort so that the This supposes the creation of more value to distribute among all partici- work young people and pants of the music value chain. Record Labels women are making in MESO Improvement of production capacities of the music industry. and CUBARTE Cuba is known, there are General goal of the project is to strengthen the music industry as a good instrument players mechanism for job creation and economic diversification in Cuba. More and some of us are specifically, the goal is to implement a series of activities that may lead to: Artistic representative agencies MICRO Adoption of innovation strategies leaders». ••increase competiveness of the industry, of commercialization and of music, producers and promote corporate management, , societies of authors Yissy García, •• distribution of the music. ••increase export value of the Cuban music and and management of copyrights, DRUM PLAYER/DIRECTOR traders of cultural products, etc. OF BANDANCHA ••generate social benefits.

This is expected to be achieved by potentiating coordination, integration and synergies among all links of the value chain of the Cuban music industry; upgrading production technologies; promoting stra- tegic associations and alliances as well as developing innovative and international distribution strategies. The project is being implemented jointly with the Ministry of Culture of Cuba (MINCULT) which is in charge of it as national counterpart. In close collaboration with it, UNIDO has proposed a technical assistance intervention including a com- prehensive approach with the objective to strengthen the music industry and facilitate an adequate creative environment for innovation.

PRESENTATION OF THE PROJECT AT HAVANA FAIR 2017 BY EXECUTIVES OF MINCEX, MINCULT AND UNIDO

24 25 Other entities of the Cuban music industry also actively participate in all the project’s actions:

MUSIC INDUSTRY’S CONTRIBUTION TOWARDS MUSIC INDUSTRY’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND» THE CASE OF CUBA «THE MUSIC ISLAND»

Instituto Cubano de la Casas y sellos discográficos (Record Labels): Recording Artistic and Literary Centro de Informática en la Agencia Cubana de Derecho Música (ICM) (Cuban Enterprise and and Music Editorial (EGREM), Colibrí Productions Promotions (ARTEX S.A.) Cultura Cubana (CUBARTE) de Autor Musical (ACDAM) Institute of Music) is the and Music Editorial, Bis Music Record Label and ( Products (Information Center in (Cuba Agency of Music institution of MINCULT that Editorial of ARTEX and Abdala Productions S.A.: These encompass and Services S.A.): entity Cuban Culture): entity in ): a public body organizes, promotes, sponsors all modalities of negotiations within the industry, ensure whose main corporate charge of design, support, and of collective management of and protects the Cuban music preservation of musical stock and growing needs of recording, purpose is promotion and supervision of national IT national and international movement. national and international and commercialization of commercialization of a wide policies for the culture sector; authors’ musical copyright. artistic talent. spectrum of cultural products it produces cultural goods on and services of Cuba. digital support and seeks for integrity and of the Network.

Centro Nacional de Derecho Centro de Investigación Instituto Cubano de Centro de Desarrollo y de Autor de Cuba (CENDA) y Desarrollo de la Música Investigación Cultural Juan Comunicación Cultural (National Center for Cubana (CIDMUC) (Research Marinello (Cuban Cultural (CREART) (Center of Copyright of Cuba): entity and Development Center of Research Institute: its main Cultural Development and in charge of guaranteeing the Cuban Music): institution in goal is to contribute to the Communication): entity application and control of the charge of methodologic and cultural policy of the country in charge of, among other policy approved for Copyright. scientific advisory of social and through social research and functions, representing and historical research of music. It academic debate. Also, it exerts diffusing the cultural policies offers training courses, organizes the control and methodologic of institutions, encouraging technical and scientific events orientation of the system of and promoting cultural and nationally and internationally research units subordinated to initiatives and actions as well and markets products and the Ministry of Culture. as disseminating the relevant services generated from its stock experiences and results by the and files such as publications existing . and audiovisual resources.

26 27 Likewise, other institutions and players of the sector equally indistinctively •• Design of a development strategy for the Cuban music industry, based on participate in the activities, among these: provincial Enterprises of Music research and projected with a comprehensive and value chain view. This and Performances, Art Representative Agencies, Music Publishers, recording provides a number of proposals to strengthen the industry regarding the MUSIC INDUSTRY’S CONTRIBUTION TOWARDS MUSIC INDUSTRY’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT studios, stores, distributing companies and music selling entities. They challenges and opportunities of this field in the country. INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND» all represent and are represented in the actions by musicians, composers, •• Conception of an Information and Analysis System. A tool that will provide THE CASE OF CUBA «THE MUSIC ISLAND» producers, traders, legal advisors, announcers, musicologists, researchers, detailed and mapped statistical information of all players of the value chain, altogether beneficiaries of the project directly or indirectly. which will contribute to the making of diagnosis and decisions within the In the first year of implementation of the project, it has benefited the Cuban sector. music industry with the following: INFORMATION AND ANALYSIS SYSTEM. SAMPLE OF INDICATORS

PROFESSIONALISM: Concluded education •• Execution of six training workshops with participation of 56 institutions Totals Sex Age range level and technical consultancies to 10 enterprises, with presence of national and international experts; 307 specialists and directors were trained, of whom 56.7% are women and 21.8% are young, coming from 6 provinces of the country.23 > 60 20-30 30-40 40-60

CREATION Woman Man Elementary level Medium level Superior level No formal studies «The project has come to enrich the culture of 2.1 Composers/writers Record Labels in our 2.2 Music authors country. It is not only 2.3 Performers a door to promotion and dissemination of Vocal solo Cuban music, to be Instrument solo known broadly abroad Backstage instrument is also an opportunity for groups, soloists, directors musicians to have an Choral directors space for exchange, (DJ) improvement, knowledge and, surely, DJ producers promotion of their Poets, «decimistas & improvisadores» music». Music comediant Geidy González, Music show animators EGREM PRODUCER Declaimer First dancer for music shows Solo dancer for music shows Corps dancer for music shows Supernumerary dancer for music shows

TRAINING WORKSHOPS AND CONSULTANCIES WITHIN THE PROJECT’S FRAMEWORK Fonomimico Circus artists

23 Workshops imparted so far are «Training for high government officials and experts of the sec- tor: Support to MINCULT in Development of New Models for the Music Sector» (in •• Taking on and study of proposals of Musical Cities in Cuba, led to poten- Havana and ); «Effective Business Models for Agents of the Sector»; «Profes- tiate sustainable urban development, using territorial advantages of the sional Formation for Producers and Musicians of the System of Institutions of Music in Cuba» music industry as a driving force of local economy. (in Havana and Santiago de Cuba) and «Improvement of Capacities for Intellectual Property Rights in the Cuban Music Sector». These were imparted by specialists of the International consultancy Sound Diplomacy.

