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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.

27 Jan 2020 | Press release

The BRIT Awards 2020 with Mastercard announces Fred again.. as Producer of The Year

The BRIT Awards 2020 with Mastercard exclusively broadcast on ITVTuesday 18th February from The O2 Arena in London   The BRIT Awards 2020 with Mastercard today announces Fred again..as the youngest ever recipient of the award for BRITsProducer of The Year. Since cutting...more

27 Jan 2020 | Press release

Calvin Harris, Camila Cabello, Dua Lipa, Harry Styles, AJ Tracey and Biffy Clyro to perform at Radio 1’s Big Weekend 2020 in Dundee

BBC Radio 1’s Big Weekend will return for 2020 with Harry Styles, Camila Cabello and Dua Lipa among the first acts named on the bill.  The station’s annual flagship live music event will take place in Camperdown Park in Dundee, Scotland...more

26 Jan 2020 | Press release

Government slashes business rates for grassroots music venues

Hundreds of music venues across England and Wales celebrating as Music Venue Trust secures 50% rate reduction   The live music circuit is celebrating today as the Government announced details of a 50% reduction in Business Rates for small and medium sized...more

26 Jan 2020 | Press release

UK Music reacts to Government over Copyright Directive

Rt Hon Chris Skidmore MP, Minister of State for Universities, Science, Research and InnovationDepartment for Business, Energy and Industrial Strategy     Dear Chris, I am writing on behalf of UK Music in response to your statement of 21 January that the Government has no...more

24 Jan 2020 | Press release

Apple Music launches Antidote playlist

The UK has a long-standing and rich alternative music culture. From iconic and legendary DJs and chart tv shows to groundbreaking alternative music papers and trailblazing music festivals, there has long been a fervent spirit of non-conformity in the United Kingdom....more

24 Jan 2020 | Press release

Festival Republic launch Rebalance Celebrates International Women’s Day

FESTIVAL REPUBLIC PRESENTSREBALANCE CELEBRATES INTERNATIONAL WOMEN’S DAY AT UNION CHAPELSUNDAY 8TH MARCH 2020 MEET WOMEN IN THE MUSIC INDUSTRY2.30 – 6.30PM SPEED NETWORKING, PANELS, AND TALKS  DAY TICKETS £2 (DONATED TO SAFE GIGS FOR WOMEN)  EVENING PERFORMANCE: NILÜFER YANYA PLUS MARTHA HILL, TAMZENETICKETS £17.50 TICKETS ON SALE NOW #REBALANCELIVE  Festival Republic have launched...more

24 Jan 2020 | Press release

Billboard names Sir Lucian Grainge as first-ever 'Executive of the Decade,' Jody Gerson as 'Executive of the Year' on 2020 Power 100

  Universal Music Group's Chairman & CEO Becomes the First Executive to be Honored by the Publication a Record Five Times  Universal Music Publishing Group Chairman & CEO Makes History as Award's First Music Publishing Executive and First Woman Recipient   Sir Lucian Grainge, Chairman and...more

24 Jan 2020 | Press release

Hipgnosis acquires Brian Higgins catalogue

Hipgnosis Songs Fund Limited (“Hipgnosis” or the “Company”) Acquisition of Music Catalogue   The Board of Hipgnosis Songs Fund Limited and its Investment Adviser, The Family (Music) Limited, are pleased to announce that the Company has acquired a music catalogue from 3 times...more

23 Jan 2020 | Press release

Kite: Brand new festival of ideas & music launches in January

KITE Festival’s official launch: 23rd January 2020 First festival of its kind delivering a pioneering event of ideas and music Kickstarter launch will build a community of ‘festival founders’ who will help shape the event Kite is a joint venture between the founders...more

23 Jan 2020 | Press release

AWAL Signs Worldwide Recordings Deal with mxmtoon

On the Back of More Than 300 Million Streams & Publishing Deal with Kobalt, Rising Bedroom Pop Star Inks Recordings Deal  January 23, 2020 - AWAL, Kobalt's recording company, today announced a global deal with singer, songwriter, and producer, mxmtoon. The...more

23 Jan 2020 | Press release

Merlin and TikTok agree to a landmark global music licensing partnership

 Merlin, the digital licensing hub for the world’s independent music sector, has entered into a multi-territory partnership with TikTok, the world's leading destination for short-form mobile video with a mission to inspire creativity and bring joy. The deal is effective immediately...more

23 Jan 2020 | Press release

HMV-owner buys 200 store-strong entertainment and pop culture retailer in USA with acquisition of For Your Entertainment

