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GAUTENG Music Strategic Framework - Ibilion Music

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					Gauteng Music Strategic Framework 2010




                                GAUTENG
             Music Strategic Framework




                                     Final Report
    Prepared under tender for the Gauteng Provincial Government


                                            by
                                 Jonathan G. Shaw
                                            and
                                         Rob Rodell


                                  18 February 2010


This report was commissioned by the Gauteng Provincial Government to research
the Gauteng music industry and to propose strategies for its growth and
development. It does not necessarily reflect the views of the Department or the MEC
for Sport, Arts, Culture and Recreation.




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TABLE OF CONTENTS
EXECUTIVE SUMMARY .................................................................................................................................... 3
ACKNOWLEDGEMENTS................................................................................................................................. 15
LIST OF ACRONYMS USED........................................................................................................................... 16
1.      INTRODUCTION ..................................................................................................................................... 18
     1.1.       RESEARCH MOTIVATION ................................................................................................................... 18
     1.2.       APPROACH AND METHODOLOGY ...................................................................................................... 18
     1.3.       KEY OUTCOMES ................................................................................................................................ 19
2.      OVERVIEW OF MUSIC IN GAUTENG ............................................................................................... 20
     2.1.       DEFINING THE GAUTENG MUSIC INDUSTRY ..................................................................................... 20
     2.2.       GAUTENG LIVE MUSIC....................................................................................................................... 47
     2.3.       GAUTENG RECORDED MUSIC ........................................................................................................... 53
     2.4.       GAUTENG MUSIC PUBLISHING .......................................................................................................... 68
     2.5.       GAUTENG MUSIC BRAND INDUSTRY ................................................................................................. 72
     2.6.       GAUTENG MUSIC MEDIA ................................................................................................................... 73
     2.7.       GAUTENG SWOT ANALYSIS............................................................................................................. 86
     2.8.       INTERNATIONAL BENCHMARKING ..................................................................................................... 89
     2.9.       FUTURE DIRECTIONS ......................................................................................................................... 94
3.      ALIGNMENT TO PRECEDING DEVELOPMENT FRAMEWORKS AND STRATEGIES........ 100
     3.1.       CREATIVE INDUSTRIES DEVELOPMENT FRAMEWORK .................................................................... 100
     3.2.       GAUTENG 2009-2014 MEDIUM TERM STRATEGIC FRAMEWORK .................................................. 101
     3.3.       GAUTENG’S RESPONSE TO THE ECONOMIC CRISIS ....................................................................... 102
     3.4.       GAUTENG EMPLOYMENT, GROWTH AND DEVELOPMENT STRATEGY (GEGDS), 2009 - 2014 ... 103
4.      DEVELOPMENT INTERVENTIONS ................................................................................................. 106
     4.1.       KEY FINDINGS OF THE RESEARCH .................................................................................................. 106
     4.2.       THE SCOPE OF THE STRATEGY ....................................................................................................... 110
     4.3.       IMPLICATIONS FOR THE IMPLEMENTATION OF THE STRATEGY ....................................................... 111
     4.4.       TARGET BENEFICIARIES .................................................................................................................. 112
     4.5.       INTERVENTIONS ............................................................................................................................... 112
5.      ROLE ALLOCATION FOR STAKEHOLDERS ................................................................................ 129
6.      ACTION PLAN ....................................................................................................................................... 134
7.      CONCLUSION ........................................................................................................................................ 136
8.      APPENDIX: FOCUS GROUPS AND KEY INTERVIEWS ............................................................... 137
     8.1.       FOCUS GROUP METHODOLOGY ...................................................................................................... 137
     8.2.       FOCUS GROUP’S DELINEATION ...................................................................................................... 138
     8.3.       FOCUS GROUP AND KEY INTERVIEW SUMMARY RESULTS ............................................................ 141
BIBLIOGRAPHY .............................................................................................................................................. 160




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EXECUTIVE SUMMARY

1.     Introduction to the Research


The research aims to inform strategic interventions for the Gauteng music industry. The approach of
the research was to uncover the primary economic driving forces behind the music industry, namely,
the live sector, recorded music, music publishing, brand sector and music’s associated media. The
methodology used was an exploratory approach, which consisted of scanning secondary sources of
information while undertaking focus groups and key interviews to gather industry opinions from role-
players. Key outcomes sought to address employment, transformation, skills development,
entrepreneurial development, women empowerment, export initiatives and tourism.


2.     Overview of Music in Gauteng


2.1.      In Context: The South African Music Industry


The study is put into context by first understanding the greater “creative industries” and their effect and
positive contribution on the economy. The South African music industry is the biggest of these creative
industries and, by looking at the many music industry associations’ membership, consists of many
thousands of musicians and businesses. It has been stunted, though, by Apartheid and dominance of
international repertoire. The industry has improved over the past two decades but is still plagued by
old problems. Gauteng houses the majority of the music industry in South Africa and by intervening in
the Gauteng music industry, positive effects for the whole country in this sector will be felt.


Only a few income sources can be publicly tracked for the South African music industry but these can
be used to estimate its gross sector turnover. These income sources are recorded music sales
(through the Recording industry of South Africa [RiSA] and the International Federation of the
Phonographic Industry [IFPI]), performance royalties (from the South African Music Rights
Organisation [SAMRO]) and mechanical royalties (from SAMRO, the South African Recording Rights
Association Limited [SARRAL] and the National Organisation for reproduction Rights in Music
[NORM]). More sources need to be made available. Other sources are estimated based on media
data such as the All Media and Products Study (AMPS) produced by the South Africa Advertising
Research Foundation (SAARF). From this, the size of the live music industry can be estimated. The
recording industry is the biggest sector (worth R1.7 billion), followed by the live music industry (R1.4
billion) and the music publishing industry (R414 million). The music brand sector is not readily
traceable and therefore hidden.


From AMPS, we see the level of genre interest (not to be confused with music sales) in South Africa.
This reveals that gospel is the most liked genre followed by an “other” category, kwaito and then
house. This reveals the relative market size for music in South Africa and typically which genres are


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consumed most. This is important in the absence of definite genre sales data (RiSA has revealed that
gospel, urban and Afrikaans are the biggest selling however). The growth of the “other” category
shows that genre interests have varied to unknown genres.


Gauteng consists of six municipal areas and, according to the 2007 Community Survey, is the most
populous in South Africa with over 10 million people. The Gauteng province is South Africa’s music
province. Gauteng is rich in musical resources, heritage and culture. Although it is the smallest
province in size, approximately 70% of the music industry is conglomerated within it (by examination
of the distribution of services in a music industry directory called The Score as well as the focus
groups) and primarily in Johannesburg.


Gauteng is becoming a global city region and has been rated on eight descriptors by Fife in the
Financial Mail. Of these, its only “medium-to-high” rating was for its culture. This concentration of
cultural elements pushes Gauteng toward its goal of becoming a global city region. Positive spin-offs
include Gauteng reinforcing its position as the global music hub for South Africa.


In 2008, the Gauteng Provincial Government commissioned a mapping study for the creative
industries and the music sector component of that report was used to inform this study. Particularly,
the mapping study revealed that, in Gauteng, most music industry businesses are white owned and
whites dominate management positions while as few as 22% are owned by women. The industry is
generally male dominated in its workforce. Regarding the preferred business type, close corporations
are in the lead, closely followed by companies, sole-traders and non-profits. Most are over 20 years in
age with a large trend to recently opened companies in the last 0 to 4 years. Operational costs are the
biggest inhibitor to entering the sector.


The music industry has great potential to generate employment. The Gauteng music industry employs
around 18,800 people, although the majority comprises of independent contractors in small, micro and
medium enterprises (SMMEs). There are over 7000 songwriters and 2300 artists, according to various
associations’ membership. Labour legislation is a key challenge to the industry as music artists are not
covered sufficiently under traditional law.


Education in the music industry can be broken down into three categories: Music theory and
performance; technical fields such as sound engineering and music technology; and, music business
and management. According to the mapping study, the majority of the workforce has a Grade 12
certificate (48%) and much still needs to be done to uplift education, especially in business and
management aspects. Music business was highlighted in the focus groups along with life skills at all
levels of training.


In terms of markets served by the industry, the mapping study shows that the majority serves the
public with only 15% serving the government. Over half of the industry exports goods although this



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comprises only a small percentage of their total turnover. The rest of Africa and the European Union
are the biggest markets. The export market is relatively underdeveloped and has a great opportunity
for growth.


78% of the industry derives income from goods and services. Only 21% applied for funding of which
60% were successful. The industry seems self-sufficient from available statistics but many firms
commented that funding needs to increase and there is a need to make funding more visible.


Through AMPS 2008a, a Gauteng music consumer profile can be developed. AMPS allows one to
look at how important music is in culture and the importance of entertainment to Gauteng consumers.
Gauteng is second only to Kwa-Zulu Natal in both regards, with between 7% and 10%, respectively.
This means it is second highest in positive attitudes toward music in culture as well as entertainment.
AMPS reveals that Gauteng consumers, however, have more music interest than any other province
at 21%. It is followed, in this instance, by Kwa-Zulu Natal (18%). Furthermore, by examining those
who felt certain genres were not applicable, the following can be deduced: For every one person who
likes a genre, there are 5 others who do not appreciate it. This shows a poor appreciation for a variety
of genres in Gauteng and South Africa in general. For the genres that are liked most in Gauteng (as
opposed to sales, for which no data breakdown can be made), this mirrors national interest with
gospel being the most liked. An exception is that Jazz/Blues and R&B/Soul overtake genres such as
House, Kwaito and Rap/Hip-Hop. AMPS also shows activities related to music. Buying CDs and DVDs
are frequent consumer activities in the province. Playing an instrument is more common than singing.
There is some evidence to suggest that doing music is not a strong activity in the province and
indicative of poor appreciation of music.


According to the Gauteng Tourism Authority (GTA), factors that drive tourism to the province include
“shopping” (80%) “nightlife” (60%), “social” (45%) and “cultural, historical and heritage” reasons (20%),
with R15 billion being earned from tourism to the province. The latter factors include music and show
that it is a very important part of provincial tourism. Gauteng (1.4 million) is second only to Kwa-Zulu
Natal (11.9 million) with the number of domestic trips to the province, although Gauteng is the highest
in foreign visitors, bednights and foreign direct spend.


2.2.      Gauteng Live Music


Although having been stunted in the past, live music is a very viable avenue to improvement of the
Gauteng music industry. The ability to estimate the growth and size of the industry is essential to
monitoring its development. Unfortunately, there is no source for an accurate estimate on the Rand
value of the live music industry. South Africa, unlike other countries, does not readily track ticket sales,
which are considered confidential. An estimate can be determined by looking at the number of people
who indicated they attended live music events in the past year according to AMPS and multiplying this
number by an average ticket price from a survey of prices from ticketing companies. This allows us to



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estimate that the live music industry in South Africa is worth R1.45-billlion and, by looking at global
industry estimates, shows it to be around 0.675% of the world market (which is not that different to the
South African recording industry percentage of world sales).


Gauteng, the largest live music province, contributes an estimated 27% to the South African live music
industry. There are many live venues in Gauteng and most of the promoters and technical service
provides operate in Gauteng. An MMus thesis, completed by University of the Witwatersrand student
Kristel Birkholtz, reveals that 69% of surveyed live music performers find work in Johannesburg,
followed by Cape Town (17%). The main activities and income sources for musicians in Gauteng are
corporate functions and private/social events. Only 50% of surveyed musicians find work at clubs
which feature live music. Beside this there is musical theatre, opera, ballet, restaurants, concerts and
festivals. Busking could be encouraged in public spaces as an initial outlet for performers.


2.3.     Gauteng Recorded Music


Sales data collected by RiSA shows that the recording industry was worth around R1.7 billion and
          th
ranked 17 in the world in 2007. RiSA data also shows that there are over 800 record labels operating
in South Africa. All the largest international recording companies (Sony Music, EMI, Vivendi-Universal
and AOL Time Warner through Gallo, the music “majors”) operate from Gauteng. South Africa has a
healthy “independent” sector (record companies which are smaller and separate from the major
companies mentioned previously) that often define the local talent in the music industry, although they
are hampered by insufficient business knowledge. RiSA data shows that collectively, the independent
record companies have a majority market share which is similar to any one major record company.


The recording industry has grown substantially since the turn of the century and South African
repertoire sells more units than international, according to RiSA data. This can be attributed to a
growth in spending on music as well as development of indigenous repertoire. South Africa has not
seen the international trend of decreasing sales, although a drop in local repertoire sales occurred
over 2008 but can be attributed to a decline in airplay. The CD format still dominates the market
according to RiSA data and international formats (CDs, DVD, etc.) still have a proportionately higher
value than local formats. CDs sell most in the international market in South Africa, followed by DVDs.
In the local market, CDs also sell most followed by cassette and then DVD. CD singles have
resurfaced in the local market, perhaps due to them being less risky and more cost effective.
International CDs sell more than local CDs. Digital sales are still small but on the rise. They, as yet,
are not featured in RiSA statistics. Also, licenses made in respect of recordings such as adverting and
films are classified and thus hidden but are a significant source of revenue for successful companies.


New to the record industry is a royalty arising from performance of a recording in public. This is called
needletime and is a new revenue stream that is being collected by the South African Music
Performance Rights Association (SAMPRA). Performers of music on a recording also share in this



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revenue stream and their share is collected by SAMRO and SARRAL. No data on this source is
available yet.


Copyright compliance is the biggest issue facing the market. Piracy hinders the market nationally.
Within Gauteng, the total piracy amounts to losses in value up to R500 million and tax losses of
around R200 million, according to RiSA’s Stop Piracy website. Furthermore, on the digital front, new
music websites are not aware of legal necessitates on the internet or simply feel hindered by copyright
compliance.


2.4.      Gauteng Music Publishing


There are various revenue streams for music publishing. Sources such as performance and
reproduction licenses can be tracked through societies such as SAMRO, SARRAL and NORM.
Synchronisation royalties can be calculated based on professional’s estimates. From these we can
estimate that the publishing industry has a value of R419.9 million. Similarly to recorded music,
Gauteng plays host to the royalty collecting societies as well as the major publishers. The biggest area
of income is from performing rights, specifically those collected from television. Other revenue
streams, such as theatre is difficult to trace, while sheet music is underexploited.


2.5.      Gauteng Brand Sector


The brand sector is where music artists use their name and image to sell merchandise, fragrances,
endorse products and act in films. The brand industry is a hidden sector in which music artists
leverage their brand value onto other goods and services. This is a lucrative industry overseas and is
relatively untapped in South Africa.


2.6.      Gauteng Media


The media is the key to developing the music industry in South Africa and Gauteng. Media interest
and perception of the music industry is problematic and difficult to change although broadcasters are
obligated by the Broadcasting Act to develop local content. The UNESCO Convention on the
Protection and Promotion of the Diversity of Cultural Expressions emphasises the right of sovereign
states to protect their culture and justifies raising the local content quota. An average quota based on
international quotas is to include 40% local music in broadcaster programming. Again, the major
newspapers, magazines, radio stations, television stations and websites originate from Gauteng and
most carry entertainment content. Recently there has been a decrease in local music radio airplay,
coinciding with the drop in local sales. Gauteng community radio stations have the highest
listernership out of all provinces.




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Gauteng also has a rapid development of digital music media with many websites evolving locally for
music. It is, however, in the mobile music space that the local music scene may reach the broadest
audience. New digital business models are still developing and new industry value chains are starting
to emerge.


2.7.        SWOT Analysis


The following shows the strengths, weaknesses, opportunities and threats of the music industry in the
Gauteng province:


Strengths                                              Weaknesses

          Entertainment and music hub                       Criticism for reducing opportunities for
          Industry growing and established                   other provinces
          Attracts many role-players                        Low community involvement
          Many income streams                               Creators require development
          Good copyright controls                           Cultural exclusion in media, live music
                                                              and music interest
                                                             Fragmentation among role-players
                                                             SMMEs struggle to sustain themselves
                                                             Lack of succession for career
                                                              professionals
                                                             Dilution and hybridisation of services
                                                             Restriction of information flow
                                                             Industry has poor brand perception
Opportunities                                          Threats

          Industry communication and partnership            The labour and social security issues
          Government department collaboration                which beset creators
          Export markets                                    Proliferation of international music
          Audience development                              Industry has low access to resources
          Gauteng can filter innovations to other            and capital
           provinces                                         Market awareness of local music
          Broadcast monitoring                              Industry disparateness and
          Development of a “Gauteng sound”                   disorganisation
          Improvement in education                          Urban blight discourages live music
          Reinforcement of legal profession in              Slow adoption of digital rights and
           music industry                                     business models
          Regulation of role-players to account for
           industry development




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2.8.         International Benchmarking


Through an international benchmarking study, the following success factors were identified:
           Digital readiness
           Industry co-operation
           Professional development
           Vibrant live music scene
           Export programmes
           Hub development
           Urban blight management
           SMME development


2.9.         Future Directions


This report comes from a long line of research undertaken by government at national and provincial
level on the cultural industries as well as the music industry in particular. Government research stems
as far back as 1998 and continues to 2008. There has been focussed policy to develop the music
industry at national and provincial level. Some fulfilled and unfulfilled recommendation from past
research is discussed in the study and used to inform the current strategy. The Gauteng music
industry lacks medium sized role-players and the strategy looks at uplifting small businesses and, in
particular, the creator segment. Key interventions, based on the key findings of the research, include:
       1. Improving industry research and information flow
       2. Improving the skills base across the value chain in the music industry
       3. Expanding markets and increasing exposure of local music
       4. Upgrading opportunities for live music
       5. Supporting music creators


The strategy should seek to unify the districts within Gauteng and focus on development outside of the
industry established Johannesburg area.


3.         Development Interventions


While the strategy takes an all-inclusive approach, it is centred around the development of creators, as
they are key to any development in the industry. Furthermore, it addresses needs of emerging and
micro businesses. The interventions are:




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          Opportunity                         Problem                             Objective                                   Interventions
Information is required to make   Low access to reliable and           Provide constant quantitative        Incentives to industry associations to collect data
informed business decisions       dedicated industry statistics        data gathering and analysis          Production of regular reports distributed to
                                                                                                             stakeholders
                                                                                                            Holding of regular industry forums
Education and skills              Skills gaps exist in music theory,   Improve skills across the value      Fund educational service providers, associations
development initiatives           performance and musicology           chain                                 and MAPPP-SETA
                                  education as well as music                                                Networking and lobbying opportunities for
                                  business and life skills education                                         educational service providers
                                                                                                            Mentorship and apprenticeship programmes
                                                                                                            Development of programmes for music business
                                                                                                            Fund bursaries for the disadvantaged
                                                                                                            Promotion of career opportunities
Improved marketing of supply-     Low levels of exposure in media      Local music is to be incubated       Funding of supply-side measures
and demand-side measures          as well as low product quality       on a community level with            Establishment of a Gauteng digital music hub
                                  reduce access to markets             provincial and national support      Raising local content quotas
                                                                       while creating export                Subsidisation of community media
                                                                       opportunities to broaden markets     Building export opportunities
                                                                                                            Amendments to the Copyright Act
Growing live music increases      Live music has been                  Build a healthy, community-          Fund existing live music venues
community development, skills     suppressed. Urban decay taints       based live music industry            Renovation of community theatres for music use
development and job creation      perceptions of it.                                                        Venue tax relief
                                                                                                            Gauteng tour circuit
                                                                                                            Gauteng live music award
                                                                                                            Subsidisation and grant funding to touring artists
                                                                                                             locally and abroad
Supporting music creators         Creators struggle socially and       Support creators as key driving      Hold a creators’ symposium
                                  financially, which inhibits their    factors in the industry              Support and fund artistic, cultural and
                                  ability to compete                                                         transformative creator associations
                                                                                                            Investigate tax relief for creators
                                                                                                            Address labour and social security issues
                                                                                                            Establish and fund a legal aid clinic for creators




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4.       Role Allocation for Stakeholders


The strategy requires the successful collaboration of a wide range of stakeholders, set out as follows:


National              Provincial       Local            Private                               Development
                                                                          Parastatals
Government            Government       Government       Sector                                Sector
DAC                   SACR             DLG              Business          MAPPP-SETA          Training Providers
DBE                   GEDA             Arts, Culture    associations                          NGOs
DHET                  GEP              and Heritage     Training                              CBOs
DED                   GACC             Tourism          providers                             TEP
DoF                   Transport        Economic         Tourism sector
DoH                   and Public       Development      Wholesale &
DoL                   Works            Social           retail sector
DST                                    Development      Creators
SARS                                                    Agents
DSD
Tourism
DTI
Transport
SEDA
IDC



5.       Alignment to Preceding Development Strategies and Frameworks


The Gauteng Creative Industries Development Framework (CIDF) has informed the development of this
strategy. The CIDF develops four pillars for uplifting creative industries. Each pillar presents initiatives for
creative industry development. These are as follows:
         Finance and business initiatives: These are fulfilled through strategy funding initiatives and
          investigation of tax incentives.
         Expanding markets: Markets can be expanded through the co-ordination of provincial and local
          cultural agencies, digital readiness, bolstering live music, export programmes and development of
          community based media.
         Skills development: This can be supported by the co-operation of industry education role-players.
          Education can be developed in music theory, musicology, performance, business knowledge and
          life skills. Furthermore, publication of training opportunities needs to be reinforced.
         Creative exchange: Community-based development is factored into the strategy as well as
          community communication structures.
         Creative community award: An award for the best live music venue is proposed.
         Sector specific development initiatives: These include initiatives such as live performance circuits,
          provincial tours and events, community radio development, increase of the local content quota
          and music venue development.




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The Gauteng 2009-2014 Medium Term Strategic Framework addresses the Gauteng Provincial
Government’s medium term priorities and the Gauteng music strategy aligns itself as follows:
       Create decent work: Provide finance to music SMMEs, support export innovations, lead industry
        transformation and motivate specific labour and copyright legislation amendments.
       Promote human development: This can be done by developing skills, providing training with
        coaching and mentorship programmes, facilitating partnerships with education service providers,
        providing tax incentives and giving social security for creative workers.
       Equitable and sustainable urban and rural development: This is achievable through the
        development of community media for music and the live music scene.
       Eliminate crime: Achieved by eradicating urban blight around live music venues and music piracy.
       Build a developmental state: Accomplished by improving government efficiency, addressing music
        integrated communication technologies (ICT) and internet challenges, monitoring the industry
        through continued research and bolstering the tourism sector through live music.


The strategy document “Gauteng’s Response to the Economic Crisis” (7 September 2009) details
interventions to deal with the economic crisis. This strategy is aligned as follows:
       Budget optimisation and localisation of government: Government efficiency is critical to the
        strategies implementation. Music use within health care can be explored. Skills development is
        critical within this research as is uplifting live music for settlement development. SMME support
        allows for job creation.
       Rural development and sustainable livelihoods: The strategy recognises music’s development in
        rural and fringe areas of Gauteng. ICT implementation can facilitate access to music in the
        internet while mobile recording facilities enable two way interaction over the internet. Music’s role
        in tourism is factored in.
       Infrastructure-led recovery measures as autonomous sources of decent work: Incorporation of
        music through community infrastructure is important. Access to music venues and the safety and
        security thereof is critical. Furthermore, MPCC development can be seen as an employment
        vehicle within communities.
       Social protection and social development: Social development can be achieved through SMME
        and creator social security support to alleviate financial pressure. Tax incentives and relief can be
        considered as measures. Skills development in business budgeting is necessary.
       Protecting domestic industrial capacity through intervening in distressed sectors: Again, SMME
        and creator support are examined. Allowing better access to market will improve capacity of the
        sector.


The updated Gauteng Employment, Growth and Development Strategy (GEGDS), 2009 – 2014 outlines
Gauteng’s next five year plans. These have been aligned as follows:



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         Infrastructure investment: This strategy requires government efficiency. Social infrastructure such
          as community MPCCs need to be renovated. An increase of music content in community media
          and its music’s role in tourism can improve public service providers.
         Education and skills development:           This can be supported by the co-operation of industry
          education role-players. Education can be developed in music theory, musicology, performance,
          business knowledge and life skills. Furthermore, publication of training opportunities needs to be
          reinforced.
         Healthcare: social security and aid for creative workers improves their livelihoods. Establishing
          their rights is critical in their overall wellbeing.
         Sustainable spatial planning and human settlement: Music has been considered within Gauteng’s
          plans to become a global city region. The strategy recognises music’s development in rural and
          fringe areas of Gauteng.
         Accessibility: Accessibility to venues, and music services is imperative to the strategy. Transport
          services could include concentrated music strategies.
         Safety and security: Urban blight needs to be managed around music venues. Piracy in the
          industry needs to be addressed and intellectual property protection bolstered.
         Environmental and natural resources: Events could be held promoting awareness of
          environmental issues. Additional research should examine music’s role in environmental and
          natural resources.


6.       Action Plan


This strategy incorporates a 5 year action plan.


7.       Conclusion


The research has outlined a strategy to successfully intervene in the Gauteng music industry. Stakeholder
requirements and expectations have been addressed. Significant changes to the traditional value chain
have been accommodated for, as well as some common and ingrained problems addressed. The strategy
covers the informational requirements of industry, market development, skills development and needs of
creators. These interventions will lead Gauteng toward its goal of becoming a global city region.


8.       Appendix: Focus Groups and Key Interviews


Focus groups were conducted to gain insight into the industry as well as gather industry opinions on the
interventions. Six focus groups were held in Gauteng over December 2008 to March 2009. The groups
were delineated into their fundamental value chain operations and consisted of 8 to 10 people. These



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were: creators, which include performers, songwriters and music producers; enablers, which include
music publishers, record labels, artist management, lawyers and booking agents; revealers, which include
newspapers, magazines, radio, television and digital media; educators, which include schools, collages
and universities; and facilitators, which includes industry associations. Further key interviews were held
with role-players to fill gaps left by the focus groups. A summary of the results of focus groups and key
interviews can be found at the end of the report.




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ACKNOWLEDGEMENTS


The following people need to be recognised for their contribution to this report:
       Andre le Roux; Chairman, Moshito
       Andrew Fulton; Eighty20, AMPS database access
       Anthony Brooks; WASPA Secretariat
       Arnold Mhlamvu; Membership Dept., SARRAL
       Cameron Harris; Department of Art History, Visual Arts and Musicology, UNISA
       Cathy Gibbons; Coordinator for Arts, Gauteng Department of Education
       David Alexander; Chairman, SAMEX
       Dietrich de Beer; Musicals Licensing, DALRO
       Jill Galanakis; General Manager, NORM
       Kristel Birkholtz; violin performer & music educator
       Laurie Wapenaar; Music Director, The Orchestra Company
       Lee Walters; General Manager, Moshito
       Lindumuzi Mngoma; Conductor/Music Director, Ionian Music Society
       Marie Jorritsma; Department of Art History, Visual Arts and Musicology, UNISA
       Motsumi Makhene; Principal, Central Johannesburg College
       Nick Matzukis; Director, Academy of Sound Engineering
       Nick Motsaste; CEO, SAMRO
       Nicola Van Staden; National School of the Arts
       Oupa Lebogo; General Secretary, CWUSA
       Simon Foulds; Convenor, RBF/Emerging Sounds Competition


Thank you to all the respondents who attended the focus groups. Your contribution was
essential to the completion of this report.




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LIST OF ACRONYMS USED


AIRCO           Association of Independent Record Companies of South Africa
AMPS            All Media and Products Study
ASA             Advertising Standards Authority
BASA            Business and Arts South Africa
BIEM            International Bureau of Mechanical Reproduction Societies
CASA            Composers Association of South Africa
CBO             Community based organisation
CIDF            Creative Industries Development Framework
CIGS            Cultural Industries Growth Strategy
CISAC           International Confederation of Societies of Authors and Composers
COSATU          Congress of South African Trade Unions
CWUSA           Creative Workers Union of South Africa
DAC             Department of Arts and Culture
DALRO           Dramatic, Artistic and Literary Rights Organisation (SAMRO affiliate)
DBE             Department of Basic Education
DEAT            Department of Environmental Affairs and Tourism
DED             Department of Economic Development
DHET            Department of Higher Education and Training
DLG             Department of Local Government
DoF             Department of Finance
DoH             Department of Health
DoL             Department of Labour
DSD             Department of Social Development
DST             Department of Science and Technology
DTI             Department of Trade and Industry
FET             Further Education and Training
GACC            Gauteng Arts and Culture Council
GDE             Gauteng Department of Education
GEDA            Gauteng Economic Development Agency
GEP             Gauteng Enterprise Propeller
GET             General Education and Training
GPG             Gauteng Provincial Government
GTA             Gauteng Tourism Authority
HET             Higher Education and Training
ICASA           Independent Communications Authority of South Africa
IDC             Industrial Development Corporation
IFPI            International Federation of the Phonographic Industry
ISP             Internet Service Provider
LSM             Living Standards Measure
MAPPP-          Media, Advertising, Print, Packaging and Publishing Sector Education and Training
SETA            Authority
MIAGI           Music is a Good Investment
MIDEM           Marché International du Disque et de l'Edition Musicale



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MIDI            Music Industry Development Initiative
MMFSA           Music Managers Forum of South Africa
MMiNo           South African-Norwegian Education and Music Programme
MPCC            Multi-Purpose Community Centre
NAB             National Association of Broadcasters of South Africa
NGO             Non-Governmental Organisation
NMSA            NewMusicSA
NORM            National Organisation for Reproduction Rights in Music
NQF             National Qualifications Framework
PPD             Published Price to Dealer
RA              Retailers Association
RAV             RiSA Audio Visual (a division of RiSA)
RiSA            Recording Industry of South Africa
SAARF           South African Advertising Research Foundation
SACR            Gauteng Department of Sport, Arts, Culture and Recreation
SADJA           South African Disc Jockeys Association
SADMA           South African Disabled Musicians Association
SAJA            Southern African Journalist Association
SAJE            South African Association of Jazz Educators
SAMA            South African Music Awards
SAMEX           South African Music Exports
SAMICI          South African Music Industry Cooperative Initiative
SAMPA           South African Music Promoters Association
SAMPRA          South African Music Performance Rights Association
SAMRO           South African Music Rights Organisation
SARA            South African Roadies Association
SARRAL          South African Recording Rights Association Limited
SARS            South African Revenue Service
SASMT           South African Society of Music Teachers
SEDA            Small Enterprise Development Agency
SGB             Standards Generating Body
SMME            Small, Medium and Micro Enterprises
TEP             Tourism Enterprise Project
TPSA            Technical Production Services Association
UNESCO          United Nations Educational, Scientific and Cultural Organisation
VAT             Value Added Tax
WASPA           Wireless Application Service Providers’ Association
WIN             World Independent Network
WOMEX           World Music Exhibition




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1.       INTRODUCTION

1.1. Research Motivation


The Gauteng Provincial Government commissioned Ibilion Music to do a study on the
Gauteng music industry. To this end, comprehensive and over-arching strategic
interventions have been provided for this industry. The strategy is intended to be
implemented over five years although this is not a strict implementation period.


