THE SOCIO-ECONOMIC CONTRIBUTION OF MUSIC TO THE IRISH ECONOMY

Summary Report

THE SOCIO-ECONOMIC CONTRIBUTION OF MUSIC TO THE IRISH ECONOMY SUMMARY REPORT 2 SCALING UP – THE OPPORTUNITY FOR IRELAND’S MUSIC INDUSTRY

THE IRISH MUSIC INDUSTRY CONTRIBUTES: THE SECTOR SUPPORTS

€291m Core Music Industry 9030 Direct €473m €88.6m Consumer Spending to the Irish economy 2480 Indirect €93.8m Music Supply Chain 11,510 Jobs

WE PURCHASED... HOWEVER, TO CONTINUE GROWTH OF THE CHALLENGES SECTOR AND ITS ECONOMIC & SOCIAL INCLUDE CONTRIBUTION IMRO RECOMMENDS: A FALL OF

RECORDED Creating a Music Industry Appointing an MUSIC SALES Taskforce to advise on Intellectual Property Music Policy Tsar to consider IP & FROM M IP copyright legislation 3million TO M music CDs

Establishing a new Investing in a music music offi ce – WE LISTENED TO education programme 7. 3m 1.1m “Music Ireland” Single Album Downloads Downloads €72M

Digital sales growth in Ireland has been c. 14% per €33M Closer co-operation annum over the same period Ensuring tax reliefs are

3 billion effi cient & effective between tourism, tech, hours of radio €8m €13m % gaming & music 2008 – 2012

2012 Figures - Source Delotte & CSO Deloitte was commissioned by the Irish Music Rights Organisation (IMRO) to undertake a study that assesses the socio-economic contribution of music to the Irish economy.

The scope of the study was to present estimates of the size of the industry and the way it contributes to the Irish economy and society, based on available secondary source data as well as primary information from stakeholders. The study also considered ways in which the contribution of music in Ireland might be maximised with respect to short, medium and long- term time horizons.

As part of the study, Deloitte met with a cross section of industry professionals from across the music sector in order to obtain their views on the current state of the Irish music industry and how it could be developed. In addition, IMRO conducted an online survey of its members which received over 300 responses. Deloitte and IMRO would like to thank all of those people for their contributions to the study.

This summary report draws on the detailed Deloitte report which is available at www.imro.ie.

