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Study of the Music Market of Ukraine and Its Prospects in the International Economy

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Study of the Music Market of Ukraine and Its Prospects in the International Economy Study of the Music Market of Ukraine and Its Prospects in the International Economy Report on the results of the study Supported by Kyiv, 2020 The study has been conducted by the music consulting agency Soundbuzz within the project “Study of the music market of Ukraine and its prospects in the international economy” of the Culture Analytics program supported by the Ukrainian Cultural Foundation. Research team: Dartsya Tarkovska Yuliia Melnyk Ruzana Yemelianova Sergiy Cane Inna Lytovka Anna Otnoshenko Marianna Tanska Volodymyr Vorobei Marta Kobrynovych Olena Kovalevska (editor) Alina Kuchma (English translation) Dmytro Yarovyi, Kateryna Yarova (design) Oleksandr Popenko, Yurii Hriaznov, Alex Charey (photography) The publication was realized with support of Ukrainian Cultural Foundation. The opinion of Ukrainian Cultural Foundation may not coincide with the idea of the authors. Soundbuzz is a music consulting agency established in 2013. It is engaged in educational projects in music marketing, advises on music export, and participates in professional events in the international music industry, including Music Conference Ukraine, Respublica Music Conference, PRO music USA, Gogolfest, Live at Heart, Ment Ljubljana, Waves Vienna, Nouvelle Prague, Budapest Showcase Hub and others. Website: www.soundbuzz.com.ua Ukrainian Cultural Foundation is a state institution established in 2017 based on the respective Law of Ukraine. Its goal is to promote the development of national culture and art nationwide; provide favorable conditions for the development of the intellectual and spiritual potential of individuals and the society, as well as access to the national cultural heritage, and to support cultural diversity and integration of Ukrainian culture into the global culture. Website: www.ucf.in.ua Content Research Methodology ...................................................8 Introduction.............................................................. 2 I. Ukraine’s Music Industry Ecosystem........................ ...... 16 Value Chain in the Music Industry........................... ..... .17 Music Industry Mapping................................. ........... 18 Effectiveness Evaluation in Certain Areas of the Music Industry................................................................ 22 Music Industry Environment ....................................... 24 Micro-Environmental Factors........................................ 25 Macro-Environmental Factors................................... 25 Political Factors ............................. ............... ....26 Economic Factors........................................... ...29 Scientific and Technical Factors .............................32 Ecological Factors......................................... .....35 Socio-Legal Factors.................... ............... .........36 Music Unions.......................................................... 38 II. Authors and Performers............................................ .40 Author/Performer of Songs: Definitions of Main Terms...........41 Portrait of an Average Author/Performer of Songs in Ukraine ..42 Social Portrait of an Author/Performer of Songs...... ...........44 Education and Competencies................................. ..48 Relations of Authors/Performers With Other Participants of the Music Ecosystem........................ .................... 52 Legal Aspect of Activities................................ ...........53 Income of Authors/Performers of Songs..............................55 Copyright and Related Rights Issues in Ukraine. ............58 Recommendations ....................................................66 III. Music Production ........................... ...............68 Music Production in Ukraine: Structure and Development Challenges...................... ... .............................. 69 Functional Structure of Music Production in Ukraine..... 71 Music Production Participants in Ukraine: Survey Results........................................ ....... ..........73 The Role of Specialized Education in the Professional Development of Music Production Specialists.... .......74 General evaluation of the contemporary state of music production in Kyiv, Kharkiv, Dnipro, Odesa, and Lviv.... 76 Commercial Component of Music Production: Trends of the Past 3 Years .................. .................... ........ ....... 78 CONTENT Pricing Principles in the Market of Music Production........ 81 4 Dynamics of Music Production Development In the Past Three Years................................................. 