1.2. Approach and Methodology


A fundamental understanding of the music industry is required to place any strategy into
perspective. Music is intellectual property embodied within either a musical work,
recording or live performance. This product is used within several industry niches,
namely:
         Live music
         Recorded music
         Music publishing
         Brand (including merchandise)
         Media (including the internet)
Within these broad niches there can exist any number of genres, products, service uses
and skill sets which are detailed within this report under the relevant sections. These
niches have become somewhat blurred as a result of the “internet revolution” as
companies try to leverage multiple income sources from artists. These niches also give
rise to a number of intellectual property rights, legislation and educational disciplines
including business, music practice and music technology, which form the foundation of
the industry. These are examined within the Gauteng province and contextualised within
South Africa as a whole.


The study highlights data collection initially from secondary resources (books, news
reports, journal references and other research) with six focus groups forming the primary


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research components. Focus groups are used to interact with industry stakeholders and
gain a consensus on the proposed strategies. Key interviews have also been conducted
to gain further insight. A benchmarking process was undertaken to reveal international
precedent and strategies.


1.3. Key Outcomes


Outcomes should include support measures for the Gauteng music industry. Key areas
of interest as identified in the stakeholder meeting were:
       Job creation
       Black economic empowerment
       Education and skills development
       Entrepreneurial development
       Women empowerment
       Export to international markets
       National and international tourism
These particular areas of interest were kept in mind throughout the data gathering and
are at the heart of the recommendations.




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2.     OVERVIEW OF MUSIC IN GAUTENG

                  "It is a fact that musicians from all corners of South Africa come to Joburg
                                  to seek opportunities to launch their careers"
                                           -   Steven Sack (Moshito, 2008)
                                Director of Arts, Culture and Heritage, Johannesburg


2.1. Defining The Gauteng Music Industry


2.1.1.    In Context: The South African Music Industry


Within almost every report generated through government funding there is the
recognition that the creative industries1 can improve economic and social welfare in
South Africa (CIGS, 1998; CSA, 1998; MITT, 2000; MEDS 2007, Schultz and Van
Gelder, 2008). Creative industries, until recently, were not taken seriously (CSA, 1998;
MEDS, 2007). They have now been recognised as a platform to develop “soft”
infrastructure which aids in developing modern and globally competitive cities (CIDF,
2005). They also improve the image of the country and human intellectual capital (CSA,
1998; Nordicity, 2008). The music industry is the biggest sector of the creative industries
which include craft, visual arts, publishing, design, graphic art, fashion, media,
performing arts, multimedia, tourism and heritage. While internationally the creative
sectors contribute more than 11% to the GDP to a national economy, in Africa they do
not even get close to 1% (Schultz and Van Gelder, 2008). South Africa has the most
developed music industry on the continent (Schultz and Van Gelder, 2008).


Competitive advantage of South African cultural products is created through
differentiation and innovation, especially in a globalising economy in the information age
(CSA, 1998; Nordicity 2008). This would lead to greater creative competitiveness,
economic opportunities and far higher value in exported goods (CSA, 1998; Arts Council


1
  “Creative industries” refer to those industries where creativity is the prime motivator (CIDF, 2005). “Cultural
industries” has been used synonymously and interchangeably with creative industries in other reports, but is said to
have far broader connotations.


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England, 2006; Johnson, 2006; Scottish Arts Council, 2006). The creative industries are
one of the major industry groupings in Gauteng. Therefore this places a high importance
on the Gauteng music industry, which generates cultural products. This is not
uncommon for creative industries and is similar to the province of Ontario, Canada
(Nordicity, 2008).


Within South Africa, the music industry supports over 7000 composers (the South Africa
Music Rights Association [SAMRO] and the South Africa Recording Rights Association
Limited [SARRAL] membership), 2400 performers (Creative Workers Union of South
Africa [CWUSA] and SARRAL membership), 800 record labels (Recording Industry of
South Africa (RiSA) and the Association of Independent Record Companies of South
Africa [AIRCO] membership), 1000 publishers (SARRAL and the National Organisation
of Reproduction Rights in Music [NORM] membership), hundreds of music managers,
many music manufacturers and 300 music promoters (the South African Music
Promoters Association [SAMPA] membership). Outside these core industry elements lie
many industry associations2, related media and live music venues. Most of these
elements are based in Gauteng (MITT, 2000).


The local music industry has been stunted in growth in part because of the legacy of
Apartheid (MITT, 2000; MEDS, 2007) and the domination of international (imported)
repertoire (MITT, 2000). Since 2000, this local industry has developed (based on the
RiSA statistics, discussed later) and the industry is not as dominated by international
repertoire as it once was, but many of the problems cited in the MITT report are still
plaguing the industry today.


2.1.1.1.            Sector Gross Turnover and Music Interest


This section presents an overview of the statistics discussed throughout this report.
From the statistics examined, we can estimate that the music industry in South Africa
has an estimated total value of R3.6 billion in 2007. Of all the music sectors mentioned

2
    “Associations” is taken typically to include industry organisations and societies


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in Section 1, the recorded music industry is the biggest sector (combined retail, digital,
video and album PPD3 is R1.778 billion: 49%) followed by the live music industry (R1.45
billion: 40%). Third is the “publishing industry” with a combined value (from mechanical,
synchronisation and performance royalties) of R419.9 million (12%). Needletime,
although listed as zero here, will become a viable new income stream to the recording
industry. The music brand sector, however, is not readably traceable and not included
here. The following graph shows the estimated value of the industries’ key traceable
income areas:



                                                        Digital Sales
                                                        R 60 000 000



                                                                                         Album PPD
                                                                                       R 1 020 298 200

                 Live Music
              R 1 450 004 216




                    Mechanical
                                                                                           Retail
                     Copyright
                                                                                       R 695 701 800
                   R 106 821 526
                                                                            Video Copyright
                     Synchronisation                                          R 2 000 000
                        Licenses
                      R 54 597 240            Performance           Needletime
                                               Copyright               R0
                                             R 254 060 000



                                                    Figure 2-1
                                    Estimated revenue stream turnover for 2007


AMPS: The South African Advertising Research Foundation (SAARF) commissions
research on a yearly basis on behalf of its advertising fraternity members. Among this
research is a study called the All Media Products Study (AMPS). AMPS collects
respondent opinions on their product and media usage, which is then statistically
grossed up to a population of around 31 million adults. AMPS generally only surveys

3
    Published Price to Dealer (PPD), is essentially the wholesale price of CDs given to a retailer by a record company.


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respondents who are 16 years old4 and above and statistics should be viewed with this
in mind. Significantly, AMPS allows respondents to indicate the music that they like.


                                      Gospel                                                          19,884,936
                                       Other                                         10,582,578
                                      Kwaito                                  8,962,915
                                House Music                                  8,571,483
                            Jazz/Fusion/Blues                            6,695,572
                                Rap/Hip-Hop                          6,541,318
                         Rhythm & Blues/Soul                         6,407,225
                                     Reggae                         6,016,606
                                   Rock/Pop                       5,048,486
                                  Maskhandi                      4,785,347
                                 Mbhaqanga                       4,619,859
                                    Classical                   4,206,678
                             Country/Western                   3,697,009
                                    Afrikaans                 3,327,819
                                Kwasakwasa             1,642,273
            Hard Rock/Heavy Metal/Alternative         1,315,051
                       Rumba/Latin American           970,981
                                       Mbira         535,646
                         None/Not Applicable        20,109

                                                0            5,000,000     10,000,000 15,000,000 20,000,000 25,000,000

                                                     Figure 2-2
                                   Music interest in South Africa (SAARF, 2008)



AMPS 2008a shows that music interest in South Africa is dominated by the gospel
genre5. “Other”, surprisingly, comes in second with over 10 million people interested in
genres other than that listed in the AMPS survey. In 2005, the “Other” category was only
3.6 million, indicating that music interest in the last 2 years has varied significantly from
known genres to genres which are not identified or catered for correctly in the AMPS
research. When compared with AMPS 2003 and AMPS 2005 data overall, music
interest has increased since 2003, while dipping temporarily around 2005 and increasing
once again in 2008. The only genres to decrease in interest were Country/Western,
Hard Rock/Metal/Alternative and the “None” category. If you measure those consumers
who ticked “yes” versus those who indicated “not-applicable” or “none”, the ratio is 1:5,

4
 From 2009, SAARF has started collecting data from 15 year olds to align themselves with international practices.
5
 Music interest is from a consumer’s perspective. AMPS statistics are collected through surveys and consumer
opinion. Distinction should be drawn between this and record sales from a record company.


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showing that South Africans do not have a wide appreciation of different genres of
music. For every one person in South Africa who likes a genre, five others will not.


2.1.2.   The Gauteng Music Industry


The province encompasses the area formerly known as the Pretoria-Witwatersrand-Vaal
Triangle functional economic region, which was declared the PWV province in 1994 and
was renamed Gauteng in 2000. The following diagram show the province and its
districts:




                                                Figure 2-3
                                    The six municipal areas of Gauteng
             (http://en.wikipedia.org/wiki/File:Map_of_Gauteng_with_municipalities_labelled.svg)


Gauteng has now been split into six municipal areas. These are Tshwane, Metsweding
(Cullinan/Bronkhorstspruit), West Rand, Johannesburg, Ekurhuleni (East Rand) and
Sedibeng (Vaal Triangle/Heidelberg). Three of these are metropolitan (Johannesburg,
Ehurhuleni, Tshwane), and three non-metropolitan or district municipalities. Greater
Johannesburg forms the functional centre of the province (everything under the 011/010




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dialling codes, which include the City of Johannesburg, City of Ekurhuleni (East Rand)
and the West Rand).


According to the 2007 Community Survey, the province has a population of 10.5 million
people, now the most populous in South Africa (Kwa Zulu-Natal is now second with 10.3
million). Greater Johannesburg has a population of some 7 million, Tshwane (Greater
Pretoria) 2.3 million, and the Vaal Triangle around 0.8 million. Yet the province is only
approximately 18,000 km2, the smallest in the country, accounting for less than 1% of
the surface area of South Africa (at 2.1 million km2, South Africa is the 25th largest
country in the world). The province generates 33% of the country’s GDP (GDS 2005)
which is R579 billion according to the Gauteng Economic Development Agency’s
(GEDA) website, down from 40% 20 years ago, but this is still significant. The province
has the 4th largest economy in Africa.


     8000000


     7000000


     6000000


     5000000

                                                                                       2001 Census
     4000000
                                                                                       2007 Community Survey

     3000000


     2000000


     1000000


           0
               Johannesburg   Cape Town   Durban   Pretoria   Port Elizabeth   Vaal


                                                   Figure 2-4
                  Population in metropolitan areas (2001 Census vs. 2007 CommunitySurvey)


2.1.3.     Gauteng is The Music Province


The creative industries are agglomerated in Gauteng, which has the most developed
creative economy (MITT, 2000; CIDF, 2005). Around 40% of all creative enterprises are
found in Gauteng (CIDF, 2005). Gauteng also plays host to an African music industry



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trade conference, Moshito. The Gauteng music sector contributes more than R547
million to the Gauteng economy (GCMP, 2008). While this is very positive for Gauteng, it
means an exodus of skills from other parts of the country and unequal opportunity for
the sector outside of it (CSA, 1998). Despite this, during the focus groups, participants
mentioned that any improvement made to Gauteng would have positive filtering effects
to other provinces.


Most of the musical activity in the province is centred in the Johannesburg municipal
area, which ties in with the suggestion of musician Ed Jordan that successful musicians
need to ideally situate themselves in Gauteng, ideally Johannesburg. To this end,
Johannesburg is for SA what New York (musical theatre, advertising, opera), Los
Angeles (popular/contemporary music and Hollywood) and Nashville (country and
contemporary Christian music) are for the United States. An informal interview with
Tamzin Lovell6, who works for Ogilvy, reveals that most of the advertising industry7
clients are also localised in the Johannesburg area. This is significant because much of
the music industry enjoys an overlap with the advertising industry, especially for the
creation of music content for advertising (jingles, sonic branding, music logo typing and
so forth).


From a cultural perspective, the province is rich in musical resources, and these are
once again mostly centred in the City of Johannesburg (as opposed to Greater
Johannesburg, which includes Ekurhuleni and the West Rand). Significant cultural
nodes within Soweto and Sophiatown, for example, have long had a history that in some
cases stems even from before Apartheid. Soweto, the largest black township in the
country, is home to some major cultural districts including the Walter Sisulu Square in
Kliptown, Regina Mundi Church, the Hector Pieterson Memorial and the former homes
of both Nelson Mandela and Desmond Tutu. The Newtown Cultural Precinct, which
houses the Bassline, Kaya FM and the Market Theatre was declared a priority
development area as part of the province’s Blue IQ initiative. The localised centres of


6
    17 November 2008, 10:30
7
    The advertising industry can be seen to fall into the creative industries


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business scattered all over the city (Sandton, Rosebank, Parkhurst, Melville, Norwood)
provide venues for artists, as do the two casino nodes in the city (Montecasino in the
North and Gold Reef City in the South). The latter also spills over into both Ekurhuleni
(Carnival City and Emperor’s Palace) and the West Rand (Silver Star), and it must be
reiterated that these areas are functionally linked to the City of Johannesburg, separated
only for local government administrative purposes.


From a musical perspective, Pretoria/Tshwane is also a significant hub. Decentralised
nodes outside the CBD are limited to Hatfield, Brooklyn, Menlyn and Centurion, with
very little development to the West of the city. Major casino nodes are well outside the
city to the North (The Carousel, Morula Sun), while big theatre productions take place at
the State Theatre. It can be argued that the significant former black township of
Mamelodi does not have the same cultural prestige or level of recent development as
Soweto, nor do the major players in the music value chain or the music production
system have representation. Even so, musical activities in Tswane (such as the
Moretele Jazz Festival) show that the region is generating cultural activity, as revealed
in focus groups.


The Vaal Triangle area is comprised of Vereeniging, Vanderbijlpark, Meyerton and
Sasolburg, which is a cross-border region functionally linked to the area, but is actually
in the Free State. The Vaal Triangle has a significant population (around 0.8 million
people) and shows little activity in the formalised music industry. While there are some
musicians and producers based in the region, there appears to be strong functional
connectivity with Johannesburg in terms of music, where it would not be uncommon for
musicians to travel through to the city for higher-function music activities, such as TV,
radio, top-end mastering and major print media associations.


Moving on from this, an informal interview was conducted with Simon Foulds8, founder
of the RBF/Emerging Sounds competition and South African convenor of the Global
Battle of the Bands, which includes a multiplicity of genres across the full spectrum of

8
    15 November 2008, 15:30


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light commercial music, from rock and pop to afro-pop, to hip-hop and kwaito. He has
revealed, in terms of levels of activity as each of the national regions is concerned, that
Johannesburg always generates the most interest and participation in the competition,
but with fair representation from both Cape Town and Durban. He further notes that
bands and groups from Pretoria are reluctant to travel through to Johannesburg.


2.1.4.   Distribution of Services within the South African Music Industry


Study of a recent copy of The Score, a directory of music-related resources in SA, has
revealed a major preponderance of activity centred on Johannesburg. The book is split
into 17 groups that are related to the music industry. Graphs are as follows, based on
the geographical locations of the various listings:



                            15%

              9%                                                                       Johannesburg
                                                                                       Cape Town
                                                                                       Durban

         4%                                                                            Pretoria
                                                                                       Other
           6%                                                     66%




                                              Figure 2-5
                    Government and industry organisations listed in The Score (2007)




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                          22%

                                                                                           Johannesburg
               5%                                                                          Cape Town
                                                                                           Durban
                                                                            50%            Pretoria
                 9%                                                                        Other

                                14%



                                                   Figure 2-6
                         Education institutions (secondary) listed in The Score (2007)




                               18%
                                                                          35%
                                                                                            Johannesburg
                                                                                            Cape Town
                                                                                            Durban
                                                                                            Pretoria
               20%
                                                                                            Other

                                 9%                          18%




                                                     Figure 2-7
                            Education institutions (tertiary) listed in The Score (2007)




                                          8%
                         12%
                    0%                                                                     Johannesburg
                                                                                           Cape Town
                                                                                           Durban
                                                                                           Pretoria
                15%
                                                                                           Other
                                                                          65%




                                                     Figure 2-8
                                     Entertainment law listed in The Score (2007)




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                               11%           3%

                11%                                                                       Johannesburg
                                                                                          Cape Town
                                                                                          Durban
                                                                                          Pretoria
                                                                             56%
                                                                                          Other
                   19%




                                                   Figure 2-9
                            Distributors and manufacturers listed in The Score (2007)




                                   13%
                      3%
                                                                                          Johannesburg
               13%                                                           46%
                                                                                          Cape Town
                                                                                          Durban
                                                                                          Pretoria
                                                                                          Other

                             25%




                                                   Figure 2-10
                                  Publishing companies listed in The Score (2007)




                            24%
                                                                       31%
                                                                                        Johannesburg
                                                                                        Cape Town
                                                                                        Durban
                                                                                        Pretoria
                     16%                                                                Other

                                      7%                      22%




                                                     Figure 2-11
                                     Music retailers listed in The Score (2007)



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                                   10%
                   10%
              1%                                                                Johannesburg
                                                                                Cape Town
                                                                                Durban
                                                                                Pretoria
                18%                                                      61%    Other




                                                  Figure 2-12
                                    Record labels listed in The Score (2007)




                              15%

                10%                                                             Johannesburg
                                                                          43%
                                                                                Cape Town
                                                                                Durban
                                                                                Pretoria
                5%
                                                                                Other

                              27%




                                               Figure 2-13
                               Recording studios listed in The Score (2007)




                              6%         6%
                         5%
                                                                                Johannesburg
                                                                                Cape Town
                                                                                Durban
                                                                                Pretoria
                                                                         55%
                   28%                                                          Other




                                           Figure 2-14
                Event and production management companies listed in The Score (2007)




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                                   5%         5%
                         5%
                                                                                        Johannesburg
                                                                          50%           Cape Town
                                                                                        Durban
                                                                                        Pretoria
                                                                                        Other
                      35%




                                                  Figure 2-15
                            Managers, agents and promoters listed in The Score (2007)




                       4%               11%

                 4%                                                                     Johannesburg
                                                                                        Cape Town
                                                                                        Durban
                                                                                        Pretoria
                19%
                                                                        62%             Other




                                                  Figure 2-16
                      Marketing, publicity, design and printing listed in The Score (2007)




                             23%

                                                                          43%           Johannesburg
                                                                                        Cape Town
                                                                                        Durban

                 7%                                                                     Pretoria
                                                                                        Other
                       9%
                                              18%




                                                 Figure 2-17
                      Musical equipment sales, hire and repair listed in The Score (2007)



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Gauteng Music Strategic Framework 2010




                            23%
                                                                        33%
                                                                                        Johannesburg
                                                                                        Cape Town
                                                                                        Durban
               6%                                                                       Pretoria
                                                                                        Other
                4%

                                                 34%




                                                     Figure 2-18
                                  Industry professionals listed in The Score (2007)




                                 17%
                                                                        31%
                                                                                         Johannesburg
                10%
                                                                                         Cape Town
                                                                                         Durban
                                                                                         Pretoria
                    3%                                                                   Other

                                                 39%




                                                  Figure 2-19
                            Sound, stage and lighting hire listed in The Score (2007)

                                         10%
                            5%
                      7%                                                  38%           Johannesburg
                                                                                        Cape Town
                                                                                        Durban
                                                                                        Pretoria
                                                                                        Other

                                   40%




                                                      Figure 2-20
                                           Media listed in The Score (2007)




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Gauteng Music Strategic Framework 2010



                         23%
                                                                     30%
                                                                                      Johannesburg
                                                                                      Cape Town
                                                                                      Durban

               6%                                                                     Pretoria
                                                                                      Other
                    7%

                                                    34%




                                                  Figure 2-21
                            Venues, festivals and awards listed in The Score (2007)



These statistics show that Johannesburg and Gauteng have a 40% share of the South
African music industry. The focus groups, however, have revealed that 70% of the South
African music industry is based in Gauteng, showing that the province’s contribution to
the national music industry is in fact proportionally larger than its contribution to national
GDP.


Further to this, they also closely match the urban hierarchy of the country in terms of
highest-order metropolitan area rankings (Johannesburg, Cape Town, Durban, Pretoria
and so forth). The categories where Cape Town outranks Johannesburg are industry
professionals, sound stage and lighting, media and venues, festivals and awards, which
could be ascribed to the Cape Town film industry. Cape Town is a preferred destination
as a holiday and/or fashion shoot venue; the city has made successful efforts to market
itself as a tourism destination. For example, Brand Cape Town is considered one of the
most admired brands in the country, according to the 2008 Sunday Times Brand Survey.
No other city is ranked in the survey.


2.1.5.   Gauteng as a Global City Region


Global city regions have overtaken nations as the organising economic units of the
world, according to Fife and Florida (Fife, 2006). The following criteria were used to
define whether a metropolitan area qualifies for global city region status:



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Criterion             Description of criterion                                             Johannesburg’s
                                                                                           rating
Global network        Advanced communications infrastructure that modern                   Low
connectivity          transnationals rely on, such as fibre optics, Wi-Fi networks,
                      cellular phone services and other high-speed lines of
                      communication
Number of             International financial institutions, law firms, corporate           Medium
headquarters          headquarters (especially conglomerates) and stock exchanges
and subsidiaries      that have influence over world economy
Transport             Including regional, inter-regional and total international           Low except for air
                      destinations of direct flights, plus an advanced transport
                      system that includes several freeways and/or a large mass
                      transit network offering multiple modes of transport, subways,
                      light rail, regional rail, ferry or bus
Culture               The presence of international cultures and communities and           Medium to high
                      world-renowned cultural institutions such as museums and
                      universities, all providing a lively cultural scene including film
                      festivals, a thriving music or theatre scene, an orchestra, an
                      opera company, ballet company, art galleries and street
                      performers
Public                High-quality public space, parks and sports facilities               Low, except for
environment                                                                                some sports
                                                                                           facilities
International         Active influence and participation in international events and       Low
influence             world affairs, with several powerful and influential media
                      outlets with an international reach
Safety and            For all its citizens and visitors, both perceived and actual         Very Low
security
Excellent health                                                                           Low, except private
facilities
                                                     Table 2-1
                                Criteria for global city status (Fife, 2006, p. 24)



Of these eight descriptors/criteria listed above required for a global city, the only one
where Johannesburg scored a medium to high rating was for culture (Fife, 2006). This
presents a major opportunity for the city to reinforce its position as a global music hub.
The 2010 World Cup could and probably is being used as a way to fast track the global
city region development of Gauteng because of the expiated development of transport
and infrastructure planning (Pillay, 2006). While the event is contracted to a single music
major, Sony Corp, it was clarified at Moshito in 20089 that they were open to working
with other record companies. This has become evident in recent 2010 strategy meetings
in June of 2009 with Sony Music and the music fraternity, where it was emphasised that


9
    Thursday 11 September 2009, 10:00


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industry corporation was vital in taking advantage of 2010 opportunities. Publishers of
local music have also cited that they have major opportunities to license local music in
lieu of the event (Gordon, 2009). It is also through the additional activities surrounding
the event that most of the local industry will find opportunities. The positive spin-offs
after the event are promising.


2.1.6.   Demographics of Businesses in the Gauteng Music Industry


Recently the Gauteng Provincial Government commissioned a creative mapping project
(GCMP) on the Gauteng creative industries in 2008 and the music sector component
has been used to inform this research. From it, it was determined that 90% of
businesses in the Gauteng music sector are owned by South Africans (GCMP, 2008).
41% are black owned with only 22% being owned by women. Furthermore, most
business owners in the music sector were under 35 years of age and working in fashion,
multimedia and design. White males are mostly found in management positions (51%)
followed by black male (24%) and black female (14%). The workforce is commonly black
males (33%) followed by white males (26%). Males dominate the industry with 59% of
the workforce (GCMP, 2008).


According to key interviews, the music industry in general and Gauteng in particular
have not seen a great level of transformation in managerial roles. There are still gender
imbalances (especially when you consider South Africa has a 52% female population,
GCMP, 2008), as well as population group imbalances in music industry professions.
This is clearly evidenced by the statistics given above. Transformation is a key goal in
any interventions in the sector.


2.1.7.   Legal Entities in the Gauteng Music Industry


The creative mapping study revealed that close corporations are the largest legal entity
(35%) followed by Limited Liability Companies (34%), Sole Traders (20%) and Non-
Profit (11%). Half of the businesses are over 10 years old (51%) with 20% being 5 to 9


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years old. A recent trend in the youth sector has lead to 29% being 0 to 4 years since
they started. According to GCMP (2008), operational costs are the greatest expense to
business and highest inhibitor to business in the sector.


2.1.8.   Employment


The music industry has a great potential to generate employment (CSA 1998). This
employment is more likely to come from the “enablers” cluster (see focus groups) also
known as “value-adding” sectors of the industry (MITT, 2000). Creators, by nature, are
usually self-employed and independently contracted. According to the Global
Entrepreneurship Monitor (by Maas and Herington, 2008) for South Africa in 2007,
Gauteng has the highest percentage of self-employed business (11.4%) than other
provinces. It makes sense that Gauteng also has more creators than other provinces,
according to the focus groups.


As the opening quote indicated, many musicians come from other provinces in search of
work. The Western Cape, for example, explicitly acknowledges this (MEDS, 2007). The
Gauteng music sector is estimated to be employing over 18,800 people (GCMP, 2008).
The majority of these are contract employees (48%). Permanent employees follow with
34%. They mostly have work in some 500 small, medium and micro enterprises
(SMMEs) which directly employ, on average, 11 people each. This means they
contribute over 5500 people to the sector (29%). About 7 people are employed part-time
per SMME, giving us a total of 3500 part-time employees (18.5%). 80% of firms have
less than 20 employees while record labels are the dominant employing business
structure.




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              10000                                                      9000
               9000
               8000
               7000                                 6384
               6000
               5000
               4000            3500
               3000
               2000
               1000
                   0
                             Part-Time            Full-Time           Contracted

                                             Figure 2-22
                            Number of employees per work type (GCMP, 2008)



Beside these small companies, it also includes the four major record companies (Sony
Music, EMI, Vivendi-Universal and AOL Time Warner through Gallo) which directly
employ over 184 people (1%). Internationally Sony has bought out its share in BMG
(Nakashima, 2008) leaving Sony Music as the major operator in South Africa. More than
2300 artists, according to SARRAL membership breakdown (from their 2007 financial
statements), exist in Gauteng. CWUSA confirms that their membership consists of over
700 registered artists, of which most work in Gauteng and carry on full-time
employment. Songwriters average around 7000 throughout the country (SAMRO and
SARRAL membership), many of whom work within the province. The Gauteng Provincial
Government’s declaration that the province’s economy needs to grow at 8% by 2014
could hold significant opportunities in terms of the music industry, specifically as a job
creation platform.


A key issue facing employment for creators is their definition in labour legislation (MITT,
2000). This issue was raised again in focus groups; further action is needed to clarify
their position as workers, as well as ensure the provision of social security. CWUSA has
been active in these issues for its members since its formation (CWUSA, 2009). The
Congress of South African Trade Unions (COSATU) has actively recognised musician’s




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labour needs. Moshito has in recent years addressed this topic10 and the process seems
to be ongoing. SAMRO has indicated its awareness of this issue and shown willingness
to set up co-operatives to address social security in the music industry.


2.1.9.       Education


There are three types of education common to the music industry. Firstly, there is the
general study of music history, musicology, theory and performance. Learning music
has been linked to the development of creativity and innovation as well as social
upliftment and a better society in general (CSA, 1998; MIAGI Brochure, 2007).
Secondly, there are the business and management aspects to the music industry.
Finally, there are the technical aspects of the music industry such as sound engineering
(which is really its own discipline, but one that has a large overlap with the music
industry), music technology, musical instruments and music equipment.


Most of the workforce in the Gauteng music industry has a grade 12 school leavers
(48%) while 25% also had a diploma (GCMP, 2008). Management usually has a
university degree (55%). From these, we can see that over half the industry does not
have a grade 12 or a degree. These show that skills development is very relevant in the
industry. Focus groups have revealed that business education for the music industry is
of a key concern, although many agree that music theory, performance and musicology
are also very relevant.


2.1.10. Markets and Exports


Only 15% of firms produce goods for the government, with the public being the largest
market (GCMP, 2008). More than half of businesses export goods (54%) although for
most companies this comprises a low part of their turnover (3.5% on average). The
European Union comprises the largest export market:



10
     For example, in 2006 as well as lately in 2008 for a plenary topic, Friday 12 September, 9:30


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                               Rest of Africa,
                                  27.5%                         EU, 27.5%




                                Asia, 6%

                                                                US, 22%
                                    SADC, 17%

                                                   Figure 2-23
                          Export markets for the Gauteng music industry (GCMP, 2008)



SAMRO’s CEO Nick Motsaste11 stated in an interview that the amount of talent in our
country far exceeds the demand of it; this has prompted the development of export
programmes to build the capacity of the industry through the South African Music
Exports (SAMEX) association. This is not only a South African trend but was echoed at
a workshop in Brussels, where African musicians felt they needed to establish outside
their territory first before succeeding locally (Sinclair, 2009). SAMEX is currently
benchmarking the South African music export market.


