CASEWORK SUBMISSION TO DIRECTOR

DIRECTOR Donal Durkan

CLIENT EXECUTIVE Martin Adair

Proposal Title: NIMIC Overseas Marketing Support Author: Martin Adair Date: October 2008 Status: Final

1 ‘Music – It’s The Business’ - Overseas Marketing Support.

Casework Delegation Level

External Approvals

Is DFP approval required? No

Is Ministerial approval required? No

Internal Approvals

Business plan received 2nd September 2008.

Costs incurred are admissible from 1st October 2008. Prior approval attached in Appendix 2.

Position Name Signed Date

Prepared by Client Executive M Adair

Approved by Client Manager S Mullen

Approved by Director D Durkan

2 1. Background

NIMIC’s 3 year strategy aims to develop the music industry infrastructure and sector skills base in Northern Ireland to allow music businesses and individual creative entrepreneurs to realistically develop in the Province without the historical perception that they must gravitate towards or relocate to London and other established international music hubs in order to achieve commercial success.

NIMIC’s strategic sectoral development initiatives are two fold:

Music It’s The Business Business and entrepreneurial skills (MITB) Programme development Creative skills and product development Sectoral Marketing Attendance at selected international music related events.

The 3 year total project cost for MITB is £132,130. The Arts Council for Northern Ireland (ACNI) committed £64,410 (48.7%) and the balance of £67,720 (51.3%) was funded by Invest NI. This was the first time that ACNI had agreed to fund a proposal of this nature and their commitment recognises the cultural contribution of music to Northern Ireland.

The purpose of this paper is to request approval to fund the overseas marketing activities of the Northern Ireland Music Industry Commission (NIMIC) for the period October 2008 to September 2009.

Historically, the sectoral marketing core funding was supported by Invest NI’s Trade Division on a year by year basis to fund NIMIC’s international marketing activities. However, Trade Divisions export services are targeted at helping individual companies to develop business in international markets, rather than assisting sectoral bodies. Hence, Trade Division has asked that consideration of potential support for NIMIC’s marketing activities be transferred to the Sector Team.

NIMIC’s key export marketing objective is to accelerate the development of international markets for Northern Ireland music businesses and copyright owners. The organisation also works towards maximising multi-media and music industry exposure for Northern Ireland music businesses, artists and their products, at a national and international level.

The music industry is by definition a global marketplace, and one that offers a very real opportunity for Northern Ireland music businesses. During the annual international music industry calendar there are a range of key events that provide significant market development opportunities for NI based businesses and artists.

NIMIC has built up detailed knowledge of which of these events are best suited to Northern Ireland companies. With this knowledge, it works closely

3 with companies and artists to help them select the opportunity that is right for their stage of development. NIMIC also provides event-planning advice, ‘on the ground’ event business support and promotional and marketing support at these events.

Consequently, NIMIC’s international trade marketing activities are an integral part of the overall aims of it’s strategy in that it supports the development and promotion of NI based businesses and the creation of a music infrastructure to foster growth from an NI base.

2. Context

The music industry is characterised by value and economic opportunity arising from the work of an individual or group that requires business support services to turn their creative endeavours into profitable and sustainable businesses.

Developing a career in the music industry is deemed to be a very attractive career option by a large number of young people. Promoting and supporting attendance at appropriate international trade events is a vital element of NIMIC’s overall strategic approach in that it will provide an essential stimulus to industry growth and will also address a number of Invest NI’s key objectives as highlighted in the 2008 -11 Corporate Plan, i.e.

Promotion of a competitive and outward looking economy. Promotion of business growth.

3. Introduction

NI Music Industry

Comprehensive statistical data on the size, scope and nature of the Northern Ireland music industry is currently unavailable.

Agreement has been reached between NIMIC, Invest NI and DCAL that a full NI sector scoping and baseline data collection exercise will be instigated in preparation for the organisations next funding round for the period 2009 – 2011. It is anticipated that this exercise will be funded by DCAL from their ‘Creative Industries Innovation Fund’.