Sinéad O’Connor

4 FOREWORD

ed Sails in the Sunset and You the USA, hugely successful dance shows In the twentieth century, the production Raise me Up: what do they have in with choreography by Michael Flatley and and consumption of music had to adapt common? Both these worldwide hits music by Ronan Hardiman, and successful from the listener’s actual presence in the Rwere co-written by Irishmen, Jimmy foreign tours by Little Green Cars, Kodaline, same room as the musicians and singers, Kennedy and Brendan Graham, and they Ryan Sheridan, Villagers, Altan, The Script, through broadcasting, recording, the serve to bookend half a century of Irish The Coronas, Damien Rice, Snow Patrol, long-playing record, TV and the cassette music creativity. Before considering Delorentos, Two Door Cinema Club, and tape to the advent of digital in the early today’s industry, it’s worth reminding international interest in The Riptide 1990s. The combination of digital music ourselves of something that we take for Movement, Hozier, Walking on Cars, SOAK, and the internet provides both a threat granted: the breadth, depth and history All Tvvins, Rosie Carney, Bleeding Heart and an opportunity to the music industry of a successful music industry. Pigeons, Gavin James, Hudson Taylor, worldwide. The threat is well-known: Daithí, And So I Watch You From Afar and theft and piracy on an industrial scale Thus, Ruby Murray’s many British chart ORB. that have led a generation to believe that hits in the 1950s fi nd an echo today in Irish music crosses all genres: the late music – along with books, software, fi lms Sinéad O’Connor, Eleanor McEvoy, Mary Rory Gallagher still sells signifi cant and games – is free. The opportunities are Black, Mary Coughlan, Imelda May, quantities of blues albums; Sir James less well-known: the Irish Music Rights Heathers and Dolores O’Riordan. Thus Galway and John Feeley grace the world’s Organisation has commissioned this Seán Ó’Riada’s Mise Éire is paralleled by concert stages; Louis Stewart is one of the report by Deloitte in order to provide a Riverdance, historic works that re-defi ne leading guitarists in world jazz; Nathan positive focus on what Ireland’s decision- Irish music. The Clancy Brothers’ infl uence Carter, Jimmy Buckley and others keep the makers, together with the industry itself, on Bob Dylan in Greenwich Village in the country fl ame burning. Gerald Barry, Shaun can do to assist creators and creativity. early ‘60s is well-known. Less well-known Davey, Roger Doyle and many others have Ireland is blessed with an abundance of is the chart success abroad of Frankie their work performed here and abroad. creative talent – we are well represented McBride, Joe Dolan, Larry Cunningham, We have won more Eurovisions than any on the world stage in every genre of The Real McCoy and Van Morrison in the other country. And there is music in fi lms, music. Decision-makers must consider ‘60s. The Dubliners, Thin Lizzy, The Furey children’s television and games, in all how best to nurture this talent. There Brothers, The Boomtown Rats, U2, Enya, genres, that has been written by IMRO will be dividends: as well as helping our Van Morrison, Clannad, Moving Hearts, writers. nation’s fi nances, music is also good for our The Chieftains, Rory Gallagher, Paul Brady, It would be quite possible to continue collective soul. Boyzone, Westlife, The Undertones, Ronan listing Irish music successes so the above is Keating, Christy Moore and others have not defi nitive. Suffi ce it to say that Ireland’s The time for action is now... featured in foreign charts from the 1970s to reputation abroad is entwined with music. date. Our tourism industry acknowledges the Keith Donald Nowadays, it’s Once on Broadway, unique attraction of Irish music. It’s an MA, Dip Soc Sc, DASS, CQSW Riverdance worldwide, Celtic Woman in integral part of our identity. Chairman of IMRO

5 SUMMRY

Hozier

6 reland is famed for both the relationship with sectors such as tourism sectors in the economy, and sets out a richness of its musical heritage and technology. framework for increased collaboration and and the remarkable vibrancy of its Part 1 of the report sets the scene, knowledge-sharing. Icontemporary music scene. Irish folk assessing the current economic and If successfully implemented, it is music is widely played around the world, social landscape for the music industry in estimated that the initiatives discussed while contemporary artists such as U2, Ireland. Part 2 discusses changing industry could boost the music industry’s gross Sinéad O’Connor, The Script, Imelda dynamics and behaviours. And Part 3 sets value added (GVA) by between 5% and May, Kodaline and most recently Hozier out the vision for the way forward. 8% and increase industry employment are instantly recognisable, generating A key recommendation of the report by between 6% and 9%1. The parameters signifi cant value for the Irish economy is the formation of a Music Industry used represent a realistic and attainable and promoting the country effectively to Taskforce for Ireland, mandated to contribution toward the industry in a tens of millions of music lovers. bring together stakeholders, in order given year, but in the event of one or more to encourage participation and drive major success stories or a step-change in However, behind those headline momentum. policy the impact could be much greater. success stories, the Irish music industry The Taskforce would formulate a policy The Irish music industry is a dynamic is struggling to realise its full potential. framework in six key areas: and thriving part of the Irish economy. It is The sector’s contribution to Ireland’s also a vital component of Irish society and economic and cultural life is substantial, • fi nance culture. Left alone, it will continue to play but it is being challenged variously by • market access a vital role – but with the co-operation of advancements in technology; by evolving • intellectual property policy makers and business leaders it has industry dynamics; and a failure to realise • education and training the potential to do even more. By building its true potential at home and abroad. • access to innovation on its existing success, it can both boost With that as a backdrop, this report aims • innovation, clusters & collaboration. jobs and earnings and bolster Ireland’s to set the agenda for: (a) invigorating the creative credentials on the global stage Irish music industry afresh; and (b) helping Looking closely at these six areas, the These objectives will also dovetail with it to develop to its full potential. To achieve report makes policy recommendations plans for Culture 2025: i.e. the forthcoming these objectives, increased co-operation and offers new ideas designed to boost National Cultural Policy for Ireland. will be required across the board – between the industry. The report also proposes a We believe that this report comprises those working in music; potential number of tax and legal changes, including an essential resource for everyone who is investors in both infrastructure and talent; the appointment of an ‘IP Tsar’ who will concerned with the development of the and the relevant government departments consider the impact of IP and copyright music industry in Ireland, including all of and agencies. The report is ambitious in its legislation and enforcement on both the the government departments and bodies scope, discussing the social and economic creative and technology industries. Our prognosis is that, working together, impact of music on the Irish economy, Finally, the report assesses the wider great things can be achieved. We welcome and taking into account music’s vital impact of the music industry on related feedback and comments.