The declared intention of the Gauteng Provincial Government to create a Gauteng
Global City Region, which would be able to compete internationally with the world’s
prominent cities (New York, London, Tokyo, Hong Kong, Paris, Milan, Sydney, Sao
Paulo and so forth) could also potentially assist the music industry to be able to compete
globally. Participation at international trade fairs such as Marché International du Disque
et de l'Edition Musicale (MIDEM), Popkomm, Porto Musical and the World Music
Exhibition (WOMEX) by provincial music industry representatives is key to exposing the
province as well.




11
     22 May 2009, 10:00


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2.1.11. Funding and Financing


78% of music firms in Gauteng derive their revenue from products and services. Only
7% derive revenue from royalties and 8% from government grants (GCMP, 2008). 52%
have a secondary source of income, which tends to be from royalties (30%). 8%
indicated their secondary source came from local government or funding agencies. By
this the industry looks self-sufficient (GCMP, 2008). 45% of firms have a need for
funding. 21% applied for funding from the government of which 60% were successful in
obtaining grants. Companies, such as playhouses, arts companies and music
promoters, who tend to generate a larger workforce, apply for funding. Creators tend to
apply more for funding, while record companies, music publishing, etc. do not. Firms
commented that there was a need for funding to be more visible and to be increased
(GCMP, 2008).


2.1.12. Consumer Profile


The Gauteng music industry has a diverse range of musical genres with growth in
“urban” and “youth” markets such as kwaito and hip hop (GCMP, 2008). AMPS 2008
allows one to survey the attitudes of “music is an essential part of my culture” and
“entertainment is important to me”. For “music is an essential part of my culture”
Gauteng has 9.8% of the population who felt this attitude was “very applicable” and is
second only to Kwa-Zulu Natal (10.6%). The case is similar for “entertainment is
important to me” where Gauteng has 6.2% who felt this was very applicable to them and
is again second to Kwa-Zulu Natal (6.9%). This shows, in terms of attitude anyway, that
Gauteng is rated as the 2nd best province in which people feel that entertainment is
important to them and music is an essential part of their culture. In general, the ratio
between “very applicable” and “not at all applicable” in the survey was 16:1 showing
consumers in Gauteng generally feel music is an essential part of their culture. South
Africa as a whole has a ratio of 12:1, showing the country as a whole feels music is
slightly less essential to their culture than Gauteng. The importance of entertainment, for
both Gauteng and South Africa the ratio was 4:1 (in favour of very applicable) showing


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South African’s do not hold “entertainment” in higher regard than music in their culture.
For every four people who feel entertainment is important to them, one will feel its not
applicable at all.


Gauteng is the province with the most music interest in South Africa and represents
around 21% of the total interest (AMPS 2008a). This means Gauteng had the most
amount of people who ticked “yes” to any particular genre. Kwa-Zulu Natal is second
with 18%. By contrast, for those who ticked “none” or “not applicable”, Kwa-Zulu Natal is
first (21%) followed by Gauteng (20%), which shows that although Gauteng has the
most amount of consumers who like music, it is also amongst the biggest provinces
where a wide variety of genres are not appreciated. This is an indication that music
appreciation is low in the province and mirrors the national ratio (1:5 in favour of “not
applicable”). Genre distribution within Gauteng mirrors interest nationally with the
exception that Jazz/Blues and R&B/Soul overtake genres such as House, Kwaito and
Rap/Hip-Hop:

                            Gospel                                                                                   3,750,489
                             Other                                                   1,928,550
                 Jazz/Fusion/Blues                                                  1,875,692
              Rhythm & Blues/Soul                                                  1,814,350
                      House Music                                               1,652,736
                            Kwaito                                             1,609,590
                      Rap/Hip-Hop                                      1,321,690
                          Classical                                  1,219,395
                         Rock/Pop                                   1,188,162
                  Country/Western                                  1,125,821
                           Reggae                              1,087,008
                          Afrikaans                        875,513
                       Mbhaqanga                           855,823
                        Maskhandi                        728,487
  Hard Rock/Heavy Metal/Alternative              419,245
                      Kwasakwasa               336,416
             Rumba/Latin American             253,084
                             Mbira        121,469
               None/Not Applicable    1,498

                                      0       500,000    1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000

                                                       Figure 2-24
                                      Genre interest within Gauteng (AMPS 2008a)


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AMPS 2008a shows activities that consumers do in the province that are music related:


                        Singing

               Go to nightclubs

                     Buy DVDs

                      Buy CDs

     Play a musical instrument

                      Visit bars

                                   0   200 000   400 000   600 000   800 000 1 000 000 1 200 000

                                               Figure 2-25
                  Consumer activities in Gauteng related to music (yearly, AMPS 2008a)



Figure 2.25 shows that buying CDs and DVDs are a large part of consumer activities in
the province. Going to nightclubs and bars/taverns/shabeens is also significant. Note
that actual music activities such as singing and playing an instrument are not popular
when compared to activities that only incorporate music. This is not really comparative
but shows that actual music activities occur less than those that just incorporate music.
With a population of around 10 million people in Gauteng, only 314,969 people play a
musical instrument weekly (over 5 million indicated “not at all”). This can be a indication
that these activities are not very strong in the province – and perhaps reinforces
statements in focus groups that doing music is not strongly encouraged or appreciated.
According to AMPS 2008a, Gauteng is the largest province for these activities, followed
by Kwa-Zulu Natal.


2.1.13. Gauteng Tourism


Gauteng generates around R15 billion from tourism (GTA 2007). According to the
Gauteng Tourism Authority’s (GTA) 2007 Annual Report, the largest foreign tourist
activity in the province is shopping (over 80%). This was followed by just over 60%
coming for the “nightlife”, over 45% for “social” reasons and 20% for “cultural, historical
and heritage” reasons – all of which could be music related. Nightlife places a great


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emphasis on live music in the province. It is essential for tourists to have access to
music information such as venues, show performances and festivals as well as
employees to have the correct skills such as marketing (MEDS, 2007), for the province’s
music industry to develop. A graph of activities is shown below:




                                                Figure 2-26
                 Activities undertaken by foreign tourists to Gauteng - 2005 (GTA, 2007)



Although domestic tourists could not be broken down to this level in Figure 2.25, the
biggest reason for visiting the province was to visit friends and relatives (VFR):


                                                Holiday, 6%
                                                               Religeous, 9%


                                                                    Medical, 3%

                                                                     Business, 10%




                            VFR, 72%

                                              Figure 2-27
                      Purpose of visit by domestic tourists in SA: 2006 (GTA, 2007)




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The number of trips to the province decreased from 2005 to 2006 by some 1.4 million.
Domestic revenue, however, from tourism to Gauteng was estimated at R83.1 million in
2006, growing 1.5% from 2005 according to the GTA. Gauteng is the second largest
tourism destination, behind Kwa-Zulu Natal (which had 11.9 million trips):




                                                  Figure 2-28
                   Number of domestic trips (millions) to the province in 2006 (CTRU, 2007)



In a key interview, Motsumi Makhene12 notes that music is an ancillary service to the
hospitality industry, which is linked to tourism. Tourism is driven by the cultural
industries. Music can be said to be a driver of domestic tourism to the province, although
not as much perhaps as the Western Cape, according to the MEDS report (2007).
Gauteng does have a significant amount of festivals (discussed later) as well as some
well-known international acts that drive tourism to the province. The number of venues
and performances in Gauteng may also encourage visitors to visit the province. Mr.
Makhane notes that festivals and music retail stores in the province, however, do not
understand Gauteng’s music culture or their role in music tourism. Indiginous music,
which visitors seek out when visiting the province, is not well represented and is seen as
a rural element with no market.




12
     Tuesday, 26 May 2009, 09:00


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Taking a look at foreign tourism:




                                                   Figure 2-29
                            Provincial distribution – all foreign visitors (SAT 2008)




                                                Figure 2-30
            Total foreign direct spend (excluding capital expenditure) per province (SAT 2008)




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                                                    Figure 2-31
                            Provincial distribution – share of bednights (SAT 2008)



In the foreign market, however, Gauteng is the primary tourism province and exceeds all
others in foreign visitors, bednights and direct spend. Tourism is thus a key income
generator in the province. It is not known whether music is a driver in this or not. The
Department of Sports Arts Culture and Recreation (SACR) may consider liaising with
South African Tourism to include a better measurements within statistics that captures
music (or “creative industry”) activities as reasons for a visit. This would help to better
gauge the influence of music activities on tourism. This said, better synergy between the
music and tourism industries (CIGS, 1998) has been suggested in previous research.


2.2. Gauteng Live Music


Encouraging live music is a great way to improve the local music industry. In general,
South Africans feel inhibition regarding live music, as the culture of attending live events
was disrupted by Apartheid (MEDS, 2007; Smith, 2008), increasing levels of crime and
decreasing profit margins in the mid-1980s (CIGS, 1998). There has been some
recovery since the lifting of the cultural boycott in 1994 but similar problems persist
(CIGS, 1998), as identified in focus groups. Gauteng artists have been favoured over
other regional artists in the past (MITT, 2000) and a lot of development is still needed in
the live music sector to make it truly viable for artists. Key issues remain with developing


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venues, equipment for venues and artists, increased marketing for events, as well as
opportunities for start-ups.


Globally, according to a recent Reuters’ news report, the live music industry is estimated
to be worth over US$25 billion in 2008 (US$4 billion below the recording industry in
2008). This estimate was calculated from the value of ticket sales, an internationally
accepted method for estimating the size of the live music industry in other countries
(such as the US, UK, and Australia). In South Africa this information is confidential and
major ticketing companies are not at liberty to disclose it. In communication with
SAMPA, they agreed that the industry is secretive and they have no statistics available.
Due to these reasons, no official estimate can be made, although a conservative one is
developed with a rational method below. Being able to track the worth of the live sector
in South Africa and Gauteng would tell us much about the growth and size of this sector.


Live music has grown alongside the recording industry (CIGS, 1998). The sector is
incredibly huge, ranging from the musicians who perform the music, to the venues that
host music events and the technical services that service the sector. This sector
consists of concerts, busking, musical theatre, technical services, etc. of which almost
no formal revenue statistics exist. The technical and events industry concerns itself with
the staging of conferences, events, launches, exhibition, concerts, etc. According to the
Technical Productions Services Association (TPSA), concerts had an estimated R80
million turnover in 2003 (no follow-up report has since been done).


A conservative figure for the national live industry is estimated by looking at AMPS
2008a. According to AMPS, the total number of people attending classical
performances, pop concerts, opera, theatre and ballet in the last year (2007 to 2008)
amounted to 6,583,953 people. This was multiplied by an average ticket price of
R204.13, calculated from a survey of prices from Computicket. The result is an
estimated earnings figure of R1.34 billion. Added to this is an estimate for weddings,
corporate functions and private events for the live music industry in South Africa. Around
20 000 of these may happen in a year with an average income of R5000 per event,


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totalling R100 million. Around 3000 pub, club and restaurant performances may happen
in a year with an average income of R2000 each. This adds an additional R6 million.
The total gross estimate is R1.45 billion (US$168.7 million) for the live music sector,
placing it as the second biggest sector after the recording industry. With perspective on
the global estimated live music value, this gives South Africa 0.675% of the world
market. In comparison for 2008, the Australian live industry is estimated to be worth
US$845.4 million, the US market US$3.6 billion (2006), and the UK market US$1.3
billion (LPA, 2009; ILMC 2009; Daily, 2009). This shows that our live industry, like the
recording industry, is very small in comparison to major markets.


              Global Estimate                 $25 000 000 000          Global Percentage
              US                               $3 600 000 000                 14%
              UK                               $1 300 000 000                  5%
              Australia                         $845 400 000                   3%
              South Africa                      $168 700 000                0.675%
                                                 Table 2-2
                       Value estimates of major live music nations and South Africa



While the recorded music industry has shrunk globally in recent years, other income
streams start to become more lucrative. Although this has not occurred in South Africa
to a large degree, international trends see live music taking an even bigger role in
income generation (MEDS, 2007; GCMP, 2008). Internationally, average ticket prices
have risen around 10% since 1996, revealing the greater dependency of artists on this
income source (ILMC, 2009).


Similarly, an estimate can be determined from AMPS 2008a for the Gauteng live music
industry. This is R401.3 million13 (1,945,369 people paying an average ticket price of
R204.13 including approximately 70% of corporate work, R4.2 million, being in Gauteng)
and supports over 50 promoters and 30 venues (GCMP, 2008). This is approximately
27% of total turnover for the South African live music sector, showing it is the largest
province, followed by Kwa-Zula Natal (17%). The TPSA conducted a market research

13
  The Gauteng Creative Mapping Project estimates the live music sector in Gauteng being approximately R100
million.


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report in 2003 on the technical and events industry in which 81% of the companies
surveyed primarily operated in Gauteng. 49% of these companies had branches in
Gauteng. This shows that Gauteng has the largest market share for live music in South
Africa.


2.2.1.    Activities of Musicians in Gauteng


In 2008, Kristel Birkholtz conducted research through Wits University on the live music
industry, for her MMus thesis. Birkholtz’ research is based on online interviews and
observational data. The survey captured responses from performing musicians and
information on the frequency of their work, which can be seasonally skewed as
musicians tend to work more around holidays. From her survey of musicians around the
country, most indicated that they found their work in Johannesburg (67%), followed by
Cape Town (17%), Pretoria (14%) and Durban (1.5%). On average, musicians would
work twice a week with around 8 performances a month. Full-time musicians would work
3 to 5 times a week with an average of 10 performances a month. When they did play,
on average 45% would perform unoriginal music (covers) and 61% of their set would be
imported (music other than South African). From her research she found the following
areas in which musicians obtain work:

               Concerts and Shows
                Corporate Functions
              Private/Social Events
                            Resturants
                   Live Music Clubs
                      Session Work
                  Religious Services
                                Tours
                              Busking
                                Other

                                         0%   10% 20%     30% 40%       50% 60%   70% 80%

                                                   Figure 2-32
                                    Activities of musicians (Birkholtz, 2008)



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71% of surveyed live performers indicated that they worked at concerts and shows. This
is followed closely by corporate functions with 70% and private/social events with 68%.
Suffice to say that since most of the combined work for live performers is from
Johannesburg and Pretoria, these activities feature heavily in the working life of
musicians in Gauteng.


2.2.2.   Musical Theatre, Opera and Ballet


On average a performer may earn R1500 per week doing musical theatre, opera or
ballet in Gauteng (Birkholtz, 2008). Some 90 performers may be used in any one
production (based on an average indicated by the Barnyard Theatre). Over 1 million
people attended theatre, opera or ballet from 2007 to 2008 in Gauteng (AMPS 2008a).
No data on performances at casinos exist but we can conjecture that a similar figure
may be applied. Technical services revenue from theatre was R45 million in 2003
(TPSA, 2003). Since most companies operate 81% of the time in Gauteng, theatre could
be estimated to be R36.45 million for the Gauteng province.


2.2.3.   Functions: Weddings, Private and Corporate Gigs


These are lucrative areas of income for musicians. Weddings in particular attract
international tourism, which allows for high quality at an affordable rate (Birkholtz, 2008).
If a function included a string quartet, band or DJ, this may cost the venue around
R2000 to R15,000. There may be some 20 000 functions that occur each year in South
Africa and around 10,000 in Gauteng. If, on average, musicians earned R5000 per
function, this gives R100 million in income around South Africa and R50 million in the
province. The TPSA research provides for a “banquets” category. This is a category that
would be used most often for functions and generates R195 million (TPSA, 2003). An
estimate for Gauteng (at 81%) is R158 million.




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2.2.4.   Concerts and Festivals


Concerts include a featured performer or band/group performing for an audience with
one to two support acts over one evening. Festivals feature a variety of artists and can
happen over several days. TPSA (2003) found that concert turnover was R80 million in
South Africa and in Gauteng, therefore, such turnover could be estimated at R65 million
(81% of firms operate in Gauteng) for 2003 from technical services. Concerts, for the
TPSA report, would include music festivals. In Gauteng, AMPS 2008a shows that
503,622 people attended pop/rock concerts from 2007 to 2008. In the same period, 5.5
million people indicated they had not attended a concert at all in the last year – this is an
indication of poor attendance at local performances.


Several concerts and festivals are held in Gauteng. Concerts are often held at the Coca
Cola Dome, Ellis Park Stadium and Carnival City. Festivals held regularly include Joy of
Jazz, Lucky Fish, Woodstock, My Coke Fest, Motherfudd, Moretele Jazz Festival, Total
MIAGI Festival and Arts Alive. The regional distribution of these concerts and festivals is
centred on Johannesburg. By looking at major festivals and where they are held
nationally, most appear to happen in Gauteng.


2.2.5.   Clubs, Pubs, Restaurant and Busker Performances


There are numerous live performance venues around Gauteng such as Tanz Café,
Roxy Rhythm Bar, The Rock Bar, Bassline, Bluesroom, Tempos, Nile Crocodile and
Zeplin’s. Performing at clubs and pubs is often the very start of earning any money at all
from the music industry. This type of performance category often pays dismally, yet can
generate a lot of income for established artists. From performing at a club or pub, a
band may earn between R0 to R6000 and up per night. There are around 3000 club
performances in a year and, with an average income of R2000 per gig, this gives R6
million in revenue (around R3 million in Gauteng) (Birkholtz, 2008). Over 1 million
people went to a pub, shabeen, tavern or nightclub from 2007 to 2008 in Gauteng
(AMPS 2008a).


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Busking occurs at some shopping malls and casinos. Busking is generally carried out on
an informal basis and provides music performance in public spaces. The Scottish Arts
Council (2009), for example, encourages the use of art in non-traditional spaces to uplift
public environments through regenerating communities. Encouraging busking not only in
malls but around schools, care centres, hospitals and rural communities in Gauteng and
indeed South Africa, could provide a strategy that would align itself with community
regeneration. Buskers earn income from tipping and official sanction and support would
provide a wider performance space and revenue. Busking, in a sense, is a performance
step even before playing at venues and “open-mic nights”, where musicians could find a
public outlet for their art. Similarly, live music is not often featured at restaurants and this
could be encouraged.


2.3. Gauteng Recorded Music


The International Federation of the Phonographic Industry (IFPI) records and reports on
record sales for the world. Globally, in 2007 the IFPI reported that the global recording
industry is worth an estimated US$29.9 billion in retail value, which is down 12% since
2005 - a drop of US$3.6 billion (IFPI World Sales Report, 2008). For 2007, the American
recording industry had a value of US$10.3 billion while the British industry had a total
value of US$2.9 billion (£1.48 billion) (IFPI World Sales Report, 2008). The entire local
recording industry is estimated at being worth over US$243 million (R1.777 billion) in the
same report. This shows that South Africa contributed less than one percent to the
world’s recorded music sales even though, since 1996, the South African market has
doubled in size as a result of growth in the consumption of recorded music. It has also
not been hit as hard with digital music piracy (GCMP, 2008). Compared to the other
music sectors in South Africa, the recorded music industry is the biggest sector in the
South African music market.




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                       No. (2007)            Country               % of world sales


                                                                 2000        2005        2007
                                     1   United States           38        36.7            31
                                     2   Japan                  17.6        16           18.4
                                     3   United Kingdom          7.7        10           10.5
                                     4   Germany                 6.6        6.6              8
                                     5   France                  4.6         6             5.6
                                     6   Canada                  2.2         2             2.6
                                     7   Australia               1.5         2             2.1
                                     8   Italy                   1.4         2             1.9
                                     9   Spain                   1.5        1.9            1.6
                                   10    Netherlands             1.3        1.5            1.4
                                   17    South Africa           0.406      0.759        0.778
                                                   Table 2-3
                            Top 10 recording countries and South Africa (IFPI, 2008)



Internationally, the major record companies (EMI, Warner, Universal and Sony which
included BMG) in 2007 had a 71.6% market share, which has dropped from 2006 by
8.9% (GCMP 2008). This is due to independent record companies winning a larger
market share (29%) than any single major label. Universal is the largest single record
company with 26% of the market (GCMP 2008). This data was developed by the IFPI in
2005 and an update on market share appears to be unavailable.


In South Africa, RiSA is an association of recording companies with ties to the IFPI.
RiSA membership has roughly doubled from 2007 to 2008 and consists of some 807
record companies. Excluding the four major labels (which includes Gallo in this
definition), this indicates that South Africa has more than 803 independent labels, of
which only 176 have joined AIRCO since it began in 2006. This shows the incredible
development of “independent14” record companies. AIRCO is an association of


14
  “Independent record labels” have historically been smaller labels that do not operate through a major record
company, although many do have marketing and distribution licenced through majors locally and abroad.


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independent record companies in South Africa and works with RiSA where the two
association’s interests meets – such as anti-piracy. Due to cost reductions of recording
technology and a drive to produce local products, many independents have entered the
market but are hampered by a lack of music business knowledge15. By rand value
earned in the market, it is the independent record labels which are leading in market
share. This trend is very similar to international markets:
                                                                    Sony/BMG,
                                                                      20.8%
                              Other, 25.1%




                                                                       EMI, 19.4%
                          Gallo, 15.5%



                                                 Universal,
                                                  19.2%

                                                Figure 2-33
                     Market share of record companies in South Africa, 2007 (RiSA, 2008)



The big four major record labels are all headquartered in Johannesburg. Sony Music is
in Parktown, EMI in Sandton, Universal Music in Sandton, and Warner/Gallo in
Rosebank. From this, it is logical that the major CD reproduction houses (CDT and RTG,
both in Johannesburg North) are in the same area.


2.3.1.      Physical Sales


Globally, sales of physical recorded music have been decreasing rapidly since the turn
of the millennium at sometimes up to 40% per year (GCMP, 2008). This is attributed to
the rise of internet piracy around the same time (GCMP, 2008), although some research
shows other factors, such as changing consumer tastes and depletion in back
catalogue, have contributed (Oberholzer and Strumpf, 2004). The recorded music


15
     Noted in an interview with Motsumi Makhane, Tuesday, 26 May 2009, 09:00


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industry has experienced job losses and cut backs as a result. There has been a
scramble in the record industry to unearth a new business model suited to the internet,
as well as taking advantage of greater revenue streams.


South Africa has not been affected by these trends as much due to the low penetration
of internet availability and speeds (GCMP, 2008). As always, implementation of correct
infrastructure before the development of wide placed digital technology is recommended
before this industry niche is affected negatively (discussed further under Gauteng Music
Media).


RiSA reports that the 2007 PPD Rand value for the local recorded music industry is
R1.02 billion. This figure should not be confused with the combined retail value shown in
Figure 2-1 earlier. The figure below charts the growth in value of the recorded music
industry, before retail, since 2000. It has been increasing since the turn of the century
and is now reaching all-time highs. The South African economy has grown substantially
and, with a growth in per capita gross domestic product (GDP), the disposable income
of South African music consumers has expanded (CIGS, 1998). This has lead to more
spending on music product. According to RiSA (2008), the best selling genres in South
Africa are gospel, urban/kwaito, and Afrikaans, although actual sales amounts for these
genres are not available.

                  1200
       Millions




                                                                                          996      1020
                                                                              976
                  1000
                                                                   888

                   800                        704        705
                         607       610
                   600


                   400


                   200


                    0
                         2000      2001       2002      2003       2004       2005        2006     2007


                                                      Figure 2-34
                                Total PPD value for the recording industry (RiSA, 2008)



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As the overall industry grows substantially, so have the sales of locally recorded music,
in particular. Indigenous repertoire has been a driver in this growth (MEDS, 2007). The
figure below shows the number of units sold for local and international music. There has
been a growth in sales of local product, which has roughly doubled over the past
decade. The number of total units sold in 2003 was almost equal for local (49%) and
foreign (51%) product. Local units sold exceeded international in 2004. Recently, local
units have dropped by 690,000 although local music now exceeds international in unit
sales volume by over two million units.




                                                                                                       13.70
                16




                                                                                                                    13.01
     Millions




                                                                                        11.71
                14



                                                                               11.20




                                                                                                                 11.17
                     11.00




                                                                                       10.88
                                                    9.95




                12




                                                                                                9.80
                                    9.48




                                                                           9.30
                                                                   8.68
                                                                  8.32



                10
                                                           7.39
                                           6.84
                             6.50




                8
                6
                4
                2
                0
                     2000           2001            2002          2003     2004        2005     2006             2007

                                                  International    Local


                                                        Figure 2-35
                     Total unit sales of local and international music in South Africa (RiSA, 2008)



When looking at the difference in value between local and international music sold in
South Africa (Figure 5.4), we see a trend towards equal Rand value since 2000. This did
not change drastically, however, from 2004 to 2005. The ratio is around 4:6. It is
interesting to note that while local sales have exceeded international, the value for local
is still less. For every product sold, local music earns approximately 5% to 10% less than
its international counterparts. Local value took a hit in 2007, decreasing significantly by
R13 million (3%). Piracy, higher operational costs and lack of airplay is blamed for the
drop (Mkhize, 2008). International sales are recovering from a decline in 2006.




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              100%
                      23%     26%      27%     32%        39%       39%
               80%                                                         46%    44%

               60%

               40%    77%     74%      73%     68%        61%       61%    54%    56%
               20%

                0%
                      2000    2001     2002    2003       2004      2005   2006   2007

                                          International     Local

                                                Figure 2-36
                             International vs. Local Rand Value (RiSA, 2007)


Piracy: The United Nations Educational, Scientific and Cultural Organisation’s
(UNESCO) (2005) Convention on the Protection and Promotion of the Diversity of
Cultural Expressions emphasises that sustaining cultural creativity depends on
intellectual property rights. Protection of these rights and being proactive in eradication
of piracy, is thus vital to the development of the industry. South Africa has a piracy rate
of between 25% and 50% in 2005 (IFPI, 2006; GCMP, 2008) while almost 1 in 3
recordings are pirated. South Africa, though, does have a good legal infrastructure. The
International Property Rights Index, compiled by the Property Rights Alliance, grades
countries on the significance of their property rights to their economic development.
South Africa, overall is rated 24th out of 115 countries and for intellectual property is
ranked 21st out of 115 countries. South Africa is placed 1st for Africa but has slipped in
its overall score from 2008 (from the 22nd place). It is through strengthening a legal
foundation that the music industry will flourish (Schultz and Van Gelder, 2008) although
there has been some debate, especially with regard to music on the internet, that
clamping down on music rights can stifle the industry. The following shows South
Africa’s scores on the International Property Rights index:




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                          Category                           Score       World Rank           Africa Rank

    Overall                                              6.8         24 of 115            1 of 21

    Legal and Political Environment                      5.9         41 of 115            3 of 21

    Judicial Independence                                7.5         20 of 115            1 of 21

    Confidence in Courts                                 5.3         51 of 115            3 of 21

    Corruption                                           5.6         42 of 115            3 of 21

    Political Stability                                  5.4         54 of 115            6 of 21

    Physical Property Rights                             7.1         28 of 115            2 of 21

    Property Rights Protection                           5.8         21 of 115            1 of 21

    Registering Property                                 8.3         37 of 115            6 of 21

    Ease of Loan Access                                  4.8         41 of 115            2 of 21

    Intellectual Property Rights                         7.4         21 of 115            2 of 21

    IP Rights Protection                                 7.0         23 of 115            1 of 21

    Strength of Patent Rights                            8.5         24 of 115            1 of 21

    Copyright Piracy                                     6.6         18 of 115            1 of 21

    Gender Equality                                      5.8         76 of 115            5 of 21

    Access to Land                                       10.0        1 of 115             1 of 21

    Access to Property Other than Land                   5.0         77 of 115            7 of 21

    Access to Bank Loans                                 5.0         73 of 115            3 of 21

    Inheritance                                          -           -                    -

    Social Rights                                        0.0         9 of 115             1 of 21
                                                    Table 2-4
                          International Property Rights Index for South Africa in 2009,


Piracy in South Africa was estimated at being over R707 million in 2004, and over R500
million in 2007 (Stop Piracy, 2009) – half of this being local artists: most in the black
market on cassette and Afrikaans on CD and DVD (Carte Blanche, 2008). Tax revenue
loss is estimated to be around R200 million according to RiSA’s Stop Piracy website.
This means the recording industry would be almost doubled without piracy.
Internationally, piracy is estimated to be over US$27 billion in value in 2007 and largely
over the internet. Confiscated product from customs was valued at R18.4 million in
revenue over 2007 (Mkhize, 2008). Most anti-piracy measures were focussed on the


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Gauteng province up to 2006 when RiSA formed a national anti-piracy unit. Piracy in
South Africa is not simply limited to physical sales, and occurs online too (GCMP, 2008).
The RiSA Anti-Piracy Enforcement Unit (APEU) internet unit estimates the total number
of illegal downloads in 2008 being 43 million (according to the Stop Piracy website’s
newsletter). This is an indication that South Africa is catching up with world trends.
Gauteng - and indeed, South Africa - needs to implement sufficient laws regarding
internet piracy. New Zealand, for example, is looking at introducing laws which compel
internet service providers (ISPs) to discontinue accounts of persistent copyright
offenders, with a voluntary code of conduct to guide their implementation of the
legislation. Taiwan, France and Ireland have also been looking at the idea of a three-
strike system where a user, if caught pirating three times, is banned from the internet for
between 6 and 12 months (Digital Music Report 2009). Many other countries are
considering these options, such as Australia, Japan, Hong Kong, South Korea, Finland,
Belgium and Denmark. Like the UK, the South African government may wish to make a
move toward a Memorandum of Understanding (MOU) with ISPs and engage with the
Wireless Application Service Providers Association (WASPA) as well.


Looking at international music sold over all mediums (below), the compact disc
dominates with an average value of R50.98 per disc. Cassette, cassette singles and CD
singles sales decreased rapidly over the last decade; in 2005, they were superseded by
DVD sales. A cassette’s average value was R11; DVDs were R63.49. Every medium
has decreased in average value since 2005. Vinyl is no longer manufactured in South
Africa and disappeared completely in 2005. Some companies, however, import vinyl for
house music.




