An investigation into the level of support for local music

compared to international music in South Africa.

Developed by

KENNETH LAWRENCE 204175771

MICHAEL JONES 209199679

TERENCE CONRADIE 209158034

Assignment 1 submitted in partial fulfilment of the requirements for the degree

Baccalaureus Technologiae: Marketing

in the Faculty of Business

at the Cape Peninsula University of Technology

Lecturer: R. Duffet

Cape Town

18 October 2010

ii

DECLARATION

I, KENNETH LAWRENCE 204175771, declare that the contents of this proposal represent my own

unaided work, and that the dissertation/thesis has not previously been submitted for academic

examination towards any qualification. Furthermore, it represents my own opinions and not

necessarily those of the Cape Peninsula University of Technology.

Signed Date

I, MICHAEL JONES 209199679, declare that the contents of this proposal represent my own

unaided work, and that the dissertation/thesis has not previously been submitted for academic

examination towards any qualification. Furthermore, it represents my own opinions and not

necessarily those of the Cape Peninsula University of Technology.

Signed Date

I, TERENCE CONRADIE 209158034, declare that the contents of this proposal represent my own

unaided work, and that the dissertation/thesis has not previously been submitted for academic

examination towards any qualification. Furthermore, it represents my own opinions and not

necessarily those of the Cape Peninsula University of Technology.

Signed Date

iii

ABSTRACT

Prior to 1994 many bands, including solo musicians, duplicated or covered songs done by

international musicians. As a result of apartheid, social and economic sanctions, conditions for

operating as a normal society were far from ideal. This marginalised the citizens of South Africa in

their thoughts and actions. These restrictions and inadequate access to information marginalised

South Africa as a whole but it also impacted on the creativity of its musicians. Added to this was a

society that was conditioned to hearing and identifying with international music.

The South African music industry has changed significantly since the democratisation of the country

in 1994. The country has moved out of an environment where political sanctions restricted and

isolated us from the rest of the world. Even though much has changed, SA is, as quoted by Mr.

Nelson Mandela, still “in the momentum of Apartheid”. Hence, even though SA have democratised the

effects of the past are still felt and will be for a long time and until then SA need to make every effort

to curtail the negative culture inherited from our past. The discriminating practices within the music

industry bear testament to this legacy.

This recognises the political, social and the impact that sanctions have played on South Africa. We

acknowledge and appreciate that various initiatives such as Cultural Industries Growth Strategy

(CIGS) and also the music representative bodies such as South African Music Rights Organisation

(SAMRO) and the work they do. However, we question the commitment and effectiveness thereof. It

is also good to see that media interest in local music and reporting thereon has increased. The buy-in

from media, such as radio and television, which is arguably the most powerful tool in publicising, is

not where it should be in terms of the targeted airplay ratio set out by government policy.

The argument goes back and forth that sales of South African artists do not justify the investment, but

where do we start? In order to generate sales you need a market as one does not exist without the

other. A large potential market for local music does exist; it is a question of overcoming the barriers in

relation to the perceptions that the consumer has. Our approach is to identify the attitudes and

motivations of why South Africans purchase music and their decisions and requirements when

considering the purchase of local music. The aim is to draw attention to these needs so that all

industry players will give the necessary attention in support of them. A different approach in marketing

South African music to South Africans. If SA are to make this industry a viable and sustainable one

we must move away from the practices and prejudices of the past and support what is “home grown”.

Through this work the thesis it is expected that a clearer understanding of the market expectations

and perhaps clarify the roles and obligations of the industry players to actively engage with one

another in a way that will be cognisant of the market preferences and perceptions. They will,

hopefully, be able to take direction in formulating their plans and strategies so that they can

meaningfully begin to shape the behaviour of the South African music consumer.

iv

TABLE OF CONTENTS

CHAPTER ONE: OVERVIEW OF THE MUSIC INDUSTRY .................................................... 1

1.1 Introduction ..................................................................................................................... 1

1.2 Why is this industry interesting?...................................................................................... 1

1.3 Research problem statement .......................................................................................... 2 1.3.1 Sub-problems ........................................................................................................ 2

1.3.2 Background to the research problem ..................................................................... 2

1.3.3 The reports three objectives. ................................................................................. 3

1.4 Research problem question ............................................................................................ 3 1.4.1 Primary research problem question ....................................................................... 3

