THE MUSIC COMMISSION TE REO REKA O AOTEAROA

ANNUAL REPORT 2017 - 2018

SUPPORTING THE GROWTH OF THE NZ MUSIC INDUSTRY BOTH CULTURALLY AND ECONOMICALLY, AT HOME AND ABROAD

THE NEW ZEALAND MUSIC COMMISSION TE REO REKA O AOTEAROA

ANNUAL REPORT 2017 – 2018

Contents Introduction 3 Strategic Approach 2016 – 2020 4 Key Highlights 5 Key Projects 8 Initiatives & Results 2017 – 2018 9 Organisational Health & Capability 21 Organisational Goals 22 Financial Results 2017 – 2018 23 Directory 28 The NZ Music Commission Te Reo Reka O Aotearoa is funded by

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 2

INTRODUCTION FROM THE CHAIR

The Music Commission is pleased to report on the year 2017-2018, which was the The digital music market allows ever increasing access to offshore markets for NZ second year of our Strategic Plan 2016-2020 focusing on sustainable music careers artists, and we were pleased to see extensive digital impacts this year across the at home and growing the global opportunities for New Zealand artists abroad. recipients of 46 Outward Sound artist grants, whose social media impact (combined Soundcloud, Songkick, Twitter followers, YouTube views and Spotify plays) total over The presence of New Zealand music on the world stage feels like it has never been 432 million between them. greater. Simply by looking at the number of shows by NZ artists listed in our monthly International News newsletter, we see that in the past year alone there have This year we farewelled our Education Manager Michelle Ladwig Williams, and been 1,333 shows by 94 New Zealand artists across 41 countries. The varying artist welcomed Mike Young to the role. Mike has extensive experience as a Head of genres and territories this encompasses is of particular note, as the numbers show Department, Music, in secondary schools and is bringing a fantastic impact is being made by many artists in many places – and that breadth of creators perspective to the position, which is already showing excellent results. and countries bodes well for the sustainability of our artists’ careers offshore. May 2017 saw the Music Commission take a refreshed approach to NZ Music Month, In the area of sustainable careers at home, the Music Commission was very pleased with a new project team promoting and coordinating the theme ‘Discover New’, and to trial the Industry Internship Programme in 2017-2018, with the financial support of encouraging the discovery of emerging talent and participation in music events. Creative New Zealand for the one-off pilot. The feedback on the structure of the Programme and the results were very positive, with four Interns offered permanent We continued to actively collaborate with other music organisations, and hosted two positions with their Host Organisations and two more undertaking contract work. symposia to consult on the issues and opportunities facing the NZ music sector, ensuring that our strategic imperatives remain up to date and fit for purpose. To secure the future of the Industry Internship Programme, the ongoing delivery of our other industry development programmes, and the ability to further support the It has been a year of stability for the Board, with no changes to the sitting Trustees or increasing number of NZ artists taking their music to the world, the Music officer positions. Our Board self-assessment illustrated continued effectiveness and the Commission was extremely grateful to receive a funding increase from the Board’s willingness for constant improvement. All compliance and documentation Government in Budget 2018. This additional financial input will give the Music review requirements were undertaken and the Board continues to operate with an Commission the ability to do more to create and grow sustainable music careers, open and positive approach. and NZ artists’ international success. We are excited to be able to expand our reach in these areas over the coming four years, and look forward to seeing even more The Board are pleased with the progress made this year towards our overarching great results for NZ artists domestically and internationally. mission, to support the growth of the New Zealand music industry, both at home and abroad. Again this year, almost all of the planned objectives were accomplished, and With the third consecutive year of double-digit growth for recorded music in New the Board commends the Chief Executive, Cath Andersen and the Music Commission Zealand, the local industry has truly transitioned to a digital recorded music market. team for their commitment and enthusiasm in achieving this. As we look to the coming Digital (streaming and downloads) now accounts for more than 70% of music year we anticipate a successful twelve months of supporting NZ artists and music consumption locally, as illustrated in the Recorded Music NZ’s Music Market Report careers in Aotearoa and around the world. 2017. This continued evolution means having a rights framework that values artists and creators is more important than ever, and we look forward to further engaging with the Government as they progress their Review of the Copyright Act in the Victoria Blood, Chairperson coming year.

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 3 STRATEGIC APPROACH 2016 – 2020

The vision of the Music Commission is A successful music industry in New Zealand. FOCUS AREA RESULTS AREA A SUCCESSFUL DOMESTIC CAPABILITY MUSIC The mission of the Music Commission is INDUSTRY Supporting the growth of the New Zealand music industry – INTERNATIONAL BUSINESS IN NZ culturally and economically, at home and abroad. GROWTH

The Music Commission is:

• Contemporary popular music focused • Industry Lead CAPABILITY BUSINESS GROWTH The Music Commission strategic focus areas will be:

Domestic Musicians Mentoring & Bands New Zealand music is part of the national cultural conversation Mentoring in Schools Programmes

New Zealand Music Month International New Zealand music can compete in an evolving and diverse international Supporting significant cultural recognition events music environment DOMESTIC Supporting the Music Managers Forum & Independent Music NZ The Music Commission strategic results areas are:

Capability results Delivering professional development opportunities and resources for the NZ music industry New Zealand music practitioners have the resources and tools for doing better business Facilitating access to offshore expertise

Business Growth Results Outward Sound New Zealand music businesses grow their opportunities and successes International music trade events We believe these result areas are interconnected and positive results in INTERNATIONAL one area will lead to benefits for the others.

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 4 KEY HIGHLIGHTS

Some of the highlights for the Music Commission for 2017-2018 include: • The Going Global Music Summit 2017 hosted over 30 international and 20 local • The Music Commission implemented the pilot the Industry Internship speakers. It was the most successful Going Global to date, with both the Programme with the support of Creative New Zealand, and as a result of the conference and the 12-artist showcase selling out for the first time, and the Programme four Interns have been offered either a full-time or part-time role with speakers testimonials and attendees post-event survey results were very positive, their Host Organisations and two Interns will be contracted on a casual basis. This where over 95% rated the event very good or excellent. is a better outcome than anticipated and reinforces the demand for an ongoing Industry Internship Programme. • The PWC Export Report – Overseas Earnings for NZ musicians 2012-2016 was completed and is available on the Music Commission’s website. • The Musicians Mentoring in Schools Programme was in high demand again, and was oversubscribed by 20% before applications closed in mid-February. 1,660 • The Music Commission supported the Ignite Programme 2018, the music event students across 64 school participated this year, including twenty schools in NZ and production development and mentoring programme for ten 15 – 18 year olds Music Month alone. An additional 243 schools participated in the Bands in Auckland, which this year included a new a music production and engineering Mentoring Programme. stream with four additional placements.

