Andy Edwards explores the facts and figures behind the Arts Council v Music Business debate 13 Apr 2018
The role of the Arts Council is once again in the headlines. This week, leading figures representing the music industry locked horns with senior opera figures over Arts Council funding.
UK Music CEO Michael Dugher branded Arts Council England (ACE) “too posh for pop”, pointing out that 62% of ACE’s National Portfolio goes to opera and a further 23% goes to classical music. In contrast, only 8% goes to popular music and 7% to other genres (including jazz, folk, etc).
Hitting back in The Daily Telegraph, Michael Volpe General Director of Holland Park Opera, responded “I’ve been hearing the word ‘posh’ in relation to opera for 30 years. Very few people in opera are posh - certainly not the performers”, although Volpe conceded in the same piece “Opera companies get a lot of money, perhaps more than they ought to, and that’s an ongoing argument.”
ACE has £1.45 billion of public funds and £860 million National Lottery funds to distribute over the next four years. Of the £368 million allocated to music, opera will receive £229 million, classical £85 million and pop £27 million.
The debate is especially timely because ACE has initiated a public conversation to help inform its strategy for the next 10 years. Given the music industry is only just returning to growth having suffered 15 years of decline, a lot is at stake. A barrier to that discussion is a fundamental misunderstanding between both sides.
Some might argue the opera world, and the arts establishment as a whole, seem to look down on the music industry or, perhaps, hold the view that it is less deserving. Many in the music industry consider opera an irrelevance and an extravagance.
The reality is the music industry is vastly more complex, diverse and challenging than is often understood. It is also a reality that opera is accessible through multi-tiered ticket pricing and many opera companies are addressing their own diversity issues.
What are the key issues? How can both sides better understand one another and what does a satisfactory outcome look like?
THE FUNDING IMBALANCE
Not only is there a huge imbalance towards opera, but there is also a disproportionate amount awarded to the Royal Opera House in London specifically. During 2016 alone, the ROH received £28 million in Arts Council funding, which represents 20% of the ROH’s total income for that year. The remainder is made up of box office receipts, commercial income and other fundraising. This includes various charitable trusts and corporate backers such as Goldman Sachs.
By way of comparison, UK Sport fulfils a similar function to the Arts Council and also relies on a combination of public money and lottery funding. It is worth noting the spread of investment across the Olympic disciplines is much more even. Of the £265 million earmarked for the Tokyo Olympic cycle, rowing receives the most with £32 million, followed by athletics (£27m), sailing (£26m), cycling (£26) and swimming (£22m). Although medals success and underlying costs are a factor, the distribution of funds is far more even when compared to arts funding for music. Equestrian was further down the list with £15m, but imagine the uproar if Equestrian took 60% of available funding at the expense of other medal winning sports.
It is hard to see how the imbalance between opera, classical and other forms of music can be justified. Moreover, if funding were to be taken away from opera and distributed more broadly, how detrimental would that be? Supposing ACE funding for the Royal Opera House is cut in half, that would represent a 10% cut in its overall income. Can the ROH be challenged to go without or make up that funding elsewhere?
MOMENTUM MUSIC FUND – A CASE FOR GRANT FUNDING
In 2013, Arts Council England supported the launch of the Momentum Music Fund, administered by the PRS Foundation. Momentum was aimed at artists existing outside the major label system, unsigned or signed to an independent, and who could demonstrable a case for £5-15,000 worth of funding to give their careers tangible momentum at a crucial point.
The scheme has been a great success. Over 270 artists have been supported by Momentum and for every £1 invested £7.46 has been generated. Recipients are truly diverse covering a broad spread of genres with a strong BAME representation, making up 49% of grantees.
Over 3,800 artists have applied for Momentum funding since its inception. Five years after its launch demand and impact has never been greater. The recently published outline of Government's creative industries sector deal, which encourages partnerships between government and industry, mentions the Momentum Fund as an example of good practice.
The frustration is that despite this clear proof of concept, including the quality and diversity of the artists supported and the match funding & income it has leveraged there appears to be little appetite from the Arts Council to continue its involvement in such schemes.
ATTITUDES TO INVESTMENT NEED TO CHANGE
A key challenge is how the music industry is perceived and how it perceives itself.
Culturally, a disproportionate level of attention is afforded to a tiny minority of major artists earning vast sums at the expense of the majority who do not. This contributes to long held assumptions within the arts establishment, government and the wider public that all paths through the music industry are paved with gold. They are not.
