TABLE OF CONTENTS:

INTRODUCTION, by Andy Heath MBE...... 2

FOREWORD, by Feargal Sharkey...... 5

In 2008, a huge spectrum of Historically the notion of sustainability has al- EXECUTIVE SUMMARY...... 7 most exclusively referred to creativity, finance the commercial music sec- and commerce. But in an age that has now tor united together to form awoken to climate change, sustainability has UK Music. had to take on a much broader, more pro- RECOMMENDATIONS...... 11 found interpretation. UK Music is the umbrella organisation that Formed in 2007 as a not-for-profit company, represents the collective interests of the UK’s Julie’s Bicycle has enabled the music industry commercial music industry – from artists, mu- to commit itself to embedding environmen- Recommendation ONE...... 13 sicians, songwriters and composers, to major tal responsibility into the heart of the business, and independent record labels and music ensuring that not only are we pre-empting publishers, to music managers, studio pro- inevitable regulations, but also understanding ducers and collecting societies. the nuts and bolts of climate responsibility. This commitment should be taken as implicit in all Recommendation TWO...... 15 The coming together of organisations with of the recommendations we make through- such a wide range of interests heralded a out this document. new chapter of unity and focus for the UK’s commercial industry. UK Music fully supports and applauds the work Recommendation THREE...... 19 of Julie’s Bicycle. As a small step towards our The current members of UK environmental responsibility, UK Music is pub- lishing the full Liberating Creativity document Music are: on our website rather than as a printed docu- ment. It is available freely to all at: Recommendation FOUR...... 25 Association of Independent Music (AIM) www.ukmusic.org BPI British Academy of Songwriters, Recommendation FIVE...... 29 Composers and Authors (BASCA) Music Managers Forum (MMF) Music Publishers Association (MPA) Recommendation SIX...... 33 Musicians Union (MU) PPL PRS for Music Recommendation SEVEN...... 39 UK Music champions our industry’s creativity and commercial interests through public pol- icy and lobbying, communications, research and analysis, and industry relevant education, Photo: Tom Oldham THE POWER OF MUSIC...... 41 skills and training. Our artists have made an immense contri- Photo: Tom Oldham bution to the culture and fabric of British life. In turn, the music business infrastructure has served them, the audience and the Exche- quer very well.

Every ounce of my being is convinced that for this to be sustained, it is vital that an artistic and commercial environment is established that works for both music maker and audi- ence in the digital age.

The industry has lived through ten years of huge disruption. Inevitably, mistakes have been made. Some very significant ones. But now is the time to look forward and look up. ANDY HEATH’S MUSIC CAREER When I first started working Our new partners are tech, hardware and media companies – ranging from innova- With the digital market com- • Tea boy at Strike Records, a small independent record company. in music 45 years ago, the tive, cash-poor start-ups to multinational, ing of age, it is clear that business was hugely excit- corporate giants who dwarf us in size, scale, • General Manager, Planetary Nom, the publishing arm of Roulette Records. resources and influence. music industry and technol- Worked with Tommy James and the Shondells in 1966 with Mony Mony his ing, very small and embry- ogy sector, governments and first association with a Number One record. onic. While diversifying, competing and licensing in consumers all need to step such a shifting and fragmented market, we • Head of A&R at the publishing division of The Stigwood Organisation. Worked with Bee Gees, Cream, Blind Faith, John Mayall, and many others. For all intents and purposes, the music in- still love distributing CDs and vinyl to record up to a new era of partner- dustry existed between a few streets around stores and serving “old media” such as radio ship and harmony. All must Set up Gaff Management with Billy Gaff. Soho. Yes, there were colourful characters (no and TV. • Co-owner and CEO of GH Music, the publishing arm of Gaff Management. names, sorry) and the industry was still discov- adapt and work together. Worked with Rod Stewart when Maggie May went to Number One. ering how to run and organise itself. But all However, amidst the maelstrom of digital that was offset by the explosive thrill of new disruption, the fundamental focus of music It’s the only way that the music will continue MD of Gaff Management. Five artists made the US Hot 100: Rod Stewart, Faces, music and an unprecedented wave of cre- companies remains, strangely enough, on to play. • Long John Baldry, Atomic Rooster and Rory Gallagher. ativity. music. To uncover, nurture, support and in- Also worked with Status Quo. vest in new, cutting-edge talent. To create a One of the first records I worked on was Mony platform where artists, composers and musi- Formed Heathwave Music. Mony by Tommy James and the Shondells, cians can express themselves and fans can • Worked with Chas Jankel (co-writer of many Ian Drury hits). which went to number one. discover them. Andy Heath, MBE Instigated a successful jingles company.

For a 19 year old music fan and entrepreneur, It is an essential role, and thankfully this coun- CEO of Beggars Banquet Music. what an amazing experience. A privilege. A try is blessed with strumming hands and tap- • Worked with Gary Numan whose Are Friends Electric? topped the UK singles chart. thrill. There was nothing like it and there still ping feet. isn’t. Went into partnership with Martin Mills and set up Momentum Music. • The UK is known and ad- Worked with Cocteau Twins, Bauhaus, St Etienne and many others. The “industry” might be all grown up now but, for fans and entrepreneurs, that thrill remains. mired around the world for Since early 1990s served on the Boards of PRS, MCPS and MPA. It’s what drives us. That someone, somewhere its music. It defines who we • on this planet, is creating the greatest piece Since 1990, a director of Beggars Group working with Adele, Dizzee Rascal, of music that you’ve never heard. are. What an amazing gift • Vampire Weekend and many others and MD of the publishing arm, Beggars Music. for a nation to have! Yes, ours is a global and, increasingly, digital Currently a consultant to one of the UK’s leading private equity groups, chairman of MSP, business of multi-territorial and multi-platform • a leading digital music provider and chairman of UK Music. deals.

• Awarded an MBE in 2009 for services to music publishing.

3 4 It places equal demands upon industry and those around us; yet is simple, direct and eas- ily implemented.

At its core sits the act of creativity itself – the intangible, eureka-like spark of imagination that shapes our tomorrows and provides the foundation upon which a huge range of busi- nesses stand. I would argue, and with some justification, that today’s talent is just as vibrant, ex- citing, experimental, cutting edge and brilliant as it has

ever been. Photo: Timothy Cochran It needs to stay that way.

Somewhere right now, in this country, a young person is scribbling on a scrap of paper or FEARGAL SHARKEY’S BIOGRAPHY Somewhere in Ireland, a For all of us, it brings flavour, colour and mean- tapping on a keyboard, composing a song ing to our everyday lives. young man by the name of that will resonate far beyond the page. • Feargal was born in Derry, Northern Ireland, in August 1958, the second youngest of seven children. O’Neill scribbles on a piece And, without being jingoistic, it is something This industry may change, but that simple act that the inhabitants of these islands have ex- of paper: “Teenage dreams, of creativity, remains, and will always remain, Twenty years later he combined a promising career delivering televisions for Radio Rentals hibited a quite unique and remarkable talent immortal and timeless. • so hard to beat…” for. with fronting local punk rockers, The Undertones. However, his day job was rudely interrupted by a BBC request that the band perform their first single, Teenage Kicks, live on For many, even after thirty years, that simple From Elgar, Britten and Adès to Donegan, Len- Top of the Pops. Never one to shirk difficult decisions Feargal informed his superiors that act still carries with it a very deep and emo- non, McCartney and Islam, to Bowie, Strum- he was just popping out for lunch; they still keenly await his return. tional resonance. Even more extraordinary, mer and Weller, to Lennox, Albarn, Skinner and Feargal Sharkey perhaps, is the idea that subsequent genera- Winehouse as a nation we have a pedigree • There followed a hectic period of some twelve years, world tours, hit albums, late nights tions continue to discover, identify with and that excels, and a heritage like no other. and bad food in transport cafes spanning most of the UK’s motorway network culminating embrace that very same moment of creativ- in a successful solo career and the release of A Good Heart, a world-wide number one. ity. Music has delivered our culture and our voice The early Nineties brought a new beginning and a post-match transfer to the business side to hundreds of countries and billions of peo- of the industry, initially as A&R Manager for Polydor Records - more late nights in transport Such is the impact and power of that small, ple. cafes - and then as Managing Director of EXP Ltd. yet beautifully-formed five letter word, mu- sic… It defines us. • Feargal subsequently served as a Member of the Radio Authority and, in 2004, was appointed Chair of the Live Music Forum, an advisory committee established by Since prehistoric man - or woman - first However, while we as an industry are happy to Government to monitor and evaluate the impact of the Licensing Act 2003 on the banged together two sticks and created be reminded of our past, we have no ambi- performance of live music. something resembling a rhythm, or the first of tion to live there. our ancestors realised that the human voice • In February 2008, Feargal was appointed Chief Executive of British Music Rights, an umbrella organisation representing the interests of composers, songwriters, music itself was an instrument, music has dominated This document sets out to de- our lives. publishers and their collecting societies. fine what “the music indus- For many of us, music incites a passion and try” actually is in 2010, and • In September 2008, this role was subsequently expanded with the creation of UK Music, longing which can, and often does, border a new organisation representing the collective interest of the UK’s commercial music on obsession. what we want to achieve. industry, from artists, musicians, composers and songwriters, to record labels, music managers, music publishers, collecting societies and studio producers. It is ambitious in its aims, but practical in ap- proach. 5 6 This is what success would look like in 2020:

The UK would challenge the United States of America as the primary source of repertoire and number one music-producing country in the world;

The UK music industry would lead the world in realising the full potential of digital music and achieve the highest share of income from music in the digital marketplace;

The songwriters, composers, artists and mu- sicians who create the music that the world loves would share fairly in the rewards wher- ever and whenever their music adds value, as would those who invest in them;

Those using music commercially would seek, and be granted, the rights to do so legiti- mately, quickly, and for a fair price, as a mat- ter of course – whether on a national, pan- European or global basis;

UK music fans would have the greatest array of shops, services and forums where music is available, experienced, recommended, shared and enjoyed fully in the knowledge that it is all legal and that the creators are being paid;

And those who try to bypass legitimacy would simply find it not worth their while;

UK originated music would dominate radio airplay; while BBC Radio and commercial stations would compete to discover and pro- mote new talent;

The number of live music venues and perfor- mances throughout the UK would increase year on year, underpinned by a fantastic in- frastructure of rehearsal and performance space;

Every young person in the UK would get op- portunities throughout their school years to experience music in a way that inspires them; Unsurprisingly, our ambition for the music industry is simple while those with a special interest and talent yet challenging: WE WANT TO BE NUMBER ONE would get every chance to pursue music as a career;

The music industry would be a beacon for how environmental responsibility can be fully embedded in all aspects of commerce. 7