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                     10000
                      9000




                                                                                                          Compact Disc
                      8000
                      7000
                      6000
                      5000
                      4000




                                                                                                                                      Music Video
                      3000
                                                      Cassette


                                                                                         CD Single
                                                                       CasSingle




                                                                                                                               DVD
                      2000
                                      Vinyl



                      1000
                            0
                                                                            2005                                                                          2007
                                                         Figure 2-37
                                    Unit sales of international mediums (Source: RiSA)



                     550000
                     500000
                                                                                                                Compact Disc




                     450000
                     400000
                     350000
                     300000
                     250000
                     200000
                                                                                                                                            Music Video
                                                                                                                                DVD




                     150000
                                                                                              CD Single
                                                                             CasSingle
                                                            Cassette




                     100000
                                              Vinyl




                      50000
                                0
                                                                                   2005                                                                   2007

                                                    Figure 2-38
                                Rand value of international mediums (Source: RiSA)


Looking at sales of mediums for the local music market we see that CD sales have
increased steadily and are now the most dominant medium for the South African
recorded music industry. A CD has an average value of R35.68, which is significantly
lower than the international market. Before 2004, cassette was the dominant medium.
Every cassette sold has an average value of R14.58 (higher than the international
market by almost R4). There is a trend with the decline of cassette in the local industry.
Like the international market, DVDs have started to rise. The value of DVDs has been
increasing steadily, with one unit currently worth around R59.62, which is similar to the



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international market. DVDs are by far the biggest money spinner in both international
and local markets. 2007 saw a resurgence of CD Singles in the local market, increasing
by almost 500% from 2005 to 2007. This shows the element of market testing
resurfacing in the local market as full albums have higher costs and incur more risk.


                   10000
                    9000
                    8000
                    7000                                                                 Compact Disc
                    6000
                    5000
                    4000
                                                                                                                             Music Video

                    3000
                                        Cassette

                                                       CasSingle
                                                                      CD Single



                                                                                                                       DVD




                    2000
                               Vinyl




                    1000
                        0
                                                          2005                                                                                       2007
                                                    Figure 2-39
                                   Unit sales of local mediums (Source: RiSA)
                      350000
                      325000
                      300000
                                                                                                        Compact Disc




                      275000
                      250000
                      225000
                      200000
                      175000
                      150000
                                                   Cassette




                      125000
                                                                                                                                       Music Video




                      100000
                                                                   CasSingle
                                                                                  CD Single


                                                                                                                         DVD




                       75000
                                       Vinyl




                       50000
                       25000
                           0
                                                                       2005                                                                          2007
                                                 Figure 2-40
                                 Rand value of local mediums (Source: RiSA)


The figure below shows the total number of CD units sold in South African over the past
8 years. Local CD units have increased sternly since 2000 and finally surpassed
international in 2006. The status quo was restored in 2007 as international sales
recovered and local CD units dropped by 4% from the previous year.



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                              12
                   Millions




                                                                                                                                 9.78
                                                                                                                         9.70
                                                                                                        9.47




                                                                                                                                9.26
                                   9.00




                                                                                                                      8.50
                              10




                                                                  7.74
                                                    7.70




                                                                                                 7.60



                                                                                                               7.64
                                                                                6.99



                                                                                              6.50
                              8
                              6




                                                                                       3.71
                                                                         3.05
                              4
                                                           2.29
                                          2.00



                              2
                              0
                                   2000 2001 2002 2003 2004 2005 2006 2007

                                                              International             Local


                                                             Figure 2-41
                                                 Number of CD units sold (Source: RiSA)


RiSA was unable to be contacted to discuss the breakdown of sales data for Gauteng
specifically but it is doubtful that provincial sales data can be obtained.


2.3.2.   Needletime Royalties


Like composers who earn a performance royalty from their songs (musical works) being
broadcast, needletime refers to the performance rights of sound recordings. The South
African Performance Rights Association (SAMPRA) has been set up buy RiSA to collect
needletime rights for record labels and both SAMRO and SARRAL are participating in
the collection of needletime rights for the performers they represent. This is a fairly new
revenue source for the local industry and no statistics are available as yet. It has been
reported in the Business Day that over R1 billion may be owed to the recording industry
in payment of royalties from 2002 since the copyright law was amended (Mawson,
2009). The broadcasting industry, fronted by the National Association of Broadcasters
(NAB), has been in negotiations with SAMPRA regarding the amount owed. Some
contention has arisen whether the money earned via needletime will be to the benefit of




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local performers due to low levels of local music in broadcasting16 and whether it would
accrue to the rightful owners (AIRCO 2008 Annual General Meeting Report).


2.3.3.       Video Copyright


Royalties are earned by record companies for having the music videos aired by
broadcasters. This pertains specifically to the rights in the film element of videos
(performances for the musical work are collected by SAMRO and needletime is
discussed above). This is generally paid out directly to record companies (although
many are unaware of this revenue stream and forgo the income as a result) but can opt
to have RiSA Audio Visual (RAV) or AIRCO collect it on their behalf. For 2006 this figure
was R1,893,534 and, as the 2007 figure has not been released yet, some R2 million is
estimated in Figure 2-1.


2.3.4.       Digital Sales (Internet & Mobile)


Digital sales (including the internet and mobile) globally are valued at US$2.9 billion,
encompassing around 15% of the market according to the IFPI for 2007. RiSA estimates
the South African digital market to have a value of R50 million for 2006 (only 4.8% of the
market). This figure has probably expanded in 2007 – a figure of R60 million is
estimated in the gross sector turnover chart. The internet is starting to provide lucrative
licensing opportunities for sound recording rights holders17. Consumers are starting to
find it easier to pay for convenient music than find pirated music. A global rise in digital
sales (Nordicity, 2008; GCMP, 2008) is testament to this. The following table shows the
different delivery methods that can be licensed:




16
     Interview with Oupa Lebogo (CWUSA), 11 May 2009, 09:00
17
     For a detailed look at the internet as a media type and its South African infrastructure see section 2.6 below.


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  Delivery Methods                                        Description
Downloading                 The user gets to download the track/album
Interactive streaming       Users get to choose the music they listen to, but cannot
                            download it
Webcasting                  This is a constant feed of audio on the net.


                                               Table 2-5
              Emergent digital business models (Shaw, 2007; Nordicity, 2008; MEDS, 2008)


Music downloads on the internet: South Africa has not seen the trend in digitisation of
music that has happened globally (MEDS, 2007; GCMP, 2008). This statement is
reinforced by AMPS 2008a. It shows that an estimated 651,200 people downloaded
music from 2007 to 2008 but significantly over 30 million people are estimated to have
not. In Gauteng, AMPS 2008a shows that only 189,571 people said they downloaded
music in the last year while 6.2 million specifically did not. The underlying reason for
most of the population not downloading music may be the limited access to the net and
low bandwidth. This keeps the industry, at this point, buoyant with physical sales.


Mobile music: Mobile music includes downloading full songs to your cell phone. It is a
possibility that mobile sales could leapfrog international internet trends and create a
viable digital market in South Africa. Services such as Mxit have created a whole new
connected generation, with access to music as never before. These kinds of service are
highly embraced by the youth market. Harnessing music distribution in the mobile
environment would be lucrative in South Africa and this also highlights how mobile
networks are becoming de facto record labels and content aggregators. MTN, for
example, has launched a music service aimed at unsigned artists called MTN Xploded,
which shows the level of interest in this medium. Specific sales statistics for this market
in South Africa are currently unavailable.


The biggest issue facing sales websites is that of copyright legislation. Many new sites
are not comfortable with paying mechanical, performing or needletime royalties and


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often waiver these and place the responsibility of payment on the person posting music
for sale. The rights collection societies have yet to make their presence and force known
in the digital environment. There has also been a proliferation of mobile music
subscription services that have bombarded television advertising slots in recent months.
For a weekly payment deducted from your airtime, you receive the latest full-track songs
straight to your phone. Issues have arisen around the high consumer costs of these
services with ongoing weekly subscriptions.


WASPA is an association of wireless application service providers, which provides a
code of conduct for its members and handles complaints from mobile consumers. Ant
Brooks, WASPA Secretariat, states18 that WASPA’s role is to monitor and police
WASPA's Code of Conduct (http://waspa.org.za/code). WASPA does monitor and police
problems with mobile content services, but only insofar as they relate to WASPA's Code.
Since there is no prescribed limit on content charges, that's not something WASPA
polices. There are some notification requirements when customers reach certain pricing
thresholds but those are focused on ensuring that consumers are getting accurate
information, not on any form of price control.


SARRAL has signed an agreement with one WASPA member (eXactmobile) regarding
mechanical royalties, but still needs to reach agreement with most other WASPs.
WASPA has given its members some advice on dealing with SARRAL, but since
WASPA itself does not sell any music, WASPA cannot and has not entered into an
agreement with SARRAL in its own right. For the same reasons, it cannot enter into an
agreement with NORM and NORM has not signed any agreements with any WASPA
members. NORM does have agreements with Musica and Pick ‘n Play individually.
There is no data on any independent mobile music site being part of WASPA and
WASPA itself believes that while an independent mobile music site could possibly meet
the criteria for affiliate WASPA membership, WASPA would not be the correct
organisation for such a site to join.



18
     Via e-mail, 23 June 2009


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Networks such as MTN, Vodacom and Cell C all support WASPA and have made it
mandatory for all of their WASPs to be members of WASPA, to ensure compliance with
the Code of Conduct. There is close co-operation between the networks and WASPA in
resolving WASP-related complaints. Customers of all three networks benefit from the
same protections. Two subsidiaries of the networks - MTN Internal WASP Service (IWS)
and Vodacom Service Provider (VSP) - are WASPA members in their own right. This
ensures that WASP services provided by IWS and VSP are also governed by the
WASPA Code but is different to Vodacom or MTN being members in their own right.


It is vitally important that the local market is able to collect royalties effectively, which is
the concern of the societies. Internationally, AIRCO have forged agreements with the
World Independent Network (WIN) and Merlin to protect rights of local labels and
improve the inclusion of local repertoire in major agreements – which was done in
Gauteng (AIRCO 2008 Annual General Meeting Report).


Digital    music      web   and   mobile   sites:   Major    music    sites   include   SAmp3
(www.samp3.co.za), Musica (www.musica.co.za), Exactmobile (www.exactmobile.co.za),
MTN Exploded (www.mtn.co.za), Pick ‘n Play (www.picknplay.co.za) and recently the
Nokia Music Store (music.nokia.co.za). There are many smaller digital music sites that
cater for internet and mobile download which have originated in Gauteng such as
Streetlamp      (www.streetlamp.co.za),    Mocharts     (www.mocharts.co.za),       Your    Art
(www.yourart.co.za), Loadtheshow (www.loadtheshow.com) and Underground Music
Library (www.u-m-l..co.za). These differ from the media websites mentioned later in that
they act like music retailers online with limited exposure opportunities.


2.3.5.    Recorded Music Licenses


This is income earned from a particular recording being used for purposes other than
selling to a consumer. It includes placement of recordings, with music, into films,
televisions series, adverts, ringtones etc. Ringtones, here, include “true tones” which are
licenses to mobile phone networks for use of a 30 second clip of a recording (bearing in


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mind that the musical composition needs to be licensed as well as with a mechanical
right, see Gauteng Music Publishing below). Revenues from this stream are confidential
to record companies and thus hidden.


2.4. Gauteng Music Publishing


Importantly, it is the composers and authors who create the core on which the industry
rests; without songs, the whole industry would not exist. Music publishing consists of
many revenue streams:
        Theatre music licences
        Sheet music
        Performance licences
        Reproduction licences
            o Phono-mechanical licences
            o Synchronisation licences
Reproduction licences are commonly known as mechanical licences. Collection of
performance and mechanical royalties is aided by collection societies, namely SAMRO,
SARRAL and NORM. All these societies are based in Johannesburg. SAMRO collects
performance and mechanical royalties (as well as needletime for artists), SARRAL
collects mechanical royalties (and needletime) and NORM just collects mechanical
royalties. All the major publishers are based in either Johannesburg or Pretoria. The
societies have strong ties with international affiliates, such as the International Bureau of
Mechanical Reproduction Societies (BIEM) and the International Society of Societies of
Composers and Authors (CISAC).


2.4.1.    Theatre Music


Publishers will often collect royalties from grand rights (theatrical music performance
rights) directly. The Dramatic, Artistic and Literary Rights Organisation (DALRO, a
subsidiary of SAMRO), however, at the request of an author can collect this on their
behalf and this is done on an individual basis. DALRO, in communication, has confirmed


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this and made the point that “grand rights” (those in musical theatre, opera, ballet and
extended choral works for than 20 minutes in length) is not based on membership and
often withheld by the publisher or agent of the work. As such, DALRO only collects for a
small fraction of authors with grand rights. Even in these cases DALRO sometimes does
not participate in certain licensing of the work – for example, a foreign producer of a
theatrical production granting a sub-license to a local producer. These licenses would
bypass DALRO. DALRO has confirmed that the rights they do administer are in fact
confidential. The individual rights holders would need to be approached to determine
their income, if available.


2.4.2.   Sheet Music


Very little South African sheet music exists. Some production happens through
educational channels. There is evidence that there are sales of South African jazz sheet
music (www.jazz.co.za for example, allows purchase of vintage African jazz and big
band scores). The Cape Jazz Collection is one such score that combines South African
Cape jazz music from great jazz artists. Many South African titles on protest, political
freedom and folk music can be found when searching sheet music websites. Since
these are mostly traditional and out-of-copyright, only the publishers benefit. Developing
a modern sense of sheet music and publishing popular composers/artists seems to have
eluded our industry. Very little commercial South African pop music is available in sheet
music format. Seether was the only South African act which turned up a positive
catalogue (www.tabs.co.za includes basic tablature of local artists but is not of published
print quality). The SAMRO Endowment for the National Arts has published two volumes
of local South African composers’ work in sheet music and distributed it at a low cost to
schools. The SAMRO Archive of South African Music keeps a library of music scores
which it can sell all over the world on behalf of composers. Perhaps a “Gauteng Music
Collection” could be a great way to expose popular local composers and artists in the
province as well as export abroad?




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2.4.3.      Performance Licences


Total performance rights income has grown steadily since 1988 and seen a dramatic
increase over the last 5 years (SAMRO, 2008). Performance rights have grown 56%
from 2005 (R163,578,000) to 2008 (R254 060 000) (SAMRO, 2008; GCMP 2008). This
shows a strong increase in the public performance in music through media or live
performance. SAMRO CEO Nick Motsaste19 has also indicated that SAMRO revenue
has increased from territories such as Germany and Asia, which shows that our local
music has picked up in those countries. Television is by far the largest revenue sector
within performance royalties, followed by radio performances:


                                     R 100   R 97.289
                          Millions




                                      R 90

                                      R 80              R 78.626


                                      R 70                         R 68.284


                                      R 60

                                      R 50

                                      R 40

                                      R 30

                                      R 20

                                      R 10                                    R 7.301
                                                                                           R 2.265
                                       R0
                                               TV        Radio     General    Affiliated   Cinema
                                                                              Societies

                                                   Figure 2-42
                     Distribution of performance rights by media category (SAMRO, 2008)



2.4.4.      Phono-Mechanical Licences


Most of the mechanical revenue collected from societies is distributed to the major
publishers, who have offices in Gauteng. SAMRO, SARRAL and NORM commented
that mechanical income could not be broken down via province.


19
     22 May 2009, 10:00


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The mechanical copyright figure was estimated by reasoning the following: Firstly, the
total revenue from societies is calculated by combining the gross revenue, in 2007, from
NORM (R16.6 million), SARRAL (R8.7 million) and SAMRO (R9.4 million), giving a total
of R34.7 million. Societies, though, often issue blanket licenses for mechanicals and
also do not account for mechanicals collected by publishers making direct deals with
record labels. To calculate a closer estimate, these additional deals need to be factored
in. The Copyright Act requires users to pay 5% of the selling price to obtain a
mechanical license. Societies, however, do consent to the payment of 6.76% of PPD,
which is easier to calculate in most cases as record labels control the setting of the PPD
price, whereas music stores can adjust final selling prices (which is only suggested by
the labels). Branded products get a higher percentage, 10.14% of PPD, further adding to
the complication of the calculation which has not been factored in here since we have no
data on income from music used for branded products (and may be included in the
societies income collected anyway). Further complicating this is the issue of using the
traditional 5% or an international benchmark of 7.5% of selling price adopted by
SARRAL and NORM, respectively, for digital mechanicals. This is calculated by marking
up the digital figure collected by RiSA as RiSA members would only collect 30% to 40%
of this amount20. 40% was used in the estimate here which indicates total digital sales
made at R150-million (R60-million as 40% of total income). On calculating a figure from
album PPD and comparing this with a figure from retail (obtained from RiSA and IFPI
statistics in the recording section) we obtain the following:


                Method                      Percentage                  Resulting Amount
                PPD                         6.76%                       R68,972,158
                At Retail                   5%                          R85,800,000
                Digital A                   5%                          R7,500,000
                Digital B                   7.5%                        R11,250,000




20
     Noted in an interview with David Alexander, Wednesday 26 August 2009, 11:00


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Since we cannot discount the societies in collecting blanket licenses and phono-
mechanical licenses, the lower result in each case, namely PPD and Digital A, is used to
compensate for the overlap in revenue. These are combined with the societies’ gross
turnover to estimate the total of mechanicals earned. The amount comes to
R111,321,526.32.


2.4.5.      Synchronisation Royalties


Music is often used in advertising as well as for use in film. This is when the music is
“synchronised” to picture or “transcribed” into other media. David Alexander21 estimates
that, as an international benchmark, 13% of the publishing industry’s gross revenue
accounts for synchronisation royalties. Performance royalties and mechanicals have a
combined total of R365,381,526.32. Adding to this 13% of the gross income (through
mathematical deduction) yields an amount for gross income for the publishing industry
of R419,978,765.89, showing that synchronisation royalties would amount to
R54,597,239.57.


2.5. Gauteng Music Brand Industry


A “name” artist can leverage brand equity to create income through means other than
their music. It is here that most of the convergence between the music industry and
other creative industries take place. The music industry is the sector that is most linked
to other creative industries (Nordicity, 2008). The music brand industry is very much a
crossover sector, which reaches into other creative industries such as film/television,
fashion and fragrances. Music artists are often expected to dance and use back-up
dancers – performing arts are very much linked to music. Some of the biggest artists first
had a background in dance.


This is an untapped sector in Gauteng and indeed in South Africa. Many musicians do
not consider merchandise since it is, at most, a money loser for start-up artists and only

21
     Thursday, 28 May 2009, 11:00


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a money earner at star level. It however has the great potential to create employment
and revenue in the music industry.


Merchandise is the sale of promotional items such as t-shirts and posters which typically
incorporate the artist’s brand. It is commonly linked to live performance (Nordicity, 2008).
In South Africa merchandise is sold at festivals and concert events but for local acts only
to a small degree. While in other countries it may be sold in music retail stores in South
Africa this rarely happens. International artist t-shirts are often sold at flea markets and
music equipment shops.


Other categories of interest are:
          Artists in films/television/advertising
          Artists in clothing/fashion label
          Artists in fragrances
          Artists and dance
          Artists and sponsorships/endorsements
          Artists and digital media22


There are no statistics regarding this industry and additional investigation in further
research is needed.


2.6. Gauteng Music Media


UNESCO has developed a “Convention on the Protection and Promotion of the Diversity
of Cultural Expressions”. This convention affirms that culture is a defining characteristic
of humanity and that diversity in cultural expression needs to be protected (UNESCO,
2005). Freedom of cultural expression is important and diversity within the media,
particularly public service broadcasting, is important to sharing thoughts and ideas.
Cultural interaction and creativity are vital to nurture and renew cultural expressions. In
pursuance of this, countries around the world have the right to protect their culture in
22
     For example, the computer game Guitar Hero has featured some of the biggest music artist brands.


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their territory (UNESCO, 2005). South Africa has ratified this convention in December
2006 and the Department of Arts and Culture (DAC) is engaged in a post-ratification
strategy (Wakashe, 2008). As noted earlier, the music industry is a vital part of the
greater cultural and creative industries and thus has role to play in the ratification of the
strategy.


The media are a key element in the promotion of music (CIGS, 1998). Airplay of
recordings and videos in the past has provided the needed promotion for the sale of
recorded music and the popularising of artists. Broadcasters, in turn, have turned to
music to provide entertainment content for their stations and create an advertising space
for advertisers, in the case of “free-to-air” broadcasting. Print media, as well, have
followed music hype and gossip to provide entertainment for their readership, and
generate sales and advertising revenue. The music industry has traditionally provided
content for media and this has forged an everlasting relationship between the two.


Past research has highlighted the significance of local music in broadcasting (CIGS,
1998; MITT, 2000; MEDS, 2007; GCMP, 2008). This is not the only area and secondary
forms of consumption such as reading print and internet publications about an artist are
critical to promotion. SA Music Week, for example, was a Music Industry Development
Initiative (MIDI) project that rallied the public and media around music for one week
during the year. This was prompted to facilitate the promotion of local music, which was
low in times past (CIGS, 1998). Why should music receive “free” advertising? Publicity, a
general marketing tool, is of paramount importance to the development of the music
industry as traditional advertising can be seen as insincere by consumers. It is generally
prohibitively expensive, out of reach for independents and accessible by only the most
successful companies. While it is not the only tool (for example, live performance and
word-of-mouth are also an important avenue for promotion), it is the only one that
reaches the largest target audience effectively at a low cost.


It is of paramount importance that media recognise the value of including unrecognised
and upcoming artists in their publications (Power and Hallencreutz, 2005; MEDS, 2007).


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The value of this is to keep with cultural and social trends which revitalise listener and
reader interests. Supply-side measures include “enablers” (see focus groups) using
marketing tactics to reach media. Further to this are demand-side measures where
media is then prompted to look for new artists because they need to broaden their
audience. Where demand- and supply-side meet, is where publicity and promotion
occur. One of the reasons new artists (creators), labels, publishers, promoters, etc.
(enablers) fail is the inability to generate and find airplay and publicity. South African
media does not create an environment conducive to the promotion of new music, as
evidenced in the focus groups and previous research (CIGS, 1998; MEDS, 2008). Local
musicians are also vitally important in creating an identity for public broadcasting23.


In conjunction, broadcast media is obligated by the Broadcasting Act No. 4 of 1999,
section 33 (3), where the Advisory Body must advise the Minister on how to encourage,
facilitate and offer guidance and advice in respect of any scheme and to promote--
(presented verbatim, emphasis added):
      a) “the production of broadcast materials that meet the cultural needs of South
           Africans;
      b) the screening and airplay of South African content in television and radio,
           respectively;
      c) awareness of local content in South African and foreign markets;
      d) distribution and exhibition of local content in foreign markets;
      e) the correction of imbalances in the local content production industry;
      f) human resource development to provide skills and training of local content
           providers;
      g) co-productions and the concluding of international agreements.”
These necessitate broadcasters to support the local creative industries and their
content. This also, however, requires industry to supply quality content and correct
marketing to help the broadcasters’ obligations. Both measures should be addressed by
the strategy.



23
     Noted in an interview with Motsumi Makhane, Tuesday, 26 May 2009, 09:00


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In addition to the Broadcasting Act, the fundamental action of the Copyright Act No. 98
of 1978, as amended, is specifically an instrument of promoting the arts through
protecting the rights of creators. Essentially it creates economic incentives to keep
creating. Some of these economic incentives are through public performance and
broadcasting of works. If these works do not generate income through these areas,
South African creators do not have a large enough incentive to create. For example, a
concern raised by AIRCO is whether needletime will benefit local music. If local content
is not a feature of local broadcasting it will not benefit the local industry to a large degree
and it shall keep struggling to survive.


2.6.1.   Gauteng Newspapers


Newspapers provide daily and weekly exposure of the industry through their
entertainment sections. Newspapers often have an entertainment section, which
sometimes features local artists, CD reviews and gig guides. Most of the major
newspapers are in Gauteng, such as the Caxton and the Citizen in Industria, Avusa in
Rosebank and Independent Newspapers in Johannesburg central. According to AMPS
2008 the most read daily newspapers (in the last 6 months) in Gauteng are The Daily
Sun and The Sowetan, followed by The Star and The Citizen. The most read weekly
newspapers (in the last 6 months) in Gauteng are the Sunday Times, Sunday Sun,
Sunday World and City Press. Exposure of artists in these newspapers is probably part
of a viable promotional strategy. That said, it is probably through the smaller
newspapers that most new artists get exposed.


2.6.2.   Gauteng Magazines


Readership of local music “fan” magazines has been low in South Africa, which lacks a
variety of music magazines, and there have been many failed ones over the years. The
reason for this may be linked to the low promotion of local music, although this is
starting to gain ground. BPM/Muse Magazine, from the Western Cape, has survived for
years and has a wide readership. They rely on advertising revenue for a free publication.


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Magazines that include music from Gauteng are Hype, SL, Y mag, Classic Feel
Magazine and Music Maker. Hype and Y mag are the only two listed in AMPS 2008 with
Y mag having a monthly readership of 267,911 people and Hype having an alternative
monthly readership of 107,153 people.


Unlike other major territories, South Africa lacks a dedicated industry publication such as
Billboard in the US and Music Week in the UK. These magazines have major industry
related stories, sales and airplay chart information, and opinion and comment pieces.
Information vehicles such as these, for the local industry, have not been able to find a
place - surprisingly, in the face of such demand from the independent music sector (as
revealed in the focus groups).


2.6.3.   Television


The major television networks often feature music videos as fillers in their programming
if they are relevant to their content. Most television is based in Gauteng such as the
SABC in Auckland Park, M-Net/Multichoice in Randburg, e.tv in Hyde Park and,
because of the location of the major broadcasters, the majority of production studios as
well. DSTV hosts several dedicated music channels and those especially relevant to the
local industry are MK, Channel O, MTV Base and One Gospel. These channels
correspond to the best selling genres and feature local music heavily. In general,
according to AMPS 2008, Gauteng has the highest viewership of television than any
other province. Channel O and Mk have an AMPS listing and these two channels
receive the highest viewership in Gauteng, followed by Kwa-Zulu Natal and Western
Cape. It would appear that artists have more opportunities in Gauteng for television
exposure than any other province. The issue is that dedicated music channels are
located on a pay-TV network and reach a privileged audience. With SABC television
going digital in the next few years, there are opportunities to have dedicated, free-to-air
channels for a number for genres of music. It can be expensive to produce a music
video, especially in the new HD (high definition) format, to match the level of quality of
international videos. Funding of video production in a number of genres may be a viable


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option for more exposure of local music and they must be distributed to relevant TV
stations for consideration of scheduling.


2.6.4.      Radio


The most played song in South Africa in 2007 was the international artist Beyonce’s
“Irreplaceable” with an incredible 4694 plays (Mediaguide, 2008). The most played local
song on radio for 2007 was Freshly Ground’s “Pot Belly” with 2429 plays. It was featured
at number 25 on the Mediaguide’s South African Top 100. Only 25 local artists featured
in the top 100 chart. Simply based on these figures we can see that international music
is played twice as often as local music. Freshly Ground was number 1 on this chart in
2005 and so local music has been hit hard. This coincides with the drop in local sales for
2007, indicating that airplay is also a key driver of sales. For more than a decade the
industry has lamented the low amount of local airplay on radio (CIGS, 1998; MITT,
2000; MEDS, 2007).


Local content quota: The Independent Communications Authority of South Africa
(ICASA) has implemented a local content quota for music and it has had a strengthening
effect on the local industry. The local content quota, enacted through the Independent
Communication Authority Act No. 153 of 1993, requires broadcasters who include over
15% of music in their content to play a certain amount of local music in that percentage.
A commercial radio station must have 25% of that percentage being local while a
community station must have 40%. For example, if my radio station has 50% music and
50% talk, 25% of the 50% of music content must be local. This must occur between
05h00 and 23h00 during the day. Compliance and monitoring of the quota are the
biggest issues (MITT, 2000). The question is whether the quota is enough. This may be
answered by reports in the focus groups, saying the SABC now has a self-imposed 35%
quota for commercial (increasing to 45% by 2010) and 60% for public service
broadcasters (increasing to 70% by 2010 including 40% of music indigenous to the
geographical area they broadcast to) – this was introduced at Moshito24 in 2008 as well.

24
     Wednesday 10 September 2008, 16:00


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The sheer presence of a quota indicates that local music struggles to get played by
broadcasters. The South African Music Quota Coalition (found at www.samqc.org.za)
has received 2689 supporters of raising the quota between 23 May 2003 and 02 June
2009. Suffice it to say that the music industry greatly supports increasing the quotas and
the broadcasters have as greatly resisted. Early research by KPMG indicated the
reluctance of broadcasters to support the then 20% quota, with the main reason being
lack of sufficient quality local music.


When looking at international benchmarks for local music content quotas, an average of
40% local content can be calculated from 16 different territories ranging between 15%
and 80%. This is derived from the following major territories and gives a brief example of
quotas used primarily by developing countries (based on Bhattacharjee, 2001, with
amendments):


Country          Commercial Quota            Public Quota               New Material
Australia         25%, depending on format   25%, depending on format   Depending on format, up to
                                                                        25% being material released
                                                                             in past 12 months
Bermuda                      10%                      10%
Bulgaria                     50%                      50%
Canada                       35%                      35%
France             Between 30% and 50%        Between 30% and 50%        Between 15% and 75% of
                            optional                 optional            material released in past 6
                                                                           months, depending on
                                                                             commercial quota
Ghana                        75%                      75%
Hungary                      15%                      30%
Macedonia                    40%                      40%
Malaysia                     80%                      80%
Netherlands             50% European              50% European
New Zealand           20%, self-imposed         20%, self-imposed
Nigeria                      80%                      80%




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Poland                       30%                          30%
Romania            50% European of which        50% European of which
                      40% is Romanian               40% is Romanian
Slovenia                55% European                 55% European
Sweden                       33%                           0%


                                                Table 2-6
                    Local content quotas of developing countries (Bhattacharjee, 2001)


Research is diverse in its support for local content quotas. Some research (e.g.
Richardson, 2006) argue against quotas which can harm diversification within
broadcasting while others (e.g. Lett, 2003; Bhattacharjee, 2001) argue that for
developing countries, and those which encompass a variety of cultural diversity, quotas
are justifiable. The UNESCO Convention on the Protection and Promotion of the
Diversity of Cultural Expressions, introduced at the beginning of this section, was
developed subsequently to Lett’s research and also justifies increasing the quota further.
Richardson’s argument warns against overcompensating with quotas, especially if radio
does not comply uniformly with them. Public radio stations that offer more local content
than others will effectively leave commercial radio playing more international to cater to
those who do not listen to local music. Richardson (2006) concludes that, in this respect,
to be effective a quota no greater than 50% should be implemented with the widest
amount of differentiation. Public radio stations should never be fully funded and reliance
on advertising and building audiences never lost. Research by the Music Council of
Australia by Mason (2003) has shown the positive growth the Australian industry has
had since the implementation of their quota as well as the effect France’s drastic quota
has had on developing their local music. New Zealand, on the other hand, which was
unregulated, has not grown very much and the country’s radio broadcasters have self-
imposed quotas from 2002 which extends local content levels up to 20%. In conclusion,
it is reasonable for a gradual increase in quotas to occur, in which new local material
should play a part.




