The South African Music Industry The Cultural Industries Growth Strategy (CIGS) CULTURAL INDUSTRIES GROWTH STRATEGY (CIGS) THE SOUTH AFRICAN MUSIC INDUSTRY REPORT TO THE DEPARTMENT OF ARTS, CULTURE, SCIENCE AND TECHNOLOGY FINAL REPORT NOVEMBER 1998 The report was commissioned by DACST to research the cultural industries and to propose strategies for their growth and development. The report does not necessarily reflect the views of the Department or the Ministry of Arts, Culture, Science and Technology but will be used to inform future policy formulation. © DACST November 1998 The South African Music Industry The Cultural Industries Growth Strategy (CIGS) CONTENTS THE SOUTH AFRICAN MUSIC INDUSTRY.........................................................1 TABLE OF FIGURES ...........................................................................................6 EXECUTIVE SUMMARY ......................................................................................7 Introduction ...................................................................................................................................................9 Why is the music industry important?.........................................................................................................9 The Structure of the Music Industry ...........................................................................................................9 Global With Local Dimensions...................................................................................................................9 The Companies ...........................................................................................................................................9 The South African Industry..........................................................................................................................9 Strengths .....................................................................................................................................................9 Weaknesses...............................................................................................................................................10 Opportunities ............................................................................................................................................10 Conclusion....................................................................................................................................................10 CHAPTER ONE: INTRODUCTION ....................................................................11 1.1. Why is this industry interesting?.........................................................................................................11 1.2. Conceptual Framework .......................................................................................................................12 Beginnings ................................................................................................................................................12 Production.................................................................................................................................................12 Circulation ................................................................................................................................................13 Delivery Mechanisms ...............................................................................................................................13 Audience Reception and Feedback...........................................................................................................13 Globalisation.............................................................................................................................................14 1.3. Objectives of the Report ......................................................................................................................14 1.4. Structure of the Report........................................................................................................................15 CHAPTER TWO: CIGS AND THE SOUTH AFRICAN MUSIC INDUSTRY .......16 2.1. Introduction ..........................................................................................................................................16 2.2 The Vision ..............................................................................................................................................16 2.3. Conclusion.............................................................................................................................................17 © DACST November 1998 The Cultural Industries Growth Strategy CHAPTER THREE: THE MUSIC INDUSTRY ....................................................18 3.1. What is the music industry? ................................................................................................................18 3.2. The Music Industry Business...............................................................................................................19 3.2.1. The Composer and The Musician...................................................................................................19 3.2.7. The Music Industry.........................................................................................................................22 3.3. Future Developments ...........................................................................................................................22 3.4. Conclusion.............................................................................................................................................23 CHAPTER FOUR: PARAMETERS OF THE MUSIC INDUSTRY.......................23 4.1. The structure and operations of the music industry..........................................................................23 Introduction ..............................................................................................................................................23 Global Markets .........................................................................................................................................24 The Multinationals....................................................................................................................................27 Vertical And Horizontal Integration .........................................................................................................30 Core South African Industry Structures....................................................................................................33 Institutions In The South African Music Industry.....................................................................................33 Conclusion ................................................................................................................................................34 4.2. The South African Music Industry in Figures ...................................................................................36 Introduction ..............................................................................................................................................36 Price Structures In The South African Music Industry .............................................................................37 Gross Turnover .........................................................................................................................................38 Employment..............................................................................................................................................39 Incomes.....................................................................................................................................................41 Growth In The South African Market.......................................................................................................41 International And Domestic Repertoire In The South African Market .....................................................46 South African Music In The Major Music Markets..................................................................................51 South Africa, Southern Africa And Africa................................................................................................53 Conclusion ................................................................................................................................................55 CHAPTER FIVE: COMPETITIVE ADVANTAGES AND WEAKNESSES OF SOUTH AFRICA’S MUSIC INDUSTRIES ..........................................................56 5.1. Introduction ..........................................................................................................................................56 5.2. Beginnings .............................................................................................................................................56 5.2.1. Diversity .........................................................................................................................................56 5.2.2. Local Culture, Global Rhythms ......................................................................................................57 5.2.3. Vulnerability...................................................................................................................................58 5.2.4. Conclusion ......................................................................................................................................59