Photo: Tom Oldham We admit that we have set our sights and am- And that’s before touching on live music, from It contributes nearly £5 billion to the UK econ- bitions fantastically high. the mammoth success of festivals like Glas- omy each year. It boosts our balance of tonbury or arenas like London’s O2, through trade. In 2008, one in ten artist albums sold in Yes, we are just a small land mass in the North to the grassroots network of pubs, clubs, bars the United States was made by a UK act. That Sea. But this United Kingdom of Great Britain and village halls where future superstars hone same year, four of the top ten biggest selling and Northern Ireland produces the best cre- their craft. artists in the world were British. ative talent in the world and, even now, after a decade of technological disruption, the Again, there is a positive ripple effect here, Less quantifiable, but equal- UK music industry is still second only to North with music kick-starting opportunities for a America as a global source of repertoire. range of businesses - from rehearsal rooms ly significant, is how music and manufacturers of stage equipment, acts as a barometer of how We remain the third larg- through to brands, publicans, pie-makers, tent-sellers and merchandisers. others view us as a country, est market for music in the of what it means to be Brit- world. And then there is digital. ish, or even the health of our Here’s a question: over the past ten years, nation. Why is that? how significant has been the role of music in driving and fostering digital innovation? Music defines us. So powerfully that a humble We should start with an assessment of what zebra crossing in North London can be trans- “the music industry” actually is in 2010, at the formed into a major tourist attraction. start of a new decade. Music is the fuel of the inter- net. Music attracts commu- For this country, music is a huge success story. To the outsider, the industry looks relatively self- nities and social networks, contained. That is why the members of UK Music have it drives search engines and come together to set out our stall for what we At its nucleus lie the eight constituents of UK new distribution technolo- need to achieve over the next decade, and Music: the creativity of artists, songwriters, how we can achieve it. composers and musicians; those who invest gies. directly in their talent, the managers, major and independent record labels and music Much of this has been disruptive, much has The actions of Government publishers; and those who collectively license been unlicensed, but we look forward to a will have a major impact on their copyrights, PPL and PRS for Music. decade where technology and creativity en- joy a more traditional and symbiotic relation- this future. So will their inac- In addition to these, we can add all manner ship. tions. of vital cogs – music producers, engineers, studios, promoters, distributors, A&R, design- Increasingly, our new partners will include ISPs, We make 7 recommendations to Govern- ers, marketers, retailers, lawyers, accountants, telcos, hardware manufacturers, and all man- ment, and with each one we make a com- video directors and so on. ner of innovative digital start-ups. mitment as to how the music industry can help deliver it. Most would recognise these. And as consumption changes, so does mu- sic’s relationship with fans. Some address ‘fixable’ problems that are But also within our sphere of influence are the needlessly - maddeningly - holding our sec- host of businesses who work directly with mu- This relationship has never been so active, so tor back. sic – our close cousins in the creative indus- interactive, so vital, and so alive. tries such as film and TV, games, advertising, The rest are springboards that will make the UK fashion and publishing. Collectively, the UK music the best country in the world for writing, per- forming, recording, selling, exporting, buying The media too: radio, TV, magazines, news- industry provides employ- and loving music. papers (just consider the reams of broad- ment for more than 100,000 sheet and tabloid coverage) and all manner of online portals. Music doesn’t just sing to the people. Quite literally, we have ev- ears, it attracts eyeballs too. erything to play for.

9

Photo: Timothy Cochran Recommendation Two: Recommendation Four: Recommendation Six: Investment and commerce Public sector expenditure Skills and training

UK Music recommends that Government Government should ensure that all public To achieve our 2020 goals the music industry firstly acknowledge the profound, and what spending bodies are acutely aware of the ex- will require an incoming workforce that is di- would currently appear to be insurmount- pectation that they should form partnerships verse and highly skilled with a wide range of able, difficulties that the music sector has with others, including the private sector, to practical experience. UK Music recommends experienced in trying to access sources of maximise the value and impact of any public that Government, as a matter of some urgen- Government backed finance such as the investment. Priority areas should be the Olym- cy, ‘adopt’ successful industry-run apprentice- Enterprise Finance Guarantee; and sec- pics, business services, and support for the ship schemes and provide funding for their ondly, to work in partnership with the mu- arts. Local authorities should regularly publish continued running and expansion. UK Music sic industry to create a source of funding an account of the investment they make, or will work with colleges and universities to pro- to stimulate investment in new talent and assets they make available, to support music vide an industry accreditation programme, support enterprise and entrepreneurship in enterprise and engagement at local level. focused on meeting the needs and aspira- the music marketplace. The music industry The music industry will develop a Memoran- tions of both graduates and the industry. UK will look to make a financial contribution to dum of Understanding with Business Link which Music will also develop an industry wide diver- any Government-backed music investment would establish UK Music as the recognised sity code of practice. scheme and additionally, commit the time source of information through which Business and expertise of leading executives from Link can provide sector specific support to across the music business to develop and music businesses. The music industry will work Recommendation Seven: implement investment criteria. The industry with any other public spending body to ensure will also create a three year programme to that they target their investment in the most Education help develop a better understanding of the productive and efficient manner possible. investment needs of industry and work with Government can be justifiably proud of its external funding sources, including the pri- record on investment in music education at vate sector to ensure the industry is meeting Recommendation Five: primary school level. To maximise returns on its ambitions for growth. this, it is critical that high quality music provi- Live music and rehearsal sion does not get lost in the transition between space primary and secondary years. Government Recommendation Three: should set a comprehensive strategy for music That Government transfer remaining funds provision and ensure that secondary schools Copyright earmarked for the roll-out of the rehearsal are able to implement it effectively. UK Music room scheme into a charitable trust to be will build on the efforts of the Music Industries Copyright is the currency of creativity. We administered by UK Music. The music indus- Association and help broker partnerships be- recommend that Government ensures it has try will commit the necessary administration, tween secondary schools and other provid- in place a robust copyright framework fit for support and fundraising structures to enable ers, including manufacturers of musical instru- the digital age. As a priority, Government the Trust to successfully meet an obligation of ments, electronic equipment, sheet music, should swiftly implement the proposals laid providing rehearsal spaces for young people hardware and software technologies, leading out in the Digital Economy Bill which address throughout the country. Government should to a national “adopt-a-school” scheme. digital copyright infringement and work with Recommendation One: also introduce a “live music exemption” to the competition authorities to help ease the ten- 2003 Licensing Act to reduce the unneces- Policy-making sion between the desire by copyright users sary burden and bureaucracy on premises for easier licensing and the restrictions im- That Government form a Creative Industries ensure a consistent, coordinated and prior- wishing to put on live music. posed on the rights holders who are trying to Cabinet Committee. Reporting directly to ity approach to policy. It should also be re- achieve this, especially at a European level. the Prime Minister, it would be comprised sponsible for commissioning much needed Government should continue to press our of secretaries of state and those ministers creative industry economic research, mod- case in Europe on copyright term extension whose responsibilities include any aspect of elling and forecasting. The music industry will for sound recordings; and complete imple- the creative industries. It should also include commit the time and expertise of its entre- mentation of the recommendations from commercial leaders from the creative indus- preneurs from all aspects of the business to its review of the Copyright Tribunal. The mu- tries who have a significant level of experi- the Cabinet Committee. sic industry will open up ever more ways for ence and success in their relevant sectors. It music to be enjoyed through new business would be responsible for developing, driving models for commercial use and innovative and delivering all government policy relating licensing arrangements for non-commercial to the creative industries, across all govern- use. Photo: Tom Oldham ment departments and agencies, so as to 11 best in sound engineering, music PR and pro- A more focused and driven policy-making In 2009, PRS for Music published a report by motion, event management, producing and infrastructure in Government will, we expect, its chief economist Will Page titled Adding recording - and of course, the very best talent deliver many of the other improvements and Up The Music Industry For 2008.9 This study on display. opportunities we seek for the music sector in represented an important step forward in un- this document. That is why it is our number derstanding how much the music industry is However, conversations and approaches one recommendation. worth and the ways in which it interconnects. between our industry and those charged This economic work helped plug a gap in the with planning the cultural festival have been One aspect of an improved policy-making knowledge of music and its value, and led piecemeal rather than strategic. Some dis- infrastructure will be the commissioning of to a long-overdue collaboration with econo- cussions have led to specific activities but a stronger evidence base. Publicly funded mists at the UK Intellectual Property Office to others have led nowhere. Perhaps more wor- bodies like Nesta and the Strategic Advisory conduct this year’s “Adding Up” exercise to The Government and the creative industries be a net exporter of repertoire. In 2008, four ryingly, public funds that might have been al- Board for Intellectual Property (SABIP) have in recalculate the value of music to UK plc. Policy-Making have a shared interest in unlocking the great of the top 10 biggest selling artists in the world located to the Arts Councils or other bodies recent years commissioned studies on the potential in our creative and business talent. were British artists and 1 in 10 artist albums for cultural and artistic initiatives have been characteristics of the creative industries and We applaud this and other Government ef- The numbers speak for themselves. sold in the USA was by a UK act.7 PRS for Mu- diverted to help pay for the Olympics. the contribution they make to the UK, which is forts to address weaknesses in official data While Government has al- sic actively manages relations with a network very welcome. relating to the creative industries. These ef- ways had a profound impact The UK’s creative industries contribute a great- of collecting societies in over 150 countries, Time is running short yet we forts must be strengthened in the machinery on the music industry, public er proportion of GDP than any other nation.1 which provides a global infrastructure for re- But the data available to policy makers about of Government so that Government has data They have been growing faster than the rest turning international income to British creators still do not have a sense of our sector is still limited and can even be mis- that is accurate and accepted internation- policy will matter even more of the economy since 1997.2 The economic and contributing to UK earnings and further the vision and legacy that leading. For example, to get a broad picture ally, allowing for comparisons and trends to in the future because more performance of the UK’s creative industries investment in new writers. PPL set up its inter- the Olympics will bestow on of the types of occupations that the UK’s work- be captured. is on par with the financial services sector in national service six years ago and it is now force is engaged in, Government statisticians is at stake. The creative in- terms of their contribution to the economy.3 the fastest growing area of the business. Col- music in the UK. use “standard occupational classifications”. The music industry has changed dramatically dustries are the future. UK firms now invest more in intangible assets lective management provides a platform for RECOMMENDATION: (£130 bn) than tangible assets (£95 bn), half realising the international economic success over recent years and is still rapidly changing. Many people actively engaged in the music Presently, at least nine different Government of which are covered by intellectual property of the music industry. That Government form a Creative Industries New Music 20x12: industry perform roles that do not match up departments and 21 different governmental rights.4 Cabinet Committee. Reporting directly to to any of the standard occupational classi- agencies are responsible for policy affecting the Prime Minister it would be comprised of In terms of strategic policy New Music 20x12 is led by the PRS for Mu- fications.8 the creative industries. In addition, at least 70% of the value and most of the growth sic Foundation in partnership with the BBC, secretaries of state and those ministers whose eight EU directorates share an interest in issues potential in the creative industries lie in the making, the Olympics pro- responsibilities include any aspect of the cre- LOCOG and private patrons. It is based on There is a similar problem at a business level. affecting the creative industries, and much content industries.5 By 2013, the creative in- ative industries. It should also include com- vides an example of where the simple idea of commissioning twenty Government statisticians use “standard indus- copyright and competition legislation origi- dustries sector is expected to create 150,000 mercial leaders from the creative industries twelve-minute works which will be performed trial classifications” to classify businesses by nates in the EU. Progress and achievement more jobs and 30,000 more businesses. By a strong and focused ad- who have a significant level of experience throughout the UK as part of the official cul- the type of economic activity in which they on one front can be frustrated by sluggishness then, the sector is expected to contribute as and success in their relevant sectors. It would vocate for the creative in- tural festival in 2012. are engaged. Many creative businesses are on another. much as £85 billion to UK GDP, up from £57 be responsible for developing, driving and billion.6 dustries at the heart of Gov- engaged in a range of economic activities delivering all government policy relating to This programme will support the creation and and do not easily fit into an official classifica- We need a stronger, more streamlined ap- the creative industries, across all government ernment could maximise performance of non-commercial, new music tion. And for a business to be ‘counted’ in proach to developing, driving and delivering departments and agencies, so as to ensure Within the creative indus- opportunities for the sector. throughout the UK and will celebrate the ex- official statistics in the first place, it mustbe all Government policy relating to the creative cellence of composers, ensembles, organi- a consistent, coordinated and priority ap- tries, the UK’s music sector trading above the VAT threshold. Given the proach to policy. It should also be responsible industries. The Government should have di- The Olympics and the accompanying cul- sations and promoters who are committed to exceptionally high number of micro-business- for commissioning much needed creative rect input from the sectors’ most experienced is a great success story. UK tural festival should, in theory, present an presenting imaginative and groundbreaking es and self-employed people in the music industry economic research, modelling and industrialists, most audacious entrepreneurs unprecedented opportunity for the creative work of the highest quality. Every work com- music is recognised and industry, a significant number of music en- forecasting. The music industry will commit and most talented creators. Creative indus- industries to reap benefits from the exposure missioned will be broadcast by BBC Radio 3. terprises trade below the VAT threshold and the time and expertise of its entrepreneurs tries policy decisions should also be informed loved all over the world. that comes from hosting a spectacular world therefore remain ‘invisible’ as far as official from all aspects of the business to the Cabi- by detailed statistics, economic analysis and event. The opening and closing ceremonies statistics are concerned. net Committee. forecasts. The UK is one of only three countries, along should impress upon the world that the UK is with the US and Sweden, that can claim to a world leader in entertainment with the very