28 29 TECHNOLOGIC IMPROVEMENT: •• Validation of equipment to upgrade recording studios. It is mainly designed to increase the level of national production and reach digital music produc- MUSIC INDUSTRY’S CONTRIBUTION TOWARDS MUSIC INDUSTRY’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT tion world standards. INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND» THE CASE OF CUBA «THE MUSIC ISLAND»

RESTORATION MACHINE OF SOUND PATRIMONY Projection of training actions to form technical capacities for the use of re- •• AT PRODUCCIONES ABDALA S.A newed equipment and development of applications or software aimed at promotion and commercialization of the Cuban music. •• Study missions with homologue players of the music industry in other countries. Developed with the objective to identify the potential to organize programmes of technical training and training workshops, exchange of ex- periences, exploration of possible business alliances or collaboration pro- grammes as well as knowing the mechanisms disseminated internationally for the management and promotion of festivals and events associated to the sector. •• of information referred to patrimony music files in existing obso- lete format. Recovery is estimated to be at least of more than 30% of them. INFORMATION AND PRESERVATION CENTER OF MUSIC FILES IN AREITO STUDIOS, EGREM

30 31 COMMERCIALIZATION: •• Projection of design and implementation of a trademark and distribution strategy of the Cuban music: «Cuba, the Music Island». MUSIC INDUSTRY’S CONTRIBUTION TOWARDS MUSIC INDUSTRY’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT •• Conception, study and presentation of the project Technologic Platform INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND» of the Cuban Music. Designed for the promotion and digital commercia- THE CASE OF CUBA «THE MUSIC ISLAND» lization of the wide catalog of the Cuban music in which services of digi- tal sales are offered by means of a store for commerce and streaming services. •• Support to music festivals developed within the country such as Cubadis- co and Primera Linea and participation of Cuban musicians and specialists at international events. In 2017 these national festivals were backed with production of premieres, acknowledgement to those awarded, distribution of digital music, logistics, conferences and presentations design and imple- mentation of a digital system for voting as well as registration at internatio- SUPPORT TO FESTIVALS nal and production of promotional supports. OF THE CUBAN MUSIC INDUSTRY

Jorge Gómez, Músico, AND PRESIDENT OF THE COMMITTEE OF AWARDS CUBADISCO:

«Cuba, the music industry is a great development factor and a project like this is entirely useful, important for artists since we shall have the possibility to have more access to markets and to certain technologies. In the case of Cubadisco, for example, it has made possible to count on a site to make automated digital voting; which, undoubtedly, is a significant change».

32 33 MUSIC INDUSTRY’S CONTRIBUTION TOWARDS MUSIC INDUSTRY’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND» THE CASE OF CUBA «THE MUSIC ISLAND»

From a holistic view, the accumulation of Backed by the Korea International Cooperation Agency (KOICA), the actions and their results project has a fund of 1.3 million USD and whose implementation must conclude have mainly impacted in December 2018. With this initiative, UNIDO, jointly with MINCULT, tries to on the strengthening of boost «not only economic development but also the human one for the benefit alliances and synergies of the peoples’ culture». 24 among players of the value chain of the Cuban music industry.

•• Availability for support to musical stores. Oriented to improve their mana- gement, training of their workers and technologic support.

From a holistic view, the accumulation of actions and their results have mainly impacted on the strengthening of alliances and synergies among players of the value chain of the Cuban music industry. Gathering of update information, broadening of promotion and marketing of goods and services offered by the Cuban cultural institutions have been other positive balances. Within the international cooperation framework, development of Cuban music potential constitutes a strength within the cultural industries in Cuba with a value going beyond the country’s frontiers, for the composers, artists and their public. Further on the incomes it generates, its repercussion and CUBAN EXPERTS, MANAGERS AND MUSICIANS ACTIVELY PARTICIPATE IN TRAINING benefits extend to the whole society. This does not impair the value generated WORKSHOPS ORGANIZED BY THE PROJECT. by the Cuban music industry in multiplying itself with new mechanisms for production and distribution. 24 «The creative ecosystem: Facilitating the development of creative industries» (2015) in: UNI- DO Research, Statistics and Industrial Policy Branch Working Paper.

34 35 MUSIC INDUSTRY’S CONTRIBUTION TOWARDS MUSIC INDUSTRY’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND» THE CASE OF CUBA «THE MUSIC ISLAND» CURRENT CONTEXT OF THE MUSIC INDUSTRY IN CUBA

36 37 In understanding the current status of the Cuban music industry and carry out a first diagnosis of it to allow the formulation of a development strategy, knowledge accumulated was analyzed regarding the technical aspects, specifically, the current potential status Cuba has and development of the specialized technical force in the country with academic formation as well as empiric; its technologic resources, the economic backing related to its organization and music management; the material basis it counts for this purpose; science development in the country and existing legal framework according to juridical matters related to all processes of the value chain of the music industry. Information was completed with consultation of preceding bibliographic sources, annual statements of position reports, financial statements, trade analysis and publishers balances of the system of music institutions and enterprises. Also Cuban experts were interviewed and consulted. It was also taken into account debates, interviews, and exercises made in In Cuba, all types of training experiences developed by the project in association with the Sound products, processes and Diplomacy Agency,25 which had the purpose, among its professional tasks, to activities and economic contribute to the design of the strategy, socializing tools, working products characteristics are and inputs as well as recommendations as a result of its specialists’ expertise present. and study.

