The South African Music Industry

The South African Music Industry

The Cultural Industries Growth Strategy (CIGS)

CULTURAL INDUSTRIES GROWTH STRATEGY (CIGS)

THE SOUTH AFRICAN MUSIC INDUSTRY

REPORT TO THE DEPARTMENT OF ARTS, CULTURE, SCIENCE AND TECHNOLOGY
FINAL REPORT

NOVEMBER 1998

The report was commissioned by DACST to research the cultural industries and to propose strategies for their growth and development. The report does not necessarily reflect the views of the Department or the Ministry of Arts, Culture, Science and Technology but will be used to inform future policy formulation.

CONTENTS

THE SOUTH AFRICAN MUSIC INDUSTRY 1

TABLE OF FIGURES 6

FOREWORD 8

EXECUTIVE SUMMARY 10

Introduction 10

Why is the music industry important? 10

The Structure of the Music Industry 10

Global With Local Dimensions 10

The Companies 10

The South African Industry 10

Strengths 10

Weaknesses 11

Opportunities 11

Conclusion 11

CHAPTER ONE: INTRODUCTION 12

1.1. Why is this industry interesting? 12

1.2. Conceptual Framework 13

Beginnings 13

Production 13

Circulation 14

Delivery Mechanisms 14

Audience Reception and Feedback 14

Globalisation 15

1.3. Objectives of the Report 15

1.4. Structure of the Report 16

CHAPTER TWO: CIGS AND THE SOUTH AFRICAN MUSIC INDUSTRY 17

2.1. Introduction 17

2.2 The Vision 17

2.3. Conclusion 18

CHAPTER THREE: THE MUSIC INDUSTRY 19

3.1. What is the music industry? 19

3.2. The Music Industry Business 20

3.2.1. The Composer and The Musician 20

3.2.7. The Music Industry 22

3.3. Future Developments 23

3.4. Conclusion 24

CHAPTER FOUR: PARAMETERS OF THE MUSIC INDUSTRY 24

4.1. The structure and operations of the music industry 24

Introduction 24

Global Markets 25

The Multinationals 28

Vertical and Horizontal Integration 31

Core South African Industry Structures 33

Institutions in the South African Music Industry 34

Conclusion 35

4.2. The South African Music Industry in Figures 36

Introduction 36

Price Structures in the South African Music Industry 37

Gross turnover 38

Employment 39

Incomes 41

Growth in the South African Market 41

International and Domestic Repertoire in the South African Market 45

South African Music in the Major Music Markets 50

South Africa, Southern Africa and Africa 53

Conclusion 54

The following chapter will focus on the particular dyanamics of the South African music industry that either provide the industry with a competitive advantage domestically and internationally or may act as an impediment to the growth of the music industry. 55

CHAPTER FIVE: COMPETITIVE ADVANTAGES AND WEAKNESSES OF SOUTH AFRICA’S MUSIC INDUSTRIES 56

5.1. Introduction 56

5.2. Beginnings 56

5.2.1. Diversity 56

5.2.2. Local Culture, Global Rhythms 57

5.2.3. Vulnerability 58

5.2.4. Conclusion 59

5.3. Production 59

5.3.1. Studios 60

5.3.2. Cassette and Compact Disk Production 60

5.3.3. Conclusion 60

5.4. Circulation 60

5.4.1. Legislation and Administration 60

5.4.2. Distribution 62

5.4.3. Conclusion 62

5.5. Delivery Mechanisms 62

5.5.1. Radio Stations 62

5.5.2. Retail 65

5.5.3. Live Music 66

5.5.4. Cultural Quarters 68

5.5.5 Other Points of Delivery 70

5.5.6. The Delivery Mechanism System 70

5.6. Audience Reception and Feedback 70

5.7. The Music Industry System 71

5.7.1. Agglomeration 71

5.7.2. Investment Levels 73

5.7.3. Piracy 74

74

5.7.4. Lack Of Integrated Promotion And Development Of South African Music 74

5.7.4. Information Needs 75

5.7.5. Core Industry Structures and Coordination 76

5.8. Strengths, Weaknesses, Opportunities and Threats 76

5.9. Conclusion 77

CHAPTER SIX: POLICY DEVELOPMENT 78

6.1. Introduction 78

6.2. International Practice 78

Taxation 78

Blank tape levies 79

6.3. Music Industry Development Initiatives 79

Australia 79

Canada 80

Other initiatives 81

6.4. Existing South African Policies And Institutions 82

6.5. Appropriate Policy Interventions in the South African Music Industry 82

6.6. Improving Inter-Sector Connections In The Music Industry 83

6.6.1. Developing A Vision 83

6.6.2. Industry Development Structure 83

6.6.3. South African Music Day 84

6.6.4. Joint Export Promotion 84

6.6.5. Human Resource Development 85

6.6.6. Piracy 85

6.7. Sector Specific Projects 86

6.7.1. Beginnings 86

6.7.2. Production 86

6.7.3. Delivery Mechanisms 86

6.7.4. Tourism and the Music Industry 87

6.7.5. Building International Exposure 87

6.8. Conclusion: The promotion of South Africa as a musical nation 88

APPENDIX ONE: UNDERSTANDING COPYRIGHT 89

Copyright legislation 89

The administration of copyright 90

APPENDIX TWO: SUMMARY OF PUBLIC SECTOR PROJECTS 92

INITIATIVE 92

COST 92

DIFFICULTY 92

TIME-SPAN 92

INTERFACE WITH EXISTING INITIATIVES 92

EFFECTS 92

INITIATIVE 93

COST 93

DIFFICULTY 93

TIME-SPAN 93

INTERFACE WITH EXISTING INITIATIVES 93

EFFECTS 93

INITIATIVE 94

COST 94

DIFFICULTY 94

TIME-SPAN 94

INTERFACE WITH EXISTING INITIATIVES 94

EFFECTS 94

APPENDIX THREE: INTERVIEWS CONDUCTED 96

APPENDIX FOUR: BIBLIOGRAPHY 97