1. Gross Value Added is essentially a sectoral measure of GDP contribution. It eliminates the double counting in turnover which will inevitably occur within an industry as one organisation’s revenue is another’s cost. 7 IRELAND’S MUSICAL HEART MUSIC IS PART OF WHAT WE ARE - SHAPING OUR IDENTITY, ENRICHING OUR COMMUNITIES AND DRIVING OUR ECONOMY.

Gemma Hayes

8 MUSIC IS THE BEATING HEART OF IRELAND

Ireland is a musical nation, with a rich made an aggregated ‘narrow’ economic ...BUT ITS CONTRIBUTION heritage of songs and melodies and a wide contribution of €473 million to the IS DIMINISHING repertoire across all modern genres. economy in 2012, or around 0.3% of GDP. Music plays a central role in community The music industry is also responsible As this report confi rms, new technologies, and offi cial life here. Organisations such for 11,510 (full-time equivalent) jobs, changing consumer behaviours and gaps as Comhaltas Ceoltóirí Éireann are hugely taking into account direct and ancillary in public policy mean that, while music active in promoting Irish music and employment. Given that many performers plays an integral role in Irish society, its culture. In 2013, the Fleadh Cheoil attracted work part-time and have other sources economic potential has yet to be fully over 10,000 musicians and 430,000 people of income, the number of people making realised. to Derry, making the event one of the at least part of their living from music is Certainly, the relative economic largest cultural festivals in the world2. considerably higher. contribution of the music industry to the The music industry also makes a Irish artists – from traditional players like Irish economy has been diminishing, and signifi cant contribution to the Irish The Chieftains to contemporary stars like may have contracted by as much as 50% economy, earning some €291 million in The Script – are globally renowned. The use in real Gross Value Added terms since 2001 20123. The greatest economic contribution of Irish musicians’ works overseas, sales (based on the 2003 Study by Goodbody comes from the rights in musical works of their albums and tours by Irish artists, Consultants - The Economic Signifi cance by Irish writers, composers and artists, bring in signifi cant export revenues4. of the Irish Music Industry). We believe as well as the activity associated with Internationally successful bands have that this is something that needs to live performances and the use of music a further impact in that they enhance be addressed as a matter of urgency, if on radio and TV. Together, these sectors Ireland’s international standing and Ireland’s rich music tradition is not to be account for around 89% of gross value reputation for creativity. put at risk. added (GVA) from the music industry. Music also plays a key role in the success A separate €182 million is generated of the Irish tourist industry – a multi-billion through the industry’s interactions with euro sector in its own right. other sectors and consumers. These

2: http://www.irishtimes.com/fl eadh-cheoil-in-derry-1.1498795 3: 2012 is the most recent year for which data is available, Source: Deloitte Analysis, CSO 9 4: The term musician, as used in this report, refers to all those who write, play or perform music. It therefore encompasses songwriters, authors, lyricists, composers, singers, performers and recording artists. CHANGING INDUSTRY DYNAMICS THE MUSIC INDUSTRY IS ADAPTING TO THE NEW REALITY CAUSED BY CHANGES TO THE WAY MUSIC IS CONSUMED, COMMERCIALISED, INVESTED IN AND PROTECTED.