UK Music Industry

The UK has the fourth-largest music publishing market in the world, with a 9.8 per cent share of international revenues. The music industry is one of the UK’s biggest and most culturally significant creative sectors. It encompasses composers, producers, managers, music publishers, artists, concert promoters, record companies and online music entrepreneurs that interact to produce a dynamic, vibrant and ever-changing industry.

4 The UK is the third-largest market in the world for sales of music, and the market leader in Europe. In 2005, sales of music in the UK accounted for 10.4 per cent of all units (singles, albums, DVDs and videos) sold across the globe, with the overall UK retail value representing 10 per cent of the global total.

The UK industry is estimated to be worth around £5 billion a year and has an export value of £1.3 billion1.

The industry is also a major employer, generating the equivalent of some 126,000 full-time jobs in the UK.

The UK is also the world’s largest music consumer per capita. UK retail spending on recorded music exceeds £2 billion and that generates around £300 million in VAT.

Sales of digital music are showing rapid growth as downloading music becomes increasingly popular. In 2007, the total value of digital single tracks downloaded online or to mobile phones reached approx. US$300m in the UK, up from approx. $62m in 20052.

The UK’s consumption of music is reflected by its production, second only to the USA as a source of repertoire (Music industries terminology for R&D). In addition, as one of the country’s leading art forms, music continues to reflect the exhilarating cultural diversity of the UK in the 21st century.

The UK has the fourth-largest music publishing market in the world, with a 9.8 per cent share of international revenues arising from payments for a piece of music, be they for sheet music, playing a piece of music in a shop or using music in a film or television programme. UK artists have also demonstrated both innovative and entrepreneurial approaches, with the use of viral marketing and do-it-yourself business models to promote their music both in the UK and overseas.

Music & Entrepreneurship

By definition the music industry is a highly entrepreneurial field of business. Given the current climate in today's music business and the ‘DIY’ capability provided by modern digital technology including the internet, the opportunities for an entrepreneur to succeed are arguably higher than they have ever been. In few other businesses can someone with little capital go from a micro operation to international business success in a short space of time.

Music creators are at the cutting edge of content creation in the global electronic marketplace and are driving new business models for the online environment. The experience and success of the music sector in harnessing the market reach of the internet provides useful pointers for other key creative industries, such as literature, film and audio-visual.

1 Creative Industries UK, UKTI, 2007 2 Dark Side of the Tune – Where now for the Music Industry, Understanding & Solutions 2008

5

Given that Government considers the creative industries to be central to future job and wealth creation in the UK3, it is vital that any initiatives aimed at fostering entrepreneurial instincts reflect an awareness of the needs and interests of enterprise in these sectors. This is particularly pertinent given that over 90% of businesses in the music industry are small or medium-size enterprises, including many micro-firms, and self-employed creators.

As the lead sectoral body in NI, NIMIC seeks to continue its trade marketing activities to promote NI music creative entrepreneurs and businesses to a worldwide stage to assist the local sector’s capability to compete and to inspire the necessary entrepreneurial attitudes and abilities.

Definition of a Music ‘Business’

In the context of the underdeveloped NI music industry a music business is defined as ‘any individual or group of individuals that have reached the point where they have the ability and desire to earn a significant part of their income from activities that fall broadly within the music industry.’

The key point here is that, in common with other creative industries, music businesses rarely if ever achieve a full time status on their establishment and only the top tier will ever achieve that status. This is at least partly an attitudinal issue where creative individuals often see themselves as artist first and entrepreneur second.

NIMIC’s ‘Music It’s The Business’ programme is devised as a key input towards the process that enables the necessary ‘professionalism’ and ‘commercialisation’ to evolve. In addition, internationalism and awareness of the worldwide creative environment and the opportunities that exist in export markets is key to developing a sustainable music industry infrastructure in Northern Ireland.

Music ‘businesses’ fall into the normal legal categories of Sole Trader, Partnership and Limited Company with the majority being either sole traders or partnerships.

Typical types of business are:

Composer / Writer / Copyright Creator Recording Artist / Copyright Creator Performer Infrastructure/Service Providers ( These would include Artist Manager, Publisher, Record Label, Event Promoter, Recording Studio, Producer, Engineer/programmer, Music PR and Marketing.)