Potentialities of the music industry in Cuba

In Cuba, all types of products, processes and activities and economic characteristics are present. These typify and define the music industry and its more contemporary recent trends, including, just like in any constant changing process, the need to strengthen the equilibrium between the social roles that culture in general and music in particular play in the Cuban society and the search for economic profitability. All the aforementioned implies challenges to economic and cultural policies to attain convergence of targets of both sectors and the society. Thus, the importance to tackle this industry with a comprehensive value chain approach (Graph 3. Map of the value chain of the Cuban music industry).

25 Sound Diplomacy is and advisory Enterprise in issues of Musical Cities and Market Deve- lopment. It works with local, regional and country governments related to development of their music policies. It supports the connection of local governments and enterprises with the music industry. It is accompanying the Project ONUDI-MINCUL-KOICA within the de- velopment of training workshops, strategy design, among other agreed actions (www.sound- diplomacy.com).

39 FEEDBACK

CREATION PRODUCTION DISTRIBUTION CONSUMPTION

PHONOGRAM LIVE FISICAL/DIGITAL DIFFUSION ARTS POPULAR PRODUCTIONS PRODUCTION EDUCATION CULTURE REQUIRED PREPARATION Creation WHOLESALER LIVE CONDITIONS Commercialization CULTURAL PRESENTATION • Pre-production Marketing POLICY • Rehearsal RETAILER SOUND RECORDING COMMUNICATION • Equipment REALIZATION PREPARATION MEDIAL and services • Specialties • Phonographic • Pre-production • Audiovisual • Rehearsal EVENTS

MUSIC INSTRUMENTS • Final Arts LIVE PERFORMANCE REALIZATION • Location MARKETING • Equipment /Shows MUSIC • Music instruments • Promotion • Location • Publicity • Scenography • Record • Audiovisual • Printed • Sponsorship • Equipment

Phonogram

Audiovisual

INTELLECTUAL PROPERTY RIGHTS MANAGEMENT

ACTORS ACTORS ACTORS ACTORS ACTORS ACTORS Artists or Artist Units, Record Artists or Artist Units, Music Artists or Artist Units, Record Artists or Artist Units, Music Marketing and promotions arts, National population, Labels, Music producers, School, Rehearsal studios Labels, Represents agents, , Intellectual property artists, Representations agen- phonographic , (Cinemas, municipal theaters, enterprises, Booking agents, rights management societies, cies, Record Labels, Commu- recording studios, Sound culture houses, private studios, ICM, Concerts promotors, ICRT, Marketing and Promotion, nication media, CREART, Music engineers, Music manager, housing, young creator house MINTUR, Music houses, Theaters, Communication media, enterprises, ICM (Vicepresi- general producer, Audiovisual (casa del joven creador), Trova Cultural centers of ARTEX and CREART, Record Labels, Music dencia), ICRT, RTV Comer- maker, Music publisher, houses), Record Labels, Music EGREM, Internal trade center enterprises, ICM, producers, cial, Independent producers, Intellectual property rights enterprises, Artist representa- network, Festivals and event, ICRT, RTV Comercial, CITMATEL, ACCS, Designers, CUBARTE, management societies, ACCS, tion agencies, Music publi- Event producer, National agency Mundo Latino, ACCS, Designers, CINESOFT, CITMATEL, Music Designer, CREART, Video sher, ACDAM, CENDA, Music for arts tourism, RTV Comercial, CUBARTE, CINESOFT, Soy publisher, Intellectual property producer, CUBARTE, RTV Museum. Tour Manager, Sound engineer, Cubano (ARTEX), Cuba Music, rights management societies, Comercial, CITMATEL, Mundo Audiovisual producer, Artist Music, Planet record, Plaza Theaters, Cultural centers Latino, CD factories. directors, Audiovisual makers, Mayor, Kdigital, Believe, The Intellectual property rights Orchard, Altafonte, Local and management societies, Video international distributors, Joven producer, CUBARTE, Sound Club Computación, Exelencias, Map of the value chain of the Cuban technician, National transportation Institutional network of stores, network, technical material Private sector fairs, Platforms and music industry suppliers, PMM, Private sector digital stores online Source: Drawn up from Abreu, Johannes (2015)

40 41 It is significant the development of the institutional system by which formation of more than 16,000 musicians throughout the whole island is promoted through different ways (see graph 4). In one way or another, almost Capacity in facilities for live performances MUSIC INDUSTRY’S CONTRIBUTION TOWARDS MUSIC INDUSTRY’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT all the 2,232 cultural institutions, which are fully working in the country, have INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND» THE CASE OF CUBA «THE MUSIC ISLAND» the musical expressions as main activity or the music is present as relevant 50 - 200 200 - 500 500 - 1000 1000 - 10 000 10 000 - 50 000 part of the cultural process. The 3,019 professional music and dance groups with 18,388 participants also have a relevant presence in the music life of the country. There is a total of 29 institutions, enterprises and agencies of artistic representation. Record Labels 4 The enterprises have catalogues of a heterogeneous composition from the point of view of musical genres, their format, ways of expression and Music Publishers 5 organization. Catalogues agglutinate concert, popular, traditional and folk Recording studios 6 music groups and music shows. Among them, 5 provincial symphonic Schools of Art (elementary, 33 and the National Symphonic Orchestra, 28 Chorus, 60 groups playing camera medium high and higher music and 123 concert bands stand out. levels) (gráfico 5) The music system in the country counts on 596 subsidized projects (9,070 Factories of musical 4 artists), that is, protected from the salary, assistance by ICM and its system of instruments institutions point of view, because of the hierarchic importance they provide to the stock and identity of Cuban culture as well as the qualitative level of Facilities for music shows 303 and live performances their proposals. These artistic units include concert music as well as the best of popular, traditional and .

(infography 4 and 5) PINAR DEL RÍO ARTEMISA LA HABANA MAYABEQUE VILLA CLARA SANCTI SPÍRITUS CIEGO DE ÁVILA CAMAGÜEY GRANMA HOLGUÍN SANTIAGO DE CUBA GUANTÁNAMO An important business sector has been developed as part of the system of Stores for 286 institutions of Culture and comprise all art forms. Business management of commercialization of physical products the Cuban music is developed at present as a relevant network where some of national character like EGREM, ARTEX, ABDALA and COLIBRI, and other Collection societies 1 provincial enterprises and national and provincial music centers and music shows stand out. These have worked in a harmonic way and generated jobs and resources for the Culture and national economic development. As such, relationships established with tourist institutions at ministerial, institutional and territorial levels, have proven the reciprocal need of exchange to reach their objectives.

