The Socio-Economic Contribution of Music to the Irish Economy
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THE SOCIO-ECONOMIC CONTRIBUTION OF MUSIC TO THE IRISH ECONOMY THE SOCIO-ECONOMIC CONTRIBUTION OF MUSIC TO THE IRISH ECONOMY SCALING UP TE OPPOTIT FO IELADS SI IDST 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 4 CONTENTS Foreword 006 Executive Summary 008 Music is at Our Core 030 Music Beats in the Heart of Ireland 031 Music Drives GDP and Jobs 036 Music Promotes Ireland on a Global Stage 043 The New Reality 046 The Music Industry Has Endured Major Change 047 But, in Future, the Industry Can Build on a Number of Positives 051 A Call to Action 056 Providing Optimal Policy Support 057 B I 067 A 074 Annex 2: Music’s Direct Economic Contribution 078 Annex 3: The Indirect, Induced and Narrow Economic Contribution of Music 089 Annex 4: Consultation Feedback 091 Annex 5: IMRO Member Survey 096 Annex 6: Policy Recommendations 098 Annex 7: Taskforce Terms of Reference 103 5 FOREOR The Script 6 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 7 EXECUTIVE SUMMARY Paul Brady 8 he Irish music industry forms innovation. Indeed, the IDA currently enhances the tourist experience. a cornerstone of Ireland’s references the Irish people’s “blend of the Music also has a range of individual, internationally renowned commercial and the creative” as being a social and cultural benefi ts and this reputation for culture and key reason to invest in Ireland. A recent report includes these in the discussion. T 2 creativity. Ireland’s rich musical report issued by the EU Commission These impacts are often diffi cult to heritage is a source of great pride, and also recognises that innovation is more quantify, though they are no less its current musical output across a than just scientifi c and technological important for that. range of genres continues to enhance change and that the cultural and Given the right support, the Irish cultural life at home and abroad. creative industries are an important music industry has the potential to driver of innovation. contribute more still, and this report This contribution to the cultural life of This report sets out to quantify the also looks at policy options for the the nation is well-known, but perhaps direct economic impact of music on the continued development of the industry what is less well-known is its very real Irish economy. However, the infl uence in the coming years – options which can and substantial contribution to Ireland’s of the music sector extends far beyond fi t into the plans for Culture 2025: the economic well-being. In 2012, the core its direct effect on GDP and jobs, and the forthcoming National Cultural Policy for music sector generated €291m towards report also looks at its indirect economic Ireland. GDP. It also supported a total of 9,030 and social impact. For example, music The analysis undertaken suggests that jobs on a full time equivalent basis1. has an indirect impact on a number of if the recommended policy initiatives Music plays a key role in Ireland’s sectors of the economy, most notably are implemented successfully, the sector international reputation for tourism where the experience of live could contribute a further 5 to 8% in creativity, which is increasingly vital music (be it traditional or otherwise) Gross Value Added (GVA) terms, or 6 to in an economy driven by ideas and brings Irish culture to life and greatly 9% in FTE employment terms3. Paul Brady 1. Source: 2012 is the most recent year for which data is available: Deloitte Analysis, CSO 2. HKU, 2010, The entrepreneurial dimension of the cultural and creative industries, Hogeschool voor de Kunsten Utrecht, Utrecht 9 3. 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. Gemma Hayes 10 Total GVA Contribution : 473m Creative Works “Playback” 118.0m 140.0m The Core Music Industry 291.1m Sound Recording and associated Music Sales Music Supply activities 9.8m Chain 17.4m 93.8m Employment footprint: Reproduction of Recorded 11,510 jobs Media 5.9m 9,030 “Core” Music Industry jobs Music- related 1,180 music- consumer related jobs in spending the supply- chain 88.6m 1,310 music- related jobs through consumer spending ©2014 Deloitte MCS Limited Figure 1: The economic contribution of the music industry in Ireland, 2012: A 60-second summary, Source: Deloitte Analysis, CSO. 11 MUSIC IS AT OUR CORE SHAPING OUR IDENTITY, ENRICHING OUR COMMUNITIES AND DRIVING OUR ECONOMY Hozier 12 MUSIC BEATS IN THE HEART OF IRELAND... reland has always seen itself as the Fleadh Cheoil attracted over 10,000 a musical nation. We have a rich musicians and about 430,000 people in heritage of traditional music and total to Derry. These numbers make the Ilatterly have developed an enviable Fleadh one of the largest cultural festivals repertoire across a number of genres in the world.