1.4.2 Secondary research questions .............................................................................. 3

1.5 Primary Objective ............................................................................................................ 4 1.5.1 Secondary research question ................................................................................ 4

1.5.2 Secondary Objectives ............................................................................................ 4

1.6 Delimitations ................................................................................................................... 4

1.7 Research methodology ................................................................................................... 5 1.7.1 Research design .................................................................................................... 5

1.7.2 Sampling ................................................................................................................ 5

1.7.3 Data collection methods ............................................................................................... 5 1.7.3.1 Interviews .................................................................................................................... 5

1.7.3.2 Questionnaire.............................................................................................................. 5

1.7.4 Data analysis ......................................................................................................... 6

1.7.5 Limitations ............................................................................................................. 6

1.8 Literature review .......................................................................................................... 6 1.8.1 The music representatives and legislative aspects ................................................ 6

1.8.2 Link in the music industry and vertical integration.................................................. 7

1.8.3 Viability of the local music industry ........................................................................ 7

1.9 Significance of the research ............................................................................................ 8

1.10 Expected outcomes, results and contributions of the research .................................... 8

1.11 Summary ..................................................................................................................... 8

CHAPTER TWO: LITERATURE REVIEW THE SOUTH AFRICAN MUSIC INDUSTRY ....... 10

2.1 Introduction ................................................................................................................... 10

v

2.2 The Music Representatives .......................................................................................... 10

2.3 Legislation and Administration ...................................................................................... 10 2.3.1 Recording rights .................................................................................................. 10

2.3.2 Registration of works ........................................................................................... 11

2.4 Link to the music industry ............................................................................................ 11

2.5 Vertical and Horizontal Integration ................................................................................ 12

2.6 Distribution .................................................................................................................... 13

2.7 The Music Industry Business ........................................................................................ 13 2.7.1 The Composer and the Musician ......................................................................... 13

2.7.2 Live Performance ................................................................................................. 14

2.7.3 Record Companies .............................................................................................. 14

2.7.4 The Retailer and the Broadcaster ........................................................................ 14

2.7.5 Promotion and Publicity ....................................................................................... 14

2.8 The Domestic and International Market ........................................................................ 15

2.9 The music industry comprises of the following aspects ................................................ 15

2.10 South African music in different regions ..................................................................... 16

2.11 Future Developments ................................................................................................. 17 2.11.1 Internet ................................................................................................................ 17

2.11.2 Electronic media access ...................................................................................... 17

2.12 Symptomatic aspects faced by local musicians ......................................................... 18 2.12.1 Artist recognition .................................................................................................. 18

2.12.2 Business skills of Artist ........................................................................................ 18

2.12.3 International profit before local commitment. ....................................................... 20

2.12.4 Record Companies .............................................................................................. 20

2.12.5 Promotional support for international music “cash cows” ..................................... 20

2.13 South African Musicians need to take ownership ....................................................... 20 2.13.1 Self promotion...................................................................................................... 20

2.13.2 Marketing ............................................................................................................. 21

2.13.3 Channel expansion .............................................................................................. 21

2.14 Support from industry role players needed ................................................................ 21 2.14.1 Play list influencing .............................................................................................. 21

2.14.2 Broadcasting ........................................................................................................ 22

2.14.3 Archaic mindsets ................................................................................................. 22

2.14.4 Distribution channel monopoly ............................................................................. 22

vi

2.14.5 Financial strength ................................................................................................ 23

2.15 Government commitment ........................................................................................... 23 2.15.1 Legislation ........................................................................................................... 24

2.15.2 Passion ................................................................................................................ 24

2.16 SWOT ........................................................................................................................ 25 2.16.1 Strengths ............................................................................................................. 25

2.16.2 Weaknesses ............................................................................................................... 26

2.16.3 Opportunities .............................................................................................................. 26

2.17 International best practice .......................................................................................... 26 2.17.1 Australia ............................................................................................................... 27

2.17.2 Canada ................................................................................................................ 27

2.17.3 Taxation ............................................................................................................... 28

2.17.4 Blank tape levies .................................................................................................. 28

2.18 National support programs ......................................................................................... 28

2.19 Summary ................................................................................................................... 29

CHAPTER THREE: SOUTH AFRICAN MUSIC INDUSTRY .................................................. 30

3.1 Introduction ................................................................................................................... 30

3.2 History ........................................................................................................................ 30