1 OECD: International Measurement of the Economic and Social Importance of Culture, 5 Creative Industries: Technology Strategy 2009-2012. The Technology Strategy Board, 2009 8 This raises a statistical problem known as “chain linking” where we need to know the 9 PRS for Music: Adding up the Music Industry for 2008 by Will Page and Chris Carey, August 2006 6 Demanding Growth: Why the UK needs a recovery plan based on growth and innovation, movement in the weights of the various sectors, as well as the value of the various sectors, Economic Insight issue 15, 20/07/09/ 2 Creative Industries: Technology Strategy 2009-2012. The Technology Strategy Board, 2009 James Meadway with Juan Mateos-Garcia if we are to truly understand the shifts in a sector of the economy that is going through 3 Staying ahead: the economic performance of the UK’s creative industries, The Work 7 BPI press release, 14 April 2009: UK artists’ share of US market grows to 10% radical change. Statistics need to keep up with the trends, more than just explain them. Foundation 2007 4 Speech delivered by Rt Hon David Lammy at the launch report on the economic value of IP, 2009 13 14 Nigel Elderton It is critical to remember that record compa- In addition, the scale of on- nies and music publishers historically make MD, peermusic (UK) Ltd; the investment in new talent by signing un- line copyright infringement Chairman, Music Publishers known artists and writers, making a recording, from unlawful file-sharing on marketing and promoting the record and Association: song, and recouping the investment through peer to peer networks, and licensing and sales. UK record labels typically non-network infringement, At the very heart of our industry lies the musi- reinvest around 20% of their revenues back cal work – the composition and the lyric. From into A&R.10 continues to negatively im- this creative spring all else flows. pact the industry. But that traditional investment model has It is a publisher’s job to find and develop tal- been under considerable strain. Sales of re- Despite the decline of revenue from recorded ent and to guide and support the creation of corded music have been falling year on year. Investment And new musical works. As such, publishers are in music, the demand for music and the con- In 2004, consumer spending on recorded sumption of music continue to grow. People the business of ensuring the future success for music stood at £1.9 billion. According to the British music in both the domestic and interna- still love music, arguably, more than ever. Commerce BPI Statistical Handbook, that had fallen to Revenue from live music and digital sales is tional markets. £1.3 billion by 2008, a 32% decline. For the music business, sus- rising significantly. In 2009, more than 16 mil- It’s a risky but rewarding job. What might look lion digital albums were sold, an increase of The decline in revenue from the sale of re- 56%. tainable growth means in- like an overnight success is invariably the result corded music is due to a number of factors. of a long incubation process. The essential vesting in future talent. This One is the downward pressure on price. The The music industry is continuously innovating characteristics of a publisher are patience, price of music has never been lower. At the investment is sometimes and the strength of character to balance risk and diversifying its revenue base. However, start of the millennium, the average price of it still faces a serious investment gap which based on a song that hasn’t with prudence. The development of songwrit- an album was £10.98. Now it is £7.97 – which ing talent takes time, expertise and the re- has to be filled. Record companies do not been written or a perfor- represents a fall in visible terms of 27%. Re- traditionally receive income from live music, sources to create music. It also requires sub- moving inflation, the fall in price is over 40%. mance that hasn’t been stantial investment. and digital sales, though rising fast, still only equated to 12.5% of the albums market in staged. The nature of music retail has also changed 2009.11 Publishers face particular challenges in ac- dramatically. More people are buying music Martin Mills quiring finance due to the difficulties ofun- Once those songs and performances have CDs in supermarkets, for example. In 2008, derstanding our business model. A govern- been created, we need entrepreneurs and Director, Beggars Group: 23% of retail expenditure on music was in su- ment-backed investment scheme informed innovators who can take that wonderful thing permarkets. by better understanding of our sector’s invest- called music and celebrate it, market it, sell it, It’s extra-ordinary how much musical innova- ment needs would provide a vital source of license it, synch it, export it, rework it, and give tion has emerged from the UK and from its groundwater to feed our creative spring. life to it in every way possible. entrepreneurial independent label sector in particular. £12.00 Most great music (and most great art) starts out as being challenging, difficult, even threatening - but that’s how popular culture is £10.00 formed, and how the new mainstream devel- ops. Music by Elvis Presley, the Rolling Stones, the Sex Pistols, and Prodigy, to name but a £8.00 few, all sounded extreme at the time - but they changed tastes and norms, and now just sound like truly great music. £6.00 It takes vision and daring to make the neces- sary early investment in such artists - and un- less we want our culture to become a bland £4.00 lowest common denominator wasteland, it’s crucial that we all maintain, develop and 10 BPI Press Release, 14 April 2009: UK artists’ share of US create a commercial environment in which market grows to 10% £2.00 existing and new entrepreneurs are allowed, 11 BPI Monthly Markets Analysis, December 2009 and ideally encouraged, to keep on taking Photo: Tom Oldham those risks. £0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 15 Average price of an album (Nominal) Average price of an album (Real Terms) Patrick McKenna interest, or harbour a perception that these The Government reviewed the availability of A Government-backed mu- British Music Abroad: Chief Executive, businesses are too high risk. finance for the music industry in 2001 (Bank- sic investment fund could ing on a Hit), and again 2006 (SME Music The PRS for Music Foundation is working in Ingenious Media: Potential investors in creative businesses need Businesses: Business Growth and Access to help kick-start further growth partnership with Arts Council England, British to better appreciate the real value of creative Finance). Neither Government study led to in the music industry with in- Underground and UK Trade & Investment to We need to explore new forms of public-pri- assets by allocating a fair and commercial meaningful change. A ‘money map’ com- enable UK artists to attend international show- vate partnership in the interests of leveraging value to copyright (intangible) assets identi- piled by the Government on potential sourc- vestment criteria developed, cases which help them to realise their full po- the strengths of the private sector and getting fied in the balance sheet. es of income does not equate to a response guided and implemented by tential in the international market. better value for taxpayers’ funds. Too much to this chronic problem that is stunting music government funding goes into “soft” money sector growth. a panel of leading industry projects that never gain commercial trac- Will Page executives with great expe- tion. Grants are not a good use of taxpayers’ Sway: money, every pound of which is worth double Chief Economist, rience in every aspect of the Brian Message Support from the PRS Foundation enabled me in times of economic crisis. PRS for Music: business. Such an Angel’s Manager of Radiohead to attend SXSW and to break into the US mar- Investment / Dragon’s Den ket. This led to me signing a distribution deal in Better by far to use taxpayers’ money to pro- There are underlying problems within the in- and Chairman of the vide new forms of fiscal incentive, perhaps approach would potentially North America with Akon’s label KLD. vestment structure of the music industry. In Music Managers Forum: based on Enterprise Capital Funds or Venture broad terms, a large share of those artists have a real impact. Capital Trusts (VCTs), to stimulate investment. generating the top revenues can be charac- Today there are a significant number of art- terised as ‘heritage acts’. There is a concern ists who are now ‘free agents’, who have ex- In an increasingly globalised world there be- Synch Licensing Mission: The alternative prospectus is for a continuing that the sweating of existing acts might lower tensive fan-bases, sell tens of thousands of comes a greater need to look at how other and perhaps deepening reliance on foreign The BPI, in partnership with UKTI, runs a regular the quality of investment in new talent. ‘Digital records, tour profitably, both here and inter- countries have managed to best serve their owned entertainment giants, and a continu- Sync Licensing Mission to Los Angeles. The Britain’ faces a problem with investment in the nationally and operate profitable businesses. creative sectors. Government can play an ing exodus of talent from the UK. I do not want mission provides a unique opportunity for re- creative industries. While the trends point to However these artists are unable to secure important role at an international level to to see us reduced to acting as off-shore facili- cord companies to learn about sync licens- recorded music dipping slightly (-6% year on bank lending to bridge the ‘creation and position the UK as the ‘World’s Creative Hub’. ties managers for non-British global conglom- ing and connect with many of the key players year) and live growing (13%) for the past year exploitation cycle’, thus putting their future in Government can also play a role in enhanc- erates. We should aim higher than that.12 working in the TV, film, advertising and com- it is critical to remember that it is recorded jeopardy and potentially returning them to ing the export success of the industry with a puter games market in the media capital of music which traditionally makes the primary the job market. positive trading environment (eg. visa appli- investment in developing new talent. cations), legislative environment (eg. scope the US and the world’s largest entertainment To exacerbate this, music enterprises of all market. The mission opens doors to the Brit- Many of our members now have to provide of copyright protection and enforcement), types systemically complain that they can- ish companies which would have previously investment but we cannot do all the ‘heavy and fiscal environment in international- mar RECOMMENDATION: not get financial backing in terms of loans or been closed. Many successful deals have While a number of Government backed lifting’. The good news is that the Enterprise kets, whether developed or developing, all of investors for their ventures. So as well as an struck as a result of the mission with British schemes have been available in theory (En- Finance Guarantee (EFG) is a perfect instru- which directly affect the returns to the UK. UK Music recommends that Government firstly investment gap in new, unknown talent, there publishers and record companies seeing their terprise Finance Guarantee, Venture Capital ment to help solve the funding issue. Hav- acknowledge the profound, and what would is also a critical funding gap for talented, ex- works licensed for use in leading television Trusts, Advantage Creative Fund, amongst ing used its predecessor, the small firms loan The review of globalisation and taxation is an currently appear to be insurmountable, diffi- perienced companies which cannot find rel- shows such as 90210 or Hollywood films. As others), in practice, there has been very little guarantee scheme, to good effect in busi- ideal opportunity to partner with Government culties that the music sector has experienced atively small sums of money to promote their Music Week reported: “The BPI-led trade mis- success of public finance schemes actu- nesses outside of music in the 1990’s, I know to find a suitable fiscal stimulus, taking into ac- in trying to access sources of Government roster of artists, writers and producers to the sion returns to Los Angeles providing UK com- ally working effectively for the music sector. how important this type of funding can be. count international best practice. The music backed finance such as the Enterprise Finance next level of success. The inability of music enterprises to access industry is dedicated to working with Govern- panies with unrivalled access to the world’s Guarantee; and secondly, work in partnership largest entertainment market.” finance through these Government-backed The bad news is that the credit committees ment to demonstrate what could and should with the music industry to create a source of Traditional financiers have been unable to schemes has been a long running source of of the banks are finding it difficult to sanction be done with more assistance. funding to stimulate investment in new talent bridge the gap between venture capital in- frustration for the sector. EFG funding for these artists. As such, there is and support enterprise and entrepreneurship vestments and micro-business financing. a continuation of the ‘disconnect’ alluded to in the music marketplace. The music indus- Many commercial financial institutions con- in several government papers between banks try will look to make a financial contribution cur that the level of finance required to kick- and the entrepreneurial music business. to any Government-backed music invest- start growth into fledgling and medium sized ment scheme and additionally, commit the music SME’s is well below their threshold of At a time when there are many liberated art- time and expertise of leading executives from ists capable of exploiting the ‘artist fan rela- across the music business to develop and im- tionship’ business, staying employed, employ- plement investment criteria. The industry will ing others and bringing taxable profits back also create a three year programme to help into this country from international touring, it develop a better understanding of the invest- 12 Talent Is Not Enough! After The Crunch, Edited by Shelagh Wright, John Newbigin, John Kieffer, John Holden and Tom Bewick Creative & Cultural Skills and Counterpoint, would be a cultural and commercial tragedy ment needs of industry and work with external the British Council think tank not to ‘seize the moment’ and liberate fund- funding sources, including the private sector ing; especially when we have a perfectly suit- to ensure the industry is meeting its ambitions able instrument, the EFG, to hand. for growth. 17 Sarah Rodgers For the most part copyright has proven to be Copyright a sturdy and resilient concept for how the art- Composer and Chairman ist should be protected and rewarded. of the British Academy of To achieve our 2020 goals, Over the past century, the music industry has our copyright and compe- Songwriters, Composers adapted to many technological changes. tition infrastructures must and Authors: First came records. The publishing industry and burgeoning record industry then had to help, not hinder, creativity Copyright is vital to any and every creator grapple with radio and the prospect of “free” and the growth of the digital of all genres of music. Copyright provides music delivered over the airwaves; then songwriters and composers with legal, com- came the tape recorder and cassettes; then economy. mercial and moral protection for their mu- the CD, and the MPEG file. sic. It is the means by which they are rec- The copyright framework must give creators ognised as creators, make a living from their But technology has always needed content, and commercial investors in the digital mar- works and exercise choice in the manner in and content always needs technology. By ketplace a reasonable expectation that their which their creative work is exploited. Without nature, this is a truly reciprocal and symbiotic investments can be recovered - a prerequi- strong copyright, the future of creativity is in- relationship. Success in the music industry site in any nascent market. adequately safe-guarded. has always been driven by partnerships, by the successful adaptation, exploitation and The competition framework must recognise management of technology to mutual ad- that the digital economy is largely borderless vantages. and facilitate efforts of rights holders to aggre- Copyright and creativity: gate their rights so that the licensing process Like other IP-based sectors, becomes simpler and faster. Soundrights: In September 2008, the Government created a new requirement music is immersed in the The concept of copyright has been around within the music curriculum: “to include the next set of issues, grappling for centuries. At its essence, it is the means by role of music and musicians in society, the which creators and those who invest in them music industry and of artistic and intellectual with how to monetise the can earn from their creative endeavours. It property rights”. is the basis of the economic success of the extraordinary consumption creative industries. It underpins, supports and In response UK Music developed Soundrights. and movement of music on- cements the entire music industry, from com- This free-to-access website allows teachers line. position to consumption. and their students to explore the power of music and understand more about the music Yet for all of its exciting potential, for many in- This strength is based upon the principle that business. vestors in creative content, what the current copyright is agnostic as to its subject, demo- environment has delivered is a great deal of cratic as to its beneficiary, yet provides a “Soundrights is a simple and informative re- uncertainty. For many it would appear difficult, flexible and open system for society. Most im- source for teaching a new requirement within if not impossible, to reconcile the dilemma of portantly, copyright empowers the creator to the KS3 music curriculum. The activities are how to maintain financial support in the origi- exercise a choice of if, how and when they innovative and engaging, supporting cross- nation and creation of music (or any other exploit their creativity, and provide the oppor- curriculum and independent learning.” form of creative content) when the perceived tunity for a return on investment to the entre- Anna Gower, Head of Music, Monk’s Walk reality is that the only element of certainty preneurial sector that invests in that creativity. School, Herts provided to an investor - control - has been removed from the equation.