• In partnership with Recorded Music NZ, the NZ Music Commission has helped • Girls Rock! Camp Aotearoa, week-long holiday programme for 40 young women shine a spotlight on music education in Aotearoa through the establishment of the where music is the medium to build confidence, empowerment and foster social Music Teacher Of The Year Award for the NZ Music Awards. The Education change, was held in January. The Music Commission assisted finanically and with Manager developed judging criteria and convened an expert panel of judges. planning, particularly in the areas of health and safety, training mentors, and police vetting of staff and volunteers. • James Constable from Rangiora High School was the overall winner of Hook, Line and Sing-A-Long 2018 for his original song ‘The Smell Of Sunscreen’. The NZ Sign • SongHubs is the APRA AMCOS led initiative, supported by the Music Language video version of the song has had over 3,300 views. At ’s Commission, to grow the songwriting and collaboration strengths of NZ Strum, Strike, Blow event ‘The Smell Of Sunscreen’ was performed by 800 children songwriters. The international writer guests for 2018 were all Nashville based – from 42 schools to a public audience of over 2,000. Kate York, Marc Beeson and Heather Morgan.

• NZ Music Month continued its focus on new music with the theme Discover New. • 36 NZ music businesses, including artists, attended music markets or offshore A new initiative was Going Live – a series of Facebook live-streamed events by music trade events to grow their international business in Australia, USA, the United emerging artists from around the country – with one video from Periri King in rural Kingdom and Poland. Hawkes Bay exceeding 24,000 views. New Zealand content on commercial radio hit a ten-year high of 17% one week during NZ Music Month 2018. • 39 international tours were undertaken by New Zealand artists with the support of an Outward Sound grant. • The NZ Music Month Summit 2018 topic was ‘Confronting Issues in the Music Industry’. The event was at the Herald Theatre in the Aotea Centre on Saturday 26 • The combined social media impacts of the 46 Outward Sound International May, with 8-minute presentations by sixteen speakers across four topics – Women Music Market Grant recipients was 432 million. in the Music Industry, Diversity, Wellbeing, and Regional Isolation.

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 5

KEY HIGHLIGHTS FROM OUTWARD SOUND RECIPIENTS TO 30 JUNE 2018

Alae’s track ‘Too Strung Up’ had a video premier on Rolling Stone Australia Fazerdaze performed at the renowned Coachella Valley Music and Arts and the song was added to many prominent Spotify playlists, earning a place Festival in Indio, California, USA in April 2018, alongside her own string of at #31 on the USA Spotify Viral Chart (in all genres) and #41 on the Global sold out headline club shows. Fazerdaze also performed at Reeperbahn, Way Spotify Viral chart (in all genres). Their video for follow up track ‘Stone Cold’ Back When, Neighbourhood Festival and Iceland Airwaves, alongside a sold- premiered on Billboard.com. out six-date headline tour of Japan, Hong Kong, Indone sia and Taiwan. In the UK, Fazerdaze tracks have been played on Steve Lamacq's ‘6 Music Aldous Harding’s record Party attracted attention from international media, Recommends’, ‘Tom Ravenscroft 6 Music Recommends’ and Iggy Pop’s ‘Iggy including US radio network NPR featuring a track-by-track review of the album Confidential’ show, and BBC Radio 6 Music Steve Lamacq’s Roundtable rated and hosting her as a guest-DJ for All Things Considered. Aldous performed the single ‘Misread’ 9 out of 10. alongside fellow-Kiwi artist Lorde on Later… With Jools Holland, and Party was named #1 on the Rough Trade Albums of 2017 list, #10 on the list for Mojo French for Rabbits single ‘It Will Be Okay’ received a rave review from Magazine and was nominated for the IMPALA (the European Independent Huffington Post. The headline called it ‘Spectacular Dream Pop’ , and the Music Companies Association) Independent Album of the Year Award. Aldous reviewer described the song as ‘exquisite’. also performed a NPR ‘s Tiny Desk Concert, had a feature in US print magazine Interview and in the New York Daily News; and was interviewed on Beats 1 with Kane Strang released his sophomore album Two Hearts And No Brain on Jehnny Beth. Dead Oceans, with BB6 featuring the release as Album of the Day, following an ‘In Session’ with Marc Riley. The worldwide Rough Trade website named Alien Weaponry signed a three-year management contract with -based the record as Album of the Week, and USA music website Popmatters gave a music agency, Das Machine, to represent them in Europe and abroad, and a glowing review. The video for the second single ‘My Smile Is Extinct’ was record deal with esteemed metal label Napalm Records who released their featured on Stereogum, DIY Magazine, Austin Town Hall, Culture Creature, debut album Tū - which gained a million Spotify steams in one month and Pursuit of Dopeness, Thrd Coast and Vulture.com. reached #13 on the international iTunes Heavy Metal Albums chart. The band are booked to play three of the biggest European metal festival – Metal Days Marlon Williams released Make Way For Love, which debuted at #8 on the in Slovenia, Weltturbojugendtage XIV in Germany and Wacken Open Air, also Australia album charts, #60 in The Netherlands and #1 in NZ. Prior to its in Germany. release, US-based The AV Club named Make Way For Love one of their most anticipated albums of February and The Guardian’s Kitty Empire and Joe has signed with UK label WooMe – the label who launched Breen of The Irish Times both giving it 4 out of 5 stars. Marlon also performed Aldous Harding, Nadia Reid and Tiny Ruins in the UK market. Delaney also a NPR Tiny Desk set in February with his band, The Yarra Benders – his third undertook a 15-date support slot performing with Marlon Williams across live to air on NPR this year – and performed live on US television show Conan. Europe in April, alongside his own sold-out run of shows. He undertook a 45+ date world tour promoting the album – and had a queue that went down the street for his official showcase performance at SXSW 2018.