3.3 Types of music in SA .................................................................................................... 31 3.3.1 Gospel ................................................................................................................. 31

3.3.2 Afrikaans .............................................................................................................. 31

3.3.3 Pennywhistle jive ................................................................................................. 32

3.3.4 Soul and jazz ....................................................................................................... 32

3.3.5 Punk rock ............................................................................................................. 32

3.3.6 Disco .................................................................................................................... 32

3.4 A new era in music for SA ................................................................................... 33

3.4.1 A structured music industry ................................................................................. 33

3.4.2 Recognition of SA musicians ............................................................................... 34

3.5 Communication trends 2010 ......................................................................................... 34

3.6 Sales Trends and Data .............................................................................................. 35 3.6.1 Sales .................................................................................................................... 35

3.6.2 Data ..................................................................................................................... 36

3.6.3 Trends ................................................................................................................. 37

vii

3.7 Factors that have a direct impact on music sales ......................................................... 38 3.7.1 Choice and Availability ......................................................................................... 38

3.7.2 Portability ............................................................................................................. 38

3.8 TV and Radio - consumption patterns ........................................................................... 39 3.8.1 Television ............................................................................................................ 39

3.8.2 Radio ................................................................................................................... 40

3.9 Market share of the music industry in SA ...................................................................... 43

3.10 Recording Industry of South Africa (RiSA) ................................................................. 44

3.11 Digital ......................................................................................................................... 44

3.12 Piracy ......................................................................................................................... 45 3.12.1 What is Music Piracy? ......................................................................................... 45

3.12.2 Categories of Music Piracy .................................................................................. 45

3.12.3 Simple Piracy ....................................................................................................... 46

3.12.4 Internet Piracy...................................................................................................... 46

3.12.5 Counterfeit ........................................................................................................... 46

3.12.6 Bootlegs ............................................................................................................... 46

3.13 Enforcement............................................................................................................... 46

3.14 Awareness and Education ......................................................................................... 46

3.115 Summary ................................................................................................................ 47

CHAPTER FOUR: PREVIOUS RESEARCH ON MUSIC ...................................................... 48

4.1 Introduction ................................................................................................................... 48

4.2 Government Schools .................................................................................................... 48

4.3 Montefellaz .................................................................................................................. 48 4.3.1 Montefellaz figures on South African music growth ............................................. 49

4.3.2 Monfellaz survey findings ................................................................................... 50

4.4 The Department of Arts, Culture, Science and Technology. ........................................ 51

4.5 ICASA chargers local radio stations ........................................................................... 52

4.6 Digital piracy among youth in South Africa ................................................................ 52 4.6.1 Determinants of Digital Piracy among Youth in South Africa findings .................. 53

4.7 Impact caused by digital piracy ..................................................................................... 53

4.8 Digital Rights Management ........................................................................................... 54

4.9 Piracy overshadows rising digital music sales .............................................................. 54

viii

4.10 Local artists around the world are suffering ............................................................... 54

4.11 Government and businesses intervening ................................................................... 55

4.12 Digital music sales increase ....................................................................................... 55

4.13 Accessing digital music .............................................................................................. 55

4.14 Summary ................................................................................................................... 56

CHAPTER FIVE: RESEARCH METHODOLOGY .................................................................. 57

5.1 Introduction ................................................................................................................... 57

5.2 Research Methodology ................................................................................................. 57

5.3 Reasons for deciding on qualitative and quantitative research ..................................... 57

5.4 Data collection ........................................................................................................... 58

5.5 Research definition ....................................................................................................... 59

5.6 Data analysis ............................................................................................................. 59 5.6.1 Difficulties and problems experienced ................................................................. 59

5.6.2 Interpretation the data .......................................................................................... 60

5.6.3 How many interviews is enough? ........................................................................ 60

5.7 Sample size .................................................................................................................. 61 5.7.1 Sample size formula ............................................................................................ 61

5.7.2 Sample size calculation ....................................................................................... 61

5.8 Summary ...................................................................................................................... 62

CHAPTER SIX: RESULTS .................................................................................................... 63

6.1 Preliminary Synopsis of Quantitative survey ................................................................. 63

6.2 Quality perception of SA music ..................................................................................... 64

6.3 Price parity perception of SA music .............................................................................. 65

6.4 Learning’s from international artists ........................................................................... 66

6.5 Enjoy international music above local ........................................................................... 67

6.6 Are local performances good ........................................................................................ 68