3 Department of Culture, Media and Sport (DCMS). (2001) Creative Industries Mapping Document, London, DCMS.

6 It is essential that all categories are supported - including infrastructure and service providers – if the local industry is to develop.

4. NIMIC’s Sectoral Trade Marketing Programme Oct 08 to Sept 09

As a core delivery of the their strategy, NIMIC aims to deliver a strong marketing presence and sectoral support for music orientated businesses and artists from Northern Ireland at a series of targeted international events to promote music from NI to a global audience of industry executives and to assist NI companies to grow and compete more successfully in global markets. UKTI’s creative media division attends all the events listed below and provides a crucial support mechanism for the Regional Development Agencies and NIMIC providing on the ground support and facilities at a nominal cost.

The key events highlighted in NIMIC’s 2008 – 2009 calendar are:

In the City – Manchester October 2008

Founded in 1992 by Yvette Livesey and the late Anthony H Wilson, ‘In The City’ (ITC) has become a key date in the music industry calendar. Regarded by the global music community as one of the premier new music events in the world, ITC has helped launch the careers of Oasis, Radiohead, Suede, Elastica, Coldplay, The Darkness, Doves, Foo Fighters, Elbow, the Stereophonics, Muse and Orson among others.

In addition:

It has launched the careers of 19 Mercury Music Award nominees

13 ITC acts have shared 34 Brit Awards between them

8 ITC bands have gone on to have a total of 17 UK No.1 Singles

31 ITC acts have collectively gained 144 UK Top 10 Singles

20 ITC bands have together achieved 47 UK No. 1 Albums

Estimated number of programme participants for this event is six music orientated businesses or artists plus one NIMIC representative.

Programme costs – See Appendix 1

BillBoard Film/TV Music Conference – Los Angeles November 2008

7

This conference offers attendees the opportunity to learn from, network and share their music with over 500 of today’s top composers, directors, songwriters, record label, advertising, gaming, studio, network and publishing executives as well as the best music supervisors in the business. It is a key opportunity to introduce NI music to leading industry executives, producers, publishers, etc. This will be NIMIC’s first year of attendance at this event.

Estimated number of programme participants for this event is three plus one NIMIC representative. These will be what is considered as NI’s best talent as chosen by NIMIC’s Board.

Programme costs – See Appendix 1

MIDEM – Cannes January 2009

MIDEM is regarded as the world’s premier music event. It has itself adapted over the years to an event that highlights music and its convergence with other digital industries, therefore attracting large participant and industry representation. NIMIC have received special dispensation from the MIDEM Board to have a Northern Ireland showcase at the event this year. This is unusual and has come about due to relationships established by NIMIC’s CEO.

Estimated number of programme participants for this event is five music related businesses/performers plus one NIMIC representative. This is usually supplemented by the attendance of NI acts that have moved beyond the need for support under NIMIC, e.g. Snow Patrol, Ash.

Programme costs – See Appendix 1

South by Southwest (SXSW) – Austin, Texas March 2009

8

SXSW sees itself as not reflective of the present state of the music economy, rather it’s reflective of what people will be talking about three years from now. SXSW is unique in that to perform as an artist requires a personal invitation from the board of trustees. In 2008, NIMIC attended with the largest NI contingent ever with 6 acts invited to participate. This was considered unique for such a small territory to have 6 acts chosen to perform.

Festival & Conference participants 2008:

Showcasing Acts: 1,809 Trade Show Exhibit Spaces: 376 Approximate number of Music Trade Show Attendees: 14,000 Approximate number of Film & interactive Trade Show Attendees: 13,500 Approximate number of Media in attendance: 4,636

Estimated number of programme participants for this event is six music related businesses/performers plus one NIMIC representative. This is an average figure; however, there were 14 business/artist participants in 2008.

Programme costs – See Appendix 1

London International Music Show – London June 2009

This is the primary UK music technology and sound recording conference and trade fair. This will be the first attendance by NIMIC at this event and is in response to requests from local music orientated businesses, particularly the recording studio business represented by the Northern Ireland Recording Studio Association (a privately funded trade body).

Estimated number of programme participants for this event is three.

Programme costs – See Appendix 1

Sectoral Promotional Products

Promotional products such as CD samplers and printed material are required as key marketing tools for these events.