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 6 Montell2099, the hip-hop producer hailing from Katikati, released his debut Theia released her debut EP, Theia, which peaked at #7 on iTunes in Malaysia single, ‘Hunnid on the Drop’ which featured Atlanta rapper 21 Savage (who and #54 on iTunes in Indonesia. On the iTunes Pop charts the EP reached #3 in was featured on the 2016 XXL Freshman class, a highly-regarded list of up- Malaysia, #28 in Indonesia and #97 in Japan. The video for single ‘Roam’ was and-coming rappers). Montell performed at Sound Select shows in Atlanta and on high-rotation on MTV Asia, Channel [V] Asia and VH1 Asia (which has a Los Angeles, at the latter of which 21 Savage joined him on stage to premiere reach of 92 million people). ‘Hunnid On The Drop’. The release was covered by popular lyrics website/hip- hop blog, Genius. The Beths single 'Happy Unhappy' was featured both Stereogum and Substream Magazine, added to Triple J's Best New Music list and was named Nadia Reid performed her first-ever shows in the United States in December by Rolling Stone US as a "Song of the Summer". They completed heir first across the east coast. Nadia received a strong showing in ‘end of year‘ and overseas tour with 17-dates across Ireland, the UK and Europe over May and ‘best of the year’ lists around the world, with Rolling Stone Australia naming June, followed by six shows in the U.S.A her album Preservation #4 on its Top 50 albums of 2017, four of The Guardian’s music writers naming Nadia in their favourite songs and albums of SACHI have signed to legendary American label Casablanca, joining the likes the year and Mojo Magazine (UK) rating her album Preservation #2 on their of Chase & Status and Giorgio Moroder. Best of 2017 list and following up with a multi-page feature. Nadia completed her biggest European tour to date with 34 shows over August and September, Wax Chattels signed to a joint venture between Flying Nun and Captured including a performance of ‘Richard’ on Later … With Jools Holland. Tracks (NYC) worldwide. Their debut single in the deal, ‘In My Mouth’ received a great review on All Songs Considered on NPR, while the second single Noah Slee released his debut album Otherland on Australian label ‘Career’ premiered on The 405. Their self-titled debut album was featured in Wondercore Island. US magazine NYLON premiered the single ‘Radar’ and the Rough Trade Records Album of the Month, and the UK's Loud & Quiet Noah was featured on BBC Radio1 Xtra – a previous single from the album, magazine published an extensive interview with the band. ‘Lips’, featuring Avondale rapper Melodownz, also received regular airplay on the station. That track has been featured on the Majestic Casual YouTube Yumi Zouma released their sophomore album Willowbank in October via channel, with almost 3.5 million followers, played on both Huw Stephens’ and New York based label Cascine and undertook a world tour to promote the MistaJam’s BBC1 radio shows, and positively reviewed on HillyDilly.com. record with shows in Japan, Philippines, New Zealand, Canada, the Netherlands, Germany, Denmark, France and the USA – including two sold-out nomad played at three European festivals, including performing for 13,000 dates in Brooklyn, New York. NPR All Things Considered premiered the first people at Hessentag 2018 in Korbach, Germany. nomad also sold out their single ‘December’. debut London show.

Sam De Jong has co-produced tracks for Thirty Seconds to Mars, Gary Clark Jr and Noah Kahan. The Thirty Seconds To Mars track ‘Walk on Water’ reached #3 on US iTunes, was performed at the 2017 MTV VMAs, was the theme song for College Football TV spots and also used on an exclusive Snapchat filter.

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 7 KEY PROJECTS

The Music Commission's strategic direction is focused on achieving its Mission through undertaking work across focus and result areas. The key projects, which contribute to our Mission, and MCH Outcomes, are:

DOMESTIC MCH Outcome: ENGAGE • Operating the Musicians Mentoring in Schools Programme Engagement in • Operating the Bands Mentoring in Schools Programme cultural activities • Organising NZ Music Month is increasing • Supporting significant cultural recognition events – eg. Waiata Māori Awards, Pacific Music Awards, MMF Awards & • Supporting the Music Managers Forum NZ MCH Outcome: • Supporting Independent Music NZ CREATE • Continuing to monitor emerging income streams, including digital developments Cultural activity • Producing the Official NZ Music Month Summit in partnership with the MMF flourishes in • Participating in and hosting seminars and upskilling events New Zealand • Providing a free legal advice service • Producing the music industry handbook ‘The May Book’ annually • Maintaining a website with a directory of NZ musicians, artist news and resources • Supporting capability growth for NZ music businesses • Contributing toward research on the economic value of the music industry • Providing quarterly reports on the performance of the NZ music industry regarding sales and airplay • Publishing information on key domestic and international events.

INTERNATIONAL MCH Outcome: • Operating the Outward Sound Programme EXCEL • Coordinating and managing the representation of NZ music at international music trade events – eg. The Great Escape, BIGSOUND, Artists and IndieWeek, WOMEX and SXSW organisations • Producing the Going Global Music Summit in partnership with IMNZ achieve excellence • Providing networking opportunities for NZ music businesses with international counterparts i.e. Country Connections • Facilitating Master Classes.

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 8 INITIATIVES & RESULTS 2017 – 2018

Focus / Results Results Quantitative Goals Qualitative Goals Budget ($000) Domestic INITIATIVE 1: Musicians Mentoring & 600 hours delivered of Musician 80% of participants rate the 326 Bands Mentoring in Schools Programmes Mentoring Programmes as having a positive or strong influence in Capability Through the Musicians Mentoring Programme 40 Schools participate in Bands the intended result areas teachers and students develop knowledge, skills Mentoring and understanding of contemporary popular NZ music through a practical based framework in which professional musicians act as mentors in particular schools. Quantitative Results Qualitative Results Actual ($000) 710 hours of the Musicians 81% of participants surveyed 315 Through the Bands Mentoring Programme, in Mentoring Programme were reported positive or strong partnership with Rockquest, competition were delivered across 64 influence in the intended result participants will work with professional musicians with the purpose of gaining practical experience schools, comprising 1660 areas of performance, in performance, and stage and sound students (1808 students from 67 composition, or industry management for live performance. schools in 2016-17, 1787 knowledge. A further 16% rated students from 63 schools in holistic result areas around self- The Music Mentoring Programme is adapting in 2015-16). worth their strongest influence response to the flexibility introduced by last from the Programme (86% in year’s contract variation with the Ministry of 243 Schools participated in the 2016-17, 84% in 2015-16). Education, changing from a 60-school minimum Bands Mentoring Programme, to 600-hours minimum. In 13% of schools, where comprising over 2400 students teachers have been able to demonstrate a need, the Programme has provided additional hours (135 in 2016-17, 80 in 2015-16). for follow up visits and/or deeper learning.

Working with Rockquest, for the second year there was Bands Mentoring at all regional heats (as opposed to previous years where mentoring was only at regional and national finals). This has resulted in greater exposure of the Programme and greater contacts between students and professional musicians.