Conor O’Brien/Villagers 10 TECHNOLOGY IS CHANGING CUSTOMER BEHAVIOURS AND INDUSTRY ECONOMICS

Digital technology is opening new channels Digital sales growth in Ireland has been fi nance to musicians, due to a general lack for distribution and consumption of around 14% a year over the past fi ve years, of understanding of the various income music – but it is also raising challenges to rising from €8 million to €13 million6. streams driven by intellectual property. In established revenue models. addition the cash-intensive nature of the The internet, digital consumption and CHANGING INDUSTRY recording and touring cycle can act as a now streaming, have resulted in an ever DYNAMICS INHIBIT THE barrier to expansion. increasing audience for music. Paradoxically, ABILITY OF IRISH CREATORS Taken together, these factors mitigate they have also led to lower revenues, arising TO SUCCEED against investment in music. Logically, from reductions in both average unit value therefore, the continuing health of the Irish and signifi cantly lower volumes for physical The reality of falling music sales has made music industry may to some extent at least sales. Piracy also still remains an issue. the process of developing new talent more depend on efforts to make the economics Globally, the industry has begun to fi ght diffi cult. Traditional models, in which a work better. back, and legitimate streaming services fi rst album helped to fi nance a tour, leading are clearly making headway. Despite the to further cycles of recording, touring headway the International Federation of the and promotion, are now more diffi cult to Phonographic Industry (IFPI) estimates that sustain. 27% of internet users in Europe still access at Inevitably, this has had an impact on the least one unlicensed music site monthly. industry in Ireland, with anecdotal evidence The fi nancial impact of technological pointing towards a decline in professional change has been transformational. The value expertise in areas such as management of physical recorded music sales in Ireland and promotion. Such professional services has fallen by around 25% a year for the past to music account for around 10% of the fi ve years, from €72 million to €33 million5. industry’s total earnings. Digital sales and streaming, while rising Moreover, the Irish fi nancial community strongly, have not yet bridged the gap. has not always been geared to providing

5: 2012 Recording Industry in Numbers (RIN) 6: Ibid 11 PARTICIPATION COULD BE coordinated approach to overseas IMPROVED promotion.

While music pervades the length and breadth of Ireland, there is a feeling that participation (rather than passive This report calls for the music industry engagement) could be a lot higher, and and government to work together across that, at grassroots level, music needs a a number of policy initiatives to grasp far greater level of support to reach its opportunities, maximise the industry’s potential7. contribution, and secure Ireland’s musical At the most basic level, that means: (a) heritage for future generations an increased focus on teaching music in schools; and (b) improved access to tuition outside school. It also means promoting music as both UNTAPPED POTENTIAL a career and an investment opportunity. Some countries (including the UK, New One reason for the Irish music industry’s Zealand, Sweden and Canada) have failure to achieve its full potential has invested in resources and support for been a lack of effective co-operation musicians seeking to break into foreign between government and the industry. markets. The UK, for example, has a Typically the majority of music industry number of tailored sources of funding, enterprises are sole-traders and micro- including a £3 million export growth fund8. SMEs, employing a handful of people. The New Zealand Music Commission offers Some 69% of individuals giving their an ‘Outward Sound’ program that provides primary occupation as ‘musician’ in the funding of up to NZ$50,000 per project for Irish census are self-employed, compared international development initiatives. with an average across all sectors of 16%9. Bearing all of this in mind, we believe A typical music industry challenge that the Irish music industry needs involves coming up with a strategy to a central offi ce for exports, and a grow from small beginnings to make an Glen Hansard

7: To provide further insight into the data and analysis undertaken as part of this study, Deloitte consulted with 30 individuals and organisations from across the Irish music industry and music-related sectors. An online survey of all IMRO members was also carried out to ensure that the views of the wider IMRO membership were refl ected in the report. 8: The UK Music Export Growth Scheme (MEGS), provides grants ranging from £5,000 to £50,000 to independent music companies to help them market British music overseas. The funding is aimed at artists who have already had some success in the UK, but have not yet broken through internationally. Chosen artists from the tranche of funding allocated in November 2013 include Drenge, Catfi sh and the Bottlemen, and Filthy Boy. Applications are open for the next round of funding as at 8 May 2014. 9: http://www.cso.ie/en/census/index.html 12 THEME ETIS impact on foreign markets – a challenge which has been made all the more diffi cult ACCESS TO FINANCE Perhaps the greatest obstacle faced by entrepreneurs in the as changing consumer behaviours and CCIs is access to fi nance. It is exacerbated by the fact that the technology have altered the traditional assets of many cultural entrepreneurs are intangible, as a result value chain of creation and consumption. of which fi nancial institutions often fail to recognise their full Given the diffi culties in meeting economic value. challenges of this kind, support in the form of targeted and clear-cut policy initiatives can make all the difference and MARKET ACCESS Refers to the development of market opportunities at home help to maximise the economic and social and abroad. A lack of knowledge of, and access to, market contribution of music to the wider Irish opportunities is often a major impediment to the growth of economy. music enterprises.