19 20

Photo: Tom Oldham A further practical problem in the UK is the le- Patrick McKenna managing copyright were developed At the moment copyright Collective licensing is a voluntary arrange- Copyright Tribunal Decision gal uncertainty that makes it difficult for rights before the digital age. There are areas in ment in that right holders have a choice over owners to enforce their rights against internet Director, Ingenious Media: which reform of copyright management to lasts for just 50 years after how they license the rights they control. This on Pubs, Shops and Offices: sites which knowingly direct users towards sub- better suit the digital age would be helpful the recording of the perfor- arrangement makes collective licensing bod- stantial quantities of unlicensed music, but You cannot build creative businesses, and to both producers and users of copyright. ies accountable to their members and pro- Dominic McGonigal (PPL) observed, “When who may not host the content themselves. thus provide jobs for the host of other folk who mance, meaning that per- motes good business practice. the Copyright Tribunal decides on a dispute Such services can often build successful busi- work in ancillary occupations, unless the intel- o A moment of transition is not the best time formers can lose all control between licensor and licensee, it is determin- nesses from directing users to illegal content. lectual property created by artists, writers and for long term or wholesale changes that However, the potential efficiencies and ben- ing the finances of thousands of creators, Government should provide clarification composers is capable of being commercially weaken copyright law. As convenient as it and income resulting from efits of collective licensing are threatened by rightholders and users. The recent case con- within the copyright framework to ensure that exploited for a profit that is then reinvested for may seem, the best policy solutions their creativity and talent in the lack of reform of the Copyright Tribunal cerning the rate for pubs, shops and offices it is easier for copyright owners to take action future growth.14 currently are probably the ones which are which is, in the words of one of its own recent was a case in point. their own lifetime. under UK law to prevent such abuses. pragmatic, iterative, and encourage the decisions, ‘ill-equipped’ to perform its func- music industry to find solutions of its own. tion. PPL had submitted tariffs based on a slid- The European Parliament adopted a proposal ing scale, with small bars and shops paying We welcome the engage- to extend the term of copyright to 70 years The Copyright Tribunal is the body charged around £100 and larger establishments pay- Steve Jobs coupled with further means to strengthen the ment of politicians in the is- with hearing disputes between collective li- ing more. The hospitality industry objected Simon Fox position of performers, including the creation CEO, Apple: censing bodies and licensees and deciding and wanted to pay less. sues of such importance to of a fund for session musicians. This proposal Managing Director of HMV: on a fair level of fees in the absence of a ne- must be approved by the European Council If copyright dies, if patents die, if the protec- our industry and reempha- gotiated agreement. Often, tens of millions Although both sides had produced consider- of Member States in order to be adopted. tion of intellectual property is eroded, then sise how crucial Govern- As Government, ISPs and the music industry of pounds of annual revenue is at stake in a able evidence, including expert assessments people will stop investing. That hurts everyone. are now seriously working together on mea- single decision. from forensic accountants, the Copyright Tri- People need to have the incentive that if they ment intervention is to en- sures to restrict illegal downloading, now is the The Government should press the Council of bunal heard the case in just one day. Even invest and succeed, they can make a fair sure our copyright regime is right time for HMV to invest in digital entertain- Ministers in Europe to urgently adopt the EU the subsequent Appeal in the High Court was Parliament’s position with respect to extend- Recently, the Copyright Tri- profit. Otherwise, they’ll stop investing.13 fit for the digital age. ment.16 longer. When handing down its Decision a few ing the term of copyright in sound recordings. bunal has made decisions weeks later, the Copyright Tribunal admitted Given the expertise of PPL, we consider they that it was ‘ill-equipped’ to carry out the in- However, we urge politicians to keep focused on the rates that online ser- For the industry to continue delivering high However, there are some very specific areas would be best placed to administer the fund vestigative role needed in such a case. Their on the areas that would help grow the digi- quality music, those who create and per- where Government intervention is needed for session musicians at national level. vices, pubs, shops, offices Decision therefore was to revert to an earlier tal marketplace. We would caution against form music as well as those who invest in in- now. We have already highlighted the impor- arrangement whereby almost all pubs, shops being waylaid by a wholesale review of the and video channels should novation need to be remunerated. For this to tance of measures to address digital copy- and offices pay a flat rate of £100, regardless copyright system or by introducing new ex- Reform of the copyright happen there needs to be an environment right infringement. In addition: pay for music. In all these of size. ceptions to copyright. tribunal: in which copyright is respected. Tackling the cases, the Tribunal’s Deci- issue of copyright infringement is critical to this This Decision illustrates the challenges for the During 2009 UK Music commissioned an in- Term of copyright Making, marketing and licensing music typi- future, as well as enabling a commercial en- sion has either expired (and Copyright Tribunal. Pubs, shops and offices dependent analyst to review the issues facing cally involves a lot of people – songwriters vironment where sustainable, licensed digital protection: play music because there is a value to those the music sector, focusing on the industry’s and artists, record companies and music been replaced by a market services can prosper. businesses. But, assessing that value is a com- role in the digital economy. As part of this ex- publishers. Each invest a lot into the process, rate substantially different plex business. The Innovation Select Commit- ercise the consultant discussed with a range Politicians and the music and has a stake in what happens to that UK Music remains committed to supporting tee made a number of recommendations to of stakeholders - people from inside the music music through the copyrights created. Most to that determined by the the measures in the Digital Economy Bill which sector throughout Europe reform the Copyright Tribunal, including that industry, music users, ISPs, and several others right holders appoint collective licensing bod- Tribunal) or been appealed. seek to substantially reduce digital copyright the Chairman should be a salaried position. - the particular challenges relating to copy- have for many years debat- ies to license their repertoire for some uses, infringement whether through peer-to-peer In the modern digital age, the Copyright Tribu- right.15 The author concluded that: particularly in areas such as broadcast and technology or any other (as of yet unknown) ed the issue of how long a nal will have to make commercial judgments public performance. This enables users to get types of technology. sound recording and musi- where thousands of users and tens of millions o The fundamental principles of copyright licences that cover the whole repertoire for of pounds of creators’ royalties are at stake.” are sound and fit for the digital age. cal performance should be those uses. protected by copyright. o The management of copyright is in a This system of collective licensing can have Both sides in disputes – rightholders and com- transition period. Most existing systems for advantages for both right holders and users mercial music users – are in agreement that and provides an efficient method of licens- the Copyright Tribunal system needs to be ing some uses. Right holders, from individual modernised to meet the demands of the composers to major record companies, may digital economy. benefit from a cost effective licensing mech- 13 Source: Interview with Rolling Stones magazine, 2003 anism and access to this market on a level www.news.cnet.com/8301-1023_3-10152343-93.html 14 www.culture.gov.uk/images/publications/IngeniousMediaPatrickMcKenna_DBIRResponse.pdf basis. Users also benefit from the efficiencies 15 Andrew Missingham, Competing with Free: the role of copyright in the digital economy, February 2009 of a one-stop-shop and can compete on 16 www.guardian.co.uk/business/2009/sep/03/hmv-buys-7digital the services they provide with the repertoire licence. 21 22 We appreciate that Government has signalled Charles Caldas Many commentators have observed the Fred Bolza future is one in which the consumer is able necessary to provide the backbone to en- its intentions to make reforms. We would urge impact of digitisation on the music industry to find and consume the music they want, able more complex, multi territorial licensing Government to complete the implementa- CEO, Merlin: and subsequent decline in revenues and Vice-President, Strategic when and where they want for a price that arrangements to meet the needs and ex- tion of the recommendations from its review concluded that the simple answer is “new Development, Sony Music: reflects the true value of both the music and pectations of the market. of the Copyright Tribunal, taking into account Merlin was established to address the fact business models”. Indeed there are many the convenience of the service that offers it that as the distribution and consumption of the recommendations of the Innovation, Uni- examples in the music industry where both You can’t open a newspaper, browse the to them. This may mean that they will pay As an example of the innovation taking music moves from a regional to a global versities and Skills Select Committee report individuals and companies have successfully web or turn on the radio or TV without hearing for their consumption not only by exchang- place, PRS for Music and the Swedish collec- model, and the number of sites around the of March 2008. Of particular importance is financed new ventures from innovative and about a new service that is going to revolu- ing money for it but potentially their attention tion society, STIM, are working together with world offering music both legally and illegally establishing positions for Chairs and Deputy unorthodox propositions. tionise the way we consume music and in so and time but what is certain is that from this the ambition to create a groundbreaking, escalates, the vast majority of independent Chairs who have the seniority and the exper- doing transform the music industry beyond source many revenue streams can flow and central database of compositions that are record companies do not have the resources tise to decide on the complex commercial The UK music industry is at the vanguard of all recognition. it is in their confluence that growth lies. registered by publishers and writers all over disputes that now come before the Copyright to enforce their own copyrights, or to effec- finding new ways to realise the value of music the world. The project, called ICE (Internation- tively capture the attention of potential music Tribunal, together with a sufficient allocation in the digital marketplace, offering the end Although it is unquestionably true that the al Copyright Enterprise), will help make any users and gain access to competitive licens- of time to give to case management, pre- consumer access to music in a multitude of means for making, distributing and consum- UK Music acknowledges that one key task will revenue collected reach the right copyright ing opportunities. reading, Hearings, Decisions and Orders. different ways. ing music have changed at an incredible be to demystify the licensing process for mu- owner. pace in recent memory, it is equally true that sic users, many of whom in the digital area Competition law: Whilst independent labels The growth of digital has been remarkable: In the underlying fundamentals have essentially have no previous experience of copyright PPL is leading the creation of a Global Rep- collectively represent over a 2003, the first year that digital sales were re- remained the same: people make music for and licensing, by clearly explaining its opera- ertoire Database for sound recordings. The Commercial users often look for one-stop corded by the record industry, there were 30 other people who use various means to dis- tion and providing relevant signposting. To PPL repertoire database is already a world shop solutions in order to simplify the licens- quarter of the world market, legal digital music services available world- cover it, listen to it and, at some point, pay this end, UK Music is publishing a simple li- leader, with 5 million tracks and electronic ing process. It is noteworthy that right holders and are renowned for their wide. In 2010, there are over 400. In 2003, for it. censing guide as a small contribution toward feeds from UK record companies ensuring tried to provide one-stop shop solution for the there were 400,000 licensed music tracks helping direct users to where they need to go it is updated daily (6,000 new recordings worldwide music repertoire very early by sug- ability to innovate in both available digitally. In 2010 there are over 11 The main transformation is the shift from to obtain appropriate licences. added per week). Currently, it services the gesting worldwide licensing models. creative and business terms, million, with a million songs added each year. a relatively limited number of formats (LP/ charts (Official Charts Company) and me- In 2003, Beyonce’s Dangerously in Love was chanical licensing (MCPS). Using this base to the reality is that for a new CD/Cassette) to a seemingly endless set of As we look forward, broad- These proposals could have addressed the available in 5 formats. In 2010, Beyonce’s I consumption options (CD/download/ad sup- create a global facility will put the industry in am…Sasha Fierce sold more than 260 differ- ported stream/subscription/video stream/ band access speeds will a unique position to license and monetise its needs of both commercial users and rights service to effectively license 18 holders but have been prevented from do- this repertoire requires hun- ent products. ringtone). continue to increase apace, repertoire. ing so by competition authorities in Europe. which, combined with a Collecting societies are still being subjected dreds, if not thousands of in- UK Music members are taking significant steps This multiplication of options poses a strategic to strict supervision by the competition au- dividual deals across many to provide consumers and commercial users challenge to the industry, because it means greater understanding of the RECOMMENDATION: thorities, which make it difficult for creators alike with licences for new services, whether that a single “category killer” that will substi- these are YouTube, Sky Songs, Spotify, or Nokia licensing environment, can and right holders to provide one-stop shop territories. tute the declining CD market and return the Copyright is the currency of creativity. We Comes With Music. Over the past 18 months, solutions. We would urge European and UK industry to growth is highly unlikely. lead to the further growth of recommend that Government ensures it has the UK’s licensed digital music market has competition authorities to consider the needs Merlin aims to provide a new efficiency to its in place a robust copyright framework fit for diversified enormously – epitomised by com- the legitimate digital mar- of commercial users and right holders when members and the new services looking to If this is the case then the industry needs to the digital age. As a priority, Government petition in the download market and the trac- applying competition policy. use their music, by creating a central entry move on from a focus on whether “unlim- ket. The music industry is should swiftly implement the proposals laid tion being gained by new streaming services. point for those who wish to license the valu- ited”, P2P or any other single format is going determined and committed out in the Digital Economy Bill which address Overall, we are moving from a physical sale able independent recorded repertoire that to solve our problems to one in which we get digital copyright infringement and work with per unit world to one where access is based to reaching such a goal. it represents, and by actively acting against behind a range of compelling offerings that competition authorities to help ease the ten- on a revenue per users model. infringements of those rights by unlicensed meet the rich diversity of consumer needs. sion between the desire by copyright users 17 To ensure this vision becomes a reality, be- services. for easier licensing and the restrictions im- With the transformative shift taking place from hind the scenes mechanisms are being put posed on the rights holders who are trying to a pure retail model to one where there are in place to offer scale and the capability to Equally important is that we, as an industry, achieve this, especially at a European level. multiple ways to access and consume music, deal with billions of micro transactions. It is a are able to adapt the economics of our busi- Government should continue to press our licensing is increasingly a critical component fallacy that the cost of digital production is ness in a way that is both sensible in the short case in Europe on copyright term extension to making the market work. term and sustainable in the long term. The zero. According to a leading digital provider, “There are hundreds of different services and for sound recordings; and complete imple- each requires data in their own format. The mentation of the recommendations from engineering works to ingest, encode, reg- its review of the Copyright Tribunal. The mu- ister catalogue, and manage this data, as sic industry will open up ever more ways for well as server costs are substantial19”. World music to be enjoyed through new business 17 www.merlinnetwork.org/home 19 Simon Wheeler, Director of Digital, Beggars Group. models for commercial use and innovative 18 IFPI, Music How, Where, When You Want It, February 2010 class back office operations and efficient collective management infrastructures are licensing arrangements for non-commercial use.