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 9

MUSICIANS MENTORING PARTICIPATING SCHOOLS & MENTORS 2017 - 2018

SCHOOLS: MENTORS: Auckland Girls Grammar School Palmerston North Girls' High School Anna Coddington Broadwood Area School, Hokianga Pamapuria School, Kaitaia Annie Crummer Edgewater College, Auckland Panguru Area School, Northland Bella Kalolo Excellere College, Whangarei Papatoetoe High School, Auckland Ben King Feilding High School Rodney College, Wellsford Grayson Gilmour Francis Douglas Memorial College, New Plymouth Rongotai College, Jane de Jong Haeata Community Campus, Christchurch Rotorua Boys' High School Jed Parsons Hagley College, Christchurch Ruapehu College, Ohakune Jenny Mitchell Hamilton Girls' High School Sacred Heart Hamilton Girls' College Jeremy Redmore Hatamaria School, Northland Selwyn College, Auckland Jimmy Christmas Heretaunga College, Upper Hutt South New Brighton Primary School, Christchurch Highlands Intermediate, New Plymouth St Bernard’s College, Lower Hutt Hillmorton High School, Christchurch St Hilda's Collegiate, Karl Thomas Hornby High School, Christchurch St. Paul's College, Auckland Kim Halliday Katikati College Tai Wānanga, Waikato Laughton Kora Kuranui College, Greytown Taita College, Wellington Lavina Williams Logan Park High School, Dunedin Tamaki College, Auckland Lisa Tomlins Mahurangi College, Warkworth Boys' High School Louis Baker Mangere College, Auckland Te Kura Kaupapa Maori o te Tonga o Hokianga Majic Paora Manurewa High School, Auckland Te Wharekura o Manaia, Coromandel Malcolm Lakatani Marcellin College, Auckland Thames High School Mark Vanilau Menzies College, Southland Tokoroa High School Matt Barus Motueka High School Tolaga Bay Area School Matt Faiumu Mt Roskill Grammar School, Auckland Verdon College, Invercargill Possum Plows Napier Boys High School Waiheke High School Rio Hemopo Napier Girls High School Waiopehu College, Levin Sacha Vee New Plymouth Boys' High School Wairarapa College, Masterton New Plymouth Girls' High School Waitaki Girls’ High School, Oamaru Tali Sheppard Newlands College, Wellington Waiuku College, Auckland Tipene Harmer Northern Health School, Auckland Wakatipu High School, Queenstown Tommy Nee Onewhero Area School, Waikato Wesley College, Auckland Troy Kingi Otorohanga College, Waikato Whangaroa College, Northland Tyna Keelan

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 10

BANDS MENTORING REGIONS & MENTORS 2017 – 2018

In this year, all schools who entered MENTORS: ROCKQUEST REGIONS: TARGETED TANGATA Rockquest received mentoring through BEATS MENTORS: the Bands Mentoring programme. Annie Crummer Northland - Jeremy Redmore Auckland - Matt Faiumu & Lavina Williams Daffodils North Shore - Jeremy Redmore Bay of Islands - Jimmy Colbert Addtionally, this year we entered into a Dayna Sanerivi Auckland Central - Jeremy Redmore new agreement with Rockquest to Christchurch - Priya Sami Emma Cameron, Decades Manukau - Jeremy Redmore Gisborne - Annie Crummer allow NZ Music Commission to offer Flip Grater Waikato - Jeremy Redmore pre-mentoring to Tangata Beats Kerikeri - Troy Kingi Gana Goldsmith, The Remains Bay of Plenty - Jeremy Redmore Napier - Gana Goldsmith entrants in targeted regions. This Jeremy Redmore Rotorua - Jeremy Redmore yielded first-time entrants Harmonies Otago - Shayne Carter Lavina Williams New Plymouth - Seth Haapu Divergent, from first-time entry school Maddie Parkins-Craig Wanganui - Priya Sami Bay Of Islands College, becoming Matt Faiumu East Coast - Seth Haapu National Finalists. Priya Sami Hawkes Bay - Seth Haapu Ryan Beehre Manawatu - Priya Sami Seth Haapu Wairarapa - Daffodils Wellington - Priya Sami Nelson/Marlborough - Ryan Beehre West Coast - Dayna Sanerivi Canterbury - Emma Cameron & Flip Grater Wanaka - Maddie Parkins-Craig Timaru - Emma Cameron Otago - Maddie Parkins-Craig Southland - Maddie Parkins-Craig

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 11 Focus / Results Results Quantitative Goals Qualitative Goals Budget ($000) Domestic INITIATIVE 2: New Zealand Music Month Volume of music events Social Media engagement 50 occurring nationwide grows as shown through a Promotional activities lead to increased coverage combination of social media Capability celebrating NZ music and the people who create it. Number of traditional media and analytic data Business Growth The purpose of NZ Music Month is to grow stories covering NZ music and awareness of NZ artists, encourage music discovery artists as tracked by an alert of new local music, and encourage growth for NZ system music businesses.

Social media engagement continues to grow, but as noted last year the number of traditional media Quantitative Results Qualitative Results Actual ($000) outlets continues to decline, making this an inexact 1050+ gigs nationwide Facebook likes grew to 13.4k 51 measure (Fairfax alone had 28 titles cease occurred in May (1,001 in 2017 (from 11,600 in 2017, 10,500 in publication this year, leaving 77 in NZ). Tracking what other organisations and people undertook in and 1,200 in 2016) 2016), Instagram followers May to give us insight into engagement, there were grew to 1.5k (from 680 in 2017, 285 activities, events and promotions organised These occurred in over 376 110 in 2016), and Twitter is throughout May (increased from 150 in 2017). venues across 72 cities & stable at 10.1k followers. towns Two new intiatives were the Going Live series of Facebook live-streamed events, with one video from Periri King in rural Hawkes Bay exceeding 680 traditional media stories 24,000 views; and Love Your Local Venue Day track via the alert system (780 which has potential to expand significantly. in 2017, 1,000+ in 2016).

We were pleased that many national promotions

continued for the duration of the month, such as TV One’s One News Late playing 100% NZ music with the weather and announcing the artist, The Project only playing NZ music, RNZ National featured weekly specials and live performances and Jesse Mulligan 1- 4pm started his show daily with a NZ Music Discovery Pick, and the NZ Herald featured the NZ Music Month Sessions, where five artists played a song of their own and a cover of a NZ classic.

For a pictorial overview of the month, please click here to view the final newsletter for May 2018 - http://createsend.com/t/y-5810017C1FF78B33

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 12 Focus / Results Results Quantitative Goals Qualitative Goals Budget ($000) Domestic INITIATIVE 3: Supporting significant That the events such as the That the four events produce 15 cultural recognition events Waiata Māori Awards, the Pacific positive media results and Music Awards the Music provide recognition and Capability Supporting events that celebrate Managers Awards and the Taite coverage to relevant parts of Business Growth excellence in Māori Music, Pacific Music Music Prize continue to be the sector and independent music; to showcase to recognised as culturally the public the importance of their significant events, and supported contribution to the contemporary popular annually by the Music music industry. Commission

It was a great round of results from the Quantitative Results Qualitative Results Actual ($000) awards supported by the Music WAIATA MĀORI AWARDS – All four events showed positive 16 Commission this year, with many artists September 2017: Troy Kingi levels of media coverage in supported by the organisation receiving won the NZ Music Commission 2017-2018 and were well accolades. Best Māori Pop Album award for received within their Guitar Parties at Uncles Bach constituency. Troy Kingi is a long-time mentor for the Musicians Mentoring in Schools TAITE MUSIC PRIZE – April Programme; Aldous Harding and Noah 2018: Aldous Harding won the Slee have both received support through Taite Music Prize for the album the Outward Sound programme and Party offshore trade show programme; and Alien Weaponry had participated in the NZ MUSIC MANAGERS Bands Mentoring Programme and Going AWARDS – May 2017: The NZ Global, and since their award have Music Commission International received an Outward Sound grant. Achievement Award at the NZ Music Managers Awards was won by Niel de Jong, manager of Alien Weaponry

PACIFIC MUSIC AWARDS – June 2016: Noah Slee won the NZ Music Commission Best Pacific Male Artist Award.