There are also stores for digital commercialization and associations with digital platforms to promote the Cuban music. 4 3 2 1 Facilities for live performances in the country 0

5 13 22 53 Granma Holguín Artemisa Matanzas Las Tunas Camagüey Villa Clara La Habana Cienfuegos Mayabeque Guantánamo Pinar del Río Ciego de Ávila Sancti Spíritus INFOGRAPHY 4. CAPACITY IN FACILITIES FOR LIVE PERFORMANCES Santiago de Cuba Isla de la Juventud AND FACILITIES FOR LIVE PERFORMANCES IN THE COUNTRY. Elementary level Medium-high level Higher level Source: Information and analysis system (CIDMUC, 2017)

GRAPH 5. SCHOOLS OF MUSIC PER PROVINCES. Source: Information and analysis system (CIDMUC, 2017)

42 43 Main challenges

MUSIC INDUSTRY’S CONTRIBUTION TOWARDS Culture’s institutional system within the music scope, has demonstrated of the music industry has provoked at world scale advocacy MUSIC INDUSTRY’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND» a capacity to outstand the musical movement up to its current levels. for the concept of the music market basically due to the income it generates. THE CASE OF CUBA «THE MUSIC ISLAND» As a perfectible work and a result of its own development, it faces today However, in Cuba, commercialization is carried out without betraying its a restructuring process of its architecture to pay attention to growing essence and artistic hierarchies. Cuban institutions advocate for authentic heterogeneity of types of economy and the organizational performance as well talent and made no trade concessions or archetypes that may distortion the as other challenges that will be covered in this material. national culture. The need to reorder, renew and strengthen music as an industry, establishing Cuban enterprises of the music sector do not count on distributors or the necessary resources, alliances and synergies among all role players of investors at great scale abroad, which limit the access to a great extent to the value chain is a premise for the sector. This business vision will take into markets with potentialities for the Cuban music. This reality, however, does account the artistic values of Cuban music production that validates it as a not hinder Cuban artists as well as from other latitudes to recognize the many «coat of arms of the Cuban nation» and should be its strength. Updating its successful factors of the Island’s musical sector. functions as regulatory center will ensure conversion of music into a strategic Even when punctual and successful actions have been observed in the Cuban sector and guarantee the state leadership among key economic activities. music insertion in international scenes, changes produced in these markets Continuous volatility and return to contractive performance of economic demand a constant update of positioning strategies that may allow to obtain growth constitute a strong limitation for the Cuban music industry’s growing income. Data of project of UNCTAD/WIPO, 2000, suggest that 120,801 development at present. This has obliged to decrease the investment amounts Cuban music compact discs have been exported, while 205,885 have been sold required by this industry to concentrate the amount of available financial within the country. This an important benchmark of our product’s quality even resources in sectors of greater economic impact. Though culture’s economy in when figures represent just a portion of the whole music. Cuba has shown a greater growth than the global performance of the country, Insufficient technologic capacity such as application of production strategy resources that must be invested in the music sectors demand high levels of for live performances, phonogram, audiovisual (with physical and digital disbursement at high risk. The necessary financial investment increases versions) mean a great challenge to the Cuban music industry. For example, according to the advance of the different internationalization levels. the country has a total of 303 facilities for live performances distributed along The weak synergic effect developed in the sector to search for competiveness the Island with a capacity varying from 50 up to 50,000 people as audience; but in activities of worldwide expansion has brought about effects on more not all have the adequate audio and lightning technical conditions to cover the comprehensive production lines of multi-services. Insufficient communication demand and quality of the music shows. and sectorial organic coordination are evidenced within the music sector as well as in its relationship with other sectors of the value chain such as tourism, 50 43 communications, among others. The complex relation established in the value 40 chain from creative processes going through production, communication, 30 distribution and consumption has demonstrated disequilibrium generated by 15 17 16 18 17 20 12 14 11 11 9 11 9 the heterogeneity of productive conditions. 8 7 8 6 6 10 5 3 4 5 3 2 2 5 2 4 4 3 The economic blockade The legal system does not correspond with the current context. The 1 0 imposed by the United system regulating the functioning and economic relationships among the 0 States of America (USA) different players of the music production chain is still incomplete, within the Granma constitute one of the institutional system of Culture as well as of other national and Holguín Artemisa Matanzas Las Tunas Camagüey Villa Clara La Habana Cienfuegos main threatens for the the new forms of property that are part of spaces of Cuban music creation. It Mayabeque Guantánamo Pinar del Río Ciego de Ávila world market to take is also necessary to review the legal standards on Intellectual Property Rights, Sancti Spíritus Santiago de Cuba

advantage of the music including the Copyright Law. Isla de la Juventud limiting the export The economic blockade imposed by the of America (USA) With technical conditions Without technical conditions possibilities, advance constitute one of the main threatens for the world market to take advantage of technologies and of the music limiting the export possibilities, advance of technologies and GRAPH 6. TECHNICAL CONDITIONS (AUDIO AND LIGHTNING) OF FACILITIES FOR LIVE copyright. copyright. For example, Cuban artists when performing in that country cannot PERFORMANCES PER PROVINCE. sign a commercial work contract; Cuban enterprises’ operations become Source: Information and Analysis Systems (CIDMUC, 2017) more expensive since they cannot use US dollars in international financial transactions; business costs go up for those who have not access to the US Quantification of this information allows to count on a tool that facilitates market for purchasing raw materials technologies, accessories and musical to analyze the territory from a comprehensive approach and thus assess the instruments. Cuba has lost important distributors in other countries due to the necessary level of investment for support to culture facilities when up absorption of these enterprises by USA capital. local development plans.

