«Prepared for Caribbean Export Development Agency Barbados April 2001 CHAPTER ONE INTRODUCTION The rapid growth of an intellectual property and ...»
UNCTAD (1996) Globalization and Liberalization: Development in the face of two powerful currents (New York: United Nations).
Watson, P. (1995) The Situational Analysis of the Entertainment (Recorded Music) Industry. Prepared for the Planning Institute of Jamaica on behalf of the Government of Jamaica and the United Nations Development Programme.
Record producers have experienced a decline in income flows as a result of high levels of piracy, we foreign competition and alternative entertainment.
Record manufacturers, with the exception of a recently established CD replication plant in Jamaica, hav with the techno-economic shift to digital productions systems. The introduction of digital soundcarr created an even wider gulf between regional capabilities and the international threshold. Vinyl record duplication suffer from sub-standard production qualities, product packaging and visual branding.
Touring continues to be the main source of income for most artists. Records are viewed as promotiona than vice-e-versa as is the case in more established music markets. Touring and overseas concerts are la and diasporic markets, (e.g. in the case of calypso/soca) which can be viewed as an extension of the hom crossover markets remain largely untapped. Reggae, which made incursions into alternative markets in experienced significant decline in the 1990s.
Music publishing is an under-valued area in the industry. The survey methodologies of the foreign copy in the US, result in low returns from public performance royalties. Mechanical royalties are also low b record production, especially within the region. Income from synchronization licensing fees is an area t This in part relates to the weakness of the regional audio-visual sector.
OBJECTIVE 1: EXPAND INCOME GENERATION AND COMPETITIVENESS
Penetrating export markets is a critical objective for the regional music industry. This has been the case industry because of the small domestic market. In an attempt to broaden the market beyond the re communities, recording companies have been participating in international trade fairs. Attendance at t funded by trade facilitation organizations like JAMPRO, TIDCO and Caribbean Export. Record prod make promotional and distribution deals, build a network and appreciate the demands of the marketp been able to go to the trade fairs consistently have made strides in export marketing. Some firms have ready and have discontinued attendance at the trade fairs.
Distribution continues to be one of the most problematic areas. Traditional channels are only able t diasporic markets. However, even these markets are not well served in that product is often unavaila These markets are subject to high levels of piracy. The most significant development in the late 19 Records, a Jamaican owned firm based in New York, which has been able to expand the distribution of D period of declining sales in the mainstream markets. VP Records has also begun to fill a void by distri however, is still largely focussed on the diasporic market.
Mass media access is one of the main weaknesses of the regional music industry. This in part is a co dependent audio-visual sector. Access to international programming is very difficult because of the restri the audio-visual and broadcasting sector. Efforts to create a Caribbean video channel have been challen Network (CSN) which operated out of Miami closed in the mid-1990 for financial reasons. Caribbean V started out in Tobago shifted to Florida in 1998 because of a lack of corporate sponsorship. CVN has re has created an affiliate WORLDmusicTV.net, an Internet broadcaster which is seen and heard in fift demise of CSN Black Entertainment Television (BET) ran a segment called Caribbean Rhythms but that the late 1990s. Record producers have identified these business failures with declining sales regionally an Many Caribbean bands and artists are largely dependent on the diasporic markets for overseas touring. Th sustained Caribbean artists for decades. Few artists, however, have been able to use these markets as entr mainstream or crossover markets. There is a need to broaden the international exposure, improve the mar the performance fees of Caribbean artists operating in this circuit.
OBJECTIVE 2: FACILITATE EXPORT MARKETING
Many artists have had little if any formal training. Existing training programmes are biased against the and have focussed on folk and classical forms. Consequently, the best-trained artists don’t perform mu region. Skills like songwriting and voice training are vital to sustain a professional career.
Artist and Repertoire (A&R) development is a fundamental component of the creative phase as well There are few professionals that are trained or are competent in A&R.
The management capability in many of the firms in the music industry is somewhat underdeveloped. Thi of the small and medium size enterprise sector. Business and financial planning skills are in short supply contractual aspects of the industry is also deficient and has created much conflict between artists, manag Technical skills in areas such as sound recording and engineering, sound, lights and stage, and film, v deficient. These are critical inputs in a high quality recording, video or live performance. Internet techn technological threshold, which has to be grasped.