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 13 Focus / Results Results Quantitative Goals Qualitative Goals Budget ($000) Domestic INITIATIVE 4: Support Independent The paid membership of IMNZ The MMF and IMNZ will 220 Music New Zealand (IMNZ) and the remains stable or grows provide services, including an Music Managers Forum (MMF) upskilling schedule based on Capability The paid membership of the membership surveys and Business Growth Providing support to independent music MMF remains stable or grows feedback, to benefit both their companies via IMNZ and professional artist memberships and the wider managers through the MMF enables the industry delivery of important industry support and professional development initiatives for the Quantitative Results Qualitative Results Actual ($000) benefit of the wider industry. The paid membership of IMNZ The MMF & IMNZ have 220 has grown this year to 150 engaged their memberships in Both organisations have continued to members (101 in 2016-17, 95 surveys and informal feedback. grow their reach in the past year. in 2015-16) Both organisations showed that members value the The Music Managers Forum have The paid membership of the organisations continued to expanded their upskilling MMF has grown to 245 programme with seminars being added in members (197 in 2016-17, 191 All agreed key performance the Waikato and Bay of Plenty, alongside in 2015-16). measures for both the work they have been undertaking in organisations were met in New Plymouth, Napier and the main 2017-2018. centres. This outreach has been well received with many events in new areas being at full capacity.

IMNZ again hosted Going Local, a multi- centre seminar series designed to help their members build their business locally. This event occurred in the main centres with a seminar and showcasing event in each city, with three of the four events being over subscribed.

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 14 Focus / Results Results Quantitative Goals Qualitative Goals Budget ($000) Domestic INITIATIVE 5: Delivering professional A minimum of five upskilling events At least 75% of upskilling event 95 development opportunities, useful occur annually. attendees rate the events as good or International excellent information & resources for the NZ music That usage of resources is maintained industry or grows annually Capability Supporting and participating in upskilling events across 25% of event audiences or resource Business Growth NZ, from grassroots learning through to higher users are first time attendees or clients professional development opportunities, and producing

practical information and resources, will provide industry A quantifiable figure of the financial practitioners with useful and high quality information value of NZ music is published annually with which to expand their skill base and help to grow

the industry's expertise. Produce the May Book

Facilitating the collection of data relevant to the NZ Provide a free legal advice service music industry will provide the industry (and the Music Commission) with important knowledge about the Quantitative Results Qualitative Results Actual ($000) economic performance of the industry and greater Industry Internship Programme 88% of upskilling event attendees societal benefits of music. Research and development 129 will lead to greater investment, as returns can be better was successfully piloted rated the events as good or

documented. excellent; based on a scale of 1 – NB: includes This year we were part of Girls 10 where events were rated 7 out additional funds from Rock! Camp Aotearoa, Ignite 2018, Creative NZ for It has been another year of good uptake and of 10 or higher (89% in 2017, 81% all four Going Local events, NZ Industry Internship demand for our resources. We continue to be in 2016). Music Month Summit Programme pleased with the feedback for upskilling events. The Resource Section of our Of particular note, with the financial support of website usage has grown 11% Creative NZ we piloted an Industry Internship (-2.57% in 2017,0.3% in 2015-16) Programme, with twelve emerging music 70% of the audiences were first professionals placed at Host Organisations. Four time attendees (70% in 2017, 71% of the Interns were offered employment at the 2016) end of their internship, and a further two have been offered contract work with their Hosts. We The PWC Music Industry Economic intend to continue this programme for the next Contribution Report & PWC Export two years. Report were published

We increased the print run of the May Book by The May Book was published with 10% to meet the demand we experienced the 3,800 copies

previous year. We may need to look at another The free legal advice service was at increase in volume for 2019. 100% capacity for the year.

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 15 Focus / Results Results Quantitative Goals Qualitative Goals Budget ($000) International INITIATIVE 6: Creating access to offshore At least 50 NZ music businesses At least 70% of attendees / 50 expertise, networks and upskilling participate per annum. participants surveyed rate their opportunities satisfaction with events as good Capability Facilitating opportunities for international Three local companies or excellent Business Growth specialists to pass on knowledge to local undertake an intensive business music businesses via seminars and development programme That experts participate in networking opportunities will enable NZ upskilling or networking artists and professionals to make more opportunities annually in NZ informed plans and decisions with regard to and offshore providing useful overseas market initiatives, improving their information and contacts chances of success. Quantitative Results Qualitative Results Actual ($000) Participation in upskilling or networking Over 150 NZ music 95% of attendees rated their 15 opportunities annually, both in New Zealand businesses participated in the satisfaction with events as very and offshore, provides useful information and Going Global Music Summit good or excellent; based on a contacts for NZ music businesses. 2017 scale of 1 – 10 where events were rated 7 out of 10 or The Going Global Music Summit 2017 was CONTROL did not occur in higher (87% in 2016-17) the most successful yet, with the conference 2017-2018. sold out a week in advance and the Going 31 international speakers Global Presents showcase also selling all participated in the Going tickets. The feedback was very positive with Global Music Summit 2016 (22 almost all attendees stating they could use in 2016). the information they heard.

Unfortunately, CONTROL did not occur. This was due to funding changes within the Australian Government and the Australian Music Industry Network (AMIN). There are plans to relaunch in the future with new partners.

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 16 Focus / Results Results Quantitative Goals Qualitative Goals Budget ($000) International INITIATIVE 7: Operation of the Outward Four funding rounds are held Artists we work with internationally 440 annually and independent audits receive greater coverage and Sound Programme are undertaken for a minimum of engagement Capability Through providing a robust and transparent grants two completed projects Business Growth assistance programme that invests up to 50% of Four applicants take part in a 100% of projects funded through survey to assess the funding costs for representatives or artists to undertake offshore music market initiatives, NZ music Outward Sound have robust plans process and management of the projects will have an increased chance at success and demonstrate capability to programme in overseas markets, foreign exchange earnings achieve increased overseas from NZ music will increase, and the profile of NZ earnings music in international markets will improve. Percentage of Outward Sound recipients offered subsequent There were 61 Outward Sound grants approved international opportunities in 2017-2018. These were 46 International Music Market Development Grants, five Business Development Grants and ten Delegate Trade Quantitative Results Qualitative Results Actual ($000) Show Grants. Between the recipients of Outward Four funding rounds were Between the recipients of 46 499 Sound grants there were 39 international tours undertaken and an independent Outward Sound International undertaken (37 in 2016-17). audit was completed for four Music Market grants in 2017-18, projects the social media impact (combined The high level of social impacts is particularly Soundcloud, Songkick, Twitter impressive – although 10% lower 2016-2017, the 100% of projects funded through followers, YouTube views and previous year’s recipients included two artists who Outward Sound had robust plans Spotify plays) total 432 million had 100m impacts each. This shows the spread and demonstrated capability to (470m in 2015-16) and volume of artists having impact offshore is achieve increased overseas Please note this does not include growing considerably. earnings songs that were co-written or produced by successful applicants There has been a noticeable increase in artists 91% of Outward Sound recipients being signed to significant offshore independent who have completed their projects Five applicants took part in a labels, which is conceivably a sign of New have been offered subsequent survey to assess the funding Zealand’s growing reputation as a source of international opportunities (91% in programme and no concerns were repertoire. This also illustrates the impact of 2016-17). raised, with positive feedback representation at offshore trade events, and the about moving to online benefit of hosting members of the international applications. industry in New Zealand at Going Global.