23 24 Beyond business support services, there is a When public money is spent to promote so- The BBC: lack of clarity regarding how public expendi- cial objectives such as furthering the inclu- ture earmarked for innovation, enterprise or siveness agenda or widening opportunities, The music industry would not be what it is creativity translates into strategies for growing that too should be made clear. without the BBC. Music is undeniably a central the commercial music sector. Such difficulty part of the BBC’s core activity and an integral might be overcome if the Government and Funding bodies should also be explicit about part of the BBC’s scheduling across all it’s public bodies were more explicit about in- whether their investment is intended to pro- broadcasting platforms. This is emphasised by tended purpose, outcomes and beneficiaries mote non-commercially viable but culturally the fact that the BBC itself is the biggest com- of their investment decisions at the outset. valuable expression. missioner of music in the world. BBC Radio 3 alone is the world’s largest commissioner of When the aim of public investment is to stimu- Public funding for the arts in- new classical music, responsible for up to 65 late economic growth and to create wealth, private sector in order to meet public policy UK Music intends to develop a Memorandum evitably leads to the thorny new pieces each year . Future opportunities Public Sector goals. of Understanding (MoU) with Business Link that aim should be spelled out, and the out- for new exposure - to be seen, heard, appre- which would establish UK Music as the rec- comes should be measureable. For exam- question of: ‘What is art?’ ciated, and shared – are crucial. By way of example, consider business support ognised source of information through which ple, the music sector would like to be able Such a question has argu- Expenditure services. Business Link can provide sector specific sup- to assess what impact the regional develop- “BBC Introducing have bases across the port to music businesses. The fact that Busi- ment agencies have had on the music sector ably become even thornier country that could input into long-term pro- A great deal of public mon- In an ideal world, there would be only a few ness Link is not a national body but in fact a in each region. in recent years with digitisa- grammes to find and develop local talent ey is allocated to regional but well-known and respected places to go to grouping of regional business support services tion, the explosion of user and push it through to national BBC. There are development agencies, for advice on everything to do with running a contracted out to different providers makes many ‘battle of the bands’ held locally but music enterprise. These places could provide this commitment more challenging. Association of Independent generated content and the none that have an underlying programme the Arts Councils, Business advice on generic business functions like tax embedded and a longer-term view that real- and accounting, and sector specific advice A number of Music Development Agencies Music (AIM): so-called ‘democratisation’ ly supports the participating artists. The BBC in Link, NESTA, and latterly, the like how to tour internationally. Everybody in have sprung up to cater for the need to pro- particular could develop a standard for pub- AIM has worked in conjunction with the Lon- of art. Olympics, and other Gov- the music business would have heard of them vide sector specific business advice in the lic facing band events and competitions that don Development Agency (LDA) on a digital and most would have used them. regions – The Bristol Music Foundation in the support the artists taking part.” - Matt Booth, ernment bodies and public music industry support programme. Organisations such as the Arts Councils and South West, and Generator in the North East, the BBC have the unenviable task of decid- chairman of the Bristol Music Foundation agencies. Almost all Government funded business sup- offer effective support services. From April 2008 to September 2009 a number ing, and defending, decisions about what port is now provided via the Business Link ser- of opportunities for free or subsidised business ‘art’ is worth supporting and with how much. Each of these public bodies is tasked in some vice, which acts as the gatekeeper. To be Local government, too, are subject of our advice, access to research and information, But clarity from the outset about the intended way with supporting creativity, economic relevant to entrepreneurs seeking business recommendation on public spending. The Generator: access to work experience, freelance staff outcome should help focus the debate. growth, or enterprise and innovation. advice from within the music sector, Business best local authorities employ an arts officer to and small suppliers, business support and skills Link must be able to provide more than just implement a carefully thought-out arts strat- Generator serves both artists and music busi- training were made available to London’s Arts Council England funds over 150 music The music industry should in theory benefit generic advice. egy and make inspired use of their own as- nesses in the North East. music companies. organisations and provides development from these bodies’ spending as a potential grants to many more. The Arts Councils in Eng- sets – property and spaces – to encourage high-growth sector brimming with creativity Trade association bodies could play a cru- a thriving music and arts programme in their It provides one to one advice, seminar pro- Beneficiaries of the programme included land, Scotland, Wales and Northern Ireland and enterprise. cial role in the provision of business support locality. We would like to see all local authori- grammes and in the cases of those show- small music business in London, from artists also work with specialist funders like the PRS and advice. Music sector trade associations ties emulate the best. ing the most talent and ability, a mentoring to venues, publishers, managers, labels and for Music Foundation to develop schemes Some within our sector have benefitted from already provide valuable business services programme and international conference others. The project ensured that support was which respond to music sector needs. How- the services or programmes funded by these and networking opportunities for their mem- We acknowledge that in the current financial showcasing. Some of this talent has gone on targeted at under-represented groups in the ever, despite some very successful schemes public bodies. But we do not have a sense bers, but are limited by capacity constraints climate the ever increasing financial pres- to achieve significant success and recent ex- music industry including companies led by in place, the funding currently allocated by of how that public investment is strategically in terms of their reach. sures on local government will invariably result amples are Maximo Park, Little Comets and women, black and minority ethnic people the Arts Councils has developed into a com- impacting upon us as a sector. This has be- in the prioritisation of essential services instead Beth Jeans Houghton. and people with disabilities. plex ecology. Many in our industry would like come particularly apparent with respect to On a number of occasions over the past to see the Arts Council make the distribution of cultural facilities. An arts officer may be cat- the Olympics and attendant cultural festival. egorised as “something that would be nice” few years, the music trade associations have Between January 2006 and October 2008 of funding more transparent, and the ap- partnered with Business Link in London to run plication process more accessible for those as opposed to “something that is essential”. Some funding could be more effectively Generator engaged with over 400 people business advice seminars targeted specifi- through the Business Of Music Programme groups more unfamiliar with how to engage channelled through better collaboration and But if the UK’s creative industries are to live up cally at music entrepreneurs. This relationship and of these 62 businesses received advice with the public sector. consultation with the wider commercial music to their potential and create a greater propor- has been informal and ad hoc, but a closer, and training for 10 days or more. industry. There may be some areas where the strategically-driven relationship might yield tion of wealth for the nation, such grassroots industry should have systematic input into the greater value for money and more effective support really will be essential. allocation of public sector funding in order outcomes. 20 Figure quoted from ‘The BBC: Some facts and figures’ to increase the value of those funding initia- tives. There should be no ideological barrier to public funds being channelled through the

