understanding the global music industry while strategically positioning barbados’ cultural...
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All o’ dis talk bout culture driving us mad! At the time of writing, Barbadian born international cultural icon Rihanna is number four on the Forbes list of the highest paid global entertainers while the price of our sugar is depressed and our hotels are closing at alarming rates. This paper posits the idea that Barbados has proven time and time again that its human capital is capable of competing on the world stage. It will focus primarily on our Cultural Industries and the endless opportunities that exist in the Global Music Industry. Part 1 will give a brief overview of Barbados’ policy and legislative framework on the Cultural Industries. Part 2 will examine an innovative macro-business model aimed at strategically positioning Barbados in the global Music Industry. Part 3 will speak to the systems that must be put in place urgently if we are to take advantage of the opportunity. There is an immediate need for a reallocation of national development funding, targeted foreign direct investment for this industry and rapid implementation of policy and programs to correct the implementation deficit affecting the sector.TRANSCRIPT
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