Skills in professional areas such as law, accounting, marketing, arts administration and events managem Cultural industries have either been neglected as potential careers or have not had the absorptive capac These skills are critical to improve the competitiveness of the industry.
Human resource development in the cultural industries is the key ingredient in the industry because artistic and intellectual creation, the copyright work.
OBJECTIVE 3: HUMAN RESOURCE DEVELOPMENT
The music industry sector does not have a strong organizational base. For example, the recording industr either does not have an association or it is very weak. The industry is thus unable to lobby or advocate ef basis. There is a need to upgrade the organizational skills in the industry.
There are very few providers of business support services. This relates to the shallow depth of profession There is no data collection or statistical survey done in any of the territories. The industry is not cap accounting. There is some trade statistics on imports and exports of soundcarriers. However, data on consumption is non-existent.
The region is not represented at the International Federation of Phonographic Industries and is not capt survey of the recording industry.
OBJECTIVE 4: INSTITUTIONAL CAPACITY BUILDING
Copyright administration is presently being upgraded. Legislation has been updated for TRIPs complian to the Berne and Rome conventions.
In terms of author’s rights, the Commonwealth Caribbean territories, with the exception of which has had the Copyright Organisation of Trinidad & Tobago (COTT) since 1985, have ope arrangement with Performing Right Society (PRS) of the UK. PRS had five agencies until re territories: Bahamas, Barbados, Dominica (which covers Antigua), Jamaica and St. Lucia. Trinid National copyright societies have come on stream in Barbados (BACAP – Barbados Asso Authors and Publishers), Jamaica (JACAP – Jamaican Association of Composers, Authors a Lucia (HMS – Hewanorra Musical Society) in 1999.
The key issues affecting collective administration in the region is the institutional capability to usage, expand domestic and international collections and administer the distribution of copyright In 1997, the CARICOM Ministers responsible for Intellectual Property, commissioned a feasibi approach to collective management. The World Intellectual Property Organization was invite to i with a taskforce consisting of representatives from PRS and CARICOM. The feasibility study ha
recommends the following infrastructure:
a) Independent national societies, where such societies can finance their operations out of i reasonable administration fee which should not exceed 25% within a period of five years.
b) A regional centre. The centre would be expected to centralize documentation and royalty d national societies.
c) A regional database comprising documentation on the active works and sound recordings of performers. The database should incorporate documentation standards set by CISAC and IFPI
OBJECTIVE 5: COPYRIGHT PROTECTION AND ADMINISTRATION
In the Caribbean copyright infringement has been rife in the music industry since the late 1970s with th duplication technologies. The introduction of recordable CDs in the 1990s has created an additional sour record manufacturing activity has been severely affected by local and foreign pirates.
The decline in local record sales can be attributed in part to the downturn in the economy, but the increa cassette recorders and cassette dubbing/reproducer machines signal a high level of home taping and pirate Piracy, though significant to artists and publishers, has not been pursued through legal channels because o litigation and the tendency of the policing agencies to view the infringing matter as too small.
Legal measures are available for prosecution with the passing of new copyright laws. These laws give grant injunctions, impound and destroy suspected copies and manufacturing equipment and to order related to losses suffered by the right owner. However, the policing procedures are outdated and members of the protective services and the judiciary have a limited knowledge of copyright law. There is copyright infringement is not a serious crime.
It has been recommended that a regional ‘banderole’ programme be established. Jamaica, Barbados and to be the first countries. The banderole, a sequentially numbered authentication stamp with special secur a soundcarrier, which enables legitimate product and imports to be identified.
The banderole system requires a comprehensive and coordinated approach from customs, police and cop is suggested that a parallel approach would be to introduce a levy on blank audio-tapes and CDs a equipment.
OBJECTIVE 6: ANTI-PIRACY CAMPAIGN
The Caribbean music industry has had very little government involvement up until recently with the con TIDCO in terms of trade fair support and some other trade facilitation measures. By and large, the mu have been accomplished without government support.