INTELLECTUAL Protection of IP and awareness of the potential options for The European Commission, in a recent PROPERTY RIGHTS managing and exploiting IP are essential to the development of a paper, outlined the unique characteristics of ISSUES successful music industry. creative professions and set out a potential framework for growth and support10. The framework presents new models of EDUCATION & In a fast-moving industry that never stands still, ongoing collaboration for ‘cultural and creative TRAINING education, training and skills development are vital for the industries’ (CCIs) with the aim of embedding healthy cultivation of all the elements of a successful industry. them in innovation, SME, entrepreneurial and cultural policies. The paper highlights the areas of focus set out on the right: ACCESS TO Open innovation methods – including collaboration between INNOVATION different sectors of the industry – can be crucial enablers of creative and commercial success in these industries.

CLUSTERS & Fostering networking and collaboration can be enormously COLLABORATION productive in encouraging creative breakthroughs, which in turn produce a high level of fi nancial return.

10: HKU, 2010, The entrepreneurial dimension of the cultural and creative industries, Hogeschool voor de Kunsten Utrecht, Utrecht

13 In this report, we have outlined a range that in mind, we propose the creation of policy recommendations in each of of a Music Industry Taskforce, bringing these thematic areas. Taken together, together music sector and government they provide what we believe is a coherent interests to formulate a fresh, new policy basis on which the development of for the development of the music industry the music industry in Ireland can be in Ireland. successfully approached. However, success in leveraging all – or even most – of the opportunities is dependent on a number of critical factors. These include:

• recognition at government level of the value of the music industry to the Irish economy and its growth potential • promotion of the viability of the music industry as a career path • proactive targeted development by development agencies and government in conjunction with the industry • continued support for a strong, viable music and creative industry base in Ireland, working hand-in-hand with the tech sector.

While efforts have already been made to address some of the challenges facing the industry, more progress is required. With

Paul Brady

14 KEY RECOMMENDATION IMRO PROPOSES SETTING UP A MUSIC INDUSTRY TASKFORCE COMPRISING RELEVANT GOVERNMENT AND INDUSTRY BODIES, IN CONJUNCTION WITH INDUSTRY REPRESENTATIVES, TO GUIDE AND COORDINATE BOTH THE DEVELOPMENT OF A SECTORAL STRATEGY AND THE IMPLEMENTATION OF THIS REPORT’S RECOMMENDATIONS.