Canadian business entrepreneur Doug Putman, owner of hmv in the UK and Sunrise Records in Canada has confirmed today that he has committed to acquire For Your Entertainment (FYE), the leading US entertainment retail and ecommerce business. FYE has over...more

23 Jan 2020 | Press release

Ditto Music announce launch of ‘Bluebox’

DITTO MUSIC ANNOUNCE LAUNCH OF ‘BLUEBOX’: A BRAND-NEW SUITE OF MUSIC INDUSTRY TOOLS PUTTING 250,000 ARTISTS ON THE BLOCKCHAIN   Global music distribution and record label services provider Ditto Music has announced the launch of Bluebox, a brand new blockchain-backed suite of...more

22 Jan 2020 | Press release

Mixcloud reveals brand consultancy arm LOUD

Audio streaming platform Mixcloud welcomes 2020 by announcing the launch of its in-house brand consultancy LOUD, under the leadership of founding partners Kazim Rashid and Ben Lawrence. LOUD further diversifies the audio streaming platform's revenue mix, following 2019’s roll out of...more

22 Jan 2020 | Press release

Ayla Owen appointed European VP of Sync and Creative Services at Warner Chappell Music

ANDREW HOWELL NAMED UK HEAD OF SYNC   Ayla Owen has been appointed Vice President, Sync & Creative Services for Europe at Warner Chappell Music, the global music publishing arm of Warner Music Group.  Coordinating the company’s Sync and Creative Services operations...more

22 Jan 2020 | Press release

Concord Music Publishing announces partnership with Creative Titans and first signing with hitmaker Bassto

Concord Music Publishing, the worldwide independent leader in music publishing, today announces a new creative partnership with Guyanese-American music executive Ron André Elvis Telford and his Creative Titans business. The partnership will see Ron Telford work with Concord's A&R team, led by EVP Worldwide A&R,...more

22 Jan 2020 | Press release

Culture Minister Nigel Adams reveals plan for new music strategy to ensure industry remains “the envy of the world”

Culture Minister Nigel Adams revealed Government plans for a new music strategy as he pledged to support UK’s “brilliant creators”. The disclosure was welcomed by Deputy CEO Tom Kiehl of UK Music which has been calling for the new music...more

22 Jan 2020 | Press release

Concord Music Publishing appoints Tom Coulson-Smith as Director of A&R

Concord Music Publishing today announces the appointment of executive Tom Coulson-Smith as Director of A&R, to its  growing frontline A&R team. Based at Concord’s London office, the former Warner Chappell executive sees himself reunited with Kim Frankiewicz, EVP Worldwide A&R at Concord...more

22 Jan 2020 | Press release

Amazon Music celebrates more than 55 million customers worldwide

After a year of incredible growth, Amazon Music revealed today it has reached more than 55 million customers globally, with subscriptions to Amazon Music Unlimited growing by more than 50% last year alone. Read more about the announcement on the Amazon Day 1 blog. “We’re proud to...more

22 Jan 2020 | Press release

Downtown’s AVL Digital Group acquires FUGA

Market-Leading B2B Music Technology and Services Company Joins Downtown Music Holdings’ Portfolio of Music Distribution, Artist & Label Service Businesses Global music company Downtown Music Holdings (Downtown), announced today that its subsidiary, AVL Digital Group (AVL), has acquired FUGA®, the Netherlands-based...more

22 Jan 2020 |

Sheffield City Region Music Board

Sheffield City Region Mayor Dan Jarvis writes about the importance of music and why he is determined to make the Sheffield City Region Music Board a success.   Many of us will remember the first album we bought. That excitement of rushing...more

22 Jan 2020 | Press release

Dark Horse Records partners with BMG

BMG has announced a new multi-faceted global partnership with Dark Horse Records, the imprint led by Dhani Harrison and manager David Zonshine. The agreement initially brings releases from the acclaimed catalogue of George Harrison’s legendary label Dark Horse Records and...more

21 Jan 2020 | Press release

Line-up and venues for the BBC Radio 6 Music Festival 2020 announced

This morning (Tuesday 21st January) on BBC Radio 6 Music, Lauren Laverne and Mary Anne Hobbs revealed the details and line-up of the 6 Music Festival 2020, which will take place in Camden, London, from Friday 6th March to Sunday 8th March. The line-up...more