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Some major radio stations based in Gauteng include Highveld Stereo (94.7) in Sandton,
Jacarnda (94.2) in Centurion, YFM in Rosebank, Kaya FM in Newtown, and Metro FM in
Auckland Park. Gauteng has the most number of radio stations consistently playing at
least 20% local music (GCMP, 2008). It has the highest number of community radio
stations – 25 in total – as well as the highest listenership of any province. The largest
community station, Jozi FM, is based in Soweto, Gauteng.

                         0    200      400         600    800   1000    1200   1400   1600

           GAUTENG                                                     1339

              E.CAPE                                            1180

             W.CAPE                                             1167

                  KZN.                             955
            LIMPOPO                                 815
             F.STATE             526
              N.WEST                         441
               MPUM.                      424

              N.CAPE             225


                                              Figure 2-43
                    Community radio listenership by province for 2008 (SAARF, 2008)


All these factors have lead Gauteng to receive the highest amount of airplay of local
music (GCMP, 2008). Getting more exposure on radio, however, has always been a
bone of contention for the local music industry and was again raised in focus groups. A
lack of knowledge of how songs are playlisted, the criteria for playlisting, and how local
music charts are compiled are also inhibiting factors for local artistes and companies in
getting airplay. Radio station formats can often be vague to the general public and
reduce the awareness of the local industry on which radio stations to approach.


2.6.5.   Internet


The internet by its very nature is national as well as global. Many music news websites
are based in Gauteng such as Music Industry Online (www.mio.co.za), Streetlamp


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(www.streetlamp.co.za), SA Music News (www.samusicnews.co.za), SA Artists
(www.saartists.co.za),      StarStudded     On-Lyn      (www.starstudded.co.za)       and
SAMusicDotCoZa (www.samusic.co.za).


The internet has been a rising media platform for the past decade. It is becoming a vital
part of any promotional campaign (Nordicity, 2008). 3.2 million people in South Africa
(only 10% of the population) have accessed the internet in the past 12 months (AMPS
2008a). This low penetration inhibits access to the new consumer models developing
overseas. Although many new music websites are being developed, they are struggling
to find a viable market online. AMPS 2008a shows that access is usually gained through
a dial-up connection (294,000 people) followed closely by broadband (228,000), both of
which can be expensive, further inhibiting long periods of time on the net and the
number of music downloads made.


Internet usage is spread evenly over all ages with English first-language speakers using
it most in South Africa (AMPS 2008a). South Africa has a slower internet service than
most developed countries and efforts to improve this infrastructure have implications on
the local music industry competing successfully in a global environment. This is a
concern at national level and there are current initiatives to improve internet service. A
new fibre optic cable, the West African Cable System, is in the process of being installed
and will provide higher speeds to Africa by 2011 according to a report on IT-Online. In
addition, the South African National Broadband Forum advocates that broadband should
be an essential right for South Africans and is lobbying government to improve these
services. At provincial level, government could aim efforts in the music industry at being
digitally ready for improvements in broadband infrastructure. This strategy also
coincides with Gauteng’s “smart province” intentions (GDS 2005).


Various business models and consequently promotional methods are evolving on the
internet. The most common is the “pay-per-download” or retail model where tracks are
presented like wares in a store. The number of downloads are tallied as users purchase
the music and a download chart is used to inform consumers of popularity trends on the


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website. Artists that already have a large brand have more success in the digital space
as this reduces search costs for consumers. Social networking has provided artists a
great way to interact directly with fans outside of traditional media (GCMP, 2008). Below
is a table of new business model that are emerging for promotion:
  Promotion Model                          Description                      SA Example
Retail websites             These websites behave similarly to         www.mocharts.co.za
                            their physical counterparts by             www.picknplay.co.za
                            offering tracks/albums for a price         music.nokia.co.za
                                                                       www.exactmobile.co.za
Advertising model           MP3s are downloaded free but               www.loadtheshow.com
                            require the user to be exposed to
                            advertising.
Social network              These sites allow users to set up          www.blueworld.co.za
                            “profile” pages which allow them to
                            interact with other users. Profiles
                            can be set up for artists and music
                            can be included.
Internet radio              Radio that webcasts a constant feed        www.webradio.co.za
                            online. Traditional radio stations are
                            starting to use this method as well.
Tipping model               The music can be downloaded free           -
                            or the user pays any price they wish
                            for it
Subscription services       Users pay a set fee every month and www.look4music.co.za
                            have all the access they want to           Vodacom MusicStation
                            tracks featured on the site
                                              Table 2-7
                                 Emergent digital promotional models




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As discussed at Moshito 200825, SA still lags behind the US and other Western
countries in terms of downloads from internet-based connections. Cellular technology is
still fairly advanced in SA and is probably where the greatest application of music will lie
in terms of how new technologies are driving the music business model, as displayed in
the graphic below. In terms of the diffusion of innovations and Gauteng’s positioning as
the trend hub of South Africa, it is likely that Johannesburg is the city where new
technological breakthroughs in music will have their greatest impact.




                                                  Figure 2-44
                   Distribution of recording mediums over time (National Geographic, 2008)




25
     10 September 2008 10:00


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2.6.6.     Mobile


While only 10% of South Africans have access to the internet, by contrast, between 70%
to 75% have access to a cell phone (Mawson, 2009). In terms of music activity on
mobile devices only 4.6 million people are “downloading or listening to music” on their
cell phones (AMPS 2008a). Significantly, again, 26 million people are not downloading
or listening to music at all. On a provincial level, Gauteng has significantly higher cell
phone activity (1.2 million people) when measured against other provinces, which on
average have around half a million people (AMPS, 2008). In line with the national trend,
5.1 million do not use their cell phone for downloading or listening to music. Gauteng,
though, has a highest usage of iPods (145 thousand people) than elsewhere in the
country. MP3 players (431 thousand people), second only to cell phones, is the most
used mobile music device in Gauteng:

                                                               Walkman/
                                                              portable CD
                                                                 player
                                     iPod                         13%
                                     22%




                            iRiver
                             1%




                                                                MP3 player
                                                                  64%

                                                  Figure 2-45
         Distribution of mobile music devices, excluding cell phones, used in Gauteng (AMPS 2008a)


The mobile market is the next generation of music media. Content about music artists
can easily be sent to mobile phones and some websites exist exclusively for mobile
content. Many websites have mobile versions and cell phone technology is such that
one can traverse the net fairly easily. Most content on mobile is currently more supply-


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side driven, as shown in the mobile revenue stream discussion under recorded music. It
is here that subscription services for music has triumphed with mobile music services
offering one or more songs that can be downloaded or received each week, for
example. As yet, however, little promotion of recorded music is done through mobile
phones, such as free samples of recordings and videos being sent to cellphones to
encourage purchase. New phones, however, have included “free” music pre-loaded on
them.


Here, the distinction between enablers and revealers (see focus groups) is beginning to
blur. For example, in the past an artist (creator) would use a record label (enabler) to
distribute the music to radio (revealer) and sell through a retailer (revealer). Therefore,
participants in the value chain are starting to merge and disintermediation and
reintermediation is occurring because this type of medium is very new. As an example,
MTN controls a network upon which the internet for mobile is taking place and now
wishes to set up a storefront (MTN Xploaded), sign artists and act as a media service.


2.7. Gauteng SWOT Analysis


The secondary and primary research has informed the following analysis:


2.7.1.    Strengths
        Gauteng is the entertainment and music hub of South Africa, if not Africa.
        The music industry has been growing continuously for the last decade and is
         formalised in the province. Music is strongly represented by corporate interests
         and the value chain is strongly established in all roles.
        The industry in Gauteng attracts people from all over the country as well as from
         Africa and makes the industry more accessible. This can, however, lead to a
         saturation of industry participants in the province.
        The majority of the music industry is centred in Gauteng. This has led to a
         plethora of revenue streams to be found in the province due to the highest
         income per capita, although these can be difficult to access.


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        Copyright controls, collection and enforcers are centred in Gauteng and have a
         strong structure, although certain amendments to the Copyright Act are
         warranted.


2.7.2.    Weaknesses
        Gauteng has been criticised because of its centralisation of the music industry,
         resulting in fewer opportunities for musicians from other provinces.
        Lack of community involvement in music.
        Creators lack respect in the industry, need skills development and correct career
         guidance.
        Cultural exclusion (in media, live music and music interest) still exists in the
         province, driven by historical precedent.
        Some transformation has taken place, but more needs to occur especially in
         female empowerment in the music industry.
        There is some fragmentation among industry role-players.
        Industry at SMME level struggles to sustain itself.
        The is a gap in the succession of industry professionals where professionals
         leaving the industry are not replaced or replaced by unqualified successors.
        Unlike established territories, the Gauteng music industry is characterised by
         hybrid roles in the value chain, as niche markets do not generate enough income.
         This leads to a dilution of specialised services in some cases and a reduction in
         value.
        Information flow is restricted and disparate and needs to be harnessed to inform
         industry and government.
        The music industry suffers from poor brand perceptions.


2.7.3.    Opportunities
        More industry communication platforms need to be fostered and industry
         partnerships reinforced.
        Government departments need to further collaborate and recognise the music
         industry as a significant sector.


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        The export market for Gauteng music can be developed.
        Audience development is as critical as professional development. Media can play
         a role in educating audiences.
        The Gauteng music industry will filter interventions to other provinces.
        Associations need to solidify structures and gain support.
        Monitoring of broadcast content.
        The opportunity for a distinct Gauteng sound to be developed which is identifiable
         and recognisable.
        Education in music practice, business and technical services are strongly
         represented in the province, although there is strong evidence that these could
         improve.
        The legal structure and profession need to be reinforced.
        Greater regulation needs to occur to hold industry role-players accountable for
         the development of the industry.


2.7.4.    Threats
        Creator labour legislation issues need to be addressed.
        The proliferation of international music threatens the development of local music.
        Access to resources for music producers and the high costs associated make it
         hard to compete effectively. Genres that require low capital outlay for production
         tend to compete while genres that are expensive to produce suffer.
        Market awareness of local music and appreciation for the arts in general is low.
         The poor perception of local music is detrimental.
        Industry disparateness and disorganisation.
        Crime and bad perceptions of live music hinder audiences from attending events.
        Piracy of music is a significant threat to the industry and copyright theft initiatives
         need to be reinforced.
        Digital rights and business models need to be addressed and harnessed quickly
         to ensure survival of the music industry online.




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2.8. International Benchmarking


Here, key success factors of other industries are compared. This is drawn from MEDS
(2008), Nordicity (2008), Seattle City of Music (2007), Scottish Arts Council (2006 –
2008), Scottish Audience Development Forum (2006), Buchanan, et al. (2000),
Queensland Creative Industry Strategy (2003), Live Music Industry in New South Wales
(2005), Business Gold Coast (2006), McCollam and Diaz (2005), Arts Western Australia
(S.A.), Contemporary Music Working Group (2006), Burns Owen Partnership (2006),
Business Gold Coast (2006), City of Austin (S.A.), City of Austin: Music Website (2009),
City of Santa Fe (2008), Hallencruetz and Lundquist (2007), International Arts Strategy
(2006), Kennedy (2006), Music Nova Scotia (2007), Power and Hallencreutz (2005),
Queensland Creative Industries Strategy (2003), Sinclair (2009), Pratt and Ndiaye
(2004):


Jurisdiction                                    Driving key success factors

                                         International

Derry (UK)                                              Export programmes
                                                        Industry co-operation
                                                        Evening economy (live music)
                                                        Creative industry clustering
                                                        Marketing and branding
                                                        Urban blight management
North West (UK)                                         Job creation
                                                        Vibrant live music
                                                        Industry funding
                                                        Education (HET, FET)
                                                        Industry co-operation
                                                        Artist development
Scotland (UK)                                           Export programmes
                                                        Professional development
                                                        Tourism initiatives
                                                        Live music development
                                                        Industry co-operation
                                                        Audience development
France                                                  Radio airplay support


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                                            Supportive media
                                            Government support
                                            Export programmes
Austin (US)                                 Vibrant live music
                                            Supportive regional media
                                            Professional development
                                            Government support
                                            Tourism development
                                            Funding support
                                            Continued research
Seattle (US)                                Professional development
                                            Live music development
                                            Export programmes
                                            Digital readiness
Santa Fe (US)                               Professional development
                                            Urban blight management
                                            Talent retention
                                            Industry co-operation
                                            Tourism
                                            Funding
                                            Marketing
                                            Vibrant live music scene
                                            Audience development
                                            Creative industry clustering
Finland                                     Export programmes
                                            Governmental support
                                            Professional development
Sweden                                      Export programmes
                                            Continued research
                                            Industry co-operation
                                            SMME development
                                            Community development
                                            Industry co-operation
Iceland                                     Government support
                                            Export programmes
                                            Vibrant live music scene
Berlin (Germany)                            Industry co-operation
                                            Strong value chain role-players
                                            Vibrant live music scene
                                            Export programmes
Queensland (Australia)                      Industry co-operation
                                            Professional development



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                                            Export programmes
                                            Industry funding
                                            Digital readiness
                                            Continued research
                                            Industry branding
                                            Marketing
                                            Live music
                                            Creative industry clustering
                                            Transport Infrastructure
                                            Legal framework
New South Wales (Australia)                 Industry regulation
                                            Professional development
                                            Continued research
                                            Vibrant live music scene
Western Australia                           Marketing
                                            Industry co-operation
                                            Professional development
                                            Industry funding
                                            Vibrant live music scene
                                            Tourism
                                            Continuous research
Ontario (Canada)                            Government support
                                            Digital inclusion
                                            Multi-platform marketing
                                            Improved legal structure
                                            Export programmes
                                            Live scene initiatives
                                            Professional development
                                            Legal framework
Nova Scotia (Canada)                        Export programmes
                                            Industry co-operation
                                            Vibrant live music scene
                                            Marketing
                                            Professional development
Quebec (Canada)                             Industry co-operation
                                            Government support
                                            Local retail and supportive media
                                            Strong value chain role-players
Jamaica                                     Information sharing and research
                                            Improved cultural governance
                                            Government support
                                            Education and cultural support
                                            Marketing


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                                                            Tax relief and incentives
                                                            Live export visas
Senegal                                                     Intellectual property rights,
                                                             management and protection
                                                            Professional development
                                                            Recording studio and digital format
                                                             development
                                                            Marketing, especially distribution
                                                            Export programmes
                                                            Mass media and audience
                                                             development
                                                            Music tourism
                                                            Industry research
                                                            Festival programmes


                                            South Africa

Western Cape                                                Digital/ICT readiness and inclusion
                                                            Live scene development
                                                            Integrated data gathering and
                                                             research
                                                            Industry co-operation
                                                            Professional development
                                                            Industry hub development
                                                            Tourism support

                                                Table 2-8
                            International benchmarks with key success factors


Benchmarking shows that developed countries may follow subtly different strategies
than developing countries. Some overlap does exist, where digital readiness, industry
co-operation, vibrant live music scene, professional development and export
programmes are common. In developing countries (or provinces), however, there is a
lack of benchmarking research and the little that can be reviewed suggests developing
countries tend to use industry research, hub development, live scene development,
improved legal structure, information communication technologies (ICT) readiness,
urban blight management and SMME development.




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While Gauteng and South Africa are still generally following traditional music business
(evidenced in developing countries), internationally there have many shifts in the way
artists, songwriters, record label, publishers, live promoters and other role players are
starting to shape deals around the new music industry. Strategies may need to cater for
these changes in the future and these deals are contrasted below (taken from Nordicity,
2008):


     Business Model                                               Description

“360” deals                    These deals anticipate the withdrawal of the recording sector
                                and a company sees the artist as a brand from which multiple
                                streams of revenue can be earned and supported.26
Brand funding                   Non-music corporate interests fund and support the creation of
                                music. For example, top drink manufactures support artist
                                development and promotion.
Feels-like-free music           The music industry shares in the fee charged to internet rental
                                customers by ISPs, so that customers don’t perceive the
                                payment of the music they ‘freely’ acquire over the internet.
Crowd sourcing                  Unsigned artists fund their own music initially and promote it to
                                the public. The public then invest their own money for the artist
                                to complete the album and promote it.


                                                 Table 2-9
                                       Emergent music business models




26
  “360” deals have occurred in South Africa for a long time because the industry is smaller and less income is
generated so some role players source income from multiple incomes streams in any case.


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2.9. Future Directions


2.9.1.    Positioning of the Strategy


This report comes in a long line of research undertaken by government at national and
provincial level on the cultural industries and then the music industry in particular. These
reports were reviewed to gain insight into and align with current policy. A list of these
reports is provided here with timelines:
        1998: Cultural Industries Growth Strategy: The South African Music Industry. First
         comprehensive report on the South African music industry.
        1998: Creative South Africa: Strategy for Realising the Potential of the Creative
         Industries. Comprehensive review of strategy reports on the music, film/television,
         publishing and craft sectors.
        2000: Music Industry Task Team Report. Key recommendations made to the
         Minister of Arts, Culture, Science and Technology.
        2005: Creative Industries Development Framework of the Gauteng Provincial
         Government. This report outlines the approach in supporting provincial creative
         industries.
        2007: Micro-Economic Development Strategy for the Music Industry in the
         Western Cape, Department of Economic Development and Tourism, Western
         Cape Provincial Government. Strategic framework for the Western Cape music
         industry.
        2008: Gauteng Creative Mapping Project: The Music Sector. This report details
         the Gauteng music industry in depth providing relevant statistics and information
         on the industry.
These reports have placed considerable emphasis on the music industry and have
allowed government to interact and develop the industry, now at a provincial level with
the Western Cape and Gauteng. The current research, on Gauteng, broadly discusses
the economic and social development policy and strategic frameworks that must inform
the strategy and build on the policies already in place.




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As international benchmarks and broad policy environment show, the government will
take a central role in the development of the music sector. Both supply and demand-side
interventions should be used to this end and have been integrated in this report.
Furthermore, the UNESCO convention on Convention on the Protection and Promotion
of the Diversity of Cultural Expressions needs to be emphasised as a key policy
document, which should be addressed strongly in the development of the strategy.


Benchmarking has showed interventions that have been used for different points in the
current and emerging value chain with great success. The music industry in South Africa
has been receiving support from government since post-1994 and there has been
focussed cultural policy for this industry. This, although, was prompted through the
exploitation and poor well-being of artists. These developments show that, for the music
industry, government has been interested in protecting the cultural value of music
products. This strategy is designed to augment and continue these interventions for the
next five years. It is of benefit to review past recommendations to gain a better
understanding of interventions already proposed and fulfilled:


2.9.1.1.        Fulfilled Recommendations for the Music Industry


Industry wide recommendations not addressed through this research that have been
suggested in the Creative South Africa report and the Music Industry Task Team report
and have been fulfilled, in brief, are:
       A networking and information platform: This has been fulfilled through the
        development of Moshito. Although Moshito has been beneficial, focus group
        research has revealed that the awareness of it is low, it needs further support,
        and additional platforms need to be implemented which can be accessed easily
        (such as being geographically disbursed, with a low price, genre balanced and
        industry relevant).
       Research of SA music and artist heritage: To a limited degree, some research
        of local music and heritage has occurred through Wits Music School, the Human
        Science Research Council (HSRC), MMiNo, UNISA and other institutes. The


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        author has personally read books on local music history (for example, Beyond
        Memory by Max Mojapelo and Sello Galane). However, the research needs to be
        intensified and findings more widely disseminated.
       Joint export promotion: Through activity at MIDEM and showcase tours of
        artists. This has been partly fulfilled through SAMEX and AIRCO.
       Improvement of sound recordings: Arguably, the quality of sound recordings is
        linked to company budgets, thus placing emphasis on the vicious industry poverty
        cycle. As the recording industry has developed, so has the budget increased and
        recordings improved. This has, however, been curbed through development of
        sound technology qualifications through the South African Qualifications
        Association (SAQA) and a proliferation of courses and colleges on the subject. It
        has also come to light through the focus groups and a presentation by
        Masokoane (2008) that government purchased Downtown Studios, for a South
        African Music Hub, in pursuance of offering recording facilities to music artists.
       Grants for sound recordings to established musicians: Funding is given for
        events and touring, but none for sound recordings, although this will change with
        the new South African Music Industry Hub.
       Domestic tour incentives and sponsorships: Grants have been made through
        the National Arts Council and Gauteng Arts and Culture Council, although this is
        not strong for music artists to do live performances and touring.
       Increasing international exposure: Partially fulfilled through Moshito and its
        partnership with WOMEX and SAMEX. The report alludes, however, to
        international executives attending SA concerts and local and international
        partnerships of arts councils, managers and record companies.
       CD showcasing local musicians: A multimedia DVD has been produced for
        MIDEM by AIRCO, but its distribution within South Africa is limited. The report
        hints at the idea of a “Gauteng Music” promotional CD.
       Collecting and monitoring statistics: This has occurred through governmental
        and non-governmental sources. Much consolidation is still required, however, as
        is the accumulation of new sources.




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       Local government use of public space for music: This has happened to a
        limited degree and has been re-recommended in the next section.
       Needletime legislation: The legislation was passed in 2002, motivated by RiSA
        (then the Association of the South Africa Music Industry) and CWUSA (then the
        Musicians Union of South Africa). SAMPRA, SAMRO and SARRAL all currently
        have a vested interest in needletime.
       Fairness of contracts: RiSA has developed a code of conduct for labels. It is
        unsure if anything similar was done for publishers. The Composers Association of
        South Africa (CASA) has, however, called for the development of standard
        contracts for composers.
       Credibility of societies: Some societies have been questioned in recent years
        and are engaged in legal disputes with members. Awareness among members
        and non-members is essential to them enforcing responsibility.
       Education: Some advancement of music education and music business
        education has taken place. The effects need to be amplified and strengthened.
       Further research: Some baseline data exists and is being made available.
        Continuous research on the part of societies and industry is essential to its
        development.
       International aid for the arts: Some aid is available, although to a limited
        degree.
       Piracy: RiSA has made advancements in the fight against piracy but the industry
        as a whole needs further collaboration to eradicate it to a larger degree.
       Bursaries to research SA music history and life histories of musicians:
        Some bursaries have been granted.


2.9.1.2.        Unfulfilled Recommendations Made for the Music Industry


Industry wide recommendations that have been suggested in the Creative South Africa
report and the Music Industry Task Team report which have been not been implemented
yet, in brief, are:




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       South African music day/week: This may be translated into a Gauteng music
        day or week. Previously the MIDI Trust held a music week, but this has since
        disappeared.
       Music retailer recognition and South African Music Award (SAMA) award
        spot: the SAMAs currently do not have a “Best SA Music Retailer” category. The
        report suggested journalistic reviews of retailers, which have not occurred to our
        knowledge.
       Mapping of live venues regionally and nationally: No formal mapping of
        venues has taken place, although some music directories have started a list.
       Support to the Music Industry development Initiative (MIDI): MIDI sought to
        develop the music industry through various project and programmes. MIDI has
        since been discontinued due to funding problems.
       Cultural Industries Growth Strategy (CIGS) branding: Including the CIGS logo
        on supply-side measures has, to our knowledge, never been implemented.
       Live venue circuit for musicians: The sheer presence of this recommendation
        in past reports indicates the lack of touring infrastructure, low presence of tour
        agents and poor development of artist management (unlike the US). This has
        been alleviated through the development of artist managers (through the Music
        Managers Forum of South Africa [MMFSA]) although touring agents, who typically
        link venues, is still in infancy.
       Gig guide for hotels: It is not proven whether this has happened or is in the
        process of happening.
       SA music airplay in airports: Airports, like any public places, are not required to
        play local music.
       Schedule of standards for the creative industries: No schedule currently
        exists, especially for the music industry.
       Extension of the term of copyright: Composers would have a 70 year term of
        copyright (instead of 50 years) and performers 50 years (although this is the
        current standing within the Performers Protection act, as amended, in 1997).
       Implementation       and     accession   of   the   World   Intellectual   Property
        Organisation (WIPO) Treaties: Better protection of South African content in the


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        digital environment by acceding to the World Copyright Treaty and World
        Performance and Phonograms Treaty. South Africa has never acceded to these,
        to our knowledge.
       Broadening the definition of performer: The Performers Protection Act still
        excludes “un-scripted” performances.
       Legitimate product identification through banderole marks on CDs:
        Amendment to the Copyright Act for this anti-piracy system has not been made
        and therefore has never been implemented.
       Blank tape levy: A levy on blank tapes (and albeit storage media) has never
        been implemented despite on-going research. RiSA has lamented the lack of
        anti-piracy legislation for intellection property for many years.
       Increasing local content quotas: Currently at 25% for commercial radio, a
        quota of 50% is recommended. Increased monitoring is required.
       Musician’s status: Labour legislation does not recognise musicians. The music
        industry as a whole does not seem to be recognised in client management
        systems.
       Social security and Ombudsman for musicians: This topic was discussed at
        Moshito in 2006. Some developments have taken place through CWUSA recently
        but a plan remains unplaced. An Ombudsman for musicians has never
        materialised.
       Reciprocity of work permits for international performers: International
        performers do not need permits but are encouraged to report to CWUSA before
        working in the country.
       Live music: Many problems still plague the upliftment of the live music industry.
       Tax incentives for the arts: Incentives have never been made available.




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3.    ALIGNMENT TO PRECEDING DEVELOPMENT FRAMEWORKS AND STRATEGIES


The following alignment to past frameworks and strategies provides contextualisation of
the strategy. The alignment should be read in conjunction with the interventions
presented in the following section.