Estimated cost – See Appendix 1

5. Objectives

Participate and represent Northern Ireland music businesses and bands at the international events listed above. Further strengthen and develop NIMIC’s relationship with key strategic partners, e.g. SXSW Board, Reed MIDEM.

9 To Increase export sales from Northern Ireland based businesses and individual creative entrepreneurs by at least £800k over the project period.

6. Key Economic Outputs - Events attended 2007 – 2008

Over the past year NIMIC’s work towards meeting the objectives of its strategy, specifically the sectoral marketing initiative has leveraged the following key gains for the NI music industry, the local artists/businesses involved and the NI economy.

1. ‘Clone Quartet’ used the ‘In The City’ event to develop relationships with potential label partners that eventually led to the release of their 1st album through Smalltown America – a London based independent label which has since relocated to Derry establishing NI’s only significant record label.

2. As a result of the MIDEM trade development initiative it is estimated (based on company feedback) that the six participating companies will generate increased export sales in excess of £250,000.

3. The business/artist ‘Duke Special’ showcased at SXSW and gained an international publishing contract with Richard Branson’s V2 record label worth an estimated £200k.

4. ‘In Case of Fire’, a local rock band, signed a management deal at SXSW with London based ‘Raw Power Management’ and a worldwide recording deal with Columbia Records worth in excess of $400k. ‘In Case of Fire’ is tipped to be NI’s next big music export with interest from a number of major labels including Atlantic Records.

5. ‘Oppenheimer’ has had music featured on top US TV productions ‘Ugly Betty’ and ‘Gossip Girl’. At SXSW they signed a publishing/copyright agreement with Warner Chappel/Chop Shop Music from Los Angeles with an initial $50k advance.

6. ‘The Answer’ performed at a number of SXSW events including the prestigious ‘Kerrang’ showcases and has been selected by Activision to feature in ‘Guitar Hero 4’. Whilst this will not result in royalties it will guarantee vast exposure for the band as ‘Guitar Hero 3’ sold over a million copies in two weeks and sales forecasts for version 4 are estimated at 10 million copies with a similar amount of hits per page estimated for the bands website. The software/gaming giant ‘Activision’ has also agreed (tentatively) to attend MIDEM in January 2009 in support of ‘The Answer’. In addition, the band will, during 2009, perform as the support act on AC/DC’s world tour. This will expose their music to approx. 1.5 million potential fans in the United States alone and generate significant revenue from the sale of merchandising.

10 7. As a result of SXSW and earlier work at the ‘Go North’ showcase in Scotland the band ‘Fighting with Wire’ have signed a five album deal with Atlantic Records, a publishing deal with Warner Chappel and a live touring agreement with Primary Talent. Initially these deals are estimated to be worth $350k for the band.

Invest NI’s support for NIMIC’s sectoral trade marketing activities over the past year has generated in excess of £850k in export sales by way of recording contracts and publishing deals.

7. Estimated effect on sectoral development

NIMIC estimates that the industries enhanced presence at these key events during the 2008/09 calendar year, including greater emphasis on attending SXSW and the agreed special dispensation to showcase at MIDEM during January 2009 will greatly enhance the sectors ability to market itself to an international audience and achieve significant increases in export sales as a result. Additionally, these key events are recognised and attended by UKTI as important contributors to the sectoral development of the UK music industry as a whole.

8. Programme Costs

A detailed budget for the 1 year marketing expenditure is presented in Appendix 1.

The overall budgeted cost for this programme of events and supporting material is £34,305.

9. Programme Promotion

The one year programme of international marketing events will provide significant branding and project publicity opportunities, including printed and electronic marketing materials, press releases, event branding and website branding on an international and local stage.

10. Contribution to Invest NI Objectives

NIMIC’s overall strategy will assist Invest NI to meet its corporate goals towards shifting the sectoral focus and boosting indigenous businesses and start-ups in high value sectors including creative industries, as discussed in the 2008-11 Corporate Plan.

The programme will address a number of Invest NI’s corporate objectives, including:

Promotion of a competitive and outward looking economy Promotion of business growth.