21 Jan 2020 | Press release

Worldwide Independent Network elects new board

The Worldwide Independent Network (WIN) has announced its newly elected board of directors. Five new directors join the WIN Board: Francesca Trainini (PMI), Garry West (Compass Records), Jörg Heidemann (VUT), Lisa Levy (Robbins Entertainment), and Zena White (Partisan Records). The...more

21 Jan 2020 | Press release

Diana Ross to play Eden Sessions, July 21, 2020

Global legend Diana Ross is to play the Eden Sessions on July 21, 2020. Diana is one of the most successful recording artists and entertainers of all time. From her landmark solo career to the early days as the leader...more

21 Jan 2020 | Press release

Britain’s first nationwide music therapy bursary programme launched by charity Nordoff Robbins & Sony Music UK

  Nordoff Robbins, the UK’s largest independent music therapy charity, has today announced it is to benefit from a bursary from Sony Music to train six students on their world-class Master of Music Therapy (MMT) programme.  The funding has been ring-fenced for...more

21 Jan 2020 | Press release

AIM announces full speaker line-up for flagship conference AIM Connected

   The Association of Independent Music (AIM) has announced the full speaker line-up for its flagship conference AIM Connected, which will take place on 4 February at Kings Place, London. The newly announced speakers comprise an international group of experts from companies...more

21 Jan 2020 | Press release

Save the date: FastForward is back! 30 April - 1 May 2020

FastForward is delighted to be coming back to Sydney in 2020 for its 3rd edition, supported by APRA AMCOS, Soundcharts, Comes with Fries and new sponsor TicketSwap! We’re moving venues, back to be closer to the music at the legendary...more

21 Jan 2020 | Press release

Darren Baber joins Warner Records as SVP, Media & Strategic Development

Warner Records today announced that respected public relations vet Darren Baber is joining the company as SVP, Media & Strategic Development. Baber will be based at the label’s state-of-the-art Los Angeles headquarters. He will report to Laura Swanson, EVP, Media...more

21 Jan 2020 | Press release

Beatport looks back at 16 years of achievements

    Beatport just capped off another incredible year, and to celebrate, the world's largest DJ download store is looking back at its major achievements, the year in trends, and its unwavering commitment to advancing the global dance music scene. Beatport is...more

27 Jan 2020

  • Billie Eilish dominates Grammy awards in key categories (see News)

  • UK will not implement the EU Copyright Directive (see News)

  • Fred again... wins Producer of the Year BRIT Award (see News)

24 Jan 2020

  • Hipgnosis acquires Brian Higgins catalogue (see Deals)

  • Merlin strikes multi-territory deal with TikTok (see Business)

23 Jan 2020

  • Downtown acquires FUGA (see Business)

  • Concord appoints Tom Coulson-Smith as Director of A&R (see Business)

  • Amazon Music reports 55 million customers globally (see Digital)

22 Jan 2020

  • Recording Academy CEO/president Deborah Dugan calls Grammy voting process 'ripe with corruption' (see International)

  • Spotify tests Stories feature (see Digital)

  • Warner Chappell make key appointments (see Business)

21 Jan 2020

  • Reports from MusicAlly's NY:Lon conference (see Digital)

20 Jan 2020

  • Soundcloud reported strong 2018 figures (see Business)

  • Universal Music launches Creative Differences, highlighting the benefits of employing neurodiverse individuals (see News)

  • Beyoncé said to have signed with Sony/ATV Music Publishing (see Deals)

17 Jan 2020

  • Hipgnosis acquires Ammar Malik catalogue (see Business)

  • O2 partners with CTS Eventim (see Business)

  • Recording Academy head Deborah Dugan out a week before Grammys (see International News)

16 Jan 2020

  • Ed Sheeran ordered to disclose concert income for copyright lawsuit (see News)

  • BMG signs deal with sample licensing startup Tracklib (see Digital)

  • Billie Eilish, Harry Styles, Lewis Capaldi, Mabel and Stormzy to perform at the BRIT Awards 2020 (see News)

15 Jan 2020

  • Russell Fogden and Morgan Hughes to lead Warner's Artist Services team in London (see Business)

  • Billie Eilish to sing the new James Bond theme (see News)

  • Universal Music UK launches The Square, Jack Fryer promoted to Managing Director (see Business)

  • HMV confirms five stores saved from closure (see Business)

14 Jan 2020

  • Aaron Randall and Bill Ashton appointed MDs at Songkick (see Business)

  • Kate Sweetsur appointed Head of Creative at Downtown Music Publishing (see Business)

  • Sentric Music Group acquires Big World Publishing (see Business)