Within the industry itself, there has been a tradition of self-reliance. Labels and publishers, especially, pride themselves on their investment in new music. This is very true, but that investment only comes at a certain stage. Leading up to that point, artists and their managers typically funded themselves. Prior to the launch of Momentum, grant type funding for artists was very rarely considered as an option.
Attitudes are very different when it comes to sport. Even world-class athletes such as Mo Farah continue to receive grant funding from Sport UK. In Farah’s case, this is despite considerable endorsement income and a personal net worth rumoured to be £4 million. Grant type funding in sport began in the late 90s. Twenty years later, Great Britain can look back on Olympic glory over the past three Olympic cycles in Beijing, London and Rio across a range of sports. This was no coincidence.
THE ROAD AHEAD
Leading up to the publication of the government’s Industrial Strategy (Creative Industries Sector Deal) earlier this year, there was much debate about funding. Early funding gaps were evident across the creative sector and especially so in music.
For a new artist, releasing music has never been easier: the major streaming platforms are readily accessible to any artist. The principle sources of investment remain labels and publishers although other self-release options such as Seed EIS are available. What has changed is the time it takes to reach that level. A new artist may take several years funding their own releases and live shows during that time. Few new artists have the means to do this, especially those from less affluent backgrounds. This has created very real roadblocks in the talent pipeline as the industry has shifted from CD to download to streaming.
There is a clear deficiency in investment at the seed/ angel level. Unlike the tech world, there are very few mechanisms providing a return to the early stage investor while safeguarding the artist. An artist’s business structure, especially at an early stage, can be fluid and may not have all IP and activities sitting in one entity. Very few new artists could be considered “investment ready” in a traditional sense.
This is why grant funding is so important. It does not require equity stakes or convertible loans. It is simple and when targeted correctly, as Momentum has proven, can be highly effective. Grant funding can play a central role in growing a sustainable talent pipeline that fits the streaming age that is now upon us and ensure the industry picks more winners.
The disproportionate level of Arts Council funds devoted to opera does not seem fair or sustainable and it would seem this is recognized even within the world of opera. Meanwhile, the music industry has proven that grant funding can provide a significant boost to more popular genres and sustain a diverse pipeline of creative talent that works in tandem with existing commercial models. Making the numbers work is a bigger question, but there would seem to be a clear imperative to develop a fairer and more balanced approach to Arts Council funding for music.
NEWS & PRESS
IMS Business Report 2024
Dance Music industry now firmly in its post-pandemic growth phase with 17% revenue growth in 2023 and a total industry valuation reaching $11.8 billion.Independent labels increased their market share for the fourth consecutive quarter, reaching 31%.The annual study of the electronic...more
Pulse Music Group and hit songwriter/producer/artist Jon Bellion form publishing venture
First signing between Beautiful Mind & PULSE Music Group is Elijah Noll PULSE Music Group Co-CEO’s Scott Cutler and Josh Abraham along with President/Head of Creative, Ashley Calhoun announced today that they have formed a music publishing creative joint venture...more
Record Store Day, The Music Business Association and Luminate announce new partnership regarding physical music sales data across independent retail sector in the US
Luminate Now Receiving Independent Sales Data from StreetPulse Billboard Rebranding “Tastemaker Albums” Chart To Better Recognize Impact of Independent Store Sales Today, Coalition of Independent Music Stores (CIMS), Alliance of Independent Media Stores (AIMS), and Department of Record Stores (DORS), who work together as Record Store Day, The Music Business Association,...more
Absolue inks deal with Capitol Records Italy for Jack Savoretti album
Absolute Label Services will handle release of Savoretti’s first ever Italian language LP in UK & Ireland. Absolute Label Services has agreed a deal with Universal/Capitol Records Italy for the release of Jack Savoretti’s first ever Italian language album. The deal covers...more
Beyond the Bassline: 500 Years of Black British Music opens at the British Library
Beyond the Bassline: 500 Years of Black British Music opens at the British Library First exhibition to document the 500-year musical journey of African and Caribbean people in Britain opens at the British Library and in local libraries across the UK Soul...more