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 17 OUTWARD SOUND RECIPIENTS 2017 - 2018 INTERNATIONAL MUSIC MARKET DEVELOPMENT GRANTS for expansion of operations in the US, Europe, Australia and The International Music Market Development Grants provide assistance for market exploring new territories including parts of Asia and Canada. development initiatives to encourage the entry of New Zealand music and musicians into global markets. New Zealand music industry practitioners (artists, managers etc) French For Rabbits for UK/European tour to promote new album The Weight of and firms (record companies, associated businesses) can apply for assistance. The Melted Snow. programme is inclusive of music from all genres, styles and niches and applicants may target relevant markets around the world. The 46 sucessful grant applications in 2017- Graeme James for a 6-date tour of East Coast Australia to promote the release of 2018 were: single 'Wish You Well'.

Alae for PR in the United States following the success of their single ‘Too Strung Up'. Great North for a 20-date European tour to support the release of new album The Golden Age. Albi and The Wolves for an Australian tour around the Woodford Folk Festival in , Australia. Hangar 18 for an 11-date tour of the Philippines with an additional show in Hong Kong and one show in Australia. Aldous Harding for touring in North America, Europe and Australia in the second half of 2017 supporting the release of the album Party. Haven Records for PR in the UK, Europe, US and Asia for each of the six Haven Records releases in 2018. Alien Weaponry for a 58-date UK/Europe/Australia tour including four festival dates and supports for Nervosa, in support of debut album release, Tū, on Napalm Records. HEX for a 3-week US tour including showcase performances at SXSW 2018.

Anika Moa for performing at Folk Alliance International Conference 2018. Jonathan Bree for an 18-date UK/Europe tour over August and September to support release of new album Sleepwalking on Lil' Chief Records. Bakers Eddy for a tour of Germany and a performance at The Alternative Great Escape in the UK. Kane Strang for a UK and European headline tour in November 2017.

Bespin for performing official showcases at BIGSOUND 2017 in Brisbane, Australia. Kaylee Bell for meetings and co-writing session in Nashville, USA, and a performance at CMC Rocks Festival in Brisbane in March 2018. Delaney Davidson for a 15-date UK/Europe tour supporting Marlon Williams and own headlining shows, including showcasing at The Great Escape 2018. Lil' Chief Records for support the international release and marketing of five albums to be released in 2018. Donna Dean for a 5-week tour of the USA including showcasing at Americana Festival. Louis Baker for an 18-date tour across the UK/Europe including showcasing at The Fazerdaze for showcases at industry tradeshows throughout Europe followed by tour Great Escape and songwriting sessions in the UK and Los Angeles, USA. dates in the USA. Fazerdaze for a 5-date tour of the USA including two performances at Coachella Marlon Williams for a headline tour of North America, SXSW showcases, and support Festival. for Brandi Carlile promoting the album release of Make Way For Love. Marlon Williams for performances in the UK, Europe, the USA and Australia.

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 18 INTERNATIONAL MUSIC MARKET DEVELOPMENT GRANTS Cont Theia for a business and songwriting trip to Los Angeles and New York City.

Mel Parsons for a 2-month North American tour. Tiny Ruins for a US tour including Marlon Williams supports, headlining shows and showcasing at SXSW 2018. Merk for an Australian tour including official showcases at BIGSOUND 2017. Merk for an 11-date Australian tour supporting Cub Sport coinciding with the reissue Ulcerate for a European tour in support of 2016 album Shrines of Paralysis. of the album Swordfish on Dew Process. Wax Chattels for a tour of Japan, China and Taiwan. Miss June for a 10-date Australian tour in anticipation of the release of debut album, Wax Chattels for a 23-date UK and US tour in supporting their debut, self-titled album Bad Luck Party. on Flying Nun/Captured Tracks.

Montell2099 for a North American trip for songwriting sessions and 10-date tour Yumi Zouma for a tour of UK, Europe, North America and Asia supporting the October including headline shows and support slots for BoomBox Cartel. 2017 release of Willowbank.

Nadia Reid for a headline tour of Europe followed by shows in the USA. BUSINESS DEVELOPMENT GRANTS Noah Slee for a 9-date European tour in support of recent album Otherland on The Business Development grant enables up to two representatives to undertake a Majestic Casual/Wondercore Island. market development visit. This involves travel to meet with companies and create opportunities. It supports managers, artists, and companies undertaking business-to- Nomad for a 3-date festival run in Germany including Hessentag Festival and business meetings as well as attending tradeshows and associated events. The Schlossgrabenfest and two club shows in London. recipients of Business Development Grants in 2017- 2018 were:

Princess Chelsea for a 20+ date UK/Europe tour in support of the release of upcoming Gregory Haver NicNak Media L.A. Women album The Loneliest Girl on Lil' Chief Records. Flo Wilson Delete Media

Raiza Biza for performances in France, the Netherlands and Belgium. OUTWARD SOUND INTERNATIONAL DELEGATE GRANTS SACHI for performing multiple shows across Australia. The Delegate grants enables one applicant per company to attend a supported tradeshow. The current supported tradeshows are BIGSOUND, WOMEX (World Music Samuel Longmore for a 2-week residency at Magnet Studios in Melbourne to develop Expo) and Folk Alliance. The grants offer successful applicants 50% recoupable support live performance in association with Avantwhatever. (up to an event specific value) to cover flights, accommodation, registration and per diems. The recipients of International Delegate Grants in 2017-2018 were: Sola Rosa for writing, collaborating and up-skilling trip to work with UK artists. BIGSOUND WOMEX FOLK ALLIANCE The Beths for a 17-date UK/Europe tour and 6-date US tour in anticipation of album Aston Road Hinurewa Hau Erin Cole-Baker Future Me Hates Me to be released on Carpark Records. NicNak Media Ltd Ngatai Huata Milly Tabak Southbound Posenai Mavaega The Echo Ohs for a 24-date US tour including Goner Festival and support for The WhySquare Ltd Rob Thorne Make-Up.