25 26 Get It Loud In Libraries: RECOMMENDATION:

Many library services across the country see Government should ensure that all public the value of contemporary music as a way spending bodies are acutely aware of the ex- of promoting creativity and literacy in young pectation that they should form partnerships people and the Get It Loud In Libraries team with others, including the private sector, to in Lancashire Libraries is an excellent way of maximise the value and impact of any public using local space. investment. Priority areas should be the Olym- pics, business services, and support for the arts. Local authorities should regularly publish Each nation of the UK has a strong cultural an account of the investment they make, or heritage, which has produced innovative, assets they make available, to support music unique and powerful musical genres. Whilst enterprise and engagement at local level. acknowledging that key responsibilities for The music industry will develop a Memoran- culture and enterprise within the Nations are dum of Understanding with Business Link which devolved responsibilities, UK Music recognises would establish UK Music as the recognised the importance of cooperation with our indus- source of information through which Business try partners in Scotland, Wales and Northern Link can provide sector specific support to Ireland. UK Music proposes to develop a music businesses. The music industry will work structural relationship which acknowledges this with any other public spending body to ensure fact. We aspire to develop a Memorandum Wales: that they target their investment in the most of Understanding with the respective bodies productive and efficient manner possible. in the Nations – the Scottish Music Industry Wales has a distinctive tradition of folk music Association, Welsh Music Foundation, and a which has, since the 1970s, influenced Welsh future Northern Ireland sectoral development pop and rock music to create some of the body – which spells out more clearly in detail most innovative and unique sounds in UK mu- how we all intend to develop our collective sic. During the 1990s Welsh musicians explod- relationship over the long term. ed onto the mainstream music scene with the likes of Catatonia, Manic Street Preachers and Super Furry Animals. The Welsh Music Founda- tion is funded by the Welsh Assembly Govern- ment and represents the music sector. Scotland:

Scotland produces world ranked composers, songwriters and performers across every as- pect of musical activity, from Sir Peter Maxwell Davies, James MacMillan and John McLeod, to the Proclaimers, Franz Ferdinand, Simple Minds and Slam. The Scottish Music Indus- try Association is the representative body for the music industry in Scotland and will work in partnership with Creative Scotland, the new development body for arts and culture in Scotland. Northern Ireland:

For eight years the Northern Ireland Music Industry Commission acted as the develop- ment body for the music industry in Northern Ireland. Recently, however, funding was dis- Photo: Tom Oldham continued and the body is no longer in op- eration. 28

Photo: Mark Harrison Whilst the live music scene forcing the Metropolitan Po- o The Make Space Campaign run by 4Children found half of 11-18 year olds might be buoyant at the O2, lice to scrap Form 696. complaining of a lack of facilities said an Wembley and Glastonbury informal space for arts and creative work Live Music & there are still some serious Close to our heart is the rehearsal room would be most important. Two thirds of this scheme announced by the Government in group were interested in music-making. Rehearsal Space problems to overcome at 2005 to the tune of £500,000. Public money the grassroots. is used to kit out a venue in a deprived area In short, there is a need to with a recording studio and performance open access to public spac- The UK needs a range of live music venues space that young people can use for free. with differing capacities to support the career So far 3 have been set up with an aspiration es so people can practice – The live music sector is an alone attracted around 340,000 people last paths of musicians as they advance from that 10 will be developed. whether for pleasure or for summer. Spending an average £408 per per- playing to local audiences in small venues to important contributor to the son, they contributed in excess of £135 million the handful that can fill a venue like the O2. Industry has been closely involved in the re- an aspiring professional. UK’s economy and is funda- into the UK economy. With 60% of festival go- The ‘everything in between’ is critical to a vi- hearsal room scheme from the beginning. ers staying for 3 – 4 days in the area surround- brant music scene. Indeed, it campaigned for such a scheme to Fully-equipped rehearsal spaces and record- mental to our cultural health ing the festival, an additional £16.3 million be introduced long before it was announced. ing studios make a big difference for young and wealth. was directly inputted into local economies. Live music facilities should be part of every Schemes like these are part of what makes people who are looking for somewhere to community and attending live music events the UK a great place for music. As 17 year old practise, spend time and find a suitable out- Live music accounts for the largest part of should be part of life. The DCMS Live Music Ant Wharton said of the scheme in Liverpool, let for their creative skills. However, the cost of the music industry and the UK offers one of Horace Trubridge When you go to a gig you are participating Forum highlighted in its report that an estimat- “We could never afford to practice in some- hiring a commercial music space is typically the most spectacular live music scenes in the with others. It is not a passive act; your per- ed 1.7 million gigs were staged in bars, clubs, where like this, rehearsal rooms cost a bomb, well beyond what most teenagers will be able entire world. Live music in the nation’s vast Assistant General Secretary, formance and that of those around you will restaurants and other venues whose main so we are made up.” to afford. array of music venues and festivals each Musicians’ Union: often have a bearing on the success of the business isn’t putting on live music.22 year attract visitors from all over the UK, Eu- event. One of the key recommendations emanating Rehearsal is integral to the out of the Live Music Forum’s report was that rope and the rest of the world. The O2 arena, Before Sony invented the Walkman, music The Licensing Act has not led to the promised career development of a the Government should work with local au- for instance, has already attracted 12 million lovers played records through speakers, often Whether it’s a room above a pub, a stadium increase in live music. Controls on the licens- thorities and other partners to develop afford- visitors to date and is the world’s most popular gathering together to listen to the latest offer- or a festival stage, the feeling of belonging ing of events need to be proportionate to the young musician but there able and well-resourced rehearsal spaces for entertainment venue. Each and every day ing from their favourite artists and enjoying the and sharing a special event has unique sig- scale and nature of the event – such a sys- are not enough suitable, young artists and musicians. the gigs and concerts all over the country music communally. In fact, many, many new nificance in a society that in so many other tem is far from the current state of play and bring thousands of visitors who spend mon- bands were formed in this way. ways has lost faith in the concept of commu- the over zealous or incorrect interpretation of well-equipped, affordable ey not just at the gig but in the surrounding nity. Almost as importantly, it’s an experience the legislation is commonplace, especially facilities for those people area. Now of course the majority of music lovers that is 100% future-proof. No advances in with very small scale events. Recent data sug- walk around with wires hanging out of their technology can ever possibly produce some- gests that nearly 40 pubs are currently closing starting out. Festivals are a crucial component to the live ears listening to their music in isolation. Is this thing that does ‘live’ better than ‘live’ does. per week.23 music scene. PRS for Music suggests that mu- a good thing? We all love music so much is There is nothing better than being there. o Youth Music found in its 2006 Omnibus sic festivals are likely to generate about £450 it enough to just enjoy it on our own and not UK Music urges Government survey that nearly a third of 7-19 year olds million for the British economy this year; about share in our enjoyment with others? You can pray by yourself, whatever your per- are making music outside school two million people will attend around 150 mu- suasion. But thousands of years ago mankind to reduce burdensome reg- provision, many without supervision sic festivals in a year. I don’t think so, and you can only conclude discovered (as with so many of the good ulation by re-introducing that the many thousands of music fans who things in life) that it’s much more fun to do it o A more recent report found 43% of young The huge value and contribution of Indepen- are prepared to shell out considerably more with someone else and so they built temples the two-in-a-bar rule; intro- people who want to engage in music dent UK festivals to the British economy has money than it would cost to buy the entire and churches. Nothing beats sharing a live ducing a live music licence didn’t because of the lack of facilities or been quantified in a large scale survey of back catalogue of an artist for a ticket to see music experience with fellow devotees. costs. 3,300 festival goers undertaken by the Associ- them perform must feel the same way. exemption to venues with a ation of Independent Festivals (AIF) published Nothing beats live music. capacity of 200 or less and in September 2009.21 AIF member festivals

21 Association of Independent Festivals: Independent festivals put £millions into local economies, AIF festival audience survey 2009: 22 Live Music Forum Findings and Recommendations, July 2007 www.aiforg.com/news_details.php?news_id=18 23 British Beer and Pub Association, February 2010

Photo: Tom Oldham

29 30 Andy Rimmer RECOMMENDATION: Wrexham County Borough That Government transfer remaining funds Council Youth Services, earmarked for the roll-out of the rehearsal on the Wrexham room scheme into a charitable trust to be administered by UK Music. The music indus- Rehearsal Project: try will commit the necessary administration, support and fundraising structures to enable During 2008-09 the studio delivered 87 two the Trust to successfully meet an obligation of hour sessions to 230 young people at risk of or providing rehearsal spaces for young people experiencing social and educational exclu- throughout the country. Government should sion - these are in addition to its programme also introduce a “live music exemption” to the of open access sessions with local musicians. 2003 Licensing Act to reduce the unneces- sary burden and bureaucracy on premises There are essentially two groups of young wishing to put on live music. people who use the facility. Firstly, aspiring and experienced musicians who are attract- ed by the centre’s quality facilities and use the centre to make valuable contacts with other musicians. They also receive support from the project worker and peers, performances and access to gigs and access to the recording facility.

Secondly, young people who are excluded, either physically or socially. The centre offers small group sessions during which young peo- ple explore music in a less formal setting than they may have previously experienced.

The sessions have a range of beneficial out- comes, such as providing a diversionary ac- tivity as an alternative to previous behaviour, enabling young people to express ideas and concerns through creative and socially ac- ceptable media, and increasing confidence and communication skills.

The studio has recently started delivering Open College Network’s modules in music technology and music appreciation.

Providing a rehearsal space is just the start- ing point. What matters is what people do using these spaces. The next stage will be to provide training, set up relationships with lo- cal community radio stations, create gigging opportunities and make links with venues and promoters so such places can become real progression routes into other opportunities.

UK Music considers the establishment of re- hearsal rooms to be vital; but is equally com- mitted to making them vibrant, well-connect- ed places. Ensuring the facilities become resources of real value is where efforts must Photo: Mark Harrison turn in the future.