3.1. Creative Industries Development Framework


The Cultural Industries Development Framework (CIDF) for the Gauteng Provincial
Government (2005) identifies four mechanisms which can strengthen a creative
economy. These are listed below and the strategy is explicitly aligned within this CIDF
framework:


       Pillar           Initiatives            Gauteng Music Strategy Objectives
Creative Cluster        Finance and Business      The strategy does provide business support
Development             Initiatives                services through investigating tax incentives and
                                                   funding of value chain participants
                                                  The GACC will provide grant funding and GEP and
                                                   GEDA will facilitate financing
                        Expanding Markets         Co-ordination among provincial and local tourism,
                                                   arts, humanities and heritage agencies is required
                                                  Address digital markets and opportunities
                                                  Bolstering the live music industry as well as
                                                   creating festivals and music heritage routes are
                                                   incorporated
                                                  Export programmes have been addressed as well
                                                   as benchmarked
                                                  Development in communities is fostered through
                                                   local media and live music
Creative Workforce      Skills Development        Co-operative relationships are recommended for
Development                                        SETAs, employers, providers and government
                                                   departments
                                                  Skills development is included for employed and
                                                   entrepreneurial workers
                                                  Business-training of self-employed creators and
                                                   small business
                                                  Publication of training opportunities
Creative Community      Creative Exchange         Community based development is factored into
Development                                        strategies with a network of community clusters
                                                  Community communication structures are
                                                   developed
                        Creative Community        The live music venue award for Gauteng will be
                        Award                      used to recognise venue development efforts


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Creative Sector          Sector specific                      Access to information
Initiatives              development initiatives              Live performance circuits
                                                              Provincial tours and events
                                                              Community radio development
                                                              Local content quota amendments
                                                              Music venue development


3.2. Gauteng 2009-2014 Medium Term Strategic Framework


As from 2009, Gauteng has revised its medium-term strategy, the pillars of which are
aligned to this strategy explicitly below:


     Pillar         Strategic Priorities                   Gauteng Music Strategy Objectives
Create Decent              Access to economic                Providing appropriate finance to music venues and
Work                        opportunities
                                                               education service providers
                           Labour absorbing growth
                           Gauteng positioning in trade      Developing live music and investigating tax
                            and investment                     incentives for venues
                           Improving competitiveness         Focus on music SMME development through
                           Entrepreneurship and               promotional opportunities
                            BBBEE
                                                              Export strategies for both big business and
                                                               SMMEs with regard to local music
                                                              Developing innovation through music industry
                                                               research
                                                              Both BBBEE and gender transformation are
                                                               identified within the strategy
                                                              Development of the “rights and status of the
                                                               creative worker” act
                                                              Development and subsidisation of transformative
                                                               music associations/unions
Promote Human              Promoting equity and access       Preferential skills development to aid
Development                 and quality of education
                                                               transformation
                           Food security and
                            eliminating hunger                Training to music value-chain participants and all
                           Promoting healthy lifestyles       levels
                            and health status                 Coaching and mentorship of music value-chain
                           Intensifying skills                participants
                            development
                           Social safety                     Development of skills development programmes in
                           Social development and             music business and music theory, performance
                            cohesion                           and musicology with inclusion of life skills
                           Improving health and              Facilitating partnerships between music education
                            education human resources
                           Regulation of private              and industry
                            healthcare                        Social security and aid for creative workers
                                                              Tax relief for creative workers
Equitable and                                                 Development of community media supportive of
sustainable                                                    local music
urban and rural                                               Development of live music within urban and rural
development                                                    areas
Eliminate Crime            Policing priorities               Urban blight management around music venues in
                           Strengthening justice system       communities to encourage patronage



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                            Mobilisation of communities      Strengthening of industry piracy controls
                             against crime
                            Eliminating corruption in
                             government and society
                            Improving road safety
Build a                     Transformation                   Implementation of the strategy requires
Developmental               Spatial coalition/social          governmental efficiency
                             partnership and inter-
State                        sectoral collaboration           Digital music hub as part of ICT development and
                            Technical capacity and            e-governance
                             monitoring                       Music as part of the province’s global city region
                            Government efficiency             development
                            Citizen satisfaction with
                             public services                  Monitoring of the local industry through continued
                            Entrench integrated               research
                             governance                       Development of local music on the internet and
                            Marshalling intellectual          providing ‘smart industry’ development through
                             capital, innovation,
                             research, development and         ICT
                             technology                       The tourism sector is bolstered through the
                                                               development of the live music industry


3.3. Gauteng’s Response to the Economic Crisis


This is a draft document (dated 7 September 2009) developed by the Gauteng
Department of Economic Development. The proposed interventions of this research are
aligned to this document below:


 Intervention            Details                           Gauteng Music Strategy Objectives
Budget                        Improving health care          Government efficiency
                              Improving education
Optimisation and
                               access and quality
                                                              In the sense of the Response document,
Localisation of               Crime prevention and            improvement of public health care can lead to the
Government                     safety                          benefit of other sectors. The arts sector is
                              Sustainable human               conspicuously absent from the documents review
                               settlement development          of benefits of various sectors. Alignment with the
                                                               current research may suggest the music industry
                                                               would benefit by increased local content within
                                                               media available in hospitals. Gift stores in
                                                               hospitals and clinics should have a supply of local
                                                               music.
                                                              Skills development is highlighted extensively within
                                                               this research.
                                                              Venues and events require significant upgrades in
                                                               safety and security
                                                              Protection of intellectual property is to be
                                                               bolstered, including the eradication of piracy
                                                              Urban renewal and eradication of blight through
                                                               live music
                                                              MPCC to be viewed as cultural and music centres
                                                               for community development of music
                                                              SMME support to the music industry and the
                                                               overall offshoot of job creation



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Rural                      Creating sustainable and      Development of the music industry on the fringes
Development and             decent human settlements
                                                           of the province through community based
                           Bulk infrastructure
Sustainable                Extending access to            development
Livelihoods                 quality social services       Development of ICT in rural areas and facilitating
                           Increased productive           access to music online
                            capacity of rural             MPCCs in rural areas
                            communities
                           ICT roll-out                  Mobile recording facilities
                           Access to roads and rail      Tour circuits that includes outlying areas with
                            networks                       reliable transport
                           Skills development
                                                          Skills development in music and industry in rural
                                                           areas
                                                          The tourism sector is bolstered through the
                                                           development of the live music industry
                                                          BBBEE and gender transformation identified within
                                                           the strategy
Infrastructure-Led         Transport                     Increase of local content quotas
                           Energy
Recovery                                                  Incorporating music into community media
                           Community services
Measures as                                               Instigating better access and transport to music
Autonomous                                                 venues
Sources of Decent                                         Funding music industry initiatives
Work                                                      MPCC development
Social Protection          Levels of indebtedness        Financial support for SMMEs and creators
                           Consumer protection
and Social                                                Tax incentives and relief
                           Distressed households
Development
                           Social packages (grants)      Skills development in business planning and
                           Social development             budgeting
                            initiatives to poor           Addressing creator social security issues
                            communities
                                                          Development of the “rights and status of the
                                                           creative worker” act
Protecting                 Protecting existing jobs      SMME and creator support
                            and re-skilling
Domestic Industrial
                           Financial mechanisms to
                                                          Skills development plans
Capacity Through            support distressed            Increased efficiencies within government
Intervening in              industries                    Greater access to markets
Distressed Sectors         Fostering co-operative
                            governments
Public Sector              Gauteng infrastructure        SMME and creator support that taps into an
Repositioning               development fund
                                                           infrastructure development fund
                           Organisational
                            restructuring                 Increased efficiencies within government
                                                          Music as part the province’s global city region
                                                           development


3.4. Gauteng Employment, Growth and Development Strategy (GEGDS), 2009 -
    2014


The GEGDS (2009) report revises the previous Gauteng Growth and Development
Strategy (GDS) of 2005 to 2009 and is aligned with the Gauteng 2009-2014 Medium
Term Strategic Framework discussed in the previous subsection 3.2. This strategy’s key
focus areas include resource, manufacturing, services, ICT and knowledge sectors. It



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also suggests enterprise development, trade and investment, agriculture and rural
development, and local economic development. These strategic areas are examined in
the following enabling environment:


 Enabling           Details                                Gauteng Music Strategy Objectives
Environment
Infrastructure             Public service providers          Implementation of the strategy requires
Investment                 Employment creation                government efficiency
                           Social infrastructure
                           Roads and transport               MPCCs that create employment and bolster music
                           Allowing the poor access to        development
                            and employment from               Access to and security at music venues
                            services
                                                              Development of community media supportive of
                                                               local music
                                                              Music as part the province’s global city region
                                                               development
                                                              The tourism sector is bolstered through the
                                                               development of the live music industry
Education and              Providing quality schooling       Co-operative relationships are recommended for
Skills                     Broadening access to               SETAs, employers, providers and government
                            learning
Development                Skilling for economic growth       departments
                            and poverty reduction             Skills development is included for employed and
                           The Gauteng City Region            entrepreneurial workers
                            (GCR) Academy                     Business-training of self-employed creators and
                                                               small business
                                                              Publication of training opportunities
Healthcare                 Child healthcare                  Social security and aid for creative workers
                           Healthy communities
                                                              Development of the “rights and status of the
                           Dealing with HIV/AIDS
                           Access, availability and           creative worker” act
                            acceptability of healthcare
                           Life expectancy and
                            mortality
Sustainable                Global city region                Music as part of the province’s global city region
Spatial Planning           Long-term spatial vision           development
                           Human settlements
and Human                                                     MPCCs in rural and outlying areas
Settlement                                                    Mobile recording facilities
                                                              Tour circuits that includes outlying areas with
                                                               reliable transport
                                                              Development of ICT in rural areas and facilitating
                                                               access to music online
Accessibility              Quality transport                 Accessibility of music venues and MPCCs
                            infrastructure
                                                              Music opportunities at bus, taxi and rail stations,
                                                               airports, and even service stations
Safety and                 Improving police                  Urban blight management around music venues in
Security                    performance
                                                               communities to encourage patronage
                           Social crime prevention
                           Road security                     Strengthening of industry piracy controls
                                                              Protection of intellectual property is to be bolstered
Environment and            Cleaning Development              Live events promoting awareness of environmental
Natural                     Mechanism (CDM)
                                                               issues
                           Climate change and energy
Resources                  Water                             Additional research into music role in this aspect



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4.    DEVELOPMENT INTERVENTIONS


4.1. Key Findings of the Research


Key findings that have resulted from the primary research (focus groups and key
interviews) and secondary research (information gathering) on the Gauteng music
industry have called attention to:


4.1.1.   Findings discussion: Information


All focus groups highlighted the impact of information sharing, research and knowledge
development for the music industry. This is important at all levels but when considering
the economic influence of music there is still a small amount of data available to South
African music businesses when compared to established markets like the US and UK.
This is echoed briefly for Africa in secondary research from a workshop held for the
Culture and Creativity Colloquium in Brussels (Sinclair, 2009). Certain revenue sectors
of the music industry are thinly represented while others are completely hidden.


The recording industry is the strongest in terms of research while the live music industry,
for example, being estimated as the second biggest sector, holds no concrete data. The
brand industry remains completely unknown. Benchmarking has revealed the detailed
level of information that international industries continuously produce at length although
this is poor for developing countries. The Gauteng music industry has suffered from the
low level data available and increasingly calls on meaningful data and information to
improve decision-making and to be made on a consistent basis. Accurate data on the
industry will ultimately lead to greater investment from the private sector, both nationally
and internationally. Furthermore, it allows for the evaluation of any programmes put in
place.


Thus, to ultimately uplift the industry in the long term it is important to improve industry
research and information flow for all stakeholders at all levels.


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4.1.2.   Findings discussion: Education


Tied to industry information development, education in the music industry is a key to
success and sustainability of workers in the music industry. With better industry
information, education can be set up to address relevant industry needs. Secondary
research through the Gauteng Creative Mapping Project revealed evidence that the
majority of personnel only have a grade 12. Focus groups and interviews pointed out
that the industry has specific business education needs which require developing, while
educators in music theory, performance and musicology stress the need to develop
materials for this division as well as to improve training methods.


Importantly, to uplift all levels, education at the general education and training (GET)
level should be bolstered, especially with qualified teachers and suitable materials
aimed at both industry entry and audience development with added life skills. Technical
education (such as sound engineering) is well catered for and no issues were found with
regard to that education. Many links in the sector are often vague or disparate and
personnel within the industry do not receive specialised training or simply work from
experience.


Primary and secondary research point out that there has been some (but not very
significant) BEE transformation, yet almost no gender transformation within the industry
has occurred. Education can work at correcting imbalances in these areas. International
benchmarking highlights professional development as a key success factor. Focus
groups also showed that the music education industry needs to acquire a synergetic
front to access opportunities and government requires greater coordination.


Thus, the education and skills base across the value chain in the industry and at all
levels needs to be improved.




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4.1.3.   Findings discussion: Markets


Focus groups show a need to address promotion of local music. Several focus groups
considered increasing opportunities for live performance and mass media inclusion of
local music.


A benchmark of local content quotas internationally shows that South Africa’s quotas are
lower than average. Secondary research highlighted South Africa’s ratification of the
UNESCO Convention on the Protection and Promotion of the Diversity of Cultural
Expressions, which places emphasis and importance on audience development and
raising the quotas. Through this convention, states have the right to protect their culture,
especially through media. Focus groups called attention once again to increasing local
music within local media, especially radio. The music industry supports raising the quota
while broadcasters call for deregulation. The local content quota was generally found
insufficient to produce sustainable recording careers and may need to be amended to a
higher percentage. With this, higher monitoring of content is required to see any
meaningful impact, again pointing to better flow of information. International
benchmarking calls attention to the increased participation of media and broadcasters in
the development of music.


The recording industry has the most strength of all sectors and its lack of participation in
the study did not bring any significant problem areas from that sector to the fore.
Secondary research has shown the recording industry to be growing considerably
although plagued by physical piracy. Digital piracy will also become an issue if not
addressed through legislation. The quality of South African music recordings and videos
(supply-side measures) add to the problem of including local music in broadcasting and
is a consequence of low budgets – government funding and government’s purchase of
studios is a direct response to this.


International benchmarking highlights the benefits of exporting music. Exporting music is
complimentary to a successful domestic market and is becoming viable in the light of


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globalisation and with the development of digital business models and infrastructure.
Over half the industry exports their products (albeit with a low turnover) although this
needs to be reinforced by participation in and strengthening of SAMEX and at
international trade fairs. The province has the opportunity to reinforce its position as a
global city region through these channels as well.


International benchmarking shows the significance of the music industry to be digitally
ready and as South African music enters the digital era it is important to harness digital
sales which also bolster exportation of local music. From secondary research, past
reports and key interviews there is evidence to suggest that amendments need to be
made to the Copyright Act, especially with regard to music on the internet.


South African sheet music has little attention and is indicative of a weak publishing
industry, which could be an opportunity for government to develop materials for teaching
and promotion of local music. Focus groups and international benchmarking have
highlighted the priority of audience development as a means of bolstering local music.
This requires intervention in the schooling education system as well as implementing
demand-side measures (focussed on audiences) to improve the receptiveness of local
music, especially within community27 media.


Thus, the overall success of the music industry rests upon expanding markets and
increasing exposure of locally produced products.


4.1.4.    Findings discussion: Live Music


Tourism is significantly linked to live music as evidenced by ‘nightlife’ being a significant
driver of it. Tourism strategies, through music, are also highlighted in international
benchmarking. The live music industry is the second largest according to analysis in the

27
  “Community” here refers to a traditional grouping of rural and urban inhabitants, such as “Sandton” or “Midrand”.
In alignment to the CIDF, this is an effort to build and expand “creative communities” where creative workers (the
employees/contractors) and the creative cluster (the music industry value chain) operate in a specific place. The
“Northcliff/Melville Times”, for example, is part of creative community media.


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research although evidence in focus groups indicates various problems exist with
musicians finding enough work and exposing themselves through live music. A lack of
live music venues was indicated and revamping multi-purpose community centre
(MPCC) and theatre is a viable solution. Key interviews revealed Value Added Tax
(VAT) exemption may be a viable incentive to grow local live music.


Thus, opportunities for live music, specifically, must be upgraded. These
opportunities overlap into audience development, professional development and
increased exposure.


4.1.5.   Findings discussion: Creators


Focus groups showed that creators are the heart of the industry and vital to the
development of the industry. Secondary research shows that half of the workforce in the
industry is characterised by contract workers, which has lead many creators to be
socially disadvantaged and, collectively, hard to represent. Correct labour legislation for
artists was identified in focus groups and can provide necessary policy to guide the
rights and status of a music artist. Focus groups report there is a need to support
platforms for musicians to coordinate and synergise themselves to address challenges,
including vital legal issues. International benchmarking suggests tax relief and incentives
for creators.


Thus, the value of supporting music creators has critical implications for the rest of the
value chain.


4.2. The Scope of the Strategy


The scope of the current strategy is to address industry specific problems within
Gauteng. Some of the issues addressed are fundamental to the operation of the industry
and will need to be motivated from provincial government to national government. This




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aside, the majority of the industry issues are specific to the Gauteng music industry and
can be driven from a provincial level.


The music industry is most developed in Gauteng but a large gap exists between small
and large role-players with an unstructured and risky middle-ground. This is not
uncommon in other economic sectors in South Africa (Maas and Herington, 2008). For
this reason, the proposed strategy should look to develop smaller role-players and
promote entry to this middle ground, as larger role-players will be naturally developed in
this case. Along these lines, emphasis also needs to be placed on the producers of the
industry (the creator cluster) and their business development needs, as they are the
core driver of the industry and their support is a key link to the development further up
the value chain.


4.3. Implications for the Implementation of the Strategy


The strategy should seek to strengthen ties between the districts within Gauteng, focus
on development outside of the industry established Johannesburg area and develop
unique opportunities within each one. The global city framework and Intergovernmental
Relations Framework Act, 2005, both call for the collaboration between national,
provincial and local government. More co-ordination and synergy between departments
on issues of concern for the music industry is vital to overcoming ingrained problems
and addressing new challenges. This may require increased service delivery between:
       Departments:
            o DTI
            o DoL
            o DoE
            o DAC
       Programmes:
            o SMME and BBBEE support programmes
            o Skills development
            o Investment and tourism promotion


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            o Infrastructure development
            o Market growth


4.4. Target Beneficiaries


This strategy takes an all inclusive approach to enterprises engaged in production and
supply across the old and emerging music industry value chains within Gauteng. In
essence, creators rely on other businesses to augment the marketing and distribution of
their goods – namely, composing, writing and performing. Thus, the strategy is
structured around the career lifecycle of creators. This refers to the way they develop
skills, market and sustain themselves. This offers and highlights support mechanisms
which then bolster not only creators but other enterprises in the value chain that rely on
them to succeed. Furthermore, the strategy encompasses emerging and micro
businesses.


4.5. Interventions


The proposed interventions will need to be implemented at strategic (long-term), tactical
(mid-term) and operational (short-term) levels. The overarching interventions, grouped in
the Key Findings section, form the strategic component of this strategy. These are
intended to be fulfilled over the next five years. Alongside them are briefly proposed
tactical interventions, which are possible programmes to fulfil strategic interventions.
The operational components, that is the day-to-day running of the strategy, is intended
to be controlled and driven by the Gauteng Provincial Government (GPG) and
specifically the Department of Sport, Arts, Culture and Recreation (SARC) in the
successful implementation of the strategic interventions. GPG will interact and seek
partnership with the Department of Arts and Culture where national interventions need
to be implemented. Overall, it is important to note that any funding or subsidisation
within the interventions is required to be regulated and result-driven. The strategic and
tactical interventions are discussed below:




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4.5.1.    Improving Industry Research and Information Flow


Research shows that the Gauteng music industry, like the South African music industry,
requires a significant amount of information to make informed business decisions.


Problem Statement


The industry is plagued by low access to reliable and dedicated statistics and
information generation. Particular information of interest in this sector is:
        Sales trends
        Consumer profile trends
        Royalty income and distribution
        Media trends


Interventions


The GPG will provide incentives and/or enact policy for industry associations and
societies and private sector business to collect and manage data on the Gauteng music
industry. Correct management information systems should be implemented. This could
be assisted by Statistics SA, SARS, DTI and SAARF as well as by holding regular
forums for industry feedback. Reports and industry intelligence can be gathered and
released to stakeholders.


Objective


The objective of this intervention is to provide constant quantitative data-gathering and
analysis for use by government, industry and the public. This will positively impact the
sector in the long-term through improved business decision-making. Improved decision-
making is the fundamental basis of good business practice at any level. Follow-up
research will benefit from the transparency of the sector and track any effects of the
implementation of this strategy.


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Potential Risk


Risks include the long-term reliance of industry on the subsidisation of statistic
gathering. Ultimately the music industry should benefit from research that is funded both
by government and the industry itself in a public private partnership. Key drivers for
transparency and development of key industry data should be investigated. Industry
acceptance of reports may be hindered by anti-transparency stakeholders.


Key Indicators


        Increased transparency among role-players
        Level of industry dissemination and reception
        Increase in local and foreign investment
        Key understanding of local music history
        Reduction in government subsidisation and increasing take over by industry,
         although research may never be entirely unfunded by government
        Monitoring women and BEE transformation


Possible Tactical Interventions


Tactic            Expense         Implementation          Effects           Research Precedent
Generate a        Medium          Short-term              Medium-           Focus groups, current study
yearly report                                             term
                  Description
                  The GPG will provide statistical analysis and publish a yearly report on information gathered on the province.
                  This report should be made available on-line and in print format for collection by emerging and established
                  role-players in the Gauteng music industry.

Tactic            Expense         Implementation          Effects           Research Precedent
Hold regular      Low             Short-term              Medium-           Focus groups
focus                                                     term
groups\forums     Description
                  Focus groups in this study have been successful to the point that participants agree that on-going focus
                  groups (a sort of “industry group therapy”) be convened every year with different themes and a small group of




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                  members. These forums can also be used to inform the yearly industry report, challenge current sources of
                  information and explore new ones.

Tactic            Expense          Implementation        Effects            Research Precedent
Gauteng music     Medium           Short-term            Long lasting       Current study
industry          Description
directory         Commission the producers of The Score or SA Artists (www.saartists.co.za) to do an online and\or printed
                  “Gauteng Music Industry Directory”. This directory should be free to educational providers for students and at
                  a feasible cost to the public.




4.5.2.      Education and Skills Development Initiatives


Concentrated skills development is needed in order for the sector to take advantage of
opportunities presented in the strategy and in the market place. Clear career paths for
all industry role-players will be made explicit and defined through improved education.
Further to this, education providers in the industry need to strengthen co-operation and
be given opportunities to collaborate on improvement.


Problem Statement


While Gauteng has the most access to music industry education, general sentiment is
that the music industry has a skills gap in 1) music performance, theory and musicology,
2) music business (including, particularly, IP studies) and 3) life skills. The link between
these needs to be defined and training of other value chain members, beside creators,
improved. There is also a disjunction within industry; better coordination and synergy is
required. Furthermore, audience development should be stimulated through music
education at GET level (i.e. school level). South African music and culture is also not
greatly used in education and training.


Interventions


Interventions to improve skills levels amongst value chain participants will include:




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       Music performance methods, styles and techniques of South African songs will
        be made available for inclusion into teaching materials.
       Provide networking and lobbying opportunities to education societies and service
        providers and allow interaction amongst employers and entrepreneurs (with the
        possible aim of forming an encompassing music education association).
       Redirecting funds within the MAPPP-SETA to music development, due to the lack
        of funds arising from the music sector itself.
       Provide funding to education associations and service providers of music
        business and music performance, theory and musicology at GET, FET and HET
        levels. Initiatives will specifically focus on women and BEE transformation.
       Develop mentorship and apprenticeship programmes to promote skills exchange
        between established and emerging, young and old role-players.
       Develop and aid professional development programmes around music business
        education for all participants at all levels.
       Fund bursaries for the disadvantaged, especially to seed transformation in the
        industry.
       Ensure promotion of career opportunities within the music industry across the
        entire value chain. This is to be facilitated by collecting and delivering information
        on employment opportunities through education providers, industry role-players
        as well as structures such as music stores, music venues and the proposed
        digital music hub, and so on.
       Music appreciation and education should be fostered, beginning from GET level
        through teacher training and supply of teaching materials. This requires
        partnership between relevant government departments to create better
        participation among education role-players. Development at this level should
        address all fields (theory/performance, life skills, business and technical) with
        talent identification and high performance development.


Objective


The objective is to improve skills across the value chain for participants in the province.


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Potential Risk


Skills development needs to be demand-driven and industry-relevant. Survival of
education service providers should not rely on SETA funding.


Key Indicators


        Increased skill levels as reported by industry
        Improved outputs of value chain participants
        Awareness of fair trade practices among participants
        Improved transformation within the industry


Possible Tactical Interventions


Tactic               Expense            Implementation            Effects          Research Precedent
Fund music           High               Medium-term               Long             CIGS 1998, CSA 1998, MITT
business                                                          lasting          2000, MEDS 2007, focus groups
education service    Description
providers            Music business education requires funding and bursaries for service provides which will develop skilled
                     professionals in the music business management sector. Further to this, a yearly music business research
                     journal could be created and adopted by industry. Researching of SA music and heritage as well as
                     mentorship would also be fulfilled by the schools. Spin-offs for job creation and industry stimulation are
                     immense.

Tactic               Expense            Implementation            Effects          Research Precedent
Run monthly          Low to             Short-term                Long             MIDI Trust, focus groups
music workshops      medium                                       lasting
                     Description
                     Education of musicians and performers is the key to the success of the music industry – especially amongst
                     musicians at grassroots level in both urban and rural areas. Not just short brief workshops but in-depth
                     workshops, giving grassroots musicians the key information to grow as an entrepreneur and musician in the
                     Gauteng music industry.




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4.5.3.    Expanding Markets and Increasing Exposure


Gauteng music requires opportunities to expand markets. This requires improved
marketing from the supplier-side as well as access to promotional avenues on the
demand-side. Significantly, new music industry models are poised to embrace the digital
environment in South Africa as well as South Africa’s ratification of the UNESCO
“protection of cultural expression” convention.


Problem Statement


Low levels of local music in broadcasting and other media inhibit opportunities for
developing artists. Reliance on international product to service their publications has
reduced access to these media and diluted brand strength for local music among
consumers. Audience development is critical to growing local music, especially on a
community level. A cultural imbalance exists in certain markets and needs to be
corrected. Product quality levels also need to be upgraded but this is linked to success
tied to correct promotion. Infrastructure issues in the digital environment remain a
challenge to the industry.


Interventions


The following interventions are proposed:
        A digital Gauteng music industry hub shall be set up, perhaps housed in the
         South African Music Hub (Downtown Studios). This will include:
            o A Gauteng directory of value chain participants;
            o Digital market access by listing Gauteng music websites;
            o Internet/mobile storefront opportunities for Gauteng artists using a variety
                of digital delivery methods and business models;
            o Highlight funding opportunities available;
            o Provide information on the Gauteng music industry;
            o Create links with Gauteng tourism;


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            o Digital music export showcases;
            o Newsletter and other communications which will keep participants aware of
                hub and community activities, and;
            o Digital training platforms.
       The local content quotas will be increased to 30% local content for commercial
        radio and 45% local content for public and community radio and include, in both,
        40% for new material released in the past 12 months. The quota will be
        monitored and reported to the industry, government and public which may be
        assisted by the formation of a “music council of South Africa” or the new South
        African Music Hub.
       Community media shall be subsidised (especially radio) and provided with
        incentives to promote local music, reduce reliance on advertising and curb high
        operating costs. Subsidised media will be regulated to include music in their
        publications (where they do not have) of which at least 50% must be local.
        Subsidised media will provide steady critique, encourage diversity within genre
        (that reflects their community) and level of artist as well as generate airplay charts
        and publicity to guide the choices of local music on commercial radio and other
        media.
       Innovative export initiatives should be addressed in tandem with SAMEX and
        AIRCO (and other interested industry associations). Initiatives could include
        Gauteng music compilations for international music trade fairs and inbound
        buying missions (by bringing in international buyers to take music out of the
        province). Subsidisation and grant funding will be supplied to Gauteng artists to
        support their touring in international markets for both cultural and commercial
        purposes.
       Fund supply-side measures of music businesses to help promote and market
        artists. This funding should be part-subsidised and regulated. Grants will be
        based on merit, background, current activity and business planning. Assistance
        could be given through the Gauteng Arts and Culture Council (GACC), Gauteng
        Economic Development Agency (GEDA), Gauteng Economic Propeller (GEP),
        Umsobomvu Youth Fund, the Tourism Enterprise Project (TEP), Industrial


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         Development Corporation (CDI) and Business and Arts South Africa (BASA) for
         education and marketing materials (for example: press kits, electronic press kits,
         music videos, signage, etc.).
        Tax incentives, relief and VAT exemption will be investigated to encourage
         development of existing and new local music content websites. In addition,
         broadband could be made available to local music content websites at reduced or
         no charge.
        Certain amendments need to be made to the Copyright Act, which need to be
         developed with legal council and could include:
             o Legislation to combat internet piracy in South Africa
             o Legislation to develop a South African music internet economy (which
                 would include control of the communication of music over the internet to
                 the public)
             o Extension of the copyright term, which is in line with international trends28
             o Deletion of “ephemeral” exemptions which allow copies of musical works to
                 be made for broadcasting for a short period of time, which often allows
                 radio to make copies without paying royalties (section 12 (5) of the
                 Copyright Act No 98 of 1978)29


Objective


Local music is to be developed within community media with local, provincial and
national support while creating export opportunities to broaden markets.


Potential Risk


Local music is seen to be forced upon audiences, which must be guided by the integrity
of media. The hub may be seen to compete with other digital ISPs.
28
   A recent report on Billboard.biz (16 June 2009) shows that Japan has recently implemented a longer copyright
term and has made it illegal to download copyrighted material without the rights holder’s permission.
29
   Evidence for this amendment was highlighted in the review process by Nick Matzukis, an Advocate of the High
Court, and secondary evidence was found on the Frequently Ask Questions section of the SARRAL website
(http://www.sarral.org.za/faq_tips/).


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Key Indicators


        Increased market share of music SMMEs determined through market research
        Growth in exposure of local music through tracking indicators such as airplay
         charts and publicity
        Greater awareness, sales, listenership and readership in foreign and domestic
         markets as reported by role-players


Possible Tactical Interventions


Tactic                      Expense           Implementation            Effects             Research Precedent
Include music               Low               Quick                     Long lasting        MEDS, 2007; current study
descriptions on tourism     Description
websites and other          Unlike other provinces listed in tourism websites, Gauteng lacks a description of its type of music.

tourist information         Sites to be address could be Wikipedia.com, the world’s largest online encyclopaedia and
                            www.sa-venues.com. This would aid in defining for tourists what kind of music is found in
                            Gauteng. Standard definitions of music in Gauteng should be researched, composed and
                            included in tourism websites with links to major artists, live venues and industry bodies found in
                            the province. Multimedia content could be provided. Updates would be made yearly. Besides
                            using digital means, other tourist information such as leaflets and map information could include
                            information on music venues and a description of the music sector.

Tactic                      Expense           Implementation            Effects             Research Precedent
Expose Gauteng              High              Medium-term               Medium-             CSA 1998
recording artists                                                       term
                            Description
                            Offer unsigned and unrecorded artists an opportunity to record their music. International
                            precedent: Australia seeks to find artists outside the urban hub; then record them and ensure
                            airplay of the music on relevant stations. This music could be featured on a CD compilation,
                            through internet downloads and via mobile channels (perhaps through the new Gauteng music
                            website) and used in tourism promotion. Proceeds would filter back to the artists.

Tactic                      Expense           Implementation            Effects             Research Precedent
Music retailers             Low               Short-term                Long-term           Current study
association                 Description
                            A music industry organisation could facilitate an association between music retailers such as
                            Musica, Top CD, Look & Listen, Phase 2, Reliable Music, etc. Such an association could produce
                            regular sales charts and music retail information. The Australian Music Retailers Association is an
                            international precedent.




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Tactic                      Expense              Implementation          Effects              Research Precedent
Government in-house         Medium               Medium-term             Medium-              Focus groups
radio                                                                    term
                            Description
                            A South African only music radio station that is implemented in all public government areas in
                            Gauteng such as: The licensing departments, police stations, SARS buildings, etc. The effects of
                            music in waiting lines have been long documented and implemented by big business within South
                            Africa. Quotas for the music should give preference to new Gauteng recording artists.

Tactic                      Expense              Implementation          Effects              Research Precedent
“Gauteng Music              Low                  Short-term              Medium-              Current study
Collection” of sheet                                                     term
music                       Description
                            A volume of Gauteng music can be compiled into a sheet music book for distribution to schools,
                            other provinces and overseas.

Tactic                      Expense              Implementation          Effects              Research Precedent
Compelling Airports         Low                  Medium-term             Long-term            Current study, CSA (1998)
Company South Africa        Description
(ACSA), SAA, SARS,          Local music should be exposed to domestic and international visitors upon arrival at local airports

sports stadiums and         and stations. This will require delivery of compilations of SA music to officials or the creation of a
                            government in-house radio station. This becomes very relevant when considering 2010 World
Gautrain to include
                            Cup opportunities.
South African music only
Tactic                      Expense              Implementation          Effects              Research Precedent
Creating cross-sector       High                 Long-term               Long-term            Current study
synergies                   Description
                            Efforts could be made to create connections between music and other creative industries. A far-
                            fetched example may be a music industry movie about a dance professional whose music career
                            forces them to leave dancing but is reconciled with the help of friend who is a crafter at Rosebank.
                            A book and music compilation can support the movie. Actors would include transformative role-
                            models.




