AGM Northwest Creative & Media Industries

Overview of the Music Business Economy and the key issues and opportunities for the regional sector

David Pichilingi24th March 2010

dave@weareboss.co.uk

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Dave Pichilingi◦Liverpool Sound City

http://www.liverpoolsoundcity.co.uk/ ◦1st presented 25 March 2010 at the

1st How-Do/Vision+Media Northwest England’s Creative Industries AGM

Regional overview and competitive position

◦ London and South East primarily dominate the music market in relation to overseas investment

◦ Worldwide decline in record business

◦ The Northwest region has successful track record for artist development

◦ Regional strengths include SJM (promoters), AdLib/Wigwam (PA & tech suppliers), Sound City/In The City (International conference and festival) Creamfields (club brand & festival), All Around The World (label, TV channel & club brand), Kendal Calling (festival), Sentric Music (online publishing)

◦ UNESCO World City of Music bid

DCMS report 2009

The funding perspective

◦ Viewpoint from traditional funding sector is that the music environment is “too high risk”

◦ 39% of music businesses refused finance at development were given this reason

◦ This compares to just 18% of small businesses generally

◦ Perceived lack of access to finance for those looking to enter the marketplace

◦ Difficult for the new entrepreneurs to flourish

The Sound City perspective◦ Liverpool Sound City at SXSW

Rationale Formula Successes

◦ Liverpool Sound City (UK) Vision Strategic relationships (Musexpo, SXSW, CMW, Midem) The Conference (Meet The Buyer, The Trial, Create!) The Live Festival The regional agenda (artists and businesses)

◦ Dubai Sound City Brand extension First ever promoters to engage in this level of activity in UAE Issues for the future Shanghai and beyond

◦ Marketing Core to everything we do Regional, national and international across all areas of activity Managing perceptions and building profile of the region as a place to do business

Immediate call to action

To promote and support the development of key regional brands that nurture and develop real business growth for the region

To support regional businesses in raising national and international profile

Identify high growth potential businesses and target for specific business support and investment opportunities

Think about the Future!◦ Addressing the key challenges to growth in this sector? Where

are the greatest opportunities?

◦ What policies should we be collectively developing to address and support the regional businesses? What roles are open for public sector to help in these areas?

◦ How can we offer better opportunities for businesses that wish to engage cross platform with our sector?

◦ How can we best support those at the grassroots level? We need to create better entry avenues for those people aspiring to work within our industry and develop a career in the music business?

◦ What are the skills shortages that exist in the music sector?

What sort of workforce development or training is needed?

◦ What can media industry partners – for instance, both commercial and BBC – do to help promote new, diverse, local musical talent across all genres?

Finally

◦ The music business is going through unprecedented change.

◦ There is a real opportunity for the public sector to develop effective intervention to ensure the growth and future development of the excellent skills base and raw talent that exists in our region.

◦ This can only happen through incisive and innovative policy and action.