REVIEW OF NZ ON AIR’S DOMESTIC MUSIC PROMOTION & FUNDING SCHEMES Chris Caddick December 2010 2 TABLE OF CONTENTS 1. EXECUTIVE SUMMARY............................................................................... 4 2. INTRODUCTION........................................................................................... 8 2.1 METHODOLOGY.................................................................................. 8 2.2 DISCLOSURE....................................................................................... 8 3. MARKET ENVIRONMENT............................................................................ 9 3.1 OVERVIEW........................................................................................... 9 3.2 NEW ZEALAND MUSIC MARKET...................................................... 13 3.3 RADIO................................................................................................. 18 3.3.1 The Commercial Radio Code.................................................... 19 3.3.2 Commercial Radio Operating Environment............................... 19 3.4 MUSIC TELEVISION .......................................................................... 24 3.5 INTERNET.......................................................................................... 26 3.6 MUSIC RETAIL................................................................................... 28 3.6.1 Bricks and Mortar Stores........................................................... 28 3.6.2 Digital Music Retailers............................................................... 29 3.7 MUSIC COMPANIES.......................................................................... 31 3.8 SUMMARY.......................................................................................... 35 4. QUALITATIVE RESEARCH ....................................................................... 36 5. GOVERNMENT INTERVENTION IN MUSIC.............................................. 40 5.1 NZ ON AIR.......................................................................................... 40 5.2 NZ ON AIR’SMUSIC PROGRAMME ................................................. 40 5.3 IS NZ ON AIR STILL NEEDED?......................................................... 43 6. OTHER AGENCIES .................................................................................... 49 6.1 CREATIVE NEW ZEALAND ............................................................... 49 6.2 NEW ZEALAND MUSIC COMMISSION ............................................. 51 6.3 TE MÃNGAI PÃHO .............................................................................. 52 6.4 INDUSTRY VIEWS ............................................................................. 52 6.5 SUMMARY.......................................................................................... 53 3 7. EVALUATION OF FUNDING SCHEMES ................................................... 55 7.1 MUSIC FUNDING ............................................................................... 56 7.1.1 MUSIC VIDEOS........................................................................ 56 7.1.2 NEW RECORDING ARTIST SCHEME..................................... 63 7.1.3 ALBUMFUNDING………………………………………………….69 7.1.4 FUNDING SCHEMES ASSESSMENT SUMMARY… … … … … .79 RECOMMENDATIONS....................................................................... 82 7.2 MUSIC PROMOTION ......................................................................... 82 7.2.1 PRODUCTION OF RADIO SHOWS ......................................... 83 RECOMMENDATIONS....................................................................... 90 7.2.2 TELEVISION PROGRAMMES.................................................. 92 RECOMMENDATIONS....................................................................... 96 7.2.3 PLUGGERS .............................................................................. 97 RECOMMENDATIONS..................................................................... 100 7.2.4 KIWI HIT DISC........................................................................ 101 RECOMMENDATIONS..................................................................... 108 7.3 OTHER RECOMMENDATIONS ....................................................... 109 7.3.1 AIRPLAY TARGETS............................................................... 109 7.3.2 BROADEN MONITORING ...................................................... 110 7.3.3 NEW MEDIA ........................................................................... 111 7.3.4 APPLICATION & AUDIT ......................................................... 116 7.3.5 FUTURE REVIEWS................................................................ 117 7.3.6 OTHER SUGGESTIONS ........................................................ 119 8. SUMMARY OF RECOMMENDATIONS.................................................... 121 APPENDICES Appendix 1: Terms of Reference ............................................................ 124 Appendix 2: Online Questionnaire .......................................................... 126 Appendix 3: Responses By Occupation...................................................133 Appendix 4: Responses By Age...............................................................139 Appendix 5: Comparisons By Location ....................................................146 Appendix 6: Comparison By Funding Applicant...................................... 152 4 1. EXECUTIVE SUMMARY NZ On Air is a broadcast funding agency. All its funding schemes, including music, are focused on a variety of broadcast audiences whether on traditional analogue platforms or new digital ones. In the case of music NZ On Air concentrates on connecting a popular song with the broadest possible audience. To date the NZ On Air music programme has demonstrably achieved its stated aim of increasing airplay for New Zealand music on commercial radio. This has played a significant role in the re-establishment of New Zealand music in the consciousness of the general public. NZ On Air funding has ensured that New Zealanders continue to hear and see significant amounts of New Zealand music on a daily basis on radio and music television networks. While industry or artist support is not a primary goal, the stability inherent in NZ On Air’smusic programme has nonetheless provided strong support for the New Zealand music industry. As a consequence an industry infrastructure has been strengthened and an ever-increasing pool of new artists aspires to create music and have it heard by their fellow countrymen. NZ On Air commissioned this research to assess the changing music and broadcasting environment, to consult widely, and to advise on useful changes that could be made to its policies and funding schemes. As part of this research I interviewed 100 music and broadcast professionals and assessed a further 655 responses from an online public survey. The music industry has come to associate NZ On Air’smusic programme almost solely with funding music creation. It not only takes this funding for granted but tends to overlook broadcast programme funding and the promotional work, all of which is intended to deliver the broadcast outcomes required of NZ On Air by the Broadcasting Act 1989. In the minds of the greater industry, confusion has been created by the perception of a gradual detachment of the music programme from its broadcasting roots. This has been partly due to NZ On Air’sdefault position as the government’sfunder of popular music. It is interesting to note that ‘NZ Music’operates as a separate work division within NZ On Air, and has been separately managed from radio funding since 2000. This may have 5 compounded this confusion. There is a high level of appreciation for the successes to date. There is now also frustration within the greater music industry with aspects of NZ On Air’s music programme. Misgivings are reasonably widespread throughout the industry, but vary significantly depending on the vested interest of the respondent. In summary, the main concerns expressed to me were: NZ On Air’smusic programme is not keeping pace with changes in the industry. The single-minded focus of supporting music for commercial radio audiences is crowding out some more cutting-edge and potentially popular music. The various schemes are not giving sufficient recognition to modern methods of interacting with music, specifically the use of the Internet and mobile devices in discovering, consuming and sharing music. Artists are allowed to access funds either when those funds should not be necessary; or the artists are past their perceived ‘use-by date’;or have not achieved satisfactory outcomes (both broadcast and commercial) from their preceding project. Assistance to some artists was deemed excessive. The application procedure and follow-up for the funding grants should be more rigorous. Other general observations that I would make as a result of considering all the feedback are: The music industry tends to have a patchy knowledge of the various music schemes and initiatives. Few are aware of the range and rationale for all the schemes. There is a general dislike for commercial radio in the greater music industry, yet an inherent understanding of its power and influence. 6 There is a clear wish to see assistance weighted towards artists at the beginning of their careers. Although NZ On Air funding schemes have assumed greater importance as industry revenues have plummeted, it is not NZ On Air’sjob to be the default funder of recordings for the local