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 19 Focus / Results Results Quantitative Goals Qualitative Goals Budget ($000) International INITIATIVE 8: Coordinating and managing the Number of NZ music Increase in volume of social 120 representation of NZ music at strategically businesses (including media metrics for artists identified international music trade events artists) that attend music attending or represented at Capability markets or trade fairs to international trade events. The offshore business potential for NZ music businesses Business Growth showcase artists and will be increased through a coordinated, professional and territory-relevant national representation promote NZ as a source of Volume of new business promoting NZ as a source of repertoire. repertoire connections reported by attending NZ music There was significant interest from New Zealand A minimum of four businesses companies and artists to attend offshore trade events international trade events to grow their business this year, and almost all host a NZ presence attendees reported that the events provided new business connections. This year was the first

coordinated NZ representation at Folk Alliance Quantitative Results Qualitative Results Actual ($000) International in Kansas, USA. Three other trade events 36 NZ music businesses All 16 showcasing artists 109 will be investigated for next year, due to demand from (including artists) attended (noted in bold) received NZ music businesses. music markets or trade fairs growth in their social media to showcase artists and impacts in the past year, BIGSOUND – Brisbane, Australia: Aston Road, Bespin, promote NZ as a source of most noticeably Marlon BurgerFuel, Decades, LOOP, Merk, Moses Robbins, repertoire (33 in 2016-17) Williams rising from 4.9m to NicNak Media, October, OUSA, Page One Mgmt, 15.2m total impacts we Southbound, Teresa Patterson, WhySquare, Yoko Zuna 5 international trade track, and Louis Baker

WOMEX – Katowice, Poland: Hinurewa Hau, Ngatai events hosted a New increasing from 4.6m to Huata, Posenai Mavaega, Rob Thorne Zealand presence this year 12.3m (5 in 2016-17). FOLK ALLIANCE – Kansas, USA: Anika Moa, Erin Cole- 93% of the recipients of Baker, Milly Tabak (The Milltones) delegate grants to attend offshore trade events SXSW – Austin, USA: HEX, Intent Management, Marlon reported new business Williams, NicNak Media, Noah Slee, Pennie Black connections as a result of Artist Services, Tiny Ruins their attendance.

THE GREAT ESCAPE – Brighton, UK: Bakers Eddy, Delaney Davidson, Homespun Music Management, Louis Baker, NicNak Media, TEEKS, Yukon Era.

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 20 ORGANISATIONAL HEALTH & CAPABILITY

The Music Commission has a small staff and recognises that its The organisational structure for the NZ Music Commission in 2017-2018 was: people are its greatest organisational asset. Board Of Trustees The Chief Executive manages the operations of the organisation, with input from two senior managers. Additional staff work in each outcome area. The full-time Chief Executive equivalent (FTE) staff in the past financial year has been 6.2, including financial management – a reduction of one staff member from the previous year. During Finance Manager Education Manager International Manager the past twelve months ad-hoc contractor positions have been created to fill gaps in human resource. Executive Support Education Assistant & International Social Media Coordinator In the coming financial year, a more permanent staff structure will be Administration Assistant implemented.

Organisational Health & Capability Goals

Goal 1: The Music Commission has a • The Board undertake an annual self-assessment to evaluate the effectiveness of its governance. Achieved committed and capable Board of • The Board reviews its make-up to ensure the right balance of skills as vacancies arise. Achieved Trustees that effectively governs the • The Board reviews its policies and procedures on an annual basis. Achieved organisation.

Goal 2: The Music Commission is • All staff will have training opportunities and performance reviews annually. Achieved committed to being a good employer • That staff turn over is no more than 1.5 FTE annually. Achieved – focusing on retention of staff and 0.8 FTE providing equal opportunities to staff. • The Music Commission will develop a formal diversity policy for the staff and Board. Achieved

Goal 3: Our office environment is safe, • Business Continuity Planning is part of the ongoing life of the organisation and reviewed annually. Achieved well maintained and fit for purpose. • Zero tolerance is maintained for harassment or bullying and all staff are aware of the serious Achieved misconduct policy. • Any safety hazards issues are dealt with promptly and reported in a document controlled file. Achieved

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 21 Organisational Goals

Goal 1: The Music Commission will • The Music Commission identifies common goals with other • Achieved & Ongoing. Regular meetings with collaborate with other agencies, both agencies and where appropriate participates in partnerships for NZ On Air & Creative NZ continue. government and non-government, to service provision. provide services to support the • The Music Commission continues to collaborate with • Achieved – particularly around NZ Music growth of the music industry in New government organisations that work with contemporary popular Month 2018. Zealand where appropriate. music.

Goal 2: The Music Commission will • The Music Commission will host external industry representatives • Achieved May 2018. consult with the wider industry on an every year, either in small focus groups or wider forums, to gain annual basis to ensure our strategic insight into sectoral issues and opportunities. goals are aligned with the current • The staff and Board will be proactive in their roles as • Achieved & Ongoing. environment. ambassadors for the Music Commission and provide feedback and ideas to inform the organisation’s strategic framework.

Goal 3: The Music Commission • The Music Commission advocates for greater investment in • Achieved – Budget Bid 2018 completed and explores opportunities for increasing contemporary popular music, particularly to support New accepted by Government. its income to leverage on the current Zealand music businesses in the global market. international spotlight on music from New Zealand.

Goal 4: The Music Commission • The Music Commission investigates and executes at least one • Achieved – WOMEX and Folk Alliance with explores opportunities for joined-up contract for joined-up purchasing with a supplier. Sounds Australia. purchasing of services for the • The Music Commission collates information on the most organisation, and where applicable, commonly used offshore suppliers and provides this information • Achieved & Ongoing. the sector as a whole. to NZ music businesses.

Goal 5: The Music Commission and • The Music Commission gains a minimum of three domestic and • Achieved – The Orchard, PROChile, its Board of Trustees continue to three international financial or in-kind sponsors per annum. BIGSOUND; Auckland Council, ATEED, explore opportunities to partner with Flying Fish, Vodafone and Music Works. external organisations. • The Music Commission undertakes a minimum of five • Achieved - Going Global, Going Local, partnership projects with shared financial input. SongHubs, Ignite, PWC Export Survey & Annual Report, NZMM Summit.

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 22 FINANCIAL STATEMENTS FOR THE YEAR ENDING 30 JUNE 2018

Variances of Note

• The Music Commission undertook a partnership with Creative New Zealand to pilot the Industry Internship programme. Creative NZ invested $114,000 into this project, which is reflected as a positive income variance in the accounts (please note: $108,160 was utilised in the 2017-2018. This is because of the unpaid Intern Fees as at 30 June 2018 where the balance of the Grant was transferred to Deferred Income ($5,840) to cover the Intern Fees in July 2018).