11 NIMIC will contribute to the achievement of these aims in relation to the local music industry.

11. Additionality

Continuation of NIMIC’s marketing activity in international markets is contingent on Invest NI funding and is crucial to attainment of the overall objectives of the organisations strategy. The marketing programme will not proceed without Invest NI support and this will be detrimental to the overall strategy to develop the music industry in Northern Ireland.

12. Displacement

Whilst the overall NIMIC strategy has characteristics similar to other services provided by or funded by Invest NI (e.g. SABp) it is unique in that it is specifically targeted at the music industry and Invest NI does not seek to deliver its products and services directly to this sector given its underdeveloped nature except where they are complementary and additional to NIMIC’s service offering.

13. Identification of Options

Option 1: Status Quo

The status quo option is not to fund the proposed international marketing element of NIMIC’s strategy. This option would not support Invest NI’s corporate objectives and would deprive the local music industry of access to international markets.

Option 2: Reduce the funding based on attendance at fewer international events.

This option would reduce the costs associated with NIMIC’s international marketing activity. However, the five events listed for support are key to the development of a sustainable industry in NI and recognised as the pre- eminent events in the music calendar. NIMIC have invested considerable time and effort in building relationships and developing credibility at these events to promote the activities of the NI music industry.

Option 3: The proposed option – To fund NIMIC’s marketing activity for the period October 2008 to September 2009.

This option provides for continuous interaction between the industry and the international marketplace at a level that is sustainable and that will support the overall strategic objectives of NIMIC and Invest NI.

12 14. Value for Money

The marketing element of NIMIC’s overall strategy will provide specific sectoral support for a number of music related businesses to attend international trade events over a twelve month period. Each business will receive mentoring, on the ground support and help towards the cost of attendance.

The programme of activities will further enhance and allow the NI music sector to be acknowledged as high quality, original, innovative and creative with an international profile. This will lead to an increase in employment, productivity, supply chain linkages and entrepreneurial activity leading and to a significant increase in the economic footprint of the sector.

Therefore, support for NIMIC’s programme of trade activities is considered good value for money in the context of the range of support services offered and the potential for further development of the indigenous music sector into international markets.

15. Viability

NIMIC is an established service provider to the local music sector that has been supported by Invest NI since January 2001. It is 100% public sector funded and has to date demonstrated the ability to both raise funding for its proposed projects and manage that funding so as to deliver satisfactorily against the objectives and targets of those programmes.

The cost projections for the marketing activity programme (see appendix 1) are reasonable. In this context the project as presented is deemed to be viable.

16. Risks

NIMIC has attended these events in past years and is therefore able to satisfy itself that they are events that will help promote and grow the NI music industry.

NIMIC is a small organisation employing 3 staff (1 f/t, 2 p/t) and is highly reliant on all employees in terms of its ability to deliver the programme; it is particularly reliant on the fulltime CEO to deliver the marketing activities. If either employee were to leave the organisation or suffer a period of long term illness this could have a significant negative impact on service delivery. This risk is inherent in all options considered and Invest NI will look to the Board of NIMIC to take appropriate action should any such difficulties arise.

13 17. Assistance proposed

It is proposed that Invest NI support the total programme costs of £34,305.

18. Monitoring

At the end of each international marketing event NIMIC will supply Invest NI with a detailed progress report highlighting economic impact.

19. Conclusion

The programme as presented by NIMIC is deemed to provide an appropriate medium for interaction with the music sector and will assist the organisation in achieving its strategic objectives in a cost effective manner. NIMIC are seeking to build on the extensive work they have done to date in promoting music from Northern Ireland to an international audience. The programme will support the specific needs of NI music companies and artists and assist in moving towards strengthening the culture of entrepreneurship within the sector.

The proposed assistance is therefore recommended to Invest NI for support.