44 45 Distribution of digital music is not yet a leader line for the international Access to international communication means it is necessary to put business development of Cuban music industry as it is the case for the current promotion and publicity strategies into practice that may lead to greater world. Its exploitation in Cuba is strongly threatened by the lack of more competiveness at world level of all income managing bodies throughout the MUSIC INDUSTRY’S CONTRIBUTION TOWARDS MUSIC INDUSTRY’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT generalized technologic infrastructure in the domestic market – whole country. In Cuba, due to several reasons, there is a limited total use of INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND» bandwidth and electronic services– and the lack of an own integrated markets with expansion potentialities for the Cuban music industry. Music THE CASE OF CUBA «THE MUSIC ISLAND» platform of the «Cuban Music Industry» for digital music downloads/ business is based on its economic attraction from the combination of production streaming in the foreign and domestic markets generating intermediaries and and communication strategies to attract the attention of consumers. other dependencies. On the other hand, recovery of existent old archives recordings in analogic format is urging, to avoid further deterioration due to the insuficient conditions of a proper storage. For example, in Tapes format to be digitally Visit to studios 0,02 % recuperated, there are approximately 36,000 units as part of the patrimony saved at institutions such as CIDMUC, EGREM, Abdala, Museo de la Música, Coproductions 4 % Radio Stations (CMBF and Radio Habana Cuba) and Casa de las Américas. In 3 % Restoration CD/DVD version about 3,500 are preserved and are stored by EGREM, Colibrí Digital sales 6 % and Museo de la Música. ICM conducts the Programme for Rescueing, shaping and broadcasting of the Cuban music patrimony; however, actions carried out have not yet Recording 21 % 39 % Editorial influenced on the sound files of record producers. Digitalization of different sound formats are made according to the criterion of the digitizer, requiring a normalization of technical standards and the procedure to follow for this end and its later preservation. This will contribute, on one side, to safeguard, promote and commercialize this valuable Cuban sound patrimony, and Physical sales 27 % at the same time, represents an income source for the country. To place it in current commercial platforms for streaming, validates even more the cultural contribution of artists that historically has given glory to the Cuban music. This reality does not impede for Cuban artists as well as GRAPH 7. BUSINESS LINES OF INSTITUTIONAL RECORD LABELS from around the world from being aware of the Source: Trade balances of institutional Record Labels, 2016. many successful factors that the Island’s music sector counts on. There are many opportunities for this.

COLIBRÍ 1 % ABDALA 3 %

BISMUSIC 38 % 58 % EGREM

GRAPH 8. MARKET SHARE FOR THE SALE OF DIGITAL MUSIC BY INSTITUTIONAL RECORD LABELS Source: Trade balances of institutional Record Labels, 2016.

46 47 MUSIC INDUSTRY’S CONTRIBUTION TOWARDS MUSIC INDUSTRY’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND» THE CASE OF CUBA «THE MUSIC ISLAND» PROPOSAL OF A NATIONAL STRATEGY FOR THE MUSIC INDUSTRY

48 49 Cuban music generates products of immense patrimonial value for artists and audiences in Cuba and abroad, but they can be even multiplied if new modes of production and distribution are searched for. To bet for the prestige, recognition and diversity of Cuban music –whether in the relationship with its composers and performers or with the institutional system that supports them– and eliminate weaknesses that today faces in its development shall be the way to follow which will enable its greater presence on world stages. In this sense, the industry’s perspective can be applied to musical activity with or without profit purposes since both are closely bonded. The project «Strengthening of competiveness, organizational performance and export capacity of the Cuban music industry», is one of those national efforts that, with the aid of international cooperation intends to support the development of the Cuban music industry to implement policies and initiatives to overcome those barriers. To bet for the prestige, This development strategy proposal for the Cuban music industry focus on recognition and the dimensions and links of the value chain from creation up to consumption. diversity of Cuban In a particular way, the education link –in its three levels of academic formation music ... and eliminate as well as the processes of transmission and creation of oral or family tradition weaknesses that today and popular formation–will be taken into account for future diagnosis and faces in its development forecasts due to the values it represents and the results attained in this shall be the way to environment within the country. follow which will enable The strategy proposed is a document appropriated by the Cuban actors its greater presence on and for the development of the Cuban music industry, thus its institutions world stages. and managers are its main responsible for implementation and systematic evaluation. It was designed by relevant role-players of the sector and the decision structures in it, starting from the result proposed under the frameworks of the MINCULT-UNIDO-KOICA project. As a collaboration experience it serves as a platform for confluence, integration and analytical thinking among all players without meaning a strategy of it but of a bigger goal to which the Cuban music industry aims to contribute. This strategy is the first major result of this project, which served as a driving force and put into dialogue all the main value chain players within the same action framework. It brings about a permanent working group in agreement with the demands that the Ministry of Culture of Cuba requires today in its reorganization and restructuring process.

