Ilmc Discusses How To Improve Live-music Industry

Does the international live-music industry have a reputation to save among other related sectors? The conclusion at this year's International Live Music Conference (ILMC), held March 7-9 at the Royal Garden Hotel, was that things could be better.

The panel called "To See Ourselves As Others See Us" focused on touring's relationships with the record business and its status among export industries supported by governments.

Record-company executives and national music office representatives were among the non-live-music specialists invited to join concert promoters to discuss how things could be improved. One of the panel's co-chairmen—Stuart Galbraith, promotions VP at London-based Clear Channel Entertainment U.K.—noted that sales in live music were rising at a time when CD sales were plummeting, and consequently the two businesses could learn something from each other.

Panelist Paul Conroy, Virgin Records U.K.'s former managing director and founder of the new London-based independent management company/ label Adventures in Music, said: "Relationships between the labels and live music have broken down."

He argued that the major labels had become too corporate-minded to understand how live music could contribute to sales: "There's no direct relationship with artists. The majors need to refocus themselves."

Alison Wenham, CEO of U.K. independent labels' trade body Assn. of Independent Music (AIM), defended the recording industry, saying sales might have fallen, but "the recording industry isn't dead." However, she called for such independent financiers as bankers to step into the breach where majors have failed to financially develop certain acts. She felt the international banking industry has never understood the concept of developing acts for potential long-term profit.

Several delegates in the audience pointed to the trend of emerging and established acts opting to forgo the major labels' resources. Cited examples included British act Simply Red and Steve Winwood. Another topic of discussion throughout the weekend was U.K. star Robbie Williams' reported $80 million deal with EMI Recorded Music, where the major planned to recoup revenue not just from selling Williams' recordings but also from merchandise and ticket sales. But, as panelist and EMI liaison officer Alex Belmont noted, Winwood and Williams would not have such clout to become independent had the majors not helped develop them in the first place.

The panel also examined the live-music business' relationship with government bodies. Although representatives from the music export bodies for Finland, the Netherlands, France, and the Europe-wide region said they were starting to receive funds, they noted that they still struggled to gain the governments' respect as an export sector. As Eric Morand of Paris-based Export Music France pointed out, the Swedish music industry had to remind its government that pop sensation Abba was bringing in more foreign revenue from their tours and recordings than auto giant Volvo before the Swedish export office was taken seriously.

Helsinki-based Paulina Ahokas, director of the recently launched Musex (Music Export Finland), said the country's Ministry of Trade and Industry financed 50% of her organization. But to survive, the rest of its funds had to come from the local labels' marketing budget.

The Dutch equivalent to Musex, Conamus, survives on funds from local copyright collection societies Buma and Stemra, the Noord-Holland, Hilversum-based organization's Peter Smidt said. The national government's ministry of culture and economic affairs only assists on a project-by-project basis. Smidt argued that government support is needed to promote local live acts, especially in countries like the Netherlands, where Anglo-U.S. repertoire dominates music sales.

Michael Gudinski, managing director of Australia-based promoter Frontier Touring Co., noted that when governments do take the music industry seriously, it can pay dividends, as illustrated in New Zealand. "New Zealand is very active," he said. "Any half-decent band can get a [government] grant to make an album and pay for managers and labels to travel to see New Zealand bands around the world. Even the prime minister is supporting high-level acts and local acts."