14 Appendix 1

NIMIC Export Promotion Programme 2008-2009

Event 1 - In the City (5th - 7th October) Manchester £ Planning & Event Support @ £350 per day x 3 days 1,050.00 NIMIC Actual cost of economy airfare up to a maximum of £150 150.00 NIMIC Actual cost of acc for 4 nights up to a max of £100 per night 400.00 NIMIC Actual cost of delegation pass (estimate £300) 300.00 NIMIC TOTAL 1,900.00

50% of the economy airfare up to a maximum of £150 75.00 Actual cost of acc for 4 nights up to a max of £100 per night 400.00 50% of the cost of a delegate pass (estimate £300) 150.00 1 X BUSINESS ASSITANCE TOTAL 625.00 5 X BUSINESS ASSISTANCE TOTAL 3,125.00

ITC TOTAL ASSISTANCE 5,025.00

Event 2 - Billboard Film/TV Music Conference Los Angeles Nov 2008 £ Planning & Event Support @ £350 per day x 3 days 1,050.00 NIMIC Actual cost of economy airfare up to a maximum of £600 600.00 NIMIC Actual cost of acc for 3 nights up to a max of £100 per night 300.00 NIMIC Actual cost of delegation pass (£225) 225.00 NIMIC TOTAL 2,175.00

50% of the economy airfare up to a maximum of £600 300.00 Actual cost of acc for 3 nights up to a max of £100 per night 300.00 50% of the cost of a delegate pass (£225) 112.50 1 X BUSINESS ASSITANCE TOTAL 712.50 2 X BUSINESS ASSISTANCE TOTAL 1,425.00

BILLBOARD TOTAL ASSISTANCE 3,600.00

Event 3 - Midem France January 2009 £ Planning & Event Support @ £350 per day x 4 days 1,750.00 NIMIC Actual cost of economy airfare up to a maximum of £230 230.00 NIMIC Actual cost of acc for 5 nights up to a max of £100 per night 500.00

15 NIMIC Actual cost of delegation pass (£600) 600.00 50% of actual cost up to a maximum of £0 for exhibition 0.00 NIMIC TOTAL 3,080.00

50% of the economy airfare up to a maximum of £230 115.00 Actual cost of acc for 5 nights up to a max of £100 per night 500.00 50% of the cost of a delegate pass (£600) 300.00 1 X BUSINESS ASSITANCE TOTAL 915.00 5 X BUSINESS ASSISTANCE TOTAL 4,575.00

MIDEM TOTAL ASSISTANCE 7,655.00

Event 4 - South by Southwest Austin, Texas March 2009 £ Planning & Event Support @ £350 per day x 5 days 1,750.00 NIMIC Actual cost of economy airfare up to a maximum of £700 700.00 NIMIC Actual cost of acc for 6 nights up to a max of £100 per night 600.00 NIMIC Actual cost of delegation pass (£350) 350.00 NIMIC Actual cost up to a maximum of £1500 for exhibition 1,500.00 NIMIC TOTAL 4,900.00

50% of the economy airfare up to a maximum of £700 350.00 Actual cost of acc for 6 nights up to a max of £100 per night 600.00 50% of the cost of a delegate pass (£350) 175.00 1 X BUSINESS ASSITANCE TOTAL 1,125.00 5 X BUSINESS ASSISTANCE TOTAL 5,625.00

SXSW TOTAL ASSISTANCE 10,525.00

Event 5 - London International Music Show June 2009 £ Planning & Event Support @ £350 per day x 3 days 1,050.00 NIMIC Actual cost of economy airfare up to a maximum of £150 150.00 NIMIC Actual cost of acc for 4 nights up to a max of £100 per night 400.00 NIMIC TOTAL 1,600.00

50% of the economy airfare up to a maximum of £150 75.00 Actual cost of acc for 4 nights up to a max of £100 per night 400.00 1 X BUSINESS ASSITANCE TOTAL 475.00 2 X BUSINESS ASSISTANCE TOTAL 950.00

LIMS TOTAL ASSISTANCE 2,550.00

16

Sectoral Promotional Products

2000 Multi Artist /Business Enhanced CD Samplers 4,500.00 Printed Marketing Materials 450.00 TOTAL SECTORAL MARKETING PRODUCTS 4,950.00

Total Overall Costs 2008-2009 In The City 5,025.00 Billboard Film and TV Music 3,600.00 Midem 7,655.00 SXSW 10,525.00 London Int Music Show 2,550.00 Sectoral Marketing Products 4,950.00 2008-2009 GRAND TOTAL 34,305.00

17 Appendix 2

Northern Ireland Music Industry Commission Ref No. 80472

From: Martin Adair

To: Stephen Mullen

Date: 12th September 2008

1. Purpose

To obtain internal Invest Northern Ireland approval to inform the Northern Ireland Music Industry Commission (NIMIC) that it may, at its own risk, incur expenditure essential to the implementation of a project prior to receipt of a formal Invest NI offer.