Photo: Tom Oldham Music Publishers Keith Harris UK Music will work in consul- Association: Director of Performer tation with the Alliance for Affairs, PPL: Diversity in Music and Me- Bringing together leading figures from the in- dia (ADMM) and Diaspora (a dustry and academics the Music Publishers One of the strengths of the UK is that it is able Association regularly hold one-day training to call on such a diversity of influences for its non-profit music foundation) courses that are well suited to those seeking creative talent. One of the great weaknesses as well as other partners to a grounding in 21st century music publishing is that it is not able to call on such diversity be- and those looking to bring their knowledge hind the scenes in the Industry. If only for hard support the music industry up to date. They also organise four induction competitive and commercial reasons, in its efforts to promote di- courses a year for those new to or seeking to that needs to change quickly. Like much of the creative industries, the mu- The training and skills regime should prepare enter the business. versity in and throughout the Skills & Training sic sector is made up of a significant number young people wishing to enter our sector for of micro organisations, and businesses with- this reality. A more strategic approach to mu- sector. The music industry should be populated with out traditional linear structures. Often those sic education, skills provision and continuing Women, as well as ethnic minorities, are un- individuals as diverse as the music it produc- companies can’t spare staff for training and professional development is required. BPI’s “Backstage Pass”- an der-represented at higher levels, which mean Diversity in the workforce in industry can be es. They should enter our industry educated development. annual event staged as part of the Govern- there are few opportunities for minority groups helped by developing voluntary industry and trained to make the most of the fabu- A useful exercise for the sector skills council ment’s Make Your Mark initiative, Backstage to build powerful relationships and networks practice standards. UK Music will work with lous talent they work with in a challenging and Association of would be to also map all the public funding Pass has given hundreds of young people with each other to create influence. Targeted ADMM to develop an industry wide non bind- constantly changing market. As they advance being currently spent on music industry skills the opportunity to meet figures from right schemes can be effective in helping to ad- ing diversity code of practice. in their careers, they should be able take ad- Independent Music (AIM): and training. It may be that the public fund- across the music industry for advice and to dress these challenges. As an example, the vantage of the opportunities open to them to ing is better spent subsidising existing (and build a contact base. Music Leaders’ Network programme and Ad- keep their skills and knowledge up to date. AIM’s Mentoring Scheme has run every year possibly new) industry seminars to increase vanced Leadership Programme have had a since 2001, giving around 20 independent delivery beyond existing members. Leader- positive impact. music industry executives the opportunity to ship initiatives packaged around industry Lord Puttnam access expert one-to-one guidance in their trade association training seminars and pro- Film producer & politician: personal and business development from a grammes could also be developed. Music Leaders’ Network: senior industry figure. Diversity We have the strongest creative talent base in A strategic partnership between the sector The Music Leaders’ Network provided a new the world, certainly on a per capita basis and The scheme is targeted at middle manage- skills councils and the music industry could There is a need for improved access into the flexible, low cost model for leadership de- possibly even on an absolute basis. We need ment and owner managers. Successful ap- enhance the value of public investment and music industry for diverse groups. 92% of the velopment which worked for a wide range to invest in that talent and to harness it to both plicants are carefully matched with mentors strengthen the provision for the many self-em- music industry workforce is white.25 To high- of professionals in differing types and sizes of our industrial and our cultural ends. Should we who can help to identify personal and profes- ployed people working in our sector. light the contrast in diversity in terms of output, organisation. do so, the rewards will be immense.24 sional goals and provide a neutral sounding UK Music looked at the Top 40 singles chart board. The mentors are continually moni- UK Music welcomes Creative in early 2010. Of the 40, just fewer than half Funded by the Arts Council England and the tored by an external consultant who ensures the performers were non white. Our sector Cultural Leadership Programme and admin- Our sector is comprised of 13,760 music busi- that the mentoring, feedback and evaluation and Cultural Skills agree- recognises that we need to better represent istered by the Music Publishers Association, nesses: are all completed and the relationship has ment to facilitate a skills au- multi-cultural individuals within our industry, the Music Leaders Network featured 12 par- been successful. All mentors are trained for especially those that have entrepreneurial ticipants, all women from different areas of o 81% employ less than 5 people the role. dit to properly identify the ambitions. the music industry at a roughly similar level o 89% employ less than 50 people skills gaps within our sector of career development. There were tangible o 5 % of people working in music earn outcomes. £41,000 or more The music industry also faces particular chal- and inform future policy de- o 46% are self employed – lenges in terms of the sheer scale of self- velopments. This increases to over 70% depending employed creators, performers, small record on the area in which people work labels and publishers, independent produc- (this number will only increase) ers and management companies, artists and distributors. Source: Creative and Cultural Blueprint (Creative and Cultural Skills)

24 Lord Puttnam, Parliamentary debate, House of Lords, 5th June 2009 25 Creative & Cultural Skills: Music – Impact and Footprint

33 34 Paulette Long With the recent success of black performers However, the Government’s formal pro- Until October 2009, Music4Good was inde- With respect to those young now flying the flag for British music (artists such Apprenticeships gramme of apprenticeships is not serving our pendently funded by the music industry and Director of Westbury Music as JLS, Estelle, Alexandra Burke, Dizzee Rascal, industry, or young people wishing to enter our is only now able to access some public mon- people at a pre-appren- and board member of PRS Tinchy Stryder, Leona Lewis and Chipmunk to The role that apprenticeships could play for industry, at all well. ies after a protracted and difficult process. ticeships stage, there are a name a few), now would be a good time for an industry such as ours is, theoretically, very for Music: the British music industry to show that behind significant: Schemes that were designed to work for large number of organisations and the scenes there is more to ethnic diversity or traditional businesses don’t necessarily work Music4Good: music development bodies It was with great surprise in 2004 that I found than a few people in the A&R department. as well in the creative sectors. Such schemes myself the first black person to be voted onto haven’t addressed the fact that a significant across the UK providing a the Board of the Music Publishers Association Charlotte Pickles Created in early 2007, Music4Good is an in- I’ve been working in the music industry for number of people working in the creative dustry led apprenticeship scheme that has range of specialist services (MPA) in its then 123 year history, then again in just over twenty six years now, and it’s really Policy Director, The sector are self-employed. 2008 being the first black person on the Board been carefully piloted over two and half and mentoring schemes. encouraging to see this sector finally pulling Centre for Social Justice: years, in consultation with the music indus- of PRS for Music. together via UK Music and the Alliance for Di- Unfortunately, music organi- try and over 40 community groups and with If music businesses are to further benefit from versity in Music and Media (ADMM) to work on Music plays a key role in the lives of many, funding from the BRIT Trust. creative apprenticeships, the quality of can- I have always been very aware that the indus- a diversity code of practice. sations are currently finding try had very few black people in the higher if not most, young people. Its influence has didates need to be consistent. If capacity is echelons of the business and my appoint- been much documented, particularly with it very difficult if not near im- Delivering paid, managed and accredited to be increased there needs to be improve- ment onto these boards really brought this regards to vulnerable and alienated young possible to run Government- apprenticeships in major and independent ment to music education in specific business More information and re- people. record labels, collecting societies and trade and technical areas at the pre-apprentice- situation to light, as Nicholas Riddle (then act- approved apprenticeships ing Chair of the MPA) pointed out, “Given how search is needed to under- bodies, Music4Good apprenticeships address ship stage, such as marketing, business af- many great black artists and writers have During research for the Centre for Social Jus- schemes. diversity issues whilst providing life-changing fairs, publishing, management, A&R, and contributed so much to our industry for gen- stand how people actually tice’s report on Britain’s street gangs, Dying opportunities for young people from non- brand development. erations, this is a bizarre and uncomfortable find their place working to Belong, both young people themselves The framework needs to be far clearer and graduate, economically dis-advantaged fact”. and the practitioners working with them high- the process much more efficient. Industry’s backgrounds. within the music industry. lighted the impact that, for example, hip hop own apprenticeship scheme Music4Good The absence of senior level ethnic represen- and grime have on disenfranchised young is filling the gap, providing a successful and With approximately £400,000 of investment tation was less due to a lack of necessary skills Creative and Cultural Skills people growing up in the inner city. As one respected route into the industry High qual- from the industry, Music4Good have provided or talent than it was to a ‘closed shop’ / ‘old London teenager put it: ‘music is the big- ity offers, such as the Music4Good scheme, 40 apprenticeships opportunities, and are on boys network’ mentality. Now, having stepped can help our understanding gest influence’. The challenge, therefore, is to should be able to access funding from the course to double that in 2010. Music4Good is in at Board level, I can see that unless a con- by mapping existing routes make that influence a positive one. Government’s apprenticeship programme in feeding a skills gap that has been recognised certed effort is made to bring about change, order to maximise the opportunities for young by a cross section of the industry; delivering this situation could very well remain the same into the music industry. This The problem, however, is the lack of oppor- people from diverse backgrounds to secure young people who can engage with the digi- for a long while to come. tunity for these young people to make the meaningful employment. tal space and lead the industry forward. would inform our consid- transition from passion to life progress. It is Despite the influx of ethnic minority profession- eration regarding how to here that the music industry could make a als making their way into the music industry at develop complementary profound difference. By providing opportuni- entry level over the years, I have yet to see ties for work experience and internships, by fa- any of these filter through to a senior execu- routes designed to increase cilitating mentoring by music industry profes- tive level, it would therefore be interesting to the diversity of the music in- sionals and by working with schools and third discover what the ‘barriers to entry’ really are. dustry workforce. sector organisations to raise awareness of the What ever the reason, I believe it is essential many and varying job roles within the sector, that the business side of the industry takes a the music industry could make a very real dif- positive step towards ensuring that the board ference to the life outcomes of some of Brit- rooms reflect the make up of the creatives in Ellie Giles ain’s most disadvantaged young people. a much fairer way. A&R - Fiction Records: More importantly, very few The industry should be far more open minded Over the past year the Gov- about where it sources its talent and base ernment has drawn all UK black music artists achieve their criteria on passion and knowledge rather long term success which I than background. There should be far more industries further into the believe is a direct result of accessibility from all walks of life with a bet- development of apprentice- ter mentoring and education infrastructure in the lack of black executive place across the industry as a whole. ship programmes and work- level representation, and as based training. such is depriving our indus- try of much needed money.

Photo: Tom Oldham College & Joint Audio Media Education Service (JAMES):

University The Joint Audio Media Education Service (JAMES) is the “education wing” of The Asso- Courses ciation of Professional Recording Services, the UK Music Producers Guild and the UK Screen Association whose members include record- Music Education Directory: ing engineers, audio producers, facility own- ers, studio and technical designers, and ac- People considering a career in the music in- ousticians. dustry can now access a comprehensive, on- line reference directory of academic and vo- JAMES is a non profit body that seeks to cational opportunities for 2009/10 – the Music strengthen the link between education and in- Education Directory at www.bpi-med.co.uk. dustry through course accreditation, backed This edition of the Music Education Directory by a full range of support and advice for edu- was sponsored by the BPI in partnership with cationalist on industry skills and training needs. Creative & Cultural Skills and launched to co- It works alongside education and government incide with Rhythm of London, the Mayor of agencies including City & Guilds, Edexcel, London’s campaign to promote music edu- and the relevant sectors skills councils. cation opportunities in London. JAMES aims to help educationalists provide the education and skills essential for today’s A challenge facing young people aspiring for dynamic music and media industries. a position in the music industry is that there are www.jamesonline.org.uk hundreds of music industry courses on offer at colleges and universities, fuelling the hopes of an exciting career in the music business. We fear that some are of poor quality without having their validity properly scrutinised. Some of the HE and FE colleges profiting from such enrolment are creating false expectations. The music industry simply doesn’t have the capacity to take in the thousands of expect- ant graduates. Government has a respon- sibility to the young people choosing these courses to ensure they are getting something of value.