Clannad

15 1.ACCESS TO FINANCE 2.RECOMMENDATIONS FIVE KEY Access to fi nance and funding is perhaps the single greatest obstacle faced by entrepreneurs • Establishment of a Music Offi ce (referred to in in the cultural and creative industries. It is the report as ‘Music Ireland’) to act as a focal THEMES exacerbated by the fact that the assets of many point for the music industry and for musicians. cultural entrepreneurs are intangible (creativity, In a role similar to that of the Irish Film Board, copyright etc.) and diffi cult to assess. Banks do Music Ireland would encourage creativity and The fi ve key themes that should be the not always therefore recognise their full economic a culture of excellence at all levels, bringing focus of the Music Industry Taskforce value. together a range of enterprise, marketing, activities are set out here. They are as Furthermore, in Ireland, State funding is dispersed training & education and music-related follows: across a number of bodies and tends, as a result, information and supports, in order to maximise to focus more on activity that is considered to be the commercial performance of Ireland’s music ‘cultural’, rather than ‘commercial’. This bias makes output. it far more diffi cult for those seeking to develop and • A core function of Music Ireland will be to build viable businesses within the industry. provide additional expertise and assistance to individuals and groups looking to enter new overseas markets. It will develop industry 1.RECOMMENDATIONS contacts and trade links, and provide export grants to artists and SMEs in the industry to • Amendment to the Artists’ Taxation encourage export growth. Exemption relief to allow optimum utilisation of the relief across a number of years, assisting individuals to manage the cyclical nature of the industry. Music Ireland could work with existing industry • Retention of the Employment and Investment and government organisations (such as IMRO, Incentive Funding taxation relief and the Enterprise Ireland, The Arts Council, First Music promotion of this funding mechanism within Contact and others) to ensure that efforts are not the music industry. duplicated and a coherent and comprehensive system of supports is delivered to the Irish music industry. While encouraging export growth would be at 2.MARKET ACCESS the heart of its mission, a healthy local scene is an essential part of the industry and so Music Ireland Knowledge of and access to both business support could also examine the question of how Irish music and market opportunities is often a major is promoted within Ireland; act as an advocate on diffi culty for those starting in the industry and behalf of Irish musicians and Irish music interests; also those looking to increase the scale of their and help to address the issue of the level of Irish operations both domestically and overseas. This music played on Irish radio. is a critical area for support to bring a step-change in the development and growth of the industry. Mary Black 16 3.INTELLECTUAL the Sound Training Centre, among others, 5.INNOVATION, CLUSTERS & PROPERTY RIGHTS ISSUES in Dublin; Coláiste Stiofán Naofa and Cork COLLABORATION School of Music in Cork; and the Irish World The ‘free rider’ problem has been a major Academy of Music and Dance in University There are numerous potential new issue in music for well over two decades College Limerick and Limerick Institute of revenue streams for musicians and the now, as a result of illegal fi le-sharing. Piracy Technology in Limerick, among many more, music industry in collaborations with and copyright infringements of this kind providing diverse courses for musicians, other creative, technology and marketing have led to a signifi cant loss of income to recording engineers and so on. Similarly, Hot businesses, including producers of games, those operating in the music space and Press also run their MIX course on an annual advertising, fi lms, design, animation, to a concomitant erosion of the ‘value’ of basis, as a primer for people entering the technology products, tourism and so on. To music. As a result, protection of Intellectual industry. fi nd these opportunities and to maximise Property and awareness of the potential However, there are skills and training gaps their potential, it may be best to apply what options for managing IP are key concerns for in (i) provision of higher level professional are called “open innovation” methods, with the future growth and development of the business / fi nance training to individuals music industry companies looking outwards industry – success in managing these will operating in the industry; and (ii) provision of and interacting with other disciplines to ensure a viable creative industry. It will also advanced training and education e.g. master create common purpose, joint ventures and assist those industries (frequently in the classes to experienced professionals in the other vehicles that open up revenue streams technology sectors) that are dependent on industry. for the music creators. Up to now, the the dissemination and sharing of creative More generally in relation to music cottage industry nature of the majority of works for their services. education, while the teaching of music music industry operations has inhibited the in some schools is excellent, there is little development of collaborative ventures. doubt that the long-term health of the There is also a failure on the part of both 3.RECOMMENDATION industry would be improved if this were to the music industry and other creative and be carried through on a more comprehensive technological industries to co-ordinate • The establishment of an Intellectual nationwide basis. their efforts in a way that might yield better Property ‘Tsar’, who will consider the results for all. impact of IP and copyright legislation and enforcement on both the creative 4.RECOMMENDATIONS Part of the remit of Music Ireland should be and technology industries. This will to act as a catalyst to encourage the forging enhance the structures currently in • Development / support to provide of innovative partnerships across industries place. A core element of this role will be advanced training courses for music and disciplines. informing and infl uencing policy at a professionals and ‘business of music’ European level.” education and qualifi cations (project management, fi nance, international sales & marketing) to address two key gaps in 4.EDUCATION & TRAINING current provisions. • Introduce bursaries for top students Continuous education and skills (creative and commercial) to study in development are vital for a healthy industry leading music institutions internationally. There is an established music education • Contribute to initiatives to encourage sector in Ireland, with colleges like BIMM, creativity through the teaching of music in Ballyfermot College of Further Education and schools (primary and post-primary level). 17 POLICY INITIATIVES COULD in the industry between €4.10 and €7.40 is 5.RECOMMENDATIONS RESULT IN SIGNIFICANT generated. Considering these outcomes GROWTH on a cost per job basis, the interventions • Closer co-operation between the compare favourably to metrics from other music industry and tourism bodies The Irish music industry’s contribution to public sector interventions in Ireland, such as Fáilte Ireland and Tourism GDP may have contracted by as much as and are at the lower end of the cost per Ireland. 50% in real terms since 2001, the last time job range. The parameters used represent • Similarly that there should be closer a similar study was conducted. a realistic and attainable contribution collaboration with the technology However, the sector’s untapped potential toward the industry in a given year, but and games sectors. can be realised with the help of: (a) the in the event of one or more major success • Improved procedures should be policy interventions outlined above; and stories or a step change in policy the put in place for the licensing of live (b) a commitment from the music industry impact could be much greater. music events and festivals, and the itself to provide complementary support. Additional jobs created in the music interaction between promoters, local The question for policy makers is: do we industry are likely to be long term and authorities and tourism interests. really value Irish music as an artform? And spread right across the country. In addition, • Film Tax Relief Guidelines should if we do – how can we encourage and foster there are likely to be signifi cant positive be amended to encourage the it? Policy initiatives of the kind outlined spillover effects on Ireland’s reputation for engagement of Irish/EU based here should hopefully ensure that Irish culture and creativity – not to mention the music components for projects being music will continue to be at the heart of benefi ts to local communities, of greater fi nanced under the scheme. national culture, local communities, job participation in music-related activities • An amendment should be considered creation and the Irish economy. and so on. to the “Special Assignee Relief The potential impact of taking action In short, the future is bright, if we get our Programme” taxation scheme, to (primarily from Music Ireland, improved policies right. The time for action is now. encourage inward migration of skilled access to fi nance, improved IP legislation, talent capable of: (a) performing and greater cooperation across industries) key functions within the industry is estimated to be: (in such areas as sound recording and management of Irish talent); • an increase in the GVA contribution of and (b) of providing productive the sector of €14 million to €25 million links to the highest level of the per annum above baseline11 music and entertainment business • an increase in employment in the internationally. sector by 500 - 800 jobs (6 to 9 • Proper consideration should be percent). given to the music industry (and to the broader creative industries) in Quantifi cation of tax induced benefi ts the NACE industrial classifi cation and longer-term benefi ts from training and system. Better data means more skills are not included in these calculations, effective, evidence-based policy. but rough order-of-magnitude cost benefi t analysis indicates that for each €1 invested