2. Background

The overall aim of NIMIC’s 3 year strategy is to develop the music industry infrastructure and sector skills base in Northern Ireland so that both music businesses and individual creative entrepreneurs from Northern Ireland can realistically develop in the Province without the historical perception that they must gravitate towards or relocate to London and other established international music hubs in order to achieve commercial success.

NIMIC’s strategic sectoral development initiatives are two fold.

Music It’s The Business Business and entrepreneurial skills (MITB) Programme development Creative skills and product development Sectoral Marketing Attendance at selected international music related events.

The 3 year total project cost for MITB is £132,130. The Arts Council for Northern Ireland (ACNI) committed £64,410 (48.7%) and the balance of £67,720 (51.3%) was funded by Invest NI. This was the first time that ACNI had agreed to fund a proposal of this nature and their commitment recognises the cultural contribution of music to Northern Ireland.

Historically, the sectoral marketing core funding was supported by Invest NI’s Trade Division on a year by year basis to fund NIMIC’s international marketing activities. However, Trade Divisions export services are targeted at helping individual companies to develop business in international markets, rather than assisting sectoral bodies. Hence, Trade Division has asked that consideration of potential support for NIMIC’s marketing activities be transferred to the Sector Team.

18 NIMIC’s key export marketing objective is to accelerate the development of international markets for Northern Ireland music businesses and copyright owners. The organisation also works towards maximising multi-media and music industry exposure for Northern Ireland music businesses, artists and their products, at a national and international level.

The organisation has developed an overseas sectoral trade marketing plan which has been submitted seeking Invest NI support to attend a series of targeted international events to promote music from NI to a global audience of industry executives and to assist NI companies to grow and compete more successfully in global markets.

3. Previous Offers

LoO Offer Offer Offer Offer Number Accepted Total Paid To Balance (Offer Date Date Remaining ID) 41084 13/05/2005 12,500 12,500 0 Grant Scheme Grant Grant Grant Total Balance Paid to Remaining Date

EXPORT 12,500 0 12,500 DEVELOPMENT PROGRAMME

50033 13/05/2005 0 0 0 60503 19/01/2007 67,720 31,966 35,754 Grant Scheme Grant Grant Grant Total Balance Paid to Remaining Date

SECTOR 67,720 35,754 31,966 STUDIES/INITIATIVES

4 Current Status of Involvement with Company

Invest NI and DCAL are working with NIMIC to facilitate the development of a business case seeking core funding for the organisation for the period 2009 to 2012.

5 Proposed Expenditure

NIMIC submitted their sectoral trade marketing plan on the 5th September 2008. However, due to annual leave and other work related commitments the Client Executive will be unable to appraise the plan and make a funding decision before the organisations deadline for committing to attendance at the first of the international trade events detailed in its sectoral trade marketing plan.

It is proposed that prior approval is granted from 1st October until 30th November 2008 to allow NIMIC to commit to costs in relation to the events and supporting materials detailed in their sectoral trade marketing plan.

19

6 Timetable

This prior approval will endeavour to ensure that NIMIC is able to progress with its trade initiatives as detailed in its sectoral trade marketing plan submitted on 5th September 2008. The organisation will be made aware in writing that they undertake such expenditure at their own risk.

7 Conditions

It should be noted that any correspondence with the company agreeing to include the identified expenditure incurred prior to an offer will include the following wording:

the relevant expenditure may be included in the project to be submitted to Invest Northern Ireland. this letter is not a commitment by Invest NI to financially assist this or any expenditure. pending an Invest Northern Ireland appraisal and approval process, the company undertakes such expenditure entirely at its own risk.

20 7. Recommended by: ______Martin Adair Client Executive

Dated ______

Approved by: ______Stephen Mullen Client Manager

Dated ______

21