Knowledge Exploitation Capacity Development Academic Expertise for Business Building New Business Strategies for the Music Industry in Wales Final report School of Music BANGOR UNIVERSITY This study is funded by an Academia for Business (A4B) grant, which is managed by the Welsh Assembly Government’s Department for Economy and Transport, and is financed by the Welsh Assembly Government and the European Union. 1 Table of Contents Executive Summary.......................................................................................................5 The following conclusions are drawn from this study......................................................5 The following recommendations are made in this study ................................................6 Preface ..............................................................................................................................8 Introduction ....................................................................................................................9 Part 1: Background and Context: The Infrastructure of the Welsh­Language Popular Music Industry from 1965–c.2000......................................................... 12 1.1 Overview...................................................................................................................................... 12 1.2 Record companies and sales .............................................................................................. 13 1.3 TV, radio and Welsh­language music journalism ..................................................... 15 1.4 Live events .................................................................................................................................. 17 1.5 Professionalism and the growth of professional musicians’ organisations . 19 1.6 Recent research........................................................................................................................ 21 1.7 Conclusion................................................................................................................................... 23 Part 2: Mapping the Industry................................................................................... 25 2.1 Introduction............................................................................................................................... 25 2.2 Sections A and B: Contact and employment details ................................................. 25 2.3 Section C: Activities and output ........................................................................................ 26 2.4 Section D: Income and subsistence.................................................................................. 27 2.5 Section E: Other Connections ............................................................................................. 28 2.6 Section F: Culture and Industry......................................................................................... 28 Part 3: Developing Business Strategies for the Welsh Music Industry: Three Case Studies.................................................................................................................. 30 3.1.1 Towards the establishment of a Welsh Music Royalties Society.................... 30 3.1.1.1 The context of the royalties industry in Wales ..................................... 30 Introduction ................................................................................................................. 30 3.1.1.2 Background: Revenue losses for the Welsh Music Industry......................... 30 General profile of the industry ................................................................................................. 31 3.1.1.3 Royalties and copyright ................................................................................................ 32 3.1.1.4 Creators ................................................................................................................................ 33 Creator of the work: melody, lyrics, song.......................................................................................33 Performing and Mechanical Rights....................................................................................................34 Creators of a Recording: Performers, Musicians and Recording Companies ..............34 Users and Licensees of the work.........................................................................................................35 Important licensees in the Welsh Music Industry .....................................................................35 Broadcasters ....................................................................................................................................................35 Locations ..........................................................................................................................................................35 Recording Companies and Licensees................................................................................................36 Production companies and broadcasters.......................................................................................36 3.1.1.5 The context in Wales ...................................................................................................... 36 Record companies and publishers.....................................................................................................36 3.1.1.6 Defining the PRS’s ‘Analogies’ system .................................................................... 37 3.1.1.7 The Emergence of the Alliance................................................................................... 41 PRS rates for Radio Cymru.....................................................................................................................41 3.1.1.8 Developments within the PRS service.................................................................... 43 2 3.1.1.9 The role of the PPL (Phonographic Performance Ltd) ..................................................44 The PPL and Wales.....................................................................................................................................45 The BBC and PPL.........................................................................................................................................45 3.1.1.10 General Conclusions..................................................................................................... 46 3.1.2 Towards a sustainable future for the Welsh Music Industry................ 48 3.1.2.1 Introduction ....................................................................................................................... 48 3.1.2.2 The nature of the company.......................................................................................... 49 Location............................................................................................................................................................49 3.1.2.3 Database Requirements................................................................................................ 49 3.1.2.4 Overseas models – identifying good practice...................................................... 51 Estonian Authors Society (EAU) .........................................................................................................52 Irish Music Rights Organisation (IMRO).........................................................................................52 The formation of IMRO ............................................................................................................................53 Croatian Composers Society (HDS) ............................................................................................54 Evaluating the working methods of overseas societies................................................. 55 Commission Rates ........................................................................................................................................55 IT Systems .......................................................................................................................................................55 Employment ....................................................................................................................................................56 Royalties ...........................................................................................................................................................56 Membership.....................................................................................................................................................56 CISAC (the International Federation of Authors and Composers Societies)................57 Promoting Culture and Industry..............................................................................................................57 Economic Models ........................................................................................................................................57 Royalties for Members ...............................................................................................................................57 The Economic Value of the Work........................................................................................................59 Sources for Business Support...............................................................................................................61 a. 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