11: Given the creative cycle and the fact that the value of the industry fl uctuates in any given year as a result of the creative output generated 18 and level of touring, it is di¤ cult to forecast future growth with any certainty, as such the report considers increment above baseline rather than projecting how much the industry will grow in a given year. About IMRO

IMRO is a national organisation that administers the performing right in copyright music in Ireland on behalf of its members (who are songwriters, composers and music publishers) and on behalf of the songwriters, composers and music publishers of the international overseas societies that are aliated to it. IMRO is a not-for-profit organisation. Music users such as broadcasters, venues and businesses must pay for their use of copyright music by way of a blanket licence fee. IMRO collects these monies and distributes them to the songwriters, composers and music publishers who created the songs. The monies earned by copyright owners in this way are known as public performance royalties. IMRO is also prominently involved in the sponsorship and promotion of music in Ireland. Every year it sponsors a large number of song contests, music festivals, seminars, workshops, research projects and showcase performances. IMRO is now synonymous with helping to showcase emerging talent in Ireland. www.imro.ie

19 Production and Design: Hot Press Design; Designers: David Stanley & David Keane; Infographic pg 3: Caitríona Maher; Photography: Graham Keogh: pg 10; Conor Masterson: pg 12; Donal Moloney: pg 4; Brian Mulligan: pg 6; Kate Horgan: pg 14.

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THE SOCIO-ECONOMIC CONTRIBUTION OF MUSIC TO THE IRISH ECONOMY

Summary Report