The Caribbean music industry and the festivals associated with it have had a significant spillover effect o especially for the retail, food and beverage, ground transport, hotel and airline sectors. In spite of th sector has had much difficulty attracting corporate sponsorship for cross-promotions and like ventures.
to the weak entrepreneurial capability within the music sector in that few actors appreciate the w community and the requirements of a business plan.
The Caribbean music industry has been export-oriented since inception. However, the industry has ne incentives, grants or soft loans from state agencies like other export sectors. The sector also has en especially for the import of soundcarriers (e.g. CDs, cassettes and records with Caribbean value-added) a equipment. This state of neglect is partly explained by the fact that the official statistical agencies (e.g.
do not collect economic data on the cultural industries, for example, in terms of employment, exports, f and contribution to GDP.
Intellectual property policy has been largely focussed on compliance with conventions and treaties.
aspects of copyright industries have not been fully appreciated. Most of the administrators and consultan have come from a legal background. It is also that the various copyright industries in the region do not and consequently there has been no advocacy in this direction.
Ministries of Culture have historically focussed only on the not-for-profit sectors of the arts. The comm for example, the recording industry, have been neglected. Other ministries have begun to fill the void.
need for the Ministries of Culture to see the folk and non-commercial arts as playing a critical role i commercial arena.
OBJECTIVE 7: ALIGN AND HARMONISE GOVERNMENT POLICY FRAMEWORK
It is argued by analysts of competitiveness that "ultimately, nations succeed in particular industries because the most forward-looking, dynamic, and challenging" (Porter, 1990: 74). The problem in the Caribbean is th recently a perspective, which views the cultural industries as worthy of state and corporate investmen fundamental paradigm shift in industrial and export strategy to see the contribution of the services and intelle In governmental and corporate circles there is limited appreciation of the new directions in the world-econo the Caribbean economy needs to diversify to increase its share of global value-added. The cultural and copy playing an expanded role in the emerging post-industrial economy, for example, in terms of the aesthetiz terms of the synergies between tourism and the cultural industries.
The broadcast industries have long had a bias against playing local music. In some territories the local c very low by international comparison. There is need to increase the local content either through legislati The implications relate to the increased export of royalty income for foreign music airplay.
The grouping of musicians and performers play a critical supply role in the hotel and advertising ind session fees have not kept pace with inflation over the decades. This relates to the fact that the sector clear need to establish professional codes and fees.
The music industry has had problems gaining finances and credit from the traditional banking sector.
property is a new area for this sector.
OBJECTIVE 8: UPGRADE HOME ENVIRONMENT
9. Situational Analysis: Internet and ecommerce Digital technologies have been impacting on the production of music since the mid-1980s with the gr studios and the arrival of compact discs for at least a decade and a half. Now digitalization is revo marketed, distributed and retailed. Projections suggest that the Internet based music trade could accoun the world market by 2003. It is possible that these projections would be surpassed with the spread of ne that accept direct downloads (e.g. Palm Pilots, mobile phones, car stereos), improvements in infrastructure, increased security of ecommerce, strengthened anti-piracy devices and updated copyright l
At present the Internet is used:
- as a marketing medium for online stores (e.g. Amazon.com, CDNow) as well as traditional stores (Virgin Megastores, HMV);
- for email ordering of traditional sound carriers (vinyl records, cassettes, CDs) from online stores and increasingly from small independent distributors;
- for webcasting (Internet radio and live broadcast of performances);
- for the direct electronic downloading of music, which is facilitated by the spread of Internet (e.g. MP3, Liquid Audio, MS Audio) and ecommerce.
Caribbean music entrepreneurs have begun to use the new technologies. One can find several websites one can purchase some of the more popular CDs from online stores but only a few that allow for listenin ordering. Many of the sites originate in North America and Europe. Caribbean firms have not been as qu technologies. The banking infrastructure is not yet in place to deal with ecommerce. There is some skept the existing market, both in the region and in the diaspora, have access and are willing to use these techn current economic returns from these new technologies are very low. Investment in the Internet is v industry firms.
The Internet will play a significant role in the music market of the not-so-distant future. It has the potent of distribution, which has plagued the industry since inception. The new technologies facilitate direct ma well as opportunities for joint marketing and distribution. It is imperative that Caribbean entrepreneurs r to the emerging opportunities.