51 Characteristics of the proposal

MUSIC INDUSTRY’S CONTRIBUTION TOWARDS PREMISE MUSIC INDUSTRY’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND» ••Condition for development: generation of integrating synergies among ••Institutional system of Culture in the music scope: It has a presen- THE CASE OF CUBA «THE MUSIC ISLAND» all role –players of the production chain of the music sector considering ce in all processes of the value chain. It is the articulating axis among all the links of the state and non-state sector that impact on the develop- players participating and influencing in music development and prone ment of the Cuban music including the industry which supports it. to its efficacy. Updating its functions as a regulating center, guarantees To contribute in improving the working and legal frameworks that music conversion into a strategic sector and ensures state leadership of ensure participation of all state and non-state role players to fulfill the key economic activities.26 development strategies and cultural policy for music. ••Existence of an integrating productive strategy: It promotes a deve- lopment strategy from government institutions which includes modali- ties and products such as live performances, phonogram and copyright PHASES management, audiovisual (in physical and digital versions). ••It will include three stages or phases: the first will cover the state bu- ••The State’s relationship with the artist: Permanent dialogue for the dgeted institutional horizon with special treatment and the business ho- defense of the rights of music creators and support to their performan- rizon of music. In the second phase the institutions that use the strategy ces. but do not pertain to the culture system will be included; and a third pha- ••Educational system: It is organized so as to cover all education since se, will include the non-state sector. early ages up to higher levels and with access opportunities for any per- Actions and initiatives derived from application of principles, general son with artistic competences. Educational methods incorporate more and specific objectives of the strategy will have three levels of adaptation traditional contents and are constantly renewed in order to form artists and differentiated execution, that is, the state budgeted institutions, the with competitive international quality standards. state owned enterprises and the non-state business levels. ••National and international recognition of the Cuban culture and Harmonization of these three scopes constitute a significant challenge its musical expressions: This is provided by its artistic quality, which since each of them has its specific competences, particular methods and has motivated insertion opportunities in different markets, mainly due role players and thus the coordination will be submitted to constant to the attractive stock of genres, trends and performers of the country. tensions. Each of these spaces has its own effectiveness indicators and Cuban musicians are characterized for their authenticity and creative di- are indispensable to achieve development of the Cuban music and versity that goes beyond the excellent training guaranteed by the country particularly its industry. at schools with highly recognized professionals. The strategy will be the roadmap to follow by the state actors and will ••Growing interest of foreign distributors in Cuban music poten- be inductive for the non-state actors within the value chain. Integration tial: There is an increase of proposals to accompany Cuban artists of both forms of property and competence will be subject of systematic in the international expansion of their music. This is an opportunity negotiation from the cost-benefit balance on the interest of national allowing to complement the management of the sector’s enterprises culture. in territories that manage different cultural codes, employing at maxi- mum the artistic resources of the industry. All this facilitates the access to markets, channels of distribution and communication and leads the VALUES way for contract management as an opportunity for establishing the ••Music creator and creation: Protection to music creators and their necessary links. works are encouraged and cultural values of capital managed prevail, ••Management competence and entrepreneurship of artistic units: considering also the economic value of tangible and intangible musical This has been a characteristic of national talent. Setting up frameworks patrimony as part of national heritage. that motivate good performance of these entreprenueur musicians is a ••Cultural and musical policy of Cuba: Among its main goals are to faci- significant opportunity for business, enabling to take advantage at higher litate the ways and means so that Cuban creations have greater presence level of the key factors to success for the industry, aimed at increasing in the most outstanding stages, conveying messages and symbols of Cu- insertion of Cuban music abroad through the institutions. ban identity. In the same way, the Cuban State has shown such political ••Development of Tourism: Diverse spaces are increasingly generated for will when orienting its actions toward positioning of the music in major the entertainment of their consumers with performance opportunities international markets as a means to sustain creation and promotion of for Cuban artists. the country’s cultural values.

26 Johannes Abreu: ¿Músico o empresario? Perspectivas sobre la industria y los negocios en el sec- tor de la música, Ediciones Cidmuc, 2013, p.193

52 53 Proposals for strategic actions

MUSIC INDUSTRY’S CONTRIBUTION TOWARDS Current transformations of governmental structure: Proposals for for development of the Cuban MUSIC INDUSTRY’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT •• INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND» national change and functional that goes with it repre- THE CASE OF CUBA «THE MUSIC ISLAND» sent new scenarios for the sector’s development and claim for a detailed music industry look to functional and legal frameworks of all the music industry value chain, since they are fundamental processes that impact directly to the the music creator.

GENERAL OBJECTIVES ••Strengthening the industry’s competiveness, promoting a better or- ganizational performance of role players and increasing the export value of the Cuban music industry. ••Potentiating integration and synergy in all stages of the indus- try’s value chain, improving the production technologies, promoting associations and strategic alliances in the state and non-state sector as well as developing innovative international marketing and distribution strategies.

54 55 I. I. Design and implementation of an Information and Analysis System An Information System and Statistical Analysis is being designed to include detailed data of players that make up the links of the music value chain at provincial and national levels. This will enable to make diagnosis and prospective analysis for designing proposals of actions and decision making in the sector at all scales and in systematic way.

SPECIFIC OBJECTIVE ACTIONS

I.I 1. Establishing a battery of indicators for cons- 2. Designing and programming of software that 4. Compiling and assessing the information requi- Design a digital tool for collecting informa- truction of information repository compatible will support recording, processing and updating res using different collection methods. tion contained in the System. with official statistics (ONEI) and complemen- of statistical data. 5. Conceiving systematic training actions for the tary (MINCULT) and including new specific de- 3. Establishing regulations and necessary proce- design and update of the tool. mands of the music industry. dures that ensure sustainability and authentica- 6. Establishing the necessary conditions for the tion of information provided to the System. use and consultation of the Information System.

I.II 1. Making diagnosis and forecasts of the perfor- 2. Designing the strategy and extension phases in 4. Setting the basis for the development of a Natio- Mapping the current status of the music in- mance of the different players of the value chain the whole national territory for the search and nal Observatory of Cuban Music that from In- dustry in the national territory mainly focu- of the music industry from production to con- confirmation of contents in situ that the Infor- formation and Analysis System established pro- sing on Havana and Santiago de Cuba. sumption sustaining an upgraded level of trends mation System requires to compile. vides the studies required on trends of musical and changes it assumes. 3. Reflecting in maps, graphs and other represen- creation and its production processes. tations the results of processed data.

II. Institutional development

SPECIFIC OBJECTIVE ACTIONS

II.I 1. Promoting development of the production 4. Establishing an Investment Fund to allot resour- 7. Promoting the making and use of specialized Contribute to the institutional improvement chain from music creation up to consumption ces for fulfilling the priorities established within music critic and of social, musicological, cultu- system of ICM and MINCULT to improve at- in a harmonic and comprehensive way establi- the strategy, which will be nourished from do- ral and economic research regarding the deci- tention to political and cultural processes of shing the necessary synergies among all role mestic and foreign sources by promotion of ac- sions-making process within the sector. the music, recognize and ensure the econo- players. tions of international collaboration under the 8. Prioritizing studies of the public consumption mic activity of the business system, guaran- 2. Demonstrating the economic contribution of rules and procedures in force in the country. and cultural participation. tee its efficiency, efficacy and sustainability music to economic development of territories 5. Promoting the setting up of a National Business 9. Updating strategies of promotion, communi- as well as fulfilment of their state responsi- and at nation level, as primary element for its Group that ensures a proper functioning of acti- cation, commercialization and distribution ac- bility. practical and proactive incorporation to the vities of distribution, representation and logis- cording to destination and musical genres and country’s strategic development sectors. tics within the framework of national and inter- public receivers of the institutional system of 3. Contributing to update the legal system for mu- national commercialization of the Cuban music. MINCULT and ICM. sic through proposals based on the interest and 6. Developing and strengthen the music publishers realities of the sector. sector and of synchronization.