YolanDa Brown OBE DL becomes University of Kent’s new chancellor
The University of Kent is delighted to announce that double-MOBO winning musician and broadcaster YolanDa Brown OBE DL has been appointed to the role of Chancellor, succeeding Gavin Esler who has retired from the position after almost 10 years in the role. Having...more
Festivals unite to extend fundraising prize draw closing date
WIN TICKETS TO OVER 60 OF THE UK & EUROPE’S MOST BELOVED FESTIVALS IN SUPPORT OF WAR CHILD AND MAP BOOMTOWN, LOVE SAVES THE DAY, PARKLIFE, ALL POINTS EAST, TRUCK, THE LONG ROAD, WIDE AWAKE AND MANY MORE OVER £10,000 RAISED SO...more
Concord Music Publishing extends agreement with Jeremy Lutito, signs Jon Class under new JV partnership
Today, Concord Music Publishing announced that they have extended and expanded their existing agreement with GRAMMY-nominated producer, songwriter, and multi-instrumentalist Jeremy Lutito. This worldwide publishing deal, effective immediately, includes Lutito’s full catalog and all future works and launches a new joint venture partnership, Mezzanine,...more
TuneCore Expands Music Publishing Services and User Experience to Aid Independent Songwriters
TuneCore, the leading independent development partner for self-releasing artists—owned by Believe, one of the world’s leading digital music companies—has rolled out a comprehensive suite of music publishing services to help independent songwriters increase their earnings in over 200 countries. Andreea Gleeson,...more
Radio 2 in the Park 2024Â to land in Preston
Radio 2’s flagship annual live music event, Radio 2 in the Park, will take place this year in Moor Park in Preston, Lancashire on Saturday 7th and Sunday 8th September, as revealed this morning by Gaby Roslin on the Radio...more
Como No – The UK’s Leading Latin Music Promoter – Announces New Director Amid Major Changes To Organisational Structure
Elena Beltrami is appointed as new Director of Como No & La Linea Festival as Founder Andy Wood steps back and becomes a Non-Executive board member Como No, one of the world’s foremost Latin music promoters, today announces a significant change...more
Liana Flores signs to Verve (US) and partners with Fiction (UK)
Releases highly anticipated new song ‘I Wish For The Rain’ Today, British-Brazilian artist Liana Flores is proud to announce that she is now signed to the iconic Verve Records (The Velvet Underground, Astrud Gilberto Kurt Vile, Arooj Aftab). Fiction Records (The...more
Amazon Music returns to Primavera Sound to exclusively livestream the festival to audiences around the world
Amazon Music and Primavera Sound join forces for the third consecutive year Music fans around the world will be able to tune in to the event from 30th May – 1st June Primavera Sound will be broadcast in Spanish and English on the Amazon...more
Black Lives in Music - Government ‘Falling Short’ in Helping to Protect Women in the Music Industry
UK Government ‘Falling Short’ in Helping to Protect Women in the Music Industry Harassment and Discrimination Allowed to Continue After Government Rejects Recommendations of the Misogyny in Music Report BLiM & CIISA amd more respond to the Government’s inaction CIISA cite BLiM's new...more
Symphonic Distribution Hires Stephen Nightingale to Lead A&R and Business in Canada
Symphonic Distribution, a leading music technology and services company for independent labels, managers, and artists, has hired music industry veteran Stephen Nightingale as Vice President, A&R and Business Development, Canada. Reporting to Symphonic’s Chief Creative Officer, Randall Foster, Nightingale will bring his...more
Rock icon Dan P Carter joins Spinefarm as Director of Artist Development
Key appointments also made across UK Marketing Team Spinefarm Music Group, one of the most successful and best-known rock labels in the world, has announced a major global hire alongside a new UK marketing team. Dan P Carter, the longtime curator of...more
Park Avenue Artists Expands Booking Division
New York multihyphenate agency signs new talent, brings on booking co-director in ongoing push to create a new model for arts agencies and management. Park Avenue Artists has expanded both its artist roster and its executive team in its booking division....more
Meet Unisound: The ultimate matchmaker between sample buyers and sellers
The market for sample packs is more saturated than ever–forcing modern sample libraries to make and market their sounds and leaving buyers to sift through endless sounds to find exactly what they are looking for. That’s why Unisound created a platform that lets...more
Universal Music France and Binetou Sylla, founder of leading independent label Wèrè Wèrè Music partner to lead Def Jam Africa across French-speaking Africa
Universal Music France and producer Binetou Sylla form strategic relationship to lead Def Jam Africa, focusing on further developing French-speaking regional artists globally Universal Music France (UMF), a division of Universal Music Group (UMG), the world leader in music-based entertainment, today...more
