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Recorded Music NZ Annual Report 2013

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Recorded Music NZ Annual Report 2013 Celebrating music SIDE A STEREO . d M e t i A m D i L E I d N n a N l a E e W Z Z w E e A N LA c WE LOVE MUSIC si N u D (R.Music) 3:30 M © ed Re rd co co rde Re d M . P usic ited New Zealand Lim © 2016 Recorded Music New Zealand Limited. This Annual Report contains proprietary information and is provided for informational purposes only. Please do not use any information contained in it unless expressly authorised to do so by Recorded Music New Zealand Limited. ‘Recorded Music NZ’; ‘NZ Music Awards’; the Tui device; ‘The Official NZ Music Charts’; ‘ProMusic’; and ‘NZ Music Hall of Fame’ are registered trademarks. Designed by Mark Roach. Annual Report 2015 RECORDED MUSIC NEW ZEALAND LIMITED Annual Report for the year ended 31 December 2015 CONTENTS 6 Chairman’s Report 8 Chief Executive’s Report 12 2015 Year in Review 13 Revenue Summary 2015 14 The Official NZ Music Charts 40th Anniversary 16 NZ Music Awards 50th Anniversary Financial Statements: 18 Directory 19 Statement of Financial Position 20 Statement of Financial Performance 21 Statement of Funds Movement 22 Notes to the Financial Statements 24 Auditor’s Report The directors are pleased to present the Annual Report and Financial Statements of Recorded Music New Zealand Limited for the year ended 31 December 2015. For and on behalf of the Board of Directors Chris Caddick, Chairman Adam Holt, Director Dated 04.04.16 Dated 04.04.16 4 BROODS The 2015 VNZMAs were dominated by Broods’ haul who received 5 Tuis: Best Album, Best Group, Best Pop Album, Best Album Cover and the Radio Airplay Song for hit single ‘Mother & Father’. Mick Fleetwood was on hand to present Broods with their Best Album Tui. Georgia Knott would later write, “This is a moment I will never forget for the rest of my life. Mick Fleetwood wiping away happy tears after presenting Caleb and I with album of the year. He told me to never lose my emotion. Possibly the greatest moment of my career so far.” Photo: Topic Photography 5 CHAIRMAN’S REPORT 2015 was an eventful year. With radio income flat the task of improving on 2014’s record revenues and payout was a tough one. It was most impressive to see the Recorded Music New Zealand team rise to the challenge and deliver another fantastic result. The news that copyright term has been extended for sound recordings was welcomed. The ill-considered ‘phase-in’ however, highlighted just how poor understanding of the benefits of copyright industries to New Zealand is in Government circles. Rhetoric related to the term extension also demonstrated that badly informed and vociferous opposition to copyright in general is rife in New Zealand. Clearly the education of Government officials needs to be a crucial element of our strategic plan for 2016. I would like to thank the Board of Recorded Music New Zealand for its commitment and leadership and Damian Vaughan, Kristin Bowman and their team at Recorded Music New Zealand for their hard work in delivering terrific revenue and payout numbers in 2015. I would also like to extend my thanks to the elected Board members Peter Baker and Jan Hellriegel, who both complete 3 year terms on the first Recorded Music New Zealand Board. These positions are up for election in May. 2016 promises many new challenges, which I have every confidence will be met head on by the Board, the Management and the staff at Recorded Music New Zealand. Chris Caddick Chairman, Recorded Music NZ 6 SAVAGE Demitrius Savelio aka Savage picked up one of the two International Achievement Tuis presented at the 2016 Vodafone NZ Music Awards, as well as collectng Highest Selling Single. Both awards reflected the success of his massively popular single Freaks which Savage performed at the Vector Arena show. LORDE Another singularly pseudonamed artist - Lorde - took away the night’s other International Achievement Tui for an unprecedented third time. Lorde’s track Yellow Flicker Beat also received the Tui for Single of the Year. THE EXPONENTS Neil Finn inducted the ever- popular Exponents into the NZ Music Hall of Fame. Frontman Jordan Luck also became the first artist to be inducted twice, following his songwriter induction in the Hall’s inaugural year. 7 All photos: Topic Photography 7 CHIEF EXECUTIVE’S REPORT 2015: On the right path 2015 will be noted as the year whereby the significant changes our organisation and industry has weathered in recent times have started to yield positive signs. 