Understanding the Global Music Industry While Strategically Positioning

Barbados’ Cultural IndustriesIan Walcott & Ronnie Morris

THE CENTRAL BANK OF BARBADOS 32nd Annual Review Seminar On Stability, Innovation and the Competitiveness of Small States in the Global Economy, July 23rd – 26th, 2012

Part 1 - Overview of Barbados’ policy and legislative framework on Cultural Industries.

Part 2 - Innovative macro-business model strategically positioning Barbados in the Global Music Industry.

Part 3 – Recommendations ◦ Rapid implementation of policy and programs to

correct implementation deficit affecting the sector ◦ Required systems ◦ Reallocation of national development funding, ◦ Targeted foreign direct investment for this industry

Overview

Defining Culture International Political Economy (IPE)

◦ Production◦ Science & Technology◦ Policy◦ Policy Critique◦ Global Insertion (participation in the global

economic system) Developing Cultural Industries/Creative

Economy

Contextual Framework

The world’s 1st million

selling album was written by a Barbadian!

Part 1 - Overview of Barbados’ policy and legislative

framework on Cultural

Industries

“The Music Business is not affected by natural disasters!”

“Implicit and explicit behavior of a people Distinctive profile and pattern

over time and through space; Overarching behavioral

system embracing◦ all human constructs in given

space affected by events, ethnicities and spontaneous reactions, interpretations and manifestations of a peoples’ understanding of  who they are.”

Our legacy

Defining CultureDid you know that

the father of hip hop is Bajan? –

Grandmaster Flash also invented cross-

fading! Joseph Saddler, better known as King Grandmaster Flash, is an American hip hop musician and DJ—one of the pioneers of hip-hop DJing, cutting, and mixing. Wikipedia

Born: January 1, 1958 (age 54), BridgetownEducation: Samuel Gompers High SchoolAppears in: Wild Style, Hip Hop Legends, The Chris Rock Show, 5 Sides of a Coin, Hip Hop: The Collection: The ClassicsRecord labels: Elektra Records, Enjoy Records, Sugar Hill Records

1966 – Independence 1970 - The Elombe Mottley Paper on Culture 1979 – Edward Kamau Brathwaite, Bajan

Culture Report & Plan, UNESCO/Ministry of Culture, Barbados

2004 - Dr. Glenford Howe in Country Cultural System Profile: Barbados, UNESCO/National Cultural Foundation

2004 – Mbola Aguda & Dr. Boamah, Economic Impact Assessment of Crop Over

Part I - Overview of Barbados’ policy and legislative framework on Cultural Industries

2008 – SALISES, UWI Economic Impact Assessment of Crop Over, 2005, 2006, 2007

2010 – Barbados Cultural Policy 2012 – The Cultural Industries

Bill International Companies Act Copyright Act Network of double taxation treaties International Business Sector

Part I - Overview of Barbados’ policy and legislative framework on Cultural Industries con’d

Cultural Sectors that are in state of ‘readiness’

Readiness = ◦ Structure within sector, ◦ Organization: recognized negotiating

bodies, unions◦ Industrial and entrepreneurial structure

(retail & consumption, distribution, production/manufacturing, vertical integration)

◦ Ready for export, ◦ Potential to earn foreign exchange

Music, Visual Arts, Literary Arts, Culinary Arts

Fashion?

The Music Business- Global Context -Opportunity for insertion

“The Music

Business does not sleep!”Insertion refers to the openness of an

economy. Commercial openness = coefficient of exports over GNP

Part 2 - Innovative

macro-business model

strategically positioning

Barbados in the global Music

IndustryThe

world’s biggest

music star is Bajan!

Creative industries 2006 value – US$1.4 trillion IFPI – Music leading revenue earner within creative

industries Total global revenues for CDs, vinyl, cassettes, digital

downloads $34.7 billion - 2011 Global radio advertising – US$34 billion – 2006 Live performances (merchandising, ticket sales,

sponsorship – US$23.5 billion (2011) Portable music players and devices – US$10 billion

(2006) Worldwide Music publishing – US$9.4 billion (2011)

The Global Music Industry

Sources: Int’l Federation of the Phonographic Industry, www.ifpi.org , www.grabstats.com

CD Sales – 30 million albums (base price = US$9.99) – Gross US$299.7 million

Digital downloads – 90 million (standard base price iTunes = US$1.99) – Gross US$179.1 million

Tours – 5 world tours – Gross US$244 million

Additional revenue sources◦ Merchandising ◦ Royalties

Social media (youtube, fees to tweet)◦ Endorsements & Appearance fees◦ Films

The Rihanna Case Study BDS$1 billion generated 2006-2011

“Another young woman who is making a killing in music is Rihanna. The Barbados-born singer earned an estimated $53 million between May 2011 and May 2012, putting her in third place on the list. Her earnings this year got a big boost from an 85-night tour and her 2011 hit album Talk That Talk, which has gone gold in the U.S. and launched hits like “We Found Love.” Forbes.com

Major platform of music – Crop Over Festival◦ BD$80M economic impact

International Royalty collection – Local licensing & copyright – Local retail – Local events – Export of music related services - Manufacturing & distribution

Local music industry

Barbados has almost 20

internationally signed

recording artistes!

Tourism Education Events and entertainment Venue Management Fashion Design (graphics, set design) Film Digital & Information Technology Literary arts

Sectoral linkages to the Music Industry

Barbados is home to 7

million-selling recording artistes

1. The Merrymen

2. Joseph Niles3. Charles D.

Lewis4. Rupee

5. Rihanna6. Shontelle

7. Cover Drive

2. Identify talent 3. Develop talent

4. Invest5. Product

Development

Innovative macro-business model9 point strategy

7. Marketing & Distribution

6. Contract Negotiation

8. Revenue Management

1. Legislative framework

9. Reinvestment & Growth

Sustainability factors: Strategy, Evaluation, Project Implementation, Investment, Training & Development, Advocacy, Succession Planning,

Transparency

The Creative Economy is about economics◦ Capture the data and statistics◦ Specialized research within the Statistical

dept & economic research dept at Central Bank

Focus on the music first Inter-ministerial dialogue on the Creative

Economy A specialized oversight agency to

implement & operationalize the Cultural Industries Bill

Rapid project development and deployment of music industry initiatives

Aggressive investment drive (FDI and local investment)

Further Recommendations

Establish a Museum in Barbados dedicated to the local music industry◦ Tourism attraction◦ Rihanna section

Similar to museums dedicated to iconic artists including, Bob Marley, Elvis Presley, Michael Jackson, The Beatles, etc

A section of museum dedicated to other Barbadian music icons:◦ Grandmaster Flash, Irving Burgie,

Merrymen, Charles D. Lewis, Jackie Opel, Gabby, Allison Hinds, Joseph Niles, Jimmy Hayes et. al.

Further Recommendations

The EndQuestions and answers