• The largest variance to budget for the year is due to Rockquest Promotions. Rockquest negotiated an increased contribution of $300,000 from the Ministry of Education, which is being delivered via our outcome agreement with MoE. The Music Commission acts as the monitor for this agreement. This additional income has zero net effect on the end of year financial position.

• RELEASE, the intensive six-stage upskilling programme focused on developing independent record labels, did not occur. This was due to the cancellation of funding for both the RELEASE (for independent labels) and CONTROL (for music managers) programmes in Australia. Although it is anticipated they will be replaced with an integrated programme for both managers and labels called Phoenix, this did not occur the 2017-2018 financial year.

• Additionally, a decision was made not to appoint a new Projects and Communications Coordinator in the medium term. This role was fulfilled by contractors and existing staff on an ad-hoc basis.

• Again in 2017-2018, there was significant demand for Outward Sound to support genuine opportunities. After completing the reforecast in quarter three, the Board decided to utilise some of the savings from the significant positive variances for the Outward Sound grants programme.

• Savings were made across the year in the general budget by continuing to minimize costs where possible.

• Overall, the Music Commission performed well against budget in 2017-2018 and is in a positive cash position for the coming year.

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 23 Auditors Report

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 24 Consolidated Statement of Financial Position For the year ended 30 June 2018

2018 2018 2017 Variance

Actual Budget Act v Bud CURRENT ASSETS Cash and cash equivalents 120951 255463 277404 (134512)

Short-term Investments 526169 226340 226969 299829

Receivables (from exchange transactions) 14890 13882 56741 1008

Recoverables (from non-exchange transactions 160936 153525 169568 7411

Prepayments 3920 2833 7451 1087

Income Taxation 5911 4807 - 1104

Other Current Assets 6635 13829 1647 (7194)

Total Current Assets 839412 670679 739780 168734

NON CURRENT ASSETS Investments - - - 0

Property, Plant & Equipment 2895 9103 4854 (6208)

Intangibles 25858 25858 25858 0

Deferred Taxation 22699 - 18820 22699

Other Non Current Assets - - - 0

Total Non Current Assets 51452 34961 49532 16491

TOTAL ASSETS 890864 705639 789312 185225

CURRENT LIABILITIES Cash and cash equivalents (bank overdraft) - - - 0 Payables (from exchange transactions) 34551 99549 35353 64998 Deferred Revenue 5840 - - (5840) Employee Benefit liability 66324 57686 63208 (8638) Accruals 25524 23100 23977 (2424) Non-exchange liabilities 344257 210199 250445 (134058) Income Taxation - - 5230 0 Other Current Liabilities - - 3843 0 Total Current Liabilities 476496 390534 382056 (85962)

TERM LIABILITIES Total Term Liabilities - - - - TOTAL LIABILITIES 476496 390534 382056 (85962)

TOTAL NET ASSETS / EQUITY AND LIABILITIES 414368 315105 407256 99263

Represented by;

TOTAL TRUSTEE FUNDS 414368 315105 407256 99263

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 25 Statement of Comprehensive Revenue & Expense For the year ended 30 June 2018

TRADING ACCOUNT 2018 Budget Variance Income: NZMC Contributions 15000 17500 (2500) Dividends and Interest Received 18027 17737 290 Government Grants 1246156 1138000 108156 Services / Fees 15300 12500 2800 Other Income 11481 11300 181 1305964 1197037 108927 EDUCATION Contributions - - - Government Grants 572000 267000 305000 Services / Fees - - - Other Income 19 - 19 572019 267000 305019 OUTWARD SOUND Government Grants 440004 440000 4 Other Income - - - 440004 440000 4

Total Income 2317987 1904037 413950

Less: Deductible Expenditure NZMC Salary & Wages 365771 411039 45268 Personnel Expenses 68718 41381 (27337) People Expenses 140972 80870 (60102) Administration Expenses 68356 68411 55 Communication Expenses 8046 9012 966 Manufacturing / Resources 26496 18747 (7749) Professional Services 35085 34444 (641) Property Expenses 44324 46949 2625 Repairs and Replacements 8632 2982 (5650) Events 44832 58150 13318 Education & Research 26690 28335 1645 Advertising & Promotions 334114 375095 40981 Other Expenses 4999 2780 (2219) 1177035 1178195 1160 EDUCATION Salary & Wages 107419 112276 4857 Personnel Expenses 6952 7676 724 People Expenses 97157 100790 3633 Administration Expenses 3989 4182 193 Communication Expenses 2297 2504 207 Manufacturing / Resources 827 800 (27) Professional Services 378952 84196 (294756) Property Expenses 12444 12437 (7) Repairs and Replacements 74 44 (30) Events 54 - (54) Education & Research 261 120 (141) Advertising & Promotions 4195 7250 3055 Other Expenses 87 - (87) 614708 332275 (282433)

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 26 OUTWARD SOUND Instant Action Fund - - - Travel & Accomodation - Domestic (3592) 9091 12683 Travel & Accomodation - International 406340 368615 (37725) Administration 23192 27995 4803 Production 40052 17272 (22780) Events 4576 5168 592 Advertising & Promotion 28219 11860 (16359) 498787 440001 (338446)

Total Deductible Expenditure 2290530 1950471 (340059)

Net Profit/(Loss) Before Taxation 27457 (46434) 73891

Taxation - Current Year 5182 - (5182)

Net Profit/(Loss) After Taxation 22275 (46434) (68709)

Less: Non Deductible Expenditure NZMC 14160 11349 (2811) Education 1003 1512 509 Outward Sound - - -

Total Non Deductible Expenditure 15163 12861 (2302)

TOTAL COMPREHENSIVE INCOME 7112 (59295) 66407

Consoldiated Statement of Changes in Net Assets/Equity

For the year ended 30 June 2018

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 27 DIRECTORY

Board of Trustees: Staff: Address:

Victoria Blood – Chairperson Cath Andersen 7 Great North Road WeCreate / Music Consultant Chief Executive Ponsonby Auckland 1021 Paul McLaney – Deputy Chairperson Alan Holt Artist & Native Tongue Music Publishing International Manager P O Box 90-891 Victoria Street West Greg Bonnett Mike Young Auckland 1142 Business Development, ANZ Bank Education Manager

[email protected] Vicki Walker Lorraine Barry www.nzmusic.org.nz Owner, Lorraine Barry Management Finance Manager

Ph: 09 3760115 Matthew Davis Rebekah Ngatae Fax: 09 3760116 Flying Out / Flying Nun (joined Sep 2017) International Coordinator Freephone: 0800 469 642 Nick Atkinson Emily Crowther Artist, Manager & Journalist Executive Support & Projects

Scott Maclachlan Angel Guan Director, Saiko Management Education Assistant & Social Media Retired April 2018 Jade Keywood Ria Hall Administration Officer Artist

Wairere Iti Music Managers Forum NZ Retired May 2018

NZ MUSIC COMMISSION ANNUAL REPORT 2017 – 2018 PAGE 28