2015 was the year in which streaming revenues became the number one source of revenue for record companies and recording artists, and the local industry experienced, revenue growth in nominal terms for the first time in 15 years. Whilst this is positive in itself it does not account for the 15 years of industry contraction that we’ve experienced, let alone make up for that lost revenue to the recording industry over that period. We are starting on the right path, but there is significant work to be done to continue the momentum into 2016 and beyond. As Recorded Music New Zealand we have now completed two full years of our three year strategic plan and I am pleased to report that we have delivered positive results across our three strategic focuses: Maximising our collective licensing revenue; delivering world class services to our membership; and protecting and promoting music via our ProMusic activities. I am also very pleased to report that we have met our collective licensing revenue targets in 2015 and we will again distribute $10m+ in royalties to members this year. Member Services • 2015 produced a distributable income to members of $10.7m (for distribution in 2016); this represents an increase of 7% on the previous year. • The current number of NZ recording artists now registered in the Direct- to-Artist royalty scheme is 2216. This is a 12% increase on membership since December 2014 (234 new registered NZ Recording Artists). • The 50th annual celebration of the Vodafone New Zealand Music Awards was held on Thursday 19th November 2015 at Auckland’s Vector Arena. o There were performances by Broods, Devilskin, Savage, Janine and the Mixtape, Gin Wigmore, Marlon Williams and a very special tribute performance to The Exponents by Tami Neilson and Dave Dobbyn. o Broods won album of the year for their album ‘Evergreen’; Lorde won single of the year for ‘Yellow Flicker Beat’ and The Exponents received the 2015 NZ Herald Legacy Award and were inducted into the NZ Music Hall of Fame. o Broadcast live for the first time on TV3, the 2015 VNZMA Awards Show was one of our most successful shows ever in terms of coverage and exposure. • Recipients in 2015 of Recorded Music NZ Music Grants were: The NZ Music Foundation, Lake Wanaka SouNZ, Smokefree Pacifica Beats, Play It Strange Trust, Dunedin Fringe Arts Trust, IMNZ – Going Local/Going Global, MMF – May Music Month Summit, MMF – Back To Basics, Creative Souls Project, Zeal Education Trust, Studiolink Inc. and the Mika Haka Foundation. 88 • We also celebrated the 40th anniversary of the Official NZ Music Charts with a special event in May. We presented special recognition awards to artists that hold chart records over the 1975-2015 period. These included: local artists Tiki Taane, Scribe, Deep Obsession, Shihad, Hayley Westenra and Fat Freddy’s Drop and video/photo acceptances from international artists Adele and New Order. o As a nod to the history of Recorded Music in NZ we also manufactured Broods Evergreen a limited edition 7” with all proceeds from the sales going to the NZ (Universal Music) Album of the Year, Best Pop Album, Best Group, Music Foundation. The 7” featured Tiki Taane’s ‘Always on My Mind’ Best Album Cover, Radio Airplay of the Year the NZ single that spent the most weeks in the charts (55 weeks) and (for Mother & Father) Scribe’s ‘Stand Up’ the NZ single that spent the most weeks at number 1 (12 weeks). • In 2016 we will introduce improvements to our television and public performance data collection methods that will improve the accuracy of the distribution to members. We will also refocus our efforts on improving our communication and reporting to membership throughout the year. • We will continue our objective to ensure the charts are the authority on music consumption and popularity introducing streaming into the album charts, revise our heat seeker chart and introduce #1 Awards for kiwi singles and albums. • We will ensure that celebrating the achievements of our local artists is the most important focus for the Awards and maintain the Tui as the pinnacle achievement for a NZ recording artist. Revenue We enjoyed meaningful licensing income growth in 2015 achieving $13.7m which represents 6% growth. When compared to our 2014 performance across our three core revenue streams our radio revenues experienced a 4% decline, but this was offset by7% growth in television and a massive 25% growth in public performance. • The growth in public performance was driven almost entirely by the work of the OneMusic team. A culmination of the team’s dedication and VNZMA 2015 Media advertising determination to complete a lengthy and complicated relicensing process which has now successfully migrated into new business. • We also saw meaningful growth in television licensing, despite the challenges and technological changes the television industry has experienced over recent years. • In contrast; commercial radio experienced a tough year for advertising and consequently our overall revenue from radio declined in 2015. Whilst not unique to NZ, it is clear that music consumption and advertising dollars are spreading and diversifying across various media.
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