BPI CEO calls on music industry and government to unite around 5 key priorities to support human artistry and sustainably promote British music
Focus on talent & education, fan engagement & innovation; and sustainability; Keynotes from Ed Newton-Rex, Fay Milton, Louis VI, and Thangam Debbonaire MP, Shadow Secretary of State for DCMS. Panel contributions including by Rebecca Allen (EMI Records), Elton Jackson (Sony Music UK), Vabyanti Endrojono-Ellis...more
The Independent and Music Venue Trust launch major new initiative to support UK grassroots music venues
Main Stage will be led by Music Editor Roisin O’Connor alongside the Music Venue Trust 12 venues around the UK to be recognised over the next yearEach venue to receive editorial coverage and a free ad campaign on The Independent The Independent...more
Sony Music Publishing Nashville Signs Randall King to Global Deal
Sony Music Publishing Nashville today announced the signing of West Texas native Randall King, celebrated by Holler as “the genre's neo-traditional figurehead,” to a global publishing agreement. King has emerged as one of today’s most promising new voices in country music, amassing over...more
Nominations announced for the Ivors with Amazon Music 2024
Sampha and Yussef Dayes lead the way with two nominations each Composer Daniel Pemberton also receives two nominations across the screen categories RAYE, CMAT, Yussef Dayes, Lankum and Sampha in the running for Best Album Jungle, The Japanese House, Jazzy and Kenya Grace...more
The Great Escape announces full conference line-up and schedule
NEW SPEAKERS INCLUDE WIRE'S COLIN NEWMAN, IZZY BEE PHILLIPS (BLACK HONEY) AND APPLE MUSIC HOST DOTTY Today The Great Escape has announced the full line-up and schedule for its UK-leading music industry conference, returning to Brighton from Wednesday 15th to Saturday...more
FAC boost their community with 20 new Artist Ambassadors
FAC boost their community with 20 new Artist Ambassadors including Duran Duran, Nia Archives, Girli, Elkka, English Teacher, Guvna B, OneDa and Alt-J's Gus Unger-Hamilton The new cohort means more than 140 artists have agreed to act as Ambassadors for the...more
Fairground Attraction partners with Absolute for first album in 35 years
The band’s 1988 hit Perfect was a chart topper in the UK and around the globe. Eighties neo-skiffle band Fairground Attraction have partnered with Absolute Label Services after reuniting for the first time in 35 years. Absolute will power the marketing, promotion,...more
BPI to host ‘In Tune With Tomorrow’
Monday 22nd April 2024, Waterloo Leake Street Future-facing conference on how the recorded music industry can support talent and enable creativity for a more sustainable future * * * * * * * YolanDa Brown OBE DL in conversation with BRIT School’s Stuart Worden...more
AIM and the BPI appoint Creative Zero’s Roxy Erickson to lead next phase of Music Climate Pact
Funding provided through partnership between AIM and creative industries climate charity, Murmur Erickson to work closely with Pact’s stakeholders to deliver outcomes to benefit the entire music industry AIM (The Association of Independent Music) and the BPI (British Phonographic Industry) have appointed...more
Leading European PR agencies unite to form PR:E
- an innovative network providing consultancy for popular culture clients & brands PR:E is a brand new network of award-winning PR agencies from Belgium (ABCommunication), France (Cartel), Germany (Kruger Media), Italy (Goigest), the Nordics (PR Nordic), Spain (Blanchón), and the UK...more
Bella Figura Music acquires Rak Publishing
Agreement Includes Classic Songs by Hot Chocolate, Suzi Quatro, Steve Harley, Kim Wilde, Joan Jett & more Bella Figura Music, the independent music publisher and record label founded by Alexi Cory-Smith and Neelesh Prabhu in 2022, has announced the acquisition of...more
THE HEADLINES
Spotify talks growth, bundle royalties and short-video plans (see Digital)
BPI CEO calls on music industry and government to unite around 5 key priorities to support human artistry and sustainably promote British music (see News)
Hipgnosis Song Management fires back at Songs Fund board (see Business)
Blackstone bid for Hipgnosis receives backing from board (see Business)
Taylor Swift’s new album breaks Spotify records (see News)
Independence - what’s up with that BPI press release about 2023 music consumption? (see Comment)
Creator Remuneration Working Group meet for the first time (see News)
Concord's takeover of Hipgnosis (see Analysis)
Concord set to acquire Hipgnosis Songs Fund (see Business)
Is the music industry gaslighting artists? (see Comment)
BPI’s new Yearbook highlights an independent sector growing for a sixth consecutive year (see Reports)
Can’t cross the moat? Walk around it. (see Comment)
The conversation around Fandom needs to change (see Opinion)
Viagogo: Carrying on ticketing, despite the controversy (see News)
Taylor Swift songs return to TikTok (see Digital)
Spotify plans new remixing tools for the TikTok generation (see Digital)
Is Spotify plotting a largescale push into short-form video? (see Digital)