56 57 III. Adaptation to the digital era

SPECIFIC OBJECTIVE ACTIONS

III.I 1. Enhancing the access of artists and professio- 2. Encouraging active participation of artists, in- 3. Increasing spaces of promotion on the Web Optimize access to information technolo- nals of the Cuban music sector to ITs and com- tellectuals and students of artistic education in through portals, sites, blogs, social networks and gies and communications and necessary munications in correspondence with provisions the promotion of the best of music and culture professionals and other Internet services levels of connectivity. to that effect established by the national Policy social networks. of Information and available infrastructure in the country.

III.II 1. Improving technologic and connection capaci- 3. Establishing a repository to store music catalo- 5. Generating promotion spaces for artists, their Designing and implementing a Cuban digi- ties to increase the streaming services in Inter- gues of all Record Labels previously standardi- works and artistic performances. tal platform for national and international net in corresponding with the availabilities of zed in homogenous formats for their promotion 6. Allowing access to update statistics of the per- commercialization on line –by listening the country. and marketing. formance of indicators associated to the plat- direct system (streaming) and down- 2. Developing a specialized online store for retail 4. Including within implementation of online sa- form as an instrument for decision making. loading– of Cuban music and all the asso- commercialization of the Cuban music in digi- les and streaming, economic offers by means of 7. Preparing the legal framework of such platform ciated contents, products and services. tal version and streaming, for international and Cuban online payment or by mobile gadgets for regarding institutional responsibility of artists’ frontier markets. promotion of prioritized genres in the policy of representation, management of contents, mar- ICM and formation of liking and enjoyment of keting and distribution that ensures its functio- the population, the young people specifically. ning generated and managed from Cuba.

1. Updating file tocks of Cuban music patrimony. 3. Improving technologies for recovery, digitali- 4. Generating training actions for music recovery III.III 2. Potentiating actions for preservation and resto- zation and storage of patrimonial files for their and digitalization. Contribute to gradual digitalization of ration of files in their different formats. commercialization and management by Cuban musical heritage safeguarded by the Cu- institutions and publishers. ban institutions.

IV. Strengthening commercialization of the music

SPECIFIC OBJECTIVE ACTIONS

IV.I 1. Developing new products from artistic catalo- 2. Potentiating the spaces for phonographic produc- 4. Introducing the services of reservations and se- Contribute to development and streng- gues and cultural productions of Record Labels tion (physical and digital) and live performances, lling of tickets by electronic commerce of mu- thening of national commercialization of that contribute to attain a greater scope of the initially in Havana and Santiago de Cuba, and sical products through mobile phoning, appli- Cuban music. national market and . progressively in those provinces showing signifi- cations that may develop, Web pages, among cant disproportions in their availability. others. To assess the use of already existing and 3. Continuing strengthening concerts, tours and implemented actions in the Country. live performances of Cuban artists along the Is- land. SPECIFIC OBJECTIVE ACTIONS

5. IV.II 1. Establishing a promotion Programme for ex- 4. Establishing a network of representatives of the 8. Systematically updating the data base of foreign Promote the export of Cuban music from ports of Cuban Music. industry abroad linked to ICM and its marketing entrepreneurs that carry out great volume ope- the existing institutional system. 2. Potentiating musical events, of business and enterprises through associations in strategic rations with Cuban music institutions. showcases for Cuban and foreign entrepreneu- markets. 9. Facilitating the presence of leader groups of the rs in the national territory (Cubadisco, Primera 5. market studies associated to Cuban market at international events as well as in the Línea, AM-PM, among others.). musical products in the national as well as in the national and foreign media. 3. Structuring an information programme for Cu- international scenarios. 10. Setting up a system of online bank payment, ca- ban foreign according to the priorities 6. Undertaking exploratory business missions in rrying out alliances with international compa- of musical genres and geographic and idiomatic potential markets. nies that may provide this type of services. zones that facilitates its participation in inter- 7. Designing a and List of music exports for 11. Designing a national directory of musical events national promotion of the Cuban music. Cuban companies and entities also establishing from a systemized information of them in and the connections to join the export portfolio of out of Cuba. MINCEX.

IV.III 1. Designing marketing drives to potentiate the 3. Supporting business projects that contribute 5. Making visible the trademark «Cuba, the Music Contribute to the strengthening of the tra- trademark «Cuba, the Music Island» accompa- with values to the image of Cuba as an exporter Island» in the different strategies and products de mark «Cuba, the Music Island». nied by their respective visibility and communi- country of cultural products and services of a generated as part of cultural and musical tou- cation strategies. well-known trademark. rism. 2. Working jointly with MINTUR in the positio- 4. Enhancing the presence of Cuban music by ning of musical instruments integrating its stra- means of its trademark at most important in- tegies with trade mark potentiated from the mu- ternational music fairs so as to generate the ne- sic industry. cessary alliances that respond to the industry’s investment portfolio.

V. Reinforcing education in the music industry

SPECIFIC OBJECTIVE ACTIONS

V.I 1. Providing continued training of the industry’s 2. Promoting within the training programme in the 5. Promoting jobs for the young people in the Incorporating the Cuba academic system professionals along the country through pe- music industry business subjects such as artist music industry with scholarships and practice to the training of subjects of the music in- riodical workshops or postgraduate courses in management, marketing, digital tools, musical programmes taking experience from of organi- dustry. alliance with CIDMUC, CNSC and the universi- technologies, communication and promotion, zations of music creators like AHS, in its direct ties. production of events, exports, finance, legal ma- relationship with the institutions of the sector. tters and publishers, among others. 6. Systematizing selection and encouragement of 3. Establishing collaboration programmes with in- good practices as well as music management mo- ternational music . dels that constitute successful for 4. Elaborating of the Industry for music their results related to promotion and income professionals.