4.5.4.   Upgrading Opportunities for Live Music


The provincial and community based live music industry has the potential to create
opportunities for steady job creation, driving market access as well as practical skills
development.



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Problem Statement


Live music in the past has been suppressed and struggles to survive in Gauteng through
low attendance and variety of patrons. Urban decay such as crime and illegal activities
has tainted perceptions.


Interventions


       Live venues in the province need to attract higher patronage and encourage a
        variety of performing artists. This can be achieved through education in music
        venue management and funding support through the GACC for equipment and
        venue renovation, as well as working with local government to protect venues’
        interests. Local government will work with venues to curb illegal practices outside
        of affecting consumers in business hours.
       Renovation of MPCC as cultural venues for use as music venues and foster,
        along with local media (described previously), a sense of community
        development of music. Music venues should be perceived on a community level
        not only as an adult activity but as extra curricula activities for children and adults.
        New multipurpose centres will be built close to schools to foster participation with
        music. Efforts will be made to curb crime and illegal activity at community venues.
       Tax incentives, relief and VAT exemption will be investigated to encourage
        development of existing and new venues.
       Set up a Gauteng tour circuit where artists can easily establish a tour route of
        venues that are appropriate to their style (a “Gauteng Music Meander”). To
        facilitate, a tourist map of music venues within the province is to be drawn up and
        co-operation with the GTA rallied.
       A “live venue music award” will recognise outstanding venues in Gauteng,
        including factors such as community cohesion, local pride and community
        participation.




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Objective


Build a healthy, community based live music industry.


Potential Risk


Strategies for market access need to be realised simultaneously to creating
opportunities for the live industry. Issues such as building community buy-in are
important to developing a successful live music scene.


Key Indicators


        Safer facilities as reported by patrons
        More live performers from Gauteng seeking opportunities in other provinces and
         internationally
        Performers from other provinces increasingly touring Gauteng due to increased
         number of venues
        Increased live performance within the province as indicated by growth in venues
         and regular custom to those venues as reported by venue owners and live
         performers
        Increasing number of ticket/door sales of subsidised venues


Possible Tactical Interventions


Tactic            Expense             Implementation          Effects           Research Precedent
A Gauteng live    Intermediate        Short-Term              Long lasting      MITT, 2000; Current study
performance       Description
association       Form a live music industry body for Gauteng (or South Africa). International precedent: Live Performance
                  Australia and People Advocating Live Music (PALM). LPA undertakes valuable research projects that
                  measure ticketing sales, revenue generation, economic impact and consumer demand for live performance.
                  They also partner with a variety of live performance industry organisations to provide a co-ordinated
                  approach to industry research and development. PALM is a regional development in Cairns, Australia which
                  seeks to address the lack of live performance in the region. SAMPA may be the perfect partner to support




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                  and grow research on the live music sector, particularly. SAMPA may also be the perfect vehicle to take over
                  this role. In a case for Gauteng, a group called “Gauteng Live Music” may band together artists, venues and
                  promoters in an effort to stimulate live music in the province. Both LPA and PALM show that this is beneficial
                  for tourism.

Tactic            Expense                Implementation            Effects             Research Precedent
Gautrain          Intermediate           Medium-term               Long lasting        Current study
buskers           Description
                  In the same way as buskers appear in tube stations and the subway (London, New York), could there be a
                  way to formalise this industry and make it accessible to musicians as an avenue for exposure? Or could the
                  trains/stations be used as ambient media for the same purpose, to expose local talent? This is especially
                  relevant on the East-West line between Sandton and OR Tambo, which is scheduled to be used by tourists
                  on a regular basis between hotels and the airport. The existing busker hub at Rosebank/The Zone is already
                  in the same vicinity as the new Rosebank station, so start the trend there and grow it possibly to other
                  precincts. The Newtown Cultural Precinct and Gautrain are both Blue IQ projects, so how can a greater
                  synergistic relationship between the two become reality?

Tactic            Expense                Implementation            Effects             Research Precedent
Gauteng music     High                   Mid-term                  Medium-             Current study
festival                                                           term
                  Description
                  A possible Gauteng Music Festival ‘a la Dubai Shopping Festival’ which uses ambient media to promote it,
                  such as airport carousels, building wraps, interactive billboards and other non-traditional, unconventional
                  modes of communication. This would provide exposure to musicians and generate tourism. Job creation
                  potential is huge.

Tactic            Expense                Implementation            Effects             Research Precedent
Funding a         High                   Short-term                Short-term          Current study
Gauteng           Description
orchestra         Orchestras have the great ability to provide high employment. Orchestra members should be trained and a
                  variety of music should be catered for, particularly native to the province. Funding an orchestra will, however,
                  be at high cost and provide little audience development and industry stimulation without other measures.

Tactic            Expense                Implementation            Effects             Research Precedent
Revamping         High                   Mid-term                  Long-               Focus groups
community                                                          lasting
theatres for      Description
music             Old community theatres within Gauteng can be revamped and set-up as community music\cultural venues.
                  They could be government subsidised and integrated into a live circuit. They have the ability to create
                  employment, create a place to distribute information and increase tourism. These could also be used as
                  cultural houses for children and teenagers between 12 and 22 to learn music, learn how to take responsibility
                  and get inspiration. They could provide extra curricular activities for children.

Tactic            Expense                Implementation            Effects             Research Precedent
Overcoming        Medium                 Mid-term                  Short-term          Focus groups



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consumer          Description
transport         A community “music-bus” service can be established which serves direct routes from residential areas to
                  music venues and operates on a nearly 24-hour bases. The service should be cost-effective, reliant and safe
problems
                  (perhaps offering first aid services and venue recommendations).




4.5.5.      Supporting Music Creators


Creators are fundamental to quality product output. Beside education, social and
economic development of this cluster is vitally important for uplifting all stakeholders.


Problem Statement


Creators often struggle socially and financially and this affects their ability to sustain and
develop successful careers. In turn this affects their ability to compete, creates a lack of
respect, and fosters non-professional habits and perceptions.


Interventions


The interventions are:
        Holding a creators’ symposium in the province to build co-operation between
         creator entrepreneurs, creator associations and government, whether this is a
         separate event or increasing the capacity of Moshito.
        Provide support and funding to creator associations who advance the artistic,
         cultural and transformative components of the music industry. Where support is
         lacking for these elements, creation of associations or non-governmental
         organisations (NGOs) in these areas should be nurtured.
        Investigating tax relief and incentives for creators. Further examination should be
         made with tax consultants regarding tax issues for creators. A music industry
         category within tax systems for creators will be established. Any tax relief granted
         to creators will encourage careers as creators and foster investment for and in




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        them. This also creates incentives for successful artists to remain based in the
        country.
       Enacting a “Rights and Status of the Creative Worker” Act to address labour
        issues for creators.
       Create a social security trust fund and board to administer it (developed by
        industry and driven currently by CWUSA).
       Fund independent legal protection structures (legal aid clinic or a legal desk) for
        creators to have their rights better represented as well as develop careers for the
        legal profession in the music industry. The clinic could be staffed part-time by
        recognised music law experts, serve as arbitration board and legislated through
        the GPG.


Objective


The objectives are to create strong creator support mechanisms through government
and creator association participation. Through this and economic and social stabilisation
factors, creators become a key driving factor for success of the industry.


Potential Risk


Other elements of the value chain, beside creators, should not be under-emphasised.


Key Indicators


       Strengthening of co-operation between creators, associations and government
       Better membership retention, acquisition and support as reported by associations
       Tax relief and incentive systems implemented for creators
       Enactment of legislation governing creative worker rights and status




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Possible Tactical Interventions


Tactic            Expense         Implementation          Effects       Research Precedent
Women in          Low             Short-term              Long-         CIGS, 1998; CSA, 1998; MITT, 2000; focus
music                                                     term          groups

federation/       Description
association       A society of female musicians and businesswomen could be started which specifically represents the interests
                  of women in music. A strong body of female artists, composers and businesswomen would make up its ranks
                  and provide support and mentorship to women in Gauteng and around the country.

Tactic            Expense         Implementation          Effects       Research Precedent
Creation of a     Low             Short-term              Long-         CSA, 1998; MITT, 2000; focus groups
schedule of                                               term
standards for     Description
musicians         A schedule of standards for musicians in all disciplines can be drafted and disbursed by government as “best
                  practices” for musicians. This could be a recommendations handbook that guides employment opportunity
                  choices and education of musicians. Common “know-how” of dealing with other role-players can be included in
                  the standards. This can be updated regularly and disbursed at regular industry events.




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5.      ROLE ALLOCATION FOR STAKEHOLDERS


The following outlines the roles and responsibilities of these stakeholders with regard to
the implementation of the strategy. In many cases this means a continuation of existing
activities and programmes and for other, newer partners, it requires engagement with
the strategy and the sector for the first time.


Level           Stakeholder   Role in the implementation of the strategy
                              Current Activity                     Proposed Activity
National        DAC              Development and promotion           Conduct a revised national
                                  of arts and culture                  music industry study
                                 Supporting the development
                                  of music associations
                                 Target music creators through
                                  the Investing in Culture (IIC)
                                  programme
                                 Supporting youth in the music
                                  industry through the Field
                                  Band Foundation (FBF)
                DBE & DHET       Provide music industry              Forming a music education
                                  education and training               association
                                                                      Address GET music
                                                                       education
                DED              Developing trade, investment        Facilitate co-operation from
                                  and tourism in key economic          development agencies such
                                  sectors                              as GEP, GEDA and GTA
                                 Provision of education              Ensure the music industry is
                                  regarding consumer affairs           factored into provincial
                                  and unfair business practices        development plans
                                                                      Facilitation of access to
                                                                       government procurement
                                                                       systems
                DoF              Management of national              Allocate funds to investment
                                  government finances                  in music industry




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                                                                    Develop information systems
                                                                     and investigate tax relief and
                                                                     incentives for the music
                                                                     industry
                DoH             Society health care                Investigate health
                                                                     programmes for the music
                                                                     industry in line with the social
                                                                     security plan
                DoL             Regulates labour practices         Align education initiatives with
                                 and activities                      DoE
                                                                    Develop social security plan
                                                                     for music industry
                                                                    Motivate “Rights and Status
                                                                     of Creative Worker” Act
                DST             Development of science and         Development of state of the
                                 technology for national             art music equipment
                                 system of innovation
                SARS            Collect revenue and ensure         Develop information systems
                                 compliance with tax law             and investigate tax relief and
                                                                     incentives for the music
                                                                     industry
                DSD             Social welfare and security        Examining the social status of
                                 development                         creators, in particular, as well
                                                                     as the music industry as a
                                                                     whole and develop social
                                                                     welfare programmes
                Tourism         National tourism development       Develop tourism in
                                                                     conjunction with music
                                                                     industry
                DTI             Export and trade facilitation      Expedite SAMEX becoming
                                 and support                         an export council
                                SMME development
                                Finance
                                Registration of enterprises
                                 and trademarks




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                                 Administration of copyright
                                  regimes
                Transport        Development of public works        Facilitation of easy access to
                                  and movement of people,             music venues
                                  goods and services                 Enable safe transportation
                                                                      to/from music venues
                SEDA             Business support and training
                                  for enterprises
                                 Financing
                                 Skills development for music
                                  enterprises
                IDC              The Media and Motion               Provide financing to music
                                  Pictures Strategic Business         industry enterprises
                                  Units funds music venture
Level           Stakeholder   Role in the implementation of the strategy
                              Current Activity                    Proposed Activity
Provincial      SACR             Strategy champion                  Facilitation and co-ordination
Government                       Gauteng province creative           of current strategy
                                  industries development             Establishment of Gauteng
                                                                      music website hub
                GDE              Education and training             Further development of music
                                                                      education programmes in
                                                                      schools
                GACC             Provide financing to arts and      Provision of grant funding to
                                  culture activities                  the music industry in support
                                                                      of strategy objectives
                GTA              Provincial tourism                 Facilitation of linkages
                                  development                         between music and tourism
                                                                      sector
                                                                     Inclusion of music sector in
                                                                      marketing and promotion
                                                                      activities
                GEP              Provincial investment and          Identification, financing and
                                  promotion                           incubation of music
                                                                      enterprises



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                GEDA                Provincial investment and         Develop skills and job
                                     promotion for a global city        creation in the music sector
                                     region                            Investing in music enterprises
                                    Trade facilitation                Incorporate music into its
                                                                        global city region
                                                                        developments
                                                                       Recognising music as a
                                                                        special support sector and
                                                                        incorporate it into the
                                                                        economic hub project
Level           Stakeholder      Role in the implementation of the strategy
                                 Current Activity                   Proposed Activity
Local           Metro and           Advocate for additional           Development of local music
Government      district             resource allocations               growth plans
                municipalities      Maintenance of existing           Alignment of resources to
                                     business development and           provincial strategy
                                     market access initiatives         Attendance at provincial
                                                                        music forums
Local           State                                                  Development of institutions
government      theatres, city                                         Market access opportunities
institutions    halls and
                music venues
Parastatals     MAPPP-              Support for training
                SETA                 interventions for the music
                                     industry
                THETA               Support for tourism-related       Recognise music as an
                                     training interventions             important tourism component
Level           Stakeholder      Role in the implementation of the strategy
                                 Current Activity                   Proposed Activity
Development     CBOs                Community development
Sector          Training             Music education and training      Forming a music education
                providers            Mentoring and apprenticeship       association
                TEP                 Financing
                                    Facilitation of tourism
                                     linkages



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Private         Creators                    Buy-in and participation
Sector          Business                    Buy-in and participation
                Business                    Advocacy for local music
                associations                 enterprises
                Tourism                     Facilitation of market access
                sector                       opportunities
                Wholesale                   Facilitation of market access
                and retail                   opportunities
                sectors
                Broadcasters                Facilitation of market access
                                             opportunities
                Media                       Facilitation of market access
                                             opportunities




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6.     ACTION PLAN


Short term                                                Date
Completion of strategy                                    01 July 2009
Contact made with statistics associations                 01 October 2009
Gauteng digital music industry hub                        01 October 2009
Implementation of focus groups                            01 February 2010 – 2014
Creators’ symposium                                       01 September 2009
Redirect funding to music within MAPPP-SETA               01 December 2009
Provide network and lobbying opportunities to education   01 September 2009 –
associations and service providers                        2013
Promotion of career opportunities                         February 2010 – 2014
Fund marketing materials                                  November 2009 – 2014


Medium – Long term                                        Date
Funding live venues                                       01 February 2010
Revamping MPCC and theatres                               01 February 2010 – 2016
Incorporation of SA music into teaching materials         01 February 2010
Start export programmes                                   01 April 2010
Gauteng tours circuit and Gauteng music meander           01 April 2010
Funding creator associations                              01 April 2010
Annual report on Gauteng music industry                   01 May 2010
Teacher training and school audience development          01 February 2011
Develop and fund legal aid structure                      01 May 2011
Gauteng music festival                                    01 September 2010
Gauteng live venue music award                            01 October 2010
Provide funding to education associations and service     01 December 2010
providers



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Subsidise community media                                    01 February 2011
Develop mentorship and apprenticeship programmes             01 April 2011
Investigate and provide tax relief/incentives to creators    01 April 2011
Fund bursaries for disadvantaged (seed transformation)       01 December 2011
Develop and aid professional skills programmes               01 February 2012
Amend Copyright Act                                          01 February 2012
Amendments to local content quota                            01 March 2012
Enact “Rights And Status of the Creative Worker” Act and     1 July 2012
develop social security fund
Track local music exposure in domestic and foreign markets   01 July 2012




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7.    CONCLUSION


This research has outlined the strategy the Gauteng Provincial Government can
undertake to successfully intervene in the Gauteng music industry. The strategy results
have been carefully outlined to coincide with stakeholder requirements and expectations
and bring positive, real growth to this sector. The audit of this tier of the creative
industries has revealed many challenges. It has revealed an industry which is about to
have significant changes to its traditional business model and value chain in the next
five years. These issues have been fully evaluated and incorporated into the research
design.


Interventions shall address some common issues and prepare the industry for a new
business climate. At the heart of the recommendations is the creator, whose welfare,
status and financial stability are a key to the growth of the industry. Secondly, correct
business information and marketing are essential parts to developing creators. The
prosperity of other value chain participants, such as record labels, music publishers,
artist managers, publicists and booking agents rely on their successful participation in
the market. Their relationship with the media must be strengthened, moving Gauteng
music to top-of-the-mind awareness for consumers. All-round skills development
provides the industry with workers who have the ability to carry the industry, innovate
and build Gauteng into a modern and globally competitive city region.


Despite the economic aspect to music, we should pause to remember that music study
and research like this can pull music into the realm of science and loose its aesthetic
value. In trying to package it and sell it, we should never loose sight of what we are
actually dealing with: magic…




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8.       APPENDIX: FOCUS GROUPS AND KEY INTERVIEWS


8.1. Focus Group Methodology


The focus groups made use of non-probability sampling due to the qualitative nature of
the information garnered in focus groups, and also because the nature of the research is
vastly exploratory, which requires open-ended questions with respondents that should
feel free to voice their concerns or opinions as they relate to the research. In the non-
probability mould, sampling consisted of a combination of quota sampling, convenience
sampling and judgemental sampling, all acceptable sampling methods within the
qualitative research framework:


Quota sampling ensured that the relevant make-up of the focus groups reflected the
Gauteng music industry in its totality, with careful attention to ensure that all the relevant
players in the industry were represented. As such, the focus groups included people
who are:
         geographically dispersed (Johannesburg, Pretoria, Vaal)
         gender sensitive (both female and male)
         income and lifestyle non-specific (lower and higher LSMs)
         reflective of the multi-racial nature of the province (all four population groups were
          included)
         age non-specific (industry veterans and novices took part)
         inclusive of the multi-faceted nature of the industry (players from teachers to
          music producers to singer-songwriters to record labels to publishers to the
          various representative bodies all in the creators, enablers, facilitators, revealers
          framework)
         encompassing all genres (from Classical to Afrikaans to Pop to Rock to Kwaito to
          Hip-Hop to Afro-Pop to Traditional and so forth)




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Given the busy nature of people in the music field, convenience sampling allowed the
focus groups to continue unimpeded, despite peoples’ schedules or general lack of
availability.


This leads onto judgemental sampling, where respondents were chosen because of
their acknowledged expertise in the field of music in whatever capacity. This also meant
the use of convenience sampling, since an existing network was used to garner and
generate new leads, which in turn were then used to create the focus groups (in this
respect, some elements of snowball sampling were also used).


During the course of the research, when specifically speaking to people in the Tshwane
area, there emerged the opportunity to host an open forum with a collection of people
who could not make the focus group research, it was deemed they did not fit the
necessary quota for the focus group, or the group would have been too large to
accommodate in a focus group. A meeting was therefore held in Centurion to
accommodate people in the Pretoria area who wished to voice their opinion on the state
of the music industry in Gauteng, with specific reference to the role of Tshwane in the
industry, as well as the increasingly synergistic relationship between Greater
Johannesburg and Tshwane/Pretoria.


Following the focus groups, the research conducted a series of follow-up interviews with
key industry people. Interviews were focussed on areas which were weakly addressed
within the focus groups. A summary of each interview is given below the relevant focus
group and readers should bear in mind that some interpretation and extrapolation has
occurred during the summaries.


8.2. Focus Group’s Delineation


The traditional music industry value chain is often described in terms of creator ->
publisher -> record company -> manufacturing -> distribution -> retail (GCMP, 2008).
This has historically centred the industry on the recording company. The internet is


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challenging this existing value chain and a new business model is developing. For the
purposes of the focus groups, a more fundamental model can be implemented whereby
creators use enablers and revealers to reach their market30. Facilitators help build and
control the relationship between these parties and are generally industry associations.
None of these types may be mutually exclusive. The traditional value chain still exists to
a great extent in operation within South Africa but this model serves as all
encompassing for the research.




                                  Creators                      Enablers




                                                 Facilitators




                                                 Revealers




                                                 Consumers


                                                  Figure 8-1
                                Role-players in a creative industry value chain


Facilitators provide a platform for education, networking, bargaining, royalty collection
and lobbying interest for the members that they serve. They are associations or NGOs
that facilitate other fundamental role-players in the industry. Because of the overlapping
nature of the facilitator’s function, they exist in all the clusters above and particular

30
  This idea is based on a “cultural production system” where creative, managerial and communication sub-systems
exist to perpetuate culture (Shaw, 2007; Pratt and Ndiaye, 2004).


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organisations for each one is listed below. Other than these cluster specific
associations, government departments also fall part of the facilitator group.


Creators of the music industry are the composers, lyricists, performers, record
producers and session musicians – the underlying “bed” of the industry (referred to as
originators in CIGS, 1998). Traditionally, this is the largest part of the value chain and is
typical of creative industries (CIDF, 2005). They are referred to as the core of the music
industry and are thought to be retaking the place at the centre of the industry and
displacing record companies. Facilitators here generally include CASA, CWUSA,
SAMRO, SARRAL, SADMA, SADJA, NMSA, BIEM and CISAC. Facilitators in this
regard look out for the interests of creators and often provide a single voice for their
membership as well as help educate and support them (for example, a songwriter looks
to SAMRO to protect their interest in their performing rights. This interest can be
economic as well as legal.)


Enablers are record companies, distributors, music publishers, publicists, artist
management companies, entertainment lawyers and booking agents (music business
services in the MEDS Report, 2007) – those who would exploit the creators for mutual
beneficial gain. Facilitators in this group generally include RiSA, AIRCO, NORM,
SAMPRA, RAV, MMFSA, SARA, SAMPA and IFPI. Facilitators for enablers usually
comprise enterprises which are more corporate in nature (for example, the Recording
Industry of South Africa [RiSA] represents the majority of recording companies and
provides anti-piracy initiatives for their members). In the case of NORM, for example, an
individual songwriter can join but they generally represent the interest of publishers.
SAMRO is a similar case, where publishers generally join for performance rights, but
SAMRO represents the majority of individual songwriters. These overlaps do exist. This
group is generally well organised and their interests are well represented.


Revealers are considered to be press, media, retail, social networks, music venues,
music promoters, search engines, mobile content providers and download sites (content
aggregators) – those who have access to the market. Facilitators here are generally


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NAB, ICASA, SAJA, WASPA, RA and the Advertising Standards Authority (ASA). Here,
facilitators usually play a regulatory role for the media industry. The members here are
also generally corporate or governmental associations (ICASA for example regulates the
content for revealers).


Educators are a subset of the enabler group and address the skills development issues
of the industry such as schools, collages and universities. Facilitators here include
MMiNo, SASMT and SAJE.


Consumers guide market taste and are generally exposed to creators and enablers
through revealers.


8.3. Focus Group and Key Interview Summary Results


The focus groups were conducted in early December 2008 and where concluded in
March 2009. Abbreviated notes on these follow.


8.3.1.    Creators


Number of participants: 6 (4 did not arrive/cancelled)

Group characteristics:
Age                                   Population group                      Area
Not Answered 1                        Not Answered 0                        Not Answered           0
-18            0                      Black            1                    Ekurhuleni             0
18-24          0                      White            4                    Johannesburg           5
25-34          2                      Coloured         1                    Sedibeng               0
35-49          1                      Indian           0                    West Rand              0
50-64          2                      Other            0                    Tshwane                1
65+            0                                                            Metsweding             0


How do creators become successful?
        Simply by getting work and being promoted
            o This is inhibited by a lack of information (such as about agents, how to get work,
                 administration in performing arts)


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       Media plays a big role
       Define success??
            o Defined by moderator as sustainable work/making a living
            o Knowing value as a creator (does audience know value?) – this is not always possible
                unless art is “productised”
            o Personal development
                     Self-worth
                     Self-empowerment
                     Self-responsibility – each artist needs to learn the value of being an entrepreneur

Are there any specialisations or key strengths that creators have in Gauteng?
       The “entertainment province”
       Gauteng “is” music industry – biggest music province
       What happens in Gauteng will filter to other provinces
       Often participants could not differentiate specifically for Gauteng…
       The network of people creates exponential value – Gauteng is a magnet for people, thus the
        network grows

What opportunities and deterrents/problems are there in Gauteng for creators?
       Creators often underpaid – better minimum wage and self-worth
       No respect for creators
       We need more open communication
            o Easier for government to facilitate interaction
       Culture exclusion/inclusion
            o Not enough centred cultural avenues – TV and radio too mixed (not enough niche
                markets so that any one does not fulfil consumer needs?)
            o Need more focused media
       Need to “export within SA” – take the culture to the people
       Audience development – need to improve consumer response to culture
       There is not enough structure and support from existing associations


What can government do to support creators?
       Create a “hub”
            o website e.g. www.gautengmusic.org.za
            o Gauteng info centre?
            o A community centre? – like Cape MIC
            o Musicians / singers / producers federation / association
            o People need a centralised point that needs to become well-established and well-known so
                 that it is the “first stop” for the novice and an ongoing interactive portal/gateway for the
                 professional
            o This also presents an opportunity for Moshito to create a Pan-African organisation
       Education
            o Business training NB
            o We need mentorship
            o Entrepreneurs
            o School workshops
            o Improve curriculum
            o Conferences / incubators
       Create channels of communication
            o A creator’s symposium
       More codes and regulations
            o Code of conduct
            o Bill of rights
            o Simple guidelines or operation
       Travelling music show


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       Can government monitor radio/TV (SAMRO already does this) - how to get money back to
        composers and artists? Fines?
       Government advances / social upliftment / social security
       Facilitation, information distribution, workshops where older people can mentor younger people,
        self-empowerment and self-generation are key themes
       Create a music circuit or synergise and draw existing structures together to allow for people to
        mingle – there is a need to create a performing arts network platform using the existing structures,
        and it is very useful meeting from other modalities within the music/arts field
       In the same way that KZN has the Midlands Meander and Mpumalanga has the Highveld
        Meander, why couldn’t Gauteng have the Music Meander, a collection of artists, venues and
        events that are promoted as a cohesive whole for Gauteng Tourism?


Summary of Key Interviews: Creators

Interviewee: Laurie Wapenaar
Date: 25 March 2009, 10:00
Organisation: SANYO
Topic: Orchestras

Orchestral music is an integral part of the music industry and society. It is found on the stage, in adverts
and movies. [There have been black orchestral players since the 1960s although this was not apparent in
the 1980s. During that time their exposure was not very big and people began to question whether there
were enough players. There needs to be some cultural bridges built in order for more exposure of black
players to happen – Comment by L. Mngoma, see below]. There are over 20 orchestras based in the
Gauteng province. Survival of orchestras is dependent on funding. An orchestra, in general, relies on
heavy sponsorship to survive as only 25% of its required revenue is generated through live performance.
This is a situation faced by orchestras worldwide. A full orchestra needs between R16- to R20-million per
year to cover all its operational costs sufficiently. The split in population group for musicians in orchestras
is currently 50% black and 50% white and other, although this is based on a youth orchestra. Black
players are estimated to increase over the next decade as more are trained. It is estimated that 40% of
orchestras in Gauteng are classical in style, 30% are jazz and 30% are African. If government where to
provide funding, according to the interviewee, it should be split in thirds for (1) paying professional
musicians, (2) education in theory and performance and, lastly, (3) education in business.


Interviewee: Lindumuzi Mngoma
Date: 12 May 2009, 10:00
Organisation: SANYO
Topic: Choral Music

There could be over 500 choirs in the country although no proper database exists of them and there is not
enough information available. If government could get involved it would be good to see rural choirs getting
developed, recorded and distributed and the money filtered back to them and their community. Old
recordings are often archived and not used, but traditional songs should be public property. Community
halls are not set up for entertainment and need to be improved for multi-purpose use. When there are



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events, there is little attention from journalists (and when they do come, they don’t understand the music
and often rely on brochures to inform them). In the competitions that we run, we find that the choirs come
only to compete for the money. We need to have conductor workshops to help them understand what is
required of the choirs and that the message and song are most important. There has also been negativity
toward using Afrikaans in black choral music competitions because it was “the language of the oppressor”.
This is simply an attitude of the choirs which is misguided. Many divisions exist in choral music and there
is a lack of information and exposure for them. The concerts that we do have are not as popular as they
could be. We also need audience development, even in rural music, to show them how to behave when
listening to choral music. Choral music use to be a big community activity but not so much now, there are
lots of other entertainment now. We find that choral music is becoming a dying art. Choral music is such a
great way, however, to unite a community especially in old rural areas and get people into music. We
need a lot of informal education for music appreciation of orchestral and choral music and they need to
get to know the background of the music. An idea is to have documentaries on DVD with local choirs
explaining the music. There is a need for multi-cultural research on South African music too.


8.3.2.    Enablers


Number of participants: 8 (2 did not arrive/cancelled)

Group characteristics:
Age                                   Population group                       Area
Not Answered 0                        Not Answered 0                         Not Answered         0
-18            0                      Black            4                     Ekurhuleni           0
18-24          0                      White            3                     Johannesburg         8
25-34          2                      Coloured         0                     Sedibeng             0
35-49          5                      Indian           1                     West Rand            0
50-64          1                      Other            0                     Tshwane              0
65+            0                                                             Metsweding           0


How do enablers become successful?
        By getting opportunities in the industry
        Create a good relationship with creators (easy to escape and be a muso)
        Many enablers started as creators
        Education and training (marketing)
        Work way up in industry and grow into positions – promotion within companies
        By networking
        Have a passion for music
        Need good product
             o If creators succeed so do enablers
             o Not seen as a product
             o Not taken seriously – outside of business.