Industry also has a vested interest. UK Music intends to work with colleges and universities to RECOMMENDATION: provide an industry accreditation programme focussed on meeting the needs and aspira- To achieve our 2020 goals the music industry tions of both graduates and the industry. As a will require an incoming workforce that is di- first step our ambition is to create an annually verse and highly skilled with a wide range of updated list of the top 5 courses from which practical experience. UK Music recommends the commercial music industry employers that Government, as a matter of some urgen- actually recruit. cy, ‘adopt’ successful industry-run apprentice- ship schemes and provide funding for their continued running and expansion. UK Music will work with colleges and universities to pro- vide an industry accreditation programme, focused on meeting the needs and aspira- tions of both graduates and the industry. UK Music will also develop an industry wide diver- sity code of practice. 37 38 Photo: Timothy Cochran Gallions Primary School: Encouragement needs to be given to edu- cators to draw upon the power of music to Gallions opened in 1999 on the Winsor Park engage young people in learning in core skills Estate in Newham, East London. The school such as literacy, numeracy, IT, enterprise and has a diverse ethnic intake with over 30 dif- ‘soft’ employability skills (such as the ability to ferent languages being spoken by the pupils work in a team). and staff. 38% of the pupils are entitled to free school meals and 29% of pupils have In addition, technology has created the op- Special Educational Needs. portunity whereby access to a computer to record, edit, and mix music has become All staff learn a string instrument at school, in reasonably easy and comparatively cheap. There are a range of potential opportunities The BRIT School is a state school UK Music acknowledges that sustained Gov- groups, alongside the children. There is no ernment investment into music at primary charge to the children and their families for here for technology partners to play leading Education specialising in performing arts and technol- roles in delivering both hardware and soft- ogy, and is funded jointly by the music busi- school age has had a significant and positive any part of the music programme at Gallions. impact. Music is embedded in the school The school works with the BBC Symphony Or- ware as part of their broad corporate respon- The best schools almost al- ness via the BRIT Trust – the charitable arm of sibility efforts. the BPI – and the DCSF. experience. Children learn to play instru- chestra and the children have performed with ways have good music pro- ments, sing, listen to different types of music, the Orchestra. The music programme clearly grammes. Several studies With 99% of year 11 students achieving 5 or and think about the craft of making music. impacts on the children, improving self-es- Our final recommenda- more A* - C grades in GCSE or their vocation- teem, attitudes to learning, independence, tion springs from our desire into the power of music have al equivalent, and 90% of students at A-level However, music opportunities are not uniformly confidence and general academic ability. found a positive relationship achieving A-C grade, the school is in the top excellent in every primary school. The impact that quality music provision 1% of state schools. of investment in music at primary level needs should not be lost in the between active engage- careful evaluation to ensure programmes are Furthermore, investment in primary school ment in music and general “....The BRIT School is an outstanding provider as relevant, engaging and effective as pos- music education increases the pressure to transition between primary educational attainment. of specialist education and training in the sible. Simply offering several music making enhance the music experience in secondary and secondary years. performing and visual arts and media. As components – however welcome - does not schools. Unless pupils take music as a GCSE, one year 11 parent commented, ‘The school constitute a comprehensive or strategic ap- they could go through secondary school The benefit of music to childhood develop- proach. with little or no exposure to music. There is ment extends beyond the academic, linguis- is unique - it provides opportunities not avail- RECOMMENDATION: able elsewhere’...... ” (Ofsted March 2008) a need to facilitate better music education tic and cognitive. Of equal importance is the There is scope for greater coherence with progression between primary and secondary tremendous impact music can have on a respect to Government investment in mu- schools in order to fully realise the value of the Government can be justifiably proud of its child’s social behaviour, creativity, wellbeing Graduates from the BRIT investment in primary school music-making. record on investment in music education at 25 sic opportunities for young people, both in and confidence. School include Amy Wine- school and tapping into young people’s We must ensure that the UK does not regress primary school level. To maximise returns on music-making out of school. That said, the to where we stood in the 1990s where mu- this, it is critical that high quality music provi- house, Adele, Leona Lewis, improvements in music education at primary sic was a dramatically deteriorating part of sion does not get lost in the transition between Katie Melua, Leo from The level are, overall, self evident. school life. primary and secondary years. Government should set a comprehensive strategy for music Streets and Dan Gillespie provision and ensure that secondary schools Sells and Richard Jones Public funding for music in are able to implement it effectively. UK Music from The Feeling amongst schools can deliver a host of will build on the efforts of the Music Industries benefits – it can help raise Association and help broker partnerships be- many other successful musi- tween secondary schools and other provid- cians and performers. standards, promote knowl- ers, including manufacturers of musical instru- edge and skills of other ments, electronic equipment, sheet music, hardware and software technologies, leading curriculum objectives and to a national “adopt-a-school” scheme. further develop students’ un- derstanding of the cultures and values of others.

25 Susan Hallam’s “Music Psychology in Education” (2006) work in which she explores the functions of music in society

Photo: Tom Oldham

39 A recent MusicWorks survey Jason Griffiths Only the power of music could turn a humble Tim Smith, asked 2,000 people in of- Marketing Director, Topman: Abbey Road zebra crossing into a major tour- once teacher to Dizzee Rascal, works with a ist attraction. Tourism is one of the largest in- Pupil Referral Unit (specific centres for children fices, warehouses and fac- dustries in the UK, accounting for 2.7% of UK Music is both a key influence within the design that are not able to attend a mainstream or Gross Value Added and worth approximately special school, due to different circumstanc- tories about music in the aesthetic at Topman, and of keen interest to £86.3 billion in 2007. ‘Music tourists’ visit the the Topman customer. es, including possible exclusion). UK Music workplace. 71% said they’d UK because of its rich musical history, famous asked him for his views27 and he responded West End musicals, world-renowned festivals that it would be a good idea if: prefer music at work, 77% Various sponsorship deals have seen the and cutting-edge music scene. say that good tunes on in brand form close alliances with the music in- dustry over the past 4 years. A relationship o Young people had access to make music the background increase VisitBritain has partnered with EMI Music to help and receive support with weekly UK indie music bible NME has drive awareness of Britain as a tourist destina- seen the Brand sponsor the likes of NME’s o Vacant space was made available their productivity and a tion, to highlight its world-renowned rock and o Young people could use computers that Freshers’ Tours, Student Guide, New Music pop music heritage and raise the profile of whopping 84% say it im- Tour, New Noise Tour and installation of the are not required by businesses – these the musical appeal of its individual cities. 21% should be recycled to youth clubs proves staff morale. Best Dressed category at the widely reputable of potential visitors are inspired to choose a NME Awards. o Increased provision of youth clubs www.musicworksforyou.com destination because of the music or bands of o Creative software was made available to that country. British music and musicians, solo Topman has sponsored Unsigned Band and youth clubs Music has also played an integral part in driv- artists and bands are often someone’s first in- o The outstanding work of Tower Hamlets ing growth in the technology sector. Without New Talent stages at a selection of credible troduction to the unique appeals of the UK. British festivals, including the Carling Weekend Summer University was extended across music, for instance, what would be the value the country of the iPod? Or a social network site, like MyS- at Reading and Leeds, The Great Escape, and the newly evolved Underage festival. At its most awesome, music o The good practice of Creative Partnerships pace? can also transform lives. The became embedded in initial teacher Taking this further the brand has continued training There are countless examples to point to: music industry has a long o Expertise was shared between schools Nokia Comes With Music, Napster signing a its support of new music talent (reflecting its nurture of new and exciting fashion designers) tradition of charitable and across borough/authorities deal with Dell to bundle 12 months of access o Innovation and enterprise were well to its streaming music subscription service on with another key partner - MTV2 and the an- community involvement and nual Gonzo on Tour hosted by Zane Lowe. funded its laptops, Guitar Hero boosting sales for the investment. Accordingly, games sector. To date Apple has sold nearly ten billion songs via the iTunes Store and reg- 2009 saw the launch of Topman CTRL in the through organisations such istered more than 100 million accounts with UK - a self-created new proposition which drives the brand’s music association to a new as the Brits Trust, EMI Sound credit cards. The total cumulative sales of iPods had exceeded 220 million. level. The initiative is an ongoing monthly digi- Foundation, and the PRS for tal platform which some of the most innova- tive, edgy and emerging musical talent take Music Foundation, amongst control of the brand’s music programming others, the industry contin- Rosie Bardales and revealing their own personal artistic pas- sion in the process. ues to invest in Britain’s mu- Creative Director, Leading sical creativity. Advertising Agency, BBM: The platform was inspired by this recognition In an ideal world, we would As it is, we can only capture the majority of that fans want to get closer to the bands they The power of music is often most evident in direct revenues from music. Indirect and Music can make or break enjoy and that they trust their favourite acts areas where there are so few other opportuni- know more about the count- spill-over economic benefits are harder to to turn them onto other exciting cultural and ties for young people to shine. less human impulses that calculate. The ‘intrinsic value’ is harder still. an ad campaign. fashion discoveries.

inspire a person to create Music has traditionally played a significant music. We would be able role in other creative sectors growth, espe- Music also has emotional qualities that en- to calculate the degree to cially film and television. Imagine the in- able third parties to build brands and ‘experi- tense drama of the famous shower scene in ences’ and attract subscribers by association. which music enhances an Hitchcock’s Psycho - one of the most famous Music creates incredibly strong emotional scenes in cinema history - without the grip- and cognitive connections and associations, individual life and quan- 27 Selected comments. ping soundtrack of the screeching violins, not just for younger audiences but across all tify the benefits that music violas, and cellos composed by Bernard Her- demographics. brings to society. rmann.

41 42 Nordoff Robbins is the charity that Peter Garden specialises in transforming the lives of children Executive Director, Learning and adults constrained by illness, disabil- ity, trauma or isolation, through the power of & Engagement, Royal music. We provide and support a range of Liverpool Philharmonic: specialist services that encompass the depth and breadth of music, comprising music ther- In Harmony, Liverpool is a programme in- apy services, music and health projects, and spired by El Sistema in Venezuela which uses community music projects. Nordoff Robbins music to transform the lives of children in the practitioners provide services in arts, health, most disadvantaged communities. education and social care sectors, working with people of all ages who are in need, from The Department for Children, Schools and the cradle to the grave. Families has funded 3 pilots in Liverpool, Lambeth and Norwich until March 2011. In Case study: Harmony Liverpool is led by the Royal Liver- pool Philharmonic, focusing on Faith Primary Mark is ten, and has had many operations School and the community of West Everton. for his physical disability. He attends a main- stream school, but lacks confidence and It is early days, but the potential is clear. Faith dreads the transition to secondary school. It School is already describing increased mo- is hard for him to assert himself in a crowd, rale in teachers, excellent feedback from and he feels that he will always need to be parents and a positive effect on the whole looked after. community.

In music therapy, another side of Mark’s per- sonality has a chance to emerge. He chooses Opportunities for music mak- to play the loudest instruments, and to domi- nate the therapist with his powerful playing. In ing should not stop when a this safe place, he can explore and experi- person reaches adulthood ment with being noisy and assertive, shout- ing and singing loudly and expressing many but should continue later in deeply buried feelings. As the therapy rela- life and old age. Music is for tionship develops, Mark is able to use some life. UK Music would like to thank of his newly discovered confidence in other the Photographers whose work is featured in this report. areas of his life, and this will continue to help him as he grows up.28 This brings us full circle and Timothy Cochrane | Photographer T: 07919411662 | E: [email protected] we finish where we started, www.timothycochrane.com determined to liberate the Photo Collective Project: www.shashincollective.com creativity inherent in our Tom Oldham | Photographer country and maximise the T: 07767 668787 | E: [email protected] www.tomoldham.com economic, industrial, cultur- www.linkedin.com/in/tomoldham al and personal dividends Full working terms and conditions available online that music brings. We fer- Mark Harrison | Photographer vently hope the Government www.markharrisonphotography.com will help.

28 Nordoff Robbins website: www.nordoff-robbins.org.uk The London Symphony Orchestra www.lso.co.uk

Photo: Tom Oldham Design & Illustration by LETHAL www.thisislethal.com www.ukmusic.org