60 61 VI. Upgrading the technologies and infrastructure of music production

SPECIFIC OBJECTIVE ACTIONS

VI.I 1. Diagnosing the level of technological upgrading 2. Suggesting the making of a specific investment 3. Preparing a business portfolio integrated to the Revert gradually the existing technologi- and obsolescence for production, distribution programme to provide the necessary technolo- national economic strategy that backs the broad cal obsolescence in recording studios and and consumption of music, physical or digital, gic resources to the institutions of the sector in demand for production investment in culture. expand the access to ITs and communica- existing in the country. Identifying the national the country. tions technologies. and foreign counterparts in the production pro- cess, providers of necessary inputs and clients for final goods and services.

VI.II 1. Diagnosing conditions of facilities and spaces of 2. Contributing to planning within the Investment 3. Renewing infrastructure of rehearsal places and Strengthening the live music sector. live performances existing in the country, iden- Programme of MINCULT and ICM, a renewal conditioning of unused centers at present. tify the organizations related to each problem schedule for live performance spaces according 4. Supporting the upgrading of technology of mo- and comprehensively coordinating alternatives to the required technologic levels. bile studios that allow music recording and pro- for solution. duction in live performances.

VII. Reinforcing intellectual

SPECIFIC OBJECTIVE ACTIONS

VII.I 1. Incorporating new tools and technologies to 3. Expand contracts of Representation with 6. Encouraging national institutions, music Strengthening publishers and copyright publishers and copyright management system Foreign Associations. creators and artists to obtain registration and management. considering the prevailing legal framework. 4. Obtaining an increase in licensing of the identification codes of Cuban music pieces as 2. Introducing the monitoring services and uses greatest amount of national and foreign users well as of performances of more musical and of music to its public reproduction in TV, who make use of musical works in the national audiovisual products that will be marketed. radio, digital and live spaces. territory. 5. Promoting institutionalization of management throughout the whole country by means of setting up delegations of ACDAM with territorial sites.

62 63 VIII. Cultural tourism in the music sector

SPECIFIC OBJECTIVE ACTIONS

VIII.I 1. Identifying and inventorying tourist mar- 4. Identifying and promoting jointly with the 7. Designing packages along the Atlas of Consolidating strategies of cultural tou- kets, the potentialities or existing niches in Tourist Agency Paradiso and other tour ope- folk-popular musical instruments of Cuba rism in the music sector. the country to increase in them promotion rators of MINTUR, the targeted tourist mar- (CIDMUC). Combines knowledge and cultu- and commercialization of Cuban music. kets whose preferences for music consump- ral heritage with entertainment and develop- 2. Supporting development of cultural tourism tion may identify them as a specialized niche. ment of music. in particular that related to Cuban music. 5. Designing musical products for tourism (na- 8. Designing jointly with MINTUR and advi- 3. Designing a promotion and consumption tional and foreign), beyond the accessible sory of ACDAM, proposals for the use of mu- strategy of the music within the tourism mar- and universally well-known popular genres sic in these packages generated, taking into ket including performances in hotels facili- including products that comprise all dimen- account to benefit the music creator. ties and in all cultural and institutional - sions of the Cuban music. 9. Making printed materials and in line with in- ces close to tourist . 6. Potentiating popular feasts which are typical formation for in Cuba in diffe- of each province as tourist and cultural pro- rent languages. ducts, especially for musical tourism. 10. Ensure the presence of the music industry at Tourism International Fairs in Cuba and abroad.

IX. Developing the model of music cities

SPECIFIC OBJECTIVE ACTIONS

IX.I 1. Studying the model of Music Cities and identify 3. Joining the international network of music ci- 5. Studying a trademark image for each Cuban Promoting the model of music city. its likely application in Cuba, previously visuali- ties. music city –based on its heritage and musical zed in Havana and in Santiago de Cuba. 4. Promoting tools with other music cities. These scene–, in association with the work deployed 2. Studying the mechanisms required for it to be- connections encourage tourism, facilitate ex- by the Cuban tourist industry to trace joint po- gin operating, its declaration and systematic port strategies of music and provide cities with sitioning strategies with a comprehensive view functioning as well as the legal framework that world acknowledgement as music cities. as a country. backs it.

64 65 Index of abbreviations

Abdala: Abdala productions S.A. ACCS: Cuban Association of Social Communicators ACDAM: Cuban Agency of Music Copyright AHS: Hermanos Saíz Association ARTEX: Cuban Art Products and Services S.A. Bis Music: Bis Music Record Label and Editorial of ARTEX CAGR: Composite Annual Growth Rate CCI: Cultural and Creative Industries CENDA: National Center for Copyright of Cuba CIDMUC: Research and Development Center of Cuban Music CINESOFT: Cuban Enterprise for Informatics and Audiovisual Media for Education CITMATEL: Enterprise of Informatic Technologis and Advanced Telematic Services CNSC: Culture National Training Center Colibrí: Colibrí Record Label and Musical Editorial CREART: Center of Cultural Development and Communication CUBARTE: Information Center of Cuban Culture EGREM: Recording Enterprise and Music Editions GDP: Gross Domestic Product ICIC: Cuban Cultural Research Institute «Juan Marinello» ICM: Cuban Institute of Music ICRT: Cuban Institute for Radio and Television IFPI: International Federation of Phonographic Industry ISAN: International Standard Audiovisual Number ISMN: International Standard Music Number ISRC: International Standard Recording Code KOICA: Korea International Cooperation Agency MINCEX: Foreign Trade Ministry of Cuba

67 MUSIC INDUSTRY’S CONTRIBUTION TOWARDS MINCULT: Ministry of Culture of Cuba INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND» MINTUR: Ministry of Tourism of Cuba ONEI: National Office of Statistics and Information PCC: RTV Comercial: Enterprise for Radio and TV products and services commercialization SDG: Sustainable Development Goals UNCTAD: United Nations Conference on Trade and Development UNDAF: United Nations Development Assistance Framework UNIDO: United Nations Industrial Development Organization WIPO: World Intellectual Property Organization

68 MUSIC INDUSTRY’S CONTRIBUTION TOWARDS INCLUSIVE AND SUSTAINABLE DEVELOPMENT THE CASE OF CUBA «THE MUSIC ISLAND»

70