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       Self-belief

Are there any specialisations or key strengths that enablers have in Gauteng?
       Industry has changed with more transformation – many more black MDs and CEOs
       Gauteng is music hub
       All enablers and revealers in Gauteng
       Many revenue streams – more money
       Good copyright controls
       Facilitators good – SAMRO good
       More formal in Gauteng
       Most income per capita

What opportunities and deterrents/problems are there in Gauteng for enablers?
       Enablers are in the position to make change
       Too much importing of product
       Fragmentation among enablers – do not merge together
       No tier for independent film companies in major publishing companies for music – unlike UK
       Creators sometimes not capable
              o Need to have something at MAPP-SETA
              o Serious skills shortage & lack of understanding of 360º music opportunities
              o MIDI Trust was based on Australian model, shut down because of a lack of funding
       No succession planning in the industry – when a major player leaves a company there is no one
        to fill their place
       Enablers can’t sustain themselves
       Problems with revenue streams
       70-75% of music asked for in publishing is for international songs. International songs more
        expensive – charged in dollars
              o Perception is that international music is better (media is responsible for this), so when
                   local music is required, the content seekers expect it much cheaper from the local content
                   providers
              o Perceptions therefore need to change – because R millions go out of country
              o Media needs to care for culture
       SA needs to change perceptions about local music
       Need EPK – SABC not playing vs. labels not producing
       Enablers need to create partnerships
              o Loyalty among enablers
              o Training
              o Consolidate
       Need distinct sound from area
              o Provincial sound
       Everyone wants to get into the market in Gauteng – means not enough room for players? Too
        many players.
       Government gets presented with too many workshops
       3rd party agents (e.g. corporates) ripping off live music industry
       Licence music managers
       Few opportunities for women
              o Identify women role models

What can government do to support enablers?
       More industry networking
           o Continuous industry focus groups/discussion/pow-wows
           o Moshito for industry career niches (the big problem is that not enough people are aware
               of/know about Moshito)
           o Professional dinners: Between big roleplayers which can be videotaped and covered by
               press



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       Mentoring programmes for young entrants
       Have a big campaign – music festival?
       Gauteng music commission – look at how artists and enablers work overseas and then
        mimic/learn (just as we have with our airports/highways/BRT system/tackling Gauteng crime)
       Education
            o Regulations/qualifications, will curb crime and fraud
            o School syllabus
            o Bursaries
       Ongoing industry research
       Continuous support
       Cultural houses
            o Ages 12 to 22, learn music, take responsibility, get inspiration
            o Extra curricular activities for children
       Women in Music Federation/Association
       Gauteng Arts and Culture Council – improve for music
       Lottery involvement
       Where is the government’s HIV campaign for music/music campaign for HIV?
       Blue IQ and Gauteng Enterprise Propeller
            o Aware of music?
            o Build concert halls
       Build database for music industry
       Be arrested for possession of illegal music
            o Like DVDs
       SARS needs to quantify industry
       Pipe music to government areas
       Revitalise community halls for music
       Create music videos


Summary of Key Interviews: Enablers

Interviewee: David Alexander
Date: 28 May 2009, 11:00
Organisation: SAMEX
Topic: Exporting music

The South African Music Exports association is a joint action group (JAG) which facilitates export of local
music internationally. It is difficult to become a fully fledged export council because, to the DTI, the
creative industries and especially music are not a priority. In the past the craft and film industries have
been a priority though and received funding, in part because of political reasons. The music industry
requires a customised sector plan (CSP) for which the DTI has not yet put resources toward although they
have acknowledged publicly that SAMEX will be an export council. It is unsure why there has not been
any action on this intention. If SAMEX does not become a council with DTI it will remain difficult to obtain
funding. The Gauteng Economic Development Agency (GEDA), which supports export promotion and
trade and development, works with SAMEX with its sector specific scheme fund on a project basis but
there has not been a lot and it has dipped this year (2009). It has helped SAMEX get applications for
funding though. GEDA has subsidised businesses in Gauteng to attend trade fairs.

The Gauteng Provincial Government (GPG) and GEDA are involved with SAMEX and help the JAG
attend international trade fairs such as WOMEX and MIDEM. There have been problems obtaining
funding for SAMEX from GPG as they are more interested in Moshito – the local trade fair in
Johannesburg. Generally, the Moshito board advises us on which acts to export and SAMEX has always
been complimentary to it. SAMEX wants to market Moshito overseas and provide a platform for it at trade
fairs. This is also an important part of bringing tourism to the province as SAMEX is an ambassador for
the country and province, the Moshito brand and can encourage excitement around current projects as



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well as for other regions. GPG could be instrumental in funding ‘inbound buying missions’ where
international music businesspeople are invited to come to Moshito who then ‘export’ music out of the
country. Key targets would be world music enthusiasts.

There have been talks with the Department of Arts and Culture (DAC) but they are concerned with the
‘culture’ part of music mostly and may not look at the economic interests of the sector. The DTI would then
fund for the economic aspects of music and the DAC for the cultural exportation of music. Funding artists
to tour overseas is important from both these perspectives. Traditional music tends to just be a novelty
overseas though and does not sell well. You can’t justify its exportation from a business perspective. It is
easier to develop ‘pop’ music (jazz, rock, etc.) which is better to build the sector. Although the DAC is
involved with both they need to understand this and support both sides.


8.3.3.    Pretoria: Creators and Enablers


Number of participants: 21 (unreserved)

Group characteristics:
Age                                   Population group                       Area
Not Answered 0                        Not Answered 0                         Not Answered          0
-18            0                      Black            0                     Ekurhuleni            0
18-24          3                      White            21                    Johannesburg          0
25-34          7                      Coloured         0                     Sedibeng              0
35-49          6                      Indian           0                     West Rand             0
50-64          5                      Other            0                     Tshwane               21
65+            0                                                             Metsweding            0



How do creators/enablers become successful?
        Create a package for the music
             o Predictability
             o Sustainability
             o Longevity
             o Increase experience
        Marketing
             o Exposure
        Quality product
        Education
             o Start in schools
             o Educating the public on the arts
        Networking – who you know
        Self-confidence
        Music entrepreneurship is a key, fundamental element in the creation of successful musicians, yet
         people know very little about the music business

Are there any specialisations or key strengths that creators/enablers have in
Gauteng?
        Music entrepreneur course through UNISA



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            o Vast field of learning
            o Administration of music businesses
       Curriculum is good in arts and culture
            o Contradicted by SETA representative, needs lot of work (structure wrong, content wrong),
                 too general, 10 years to turn around, need teachers in system (are the educators
                 educated?), need to include music fees in schools
       Corporate music is big market
            o Need to give young artists opportunities
            o Lack of awareness
       Black and Afrikaans markets biggest
       “Pretoria is the music Mecca of Gauteng”
       Small province with lots of people (higher population density) = better communication
       +- 70% of music industry is Gauteng
       Most successful studios, artists, labels, etc.
       Access to wide range of services
       People come to Gauteng to make career

What opportunities and deterrents/problems are there in Gauteng for
creators/enablers?
       Creators/enablers are in the position to make change
       Population size and characteristics
             o Niches don’t work, everyone does a little of everything vs. niches DO work – you must be
                 at multiple income streams
             o “Jack of all trades”
             o Not enough numbers (market not big enough)
             o No audience appreciation
       Classical music is expensive to produce
       Need to standardise
             o Education
       Public is uneducated and there is low awareness of music
       Backtracks kill live performance
             o Take opportunities away from live musicians
       Blacks get all opportunities
             o Bias toward “politically correct”
             o Need to open market
             o Division in genre by colour – cross culture with music
             o Industry mostly SMME therefore under R5-mil and BEE compliant (stop your whining!) –
                 need to make clients aware
       Classical and English markets not so good
             o No pop and rock songwriting courses (there are for Afrikaans)
             o Need this market to grow to export better
       Music not recognised as career
       Artists scared to find info
       Corporate could sponsor platforms for artists
       Market is perception driven
       Too many players in Gauteng – dilution of market - crowded
             o Competition is good
       Cultural inclusion vs. cultural exclusion
             o Needs different music to mix and be separated
             o Need genre specific radio and genre balanced radio…
       Quality of music can be low
       Audiences can participate
       People scared to go out at night – crime
             o Affects live industry
       Piracy



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       Collaboration in industry will help build global city
       Afrikaans radio plays more local music
       English does not give a chance to local musos
             o Up quota to 40% for commercial
       Radio is too much talk and advertising, little music
       No more dedication or loyalty to music in radio
             o Its about the money
       Need to create a Gauteng sound eg Nashville (Country), Seattle (Grunge), London (BritPop) –
        clearly identifiable, instantly recognisable

What can government do to support creators/enablers?
       Set up music business education in schools and private sector
       Get bigger artists to give advice to new start-ups
             o Mentorships
             o Internet blog
       Create an artist association that helps all musicians – give people a forum, give people a chance,
        tell people about the opportunities, and get government to sponsor/subsidise it
       Bursaries, fund or sponsorship to musicians for education on merit
       Licence musicians, managers, labels, etc
       Create database/hub for music industry
       Form a panel to create standards for music industry
       Revamp old theatres for music venues (and other arts)
             o Government subsidised
             o Integrate
       Create SA music only national music radio station/TV – petition ICASA or force their hand –
        government intervention
       Pipe music to all government controlled areas – eg SARS
       Create a music trust that helps industry
       Sponsor radio programmes to play SA music
       Gauteng music festival/Gauteng music week
       One night (or week) where live music must be used by restaurants
             o Create communication network
             o Idea of registering participating venues and performers
             o Bill includes amount for live performance (eg R10 from every client served for artist)
       Integrate music & offer cross-cultural opportunities – take white music to the townships & black
        music to the suburbs – SA has such amazing diversity – this is our strength
       Bring the regional services councils back in terms of arts and culture
       Create media platforms
             o Website (help MIO)
             o Magazine (eg Billboard or Rolling Stone – the Gauteng variant)
             o Newspaper
       Create an educational compilation CD (or radio show?)
             o Include up-coming artists
             o Commentary
             o For education
       Music, through job creation, can help bring down the crime rate, but crime is also a deterrent,
        because people don’t want to go out
       Sponsor/subsidise a range of CDs as a CD sampler – how can this be tied into Samex/Womex?
       Hunger for entertainment in other provinces – create an exchange – “export” it to other provinces
        or become a tourist in your own province




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8.3.4.    Facilitators


Number of participants: 7 (2 did not arrive/cancelled)

Group characteristics:
Age                                   Population group                      Area
Not Answered 0                        Not Answered 0                        Not Answered      0
-18            0                      Black            7                    Ekurhuleni        0
18-24          0                      White            0                    Johannesburg      7
25-34          1                      Coloured         0                    Sedibeng          0
35-49          3                      Indian           0                    West Rand         0
50-64          3                      Other            0                    Tshwane           0
65+            0                                                            Metsweding        0



How do facilitators contribute to the success of creators / enablers?
        Facilitators need the strength of their members
             o Will not exist without creators – composers and performers
             o Must be able to account to them
             o Mandate to members
                        AGM for stakeholders
                        Accountability to members
             o Retention of members
        Facilitators need resources
             o Needs of creators
                        Jobs
                        Contractors
                        Risk for finance
                        Lack of education
             o Collective work (royalties)
                        Sources of income
        Associations can educate members
             o Especially on contracts / business issues
        Need to be empowered
             o Labour issues and status of the artist
                        UNESCO
                        WIPO

Are there any specialisations or key strengths that facilitators have in Gauteng?
        Gauteng has most of the facilitators in it
            o Easier to collect royalties
            o Most licensees in Gauteng
        What happens in Gauteng will affect other provinces
            o If Gauteng does not decide what route to take, nor will the other provinces

What opportunities and deterrents/problems are there in Gauteng for facilitators?
        Educate members



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            o Understand the value chain
       No clear career path for creators
       Labour issues
            o Contractor?
            o Worker?
            o Freelancer?
            o Employee?
            o Jobs are not guaranteed
                       Taking on other work detracts from an artistic career
                       Creators take on many jobs but its good if they are relevant to industry
       Contracts are a big issue
            o Very few lawyers practicing entertainment law
            o Very expensive
       Conflict of interest with associations assisting
       Composer problems with assigning rights
            o Just want to get advances and don’t look long term
            o Need to be educated in business
       Industry unregulated, perhaps need to regulate better
       Digital recorded music is loosing value
            o Piracy in general is a problem
       Live music industry can loose value if artists don’t use live performers but use backtracks
       Very few benefit from workshops
       Hip hop musicians working for themselves
       Respect of associations
            o Unify the industry
            o Administration and non-payment problems
            o Associations need to be seen as doing something for industry
       Other provinces can be neglected by associations
       Companies need to have an IP policy
       Local music is not being played, international mostly played
            o Associations collect 70% royalties from international music
            o Need to promote local music
       Need to have a united lobbying front
       Do not create new structures to solve old problems
       Cooperative initiatives help bring associations together
            o Moshito
            o SAMICI

What can government do to support facilitators?
       Link existing structures
            o Make awareness among industry
       Music legal aid clinic / arts law centre
       Define “labour” for creators, approach DoL
       Create a platform for associations
       Have a creators conference
            o Workshops that include all associations
       Monitor statistics
            o Provide monitoring of policies
       Regulate industry
            o Government should hold facilitators accountable
            o Legal definition
       Create a Gauteng music centre
       Fund
            o Provide equipment



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        Boost skill especially for legal and business aspects of artists
        Help with marketing and promoting artists
        Create a fund programme
        Government music department which industry reports to

Summary of Key Interviews: Facilitators
Interviewee: Oupa Lebogo
Date: 11 May 2009, 09:00
Organisation: CWUSA
Topic: Creator’s union and labour issues

The Creative Workers Union of South Africa (CWUSA) is a result of the merger of the Musicians Union of
South Africa and the Performing Arts Workers Equity. Numbers in both of the prior unions started to fall
and prompted its formation. It is now based in COSATU house, where it is easier to interact with
government.

Overseas, regulations are enforced strictly while musicians are well informed and very business
orientated. In comparison, in Africa, we find that creators are disparate. The majority of creative workers
cannot sustain an income and even those who are high earners do not understand the industry. This
places an emphasis on education in these areas for creators. Creators need to understand they need
good working conditions, minimum rates of pay and also to respect their worth. Even ‘principal artists’ (for
example, lead singers) do not pay their session musicians very well and when the session musicians
complain about this they don’t like to reveal damaging information on their employers in fear of not getting
any more work. There can be intimidation on the part of principal artists.

Artists are the ones in the industry that tend to be pushed down and the industry is organised around this.
Artists do not have enough business skills and do not understand intellectual property issues. This
situation has not changed much since 1994. In general we lack market access and do not have enough
talent scouts (A&R). Companies tend to sit on budgets because it’s risky to work with creators. There is
still no gender equality in the industry. Creators are also in dire need of a social security fund. We have a
memorandum of understanding with AIRCO with regard to partnership programmes and creating solidarity
for causes.


8.3.5.    Revealers


Number of participants: 10 (0 did not arrive/cancelled)

Group characteristics:
Age                                     Population group                      Area
Not Answered 1                          Not Answered 1                        Not Answered         1
-18            0                        Black            3                    Ekurhuleni           0
18-24          1                        White            5                    Johannesburg         7
25-34          4                        Coloured         0                    Sedibeng             0
35-49          4                        Indian           0                    West Rand            0
50-64          0                        Other            1                    Tshwane              2
65+            0                                                              Metsweding           0



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How do revealers contribute to the success of creators/ enablers/ facilitators?
           Revealers are speaking mostly to the target market, therefore they are the opinion makers
           The major player is the consumer – thus facilitate a relationship with them
           The litmus test is: What is the reaction of the market?
           In some cases they are looking for acts that are not likely to get exposure, thus they are
            looking to unearth new talent
           They provide a filtering system which creates a natural hierarchy/order – people have to pay
            their dues to rise through the ranks
            o Thus revealers are filters & promoters
            o Provide critique
           Sustainability of music on the radio – longevity of the music is important – this creates
            success for the artist, so employ musicians at a radio station so that they will have empathy
            for/with artists
           DJs should be tastemakers, not taste reflectors – this means they should be down on the
            street, interacting with people, checking the scene out

Are there any specific specialisations or key strengths that revealers have in
Gauteng?
           70% of the industry is based in Gauteng
           The province is speaking to the largest population – and all the money is here
           Much of it is concentrated on the Johannesburg area – it literally controls the industry
            o If you get big here you blow up around the country – can be a problem for rest of country
                 to participate
           Most radio personalities are based here
           This means that revealers have access to structures and facilities that are not available in
            other parts of the country
           Media, broadcasting, record labels, government institutions all headquartered here
           More competition means that better music is produced – musical styles and genres are
            set/crystallised in Johannesburg, the region sets the trends which the rest of the country then
            follow

What opportunities and deterrents/problems are there in Gauteng for revealers?
           Apartheid regulated the industry according to race & culture – we are still feeling the effects of
            that
            o Apartheid government has stamped out the industry
            o Artificial barriers have stopped the natural bleed between different music cultures
            o Parents scared of letting kids go to live music events (bad image?)
           There is a lot that’s bubbling under the surface – creators need help to rise to the top
           Support of black music is greater than that for white music
           A culture of criticism is lacking in SA in general – critics get blitzed if they speak out against
            bad music, which keeps the music bad
           The industry doesn’t create value – bad bands play for free – who wants to go see that?
           Music is played, not contextualised – thus there is no growth in the industry
           SA music is not viewed in the same light/placed on a pedestal like international music –
            although it’s becoming just as good
           There is a lack of respect for local music – SA music brand needs respect locally
           Revealers should be allowed to tell the truth about good/bad music – honesty is a desired
            virtue
           Music is the land of myth – people buy into it & invest in it – how do we foster that?
           How do we create superstars?
            o Make SA artist publicity a norm
            o Importance of publicists
            o Print media important



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                      People in US like reading about music, less here?
            o No easy solution
           Radio
            o No national station is championing local music as a whole
            o There is no real public service radio – everything is commercial because they have to
                follow trends – radio has lost its soul
            o Radio homogeneity is bland and grey – you cannot tell the stations apart – all they’re
                doing is looking for advertising revenue
            o People become brainwashed by this passive medium – radio (the “sheeple”)
            o Radio has lots of interference and noise
            o The production levels in SA need to be raised – a band goes into studio unprepared to
                perform & the producer is inexperienced – the problem is that musicians don’t have
                enough places to play
                 But at the same time SA quality is getting better – production is getting better
                     because of the software
           Live industry
            o 75% of SA music sales take place in Gauteng – but there are no decent venues
            o Barnyard has its place – but it serves only a formulaic niche
                      Helps give work to live performers
           New media is still a small concept in SA but it’s revolutionary overseas
            o Challenging current media, unregulated
            o Social networking
            o It empowers fans to promote, rather than traditional media
            o Through blogs and it’s interactive thanks to blog aggregators
            o The search engine is the chart of the future – because of this the opinion leaders become
                the people
            o Internet users in SA still mostly whites, and low penetration
            o Trend gap is becoming shorter – internet and new media informing local interests quicker
            o The cellphone is the future of music in SA – with the cellphone, expression is allowed
                because it’s unlimited – with radio you can only take 5 calls
            o Cellphones allow individualism & they also provide instant gratification
            o The problem is that there is too much – how do you sift through it all – there is no quality
                control & this is the backlash
            o Radio on demand – digital multiplex
                      SABC TV going digital
            o Web 2.0 leading back to expert user generated content
            o Royalty collection very new for societies

What can the government do to support revealers in Gauteng?
           Help creators make their songs “familiar” to broadcast media
           Comes down to fostering an appreciation for the arts
            o Education of public
            o Arts is fundamental part of culture
           EDUCATION is absolutely vital if we are to succeed as an industry
            o Create educational structures within which bodies can exist
            o Help musicians & others to understand it’s called the music BUSINESS for as reason:
                who is your target market & is your stuff any good?
            o The public and the musicians need to be educated
           We need a proper live circuit!
            o Live music is the incubator – this will create jobs
            o Stop building studios in far-off places – rather build decent venues
            o Provide for and create more live venues – don’t build new ones, simply reactivate the old
                ones (use existing structures & PROMOTE them)
            o Lots of showcase venues sponsored/subsidised by government




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              o   Emulate what they do on the Aussie & US circuit – bands have to register to play (thus
                  maybe a bit more regulation)
              o Don’t allow police and other authorities to interfere in their active working – what’s with the
                  police harassment of establishments in the Newtown area?
              o We need a comprehensive publication with a list of music events from A to Z
              o Funding is essential if venues are to survive and prosper – a central foundation for
                  funding – strengthen the Gauteng Arts and Culture Council
             Blue IQ should promote the Newtown area
              o Great opportunity to create community vibe
              o Security of area needs to be promoted
              o More accessibility
              o Opportunity for Hatfield to do the same
             Radio has to change
              o ICASA needs to change
              o Time to deregulate radio (radio is determined by culture)
              o Need to monitor and enforce however
             “Keep speaking to the stakeholders – we love the fact that Gauteng has taken the initiative to
              do this research!”
             Take Moshito to the next level – take it up a notch & then follow through – create a more
              effective evening programme for people at night, and allow people into the sessions
             Start at community level
              o Create a community centre – a space where musicians can meet & chat & network
              o “Gauteng tour”
              o We need a central info centre – a music hub


8.3.6.       Music Educators


Number of participants: 9 (3 did not arrive/cancelled)

Group characteristics:
Age                                     Population group                        Area
Not Answered 1                          Not Answered 1                          Not Answered         1
-18            0                        Black            2                      Ekurhuleni           1
18-24          1                        White            5                      Johannesburg         5
25-34          2                        Coloured         1                      Sedibeng             0
35-49          4                        Indian           0                      West Rand            0
50-64          1                        Other            0                      Tshwane              2
65+            0                                                                Metsweding           0



How do educators contribute to the success of creators / enablers / revealers?
        By giving practical insight
             o Knowledge and skills to be successful
             o Critical thinking
                      Which includes writing style, ethical research, reliable sources
             o Not just theoretical
             o Performance



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            o   Awareness of business concepts to sustain creators’ careers
            o   Balance theoretical, practical and business – suffocate insecurity in careers and job
                security/job creation
            o Creative and independent
            o Students must know where to go once they have graduated
       Teachers must provide a positive outlook/attitude in classroom
       Promoting self-employment and life skills
       Provide mentorship
       Link between classroom and world and work
            o Create a realistic supply and demand system
            o Important to keep in touch with the industry
       Educators coordinate education
            o Do not try to teach what you don’t know
            o Unit standards do incorporate this
       Educators boost enablers and revealers – product development
            o Enablers come to educational facilities looking for mature talent
            o The value chain depends on the creators – and it all start with educators
       Educators become successful by having successful graduates
       Educate educators
       Change perceptions
            o Must see music as an industry that provides formal jobs

Are there any specialisations or key strengths that educators have in Gauteng?
       Gauteng has more education than other provinces – most active
       More equipment
       More access to industry – workshops, live shows
       All the assessors and moderators are in Gauteng
       Talent comes to Gauteng for opportunities
             o Danger in that it does not return to other provinces

What opportunities and deterrents/problems are there in Gauteng for educators?
       Arts in general not supported much
       Teachers often do not have enough experience of knowledge of the industry
            o Too little knowledge
                      Must push to do self-development
            o Not qualified / non-SETA
            o Try and train the trainer
            o Sometimes too academic, should use “street wise” artists to teach as well
       Teachers may feel frustrated toward education system and have negative attitudes toward
        industry because “they didn’t make it out there”
       Creators resist education
       Funding generally emphasises the theory side of music
            o No business training funding
       Music SGB did include business in qualifications, but it’s not emphasised
            o Tend to change approved drafts
       There are skilled graduates out there that no one is “buying”
       There are too many comparisons to Royal Schools/Trinity qualifications
            o Look at other organisations
       There is a large load on education
            o Lots of sectors
                      Create awareness
            o Bring in specialisation
                      Unit standards do this – since 2001
       Need to integrate formal and informal learning



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       Industry is generally unregulated
       Problems with parents and kids understanding
             o Stars in their eyes / not business orientated / informal idea of industry
             o Need to change perceptions about career
             o “Idols” perceptions
       Schools
             o Assessment of schools – should be self-regulated?
             o Should actively get involved in industry, not wait for it to come to them
                        Price of events hinders attendance by learners
             o MAPPP-SETA funding is not enough, college needs to survive itself
             o Must support to survive
             o Need more visual material – posters, CDs, reading materiel
             o Music libraries in schools or in Gauteng as a whole
       Companies are not looking for graduates
             o Major record companies not interested
       Difficult to fund a “music SETA” through tax of musicians / other sector players
             o Industry don’t see themselves as employers then don’t pay levy to SETA, need to identify
                  themselves
             o Lumped in MAPPP-SETA
             o MAPPP-SETA is good but not unified and not implemented uniformly in industry
       Informal economy
             o Stunted by record companies
             o Not live – income to projects
             o No books
             o Live performance industry helps foster talent but falls in informal and struggles to access
                  formal funding - it’s a problem when clubs get closed down
       Does the DTI recognise music?
             o Educators lack access to DTI, DoE and DAC
       Playing live is a great way to educate
             o Very important in “art music” education
       Educators open to export
             o Export ready means being professional
             o Encourage artists to go overseas and come back with experience
             o Creating a education link with overseas – create opportunities with international educators
       Need to reach grassroots teachers
       DoL moving away from DoE
             o SAQA
       Motor industry gets lots of support

What can government do to support educators?
       Create a platform for educators and education organisations
            o Promote competitive educators coming together
            o Institutes have to work together
            o Get organisations talking
            o Gauteng hub
            o Fund participants time or cover costs to allow educators to organise themselves (e.g.
                Moshito, AIRCO), like these focus groups
            o Educators must create regulations which assist accountability and even self-regulate
                rather than look to government
       Create platforms for educators to interact with industry – creators, enablers, facilitators and
        revealers – Moshito?
            o Help universities connect with music teachers
       Fund:
            o Support those in education already
            o Need industry to formalise itself better



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            o   Fund strategically and specifically – do not fund individuals
            o   Fund education associations
                     South African Society of Music Teachers (SASMT), based in Pretoria
                     South African-Norwegian Education and Music Programme (MMiNo), based in
                        Johannesburg
                     The South African Association for Jazz Education (SAJE), based in Observatory
                     North South-South (UNISA) which trains rural teachers
           o Document / create awareness / more information
           o Fund theatre
           o Community schools
           o Student festivals which are not profit orientated
                     Create a by term itinerary that enables educators the opportunity to take students
                        to shows/festivals at affordable rates
                     Showcase students
           o Bursaries to students; fund postgraduate qualifications
       Look at the National Student Financial Aid Scheme, does it fund music students?
       What about directing unclaimed money from other SETAs? Educators need to lobby government.
       Fund continued industry research
           o We need consistent statistics to make judgements – up-to-date and current
           o Career expos
           o Trade shows
           o Perhaps a more corporate view of industry
           o Document music styles and musicology of the province

Summary of Key Interviews: Educators
Interviewee: Cathy Gibbons
Date: 7 May 2009, 09:30
Organisation: Gauteng Department of Education
Topic: GET and FET Sector

The further education and training (FET) sector addresses grades 10 to 12. The Gauteng Department of
Education has brought African music into the syllabus and the syllabus is quite extensive, while trying to
cater to all educators. The new syllabus is modern while not ignoring classical training. There are
problems that arise in the FET area which include teachers not being qualified as well as the learners
being influenced by the media, such that they do not feel extensive training is needed. It is also vitally
important to address music at the general education and training (GET) level (grades 1 to 9) where
teachers are also not qualified and are generally not rounded in the arts. Black teachers generally lack
exposure to it. There is not enough interaction between GET, FET and HET levels.

Schools often have no infrastructure and are not assisted in the arts. The poor quality of music education
in schools is linked to the general public being unaware of the importance of music – music is no longer
seen as an “upper-class” activity linked to a good education. The arts are not perceived to be a viable
career path and only seen as performance. This results in many parents who do not see the potential of
the arts. Furthermore, there is no music appreciation in schools, leaving the education up to the media to
tell the learners what music is all about. The learners also need to be included in festivals, participate in
music industry job shadowing and pursue music in holiday schools. Revamping theatres for learners after
school would also create opportunities for them to be exposed to music. Many need to attend private
lessons to get a good background in music. Those who work in schools cannot teach privately on the side
and then avoid moving into the school system due to a lack of income – the arts are expensive to
maintain.




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Interviewee: Motsumi Makhene
Date: 26 May 2009, 09:00
Organisation: Central Johannesburg College
Topic: GET, FET and HET Sectors

In South Africa music education in general is not very good. There are small pockets which are well
structured though. We do not have a critical mass of teachers, materials and instruments in schools. We
also need skilled teachers to provide the training and who do not become stationary in their teaching. The
curriculum, however, does exist, is good and is balanced. It is inclusive and flexible but is compromised by
the schooling system. The field is based on harnessing of talent and creation of a foundation for
competitive skills development in creativity and performance. This is only half achieved as schools lack
development of artists. The college level [FET] struggles to prepare because of the weak foundation laid
at school level [GET] and learners enter at a low level. Universities [HET] and colleges are challenged by
poor earlier education. Artists and music business people become handicapped and readiness for the
industry takes longer. They need to become less survivalist. Colleges and technikons are better
positioned to prepare students for the world of work but find the curriculum struggles between academic
preparation and the reality of the business world – simply because it needs to catch-up what has not been
covered earlier. The focus needs to be on business and industry and identify the ‘survivor’ skills. It needs
to be shown how music fits into the industrial sector and show how musician’s careers evolve and change
and often need to learn vital business skills. This is important because the cultural industries drive
innovation in other sectors.

Talent and audience underdevelopment impacts on the level of sophistication of demand of audiences.
When it comes to audience development for the cultural industries, we do not start in the school system
early enough. The formal education system does not exceed at making media compliment cultural
education and development. Right now, education supplements multi-media poorly. Learners need to
become exposed early on and see live performances at school in lunch breaks, for example.

The mandate of the Department of Education (DoE) and the Department of Labour (DoL) tend to overlap.
The DoL looks to workforce development, development of particular skills as well as scarcity of skills, like
in finance and integrated communication technologies (ICT), which can fall into the mandate of DoE as
well. The major problem with education in the music industry is that there is no proper registry for the
creative industry. The registry looks at what practitioners feel lacking in terms of skills for the industry. The
registry is developed through GIPSA who address skills shortages.




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