83 International Relations of Ukrainian Music Production.................................................. ....84 Legal Side of Music Production in Ukraine: Laws and Taxes, Rights and Royalties, Language Quota...................... ........ 85 Level 1. Legal Registration of Activities.........................87 Level 2. Legal Registration of Relations With Other Market Participants............................. ................ 89 Level 3. Legal Registration of Copyright Transfer..... ....... 91 CMO in the Legal Life of a Sound Producer............ .... 93 The Language Issue: Did Sound Production in Ukraine Change With the Introduction of Quotas?..................... .. .....95 How COVID-19 Affected Ukrainian Sound Production......... ...... 9 Recommendations ............................ .. .................. 98 Case study. The Sound of Morphom ....................... ....... 100 IV. Music Management ................. ... ... ... .......... ......108 Defining the Term Music Manager.................. ............... 109 Portrait of a Music Manager. ... ....................................... 110 Detailed portrait of a Music Manager................. ..... ...111 Legal Registration of Activities. Financial Aspects................. ..112 Working With Artists........................ ............. ...........114 Education and Competencies.................... ............... 116 Challenges of Promotion of Artists......................... ... 118 Recommendations................................. .............. 120 Case Study. Enjoy! – Enjoying Creativity...............................122 V. Live Music Industry.................. ...... ............... .... ...128 Ukrainian Promoters......................... ............ ...........131 Overview.......................... ............ .................131 Legal Registration of Activities ................... .......... 132 Building a Promotion Team.................... ............. 134 Ticket Operators......................... ................ ...........135 Overview.......................... .......................... 135 Issues in Relations with Promoters. .......................135 Concert Venues..................... ................ .............. 137 Festivals. ............... ................ ....... .................. 138 Ukrainian Artists’ Tours..................... .............. .......... 139 Industry Pricing..................... ............... ................141 Tax Burden of Concert Organizers..............................141 Budgeting Approaches to Ukrainian Artists’ Performances. ...142 Budgeting Approaches to International Artists’ Performances..143 Ukrainian Audience Solvency........ 144 CONTENT 5 Impact of Quarantine Restrictions on the Live Music Industry. 145 Recommendations . 148 Case Study. Strichka Festival / Brave Factory Festival: How To Create The Most Well-Known Electronic Music Events in Eastern Europe. 150 Case. Live Industry 2020....................... ..... 156 6. Music Labels, Publishers, and Distribution........... ...............164 Operation Principles of Labels and Publishers in Ukraine. ........ 165 Labels: Definition, Types, and Tasks.......... 165 Publisher’s Functions..................... ....... ..... 169 Dynamics and Prospects of Music Publishing. .......... 170 Specifics of the Transition to Digital Distribution... .......... 172 Specifics of Digital Platforms........... .172. Music Streaming in Ukraine.......... ... ....... .173 Ukrainian Vinyl as a Cultural Product............ ... ...... ..176 CMO Issues As Seen by Music Publishing......... .. 177 Recommendations ... ... ...... ... ... ...... ...........178 7. The Analysis of Ukraine’s Music Industry Export Potential....... 180 Definition of Music Export............... ........ .181 Demand for Ukrainian Music. ............... ............... ........ 182 Foreign Markets for Music Export and Choice Factors. .... .184. Language Issue............. ............... ............... ..... .186 Cooperation with Foreign Music Industry Representatives. .189 Cooperation with Organizations that Provide Institutional Support. .194 Challenges of Music Export. ........... .............. ..197 Recommendations for Export-Oriented Artists. ....... ... 200 Recommendations for Public and Private Institutions. .... 201 Case Study. Alyona Alyona: Big and Hilarious. An Export Story. .202 Case Study. Masterskaya: From Label to House of Culture. .......210 Glossary... ............... ............... .................. ............... 216 CONTENT 6 Purpose. Studying and recording the current state of the Ukrainian music industry with a detailed mapping; analyzing its environment including the influence of micro- and macro-economical factors; making an analytical description of the main stakeholders within the value chain of the music product; describing the export potential of the music market of Ukraine. Objective. Developing a methodology for the initial study of the market of popular music; collecting and processing
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