6.7 Is information about the local artist readily available ..................................................... 69

6.8 SA artists are not good role models .............................................................................. 70

6.9 Are local artists as good as international artists ............................................................ 71

6.10 Demographics ............................................................................................................ 72

ix

6.11 Race .......................................................................................................................... 73

6.12 Age ............................................................................................................................ 74

6.13 Memory recall of artists known to the target market ................................................... 75

6.14 How the target market access their music ................................................................. 76

6.15 Preliminary Synopsis of Qualitative survey ................................................................ 77 6.15.1 Findings of artists’ survey. ................................................................................... 77

6.15.2 Comparative assessment .................................................................................... 77

6.15.3 Observations........................................................................................................ 78

6.16 Summary ................................................................................................................... 78

CHAPTER SEVEN: FINDINGS OF RESEACH DATA ........................................................... 80

7.1 Introduction ................................................................................................................... 80

7.2 Identifying the perceptions of the South African market ................................................ 80 7.2.1 The impact of political sanctions .......................................................................... 81

7.2.2 The influence of Technology ................................................................................ 81

7.2.3 The power of marketing campaigns ..................................................................... 82

7.2.4 The influence of International collaboration ......................................................... 82

7.2.5 The opportunity to attend live performances ........................................................ 83

7.3 To understand why those perceptions exist and how these perceptions can be altered ... ...................................................................................................................................... 84 7.3.1 Purchase power ................................................................................................... 84

7.3.2 Piracy ................................................................................................................... 84

7.3.3 Technology growth .............................................................................................. 85

7.3.4 Exposure ............................................................................................................. 85

7.4 To understand South African market expectations. ...................................................... 87 7.4.1 Collaboration of the music industry strategies. .................................................... 87

7.4.2 Product pricing strategy ....................................................................................... 87

7.5 To understand how effective the combined music industry strategies are and how sustainable are they. ..................................................................................................... 88 7.5.1 Broadcasting media ............................................................................................. 89

7.5.2 Identifying the perceptions of the South African market ....................................... 90

7.6 To understand why overseas artists are more successfully marketed. ......................... 90 7.6.1 There is little support from media i.e. radio and the South African consumers .... 90

7.6.2 Government commitment .................................................................................... 91

7.6.3 Live Entertainment ............................................................................................... 91

x

7.6.4 Lack of finance or experience .............................................................................. 91

7.6.5 Negative publicity ................................................................................................. 92

CHAPTER EIGHT: CONCLUSION AND RECOMMENDATIONS ......................................... 93

8.1 Introduction ................................................................................................................... 93

8.2 Identifying the perceptions of the South African market ................................................ 93 8.2.1 Recommendation to the impact of political sanctions .......................................... 93

8.2.2 Recommendation for the influence of Technology ............................................... 94

8.2.3 Recommendation to the power of marketing campaigns ..................................... 94

8.2.4 Recommendation for the influence of International collaboration ........................ 94

8.2.5 Recommendation for the opportunity to attend live performances ....................... 94

8.3 To understand why those perceptions exist and how these perceptions can be altered. ....................................................................................................................... 95 8.3.1 Recommendation on Piracy ................................................................................. 95

8.3.2 Recommendation for increased Exposure ........................................................... 95

8.4 To understand South African market expectations. ...................................................... 96

8.5 To understand how effective the combined music industry strategies are and how sustainable are they. ..................................................................................................... 96 8.5.1 Recommendation on broadcasting media ........................................................... 96

8.5.2 Recommendation on Blank CD levy ................................................................... 97

8.6 To understand why overseas artists are more successfully marketed. ......................... 97 8.6.2 Recommendation for lack of finance or experience ............................................. 97

8.6.1 Ombudsman ........................................................................................................ 98

8.7 Conclusion .................................................................................................................... 98

Reference List ........................................................................................................................ 99

Appendix 1 Target Audience Profiling Questionnaire ..................................................... 104

Appendix 2 Target Audience Profiling Artist Questionnaire ............................................ 105

xi

LIST OF FIGURES

Figure 2.1: Linkages in the music industry ......................................................................................... 12

Figure 2.2: Gallo Africa and Polygram’s Ownership Structure ............................................................ 12

Figure 2.3: Understanding Copyright.................................................................................................. 15

Figure 6.1: Frequency of music listenership ....................................................................................... 63

Figure 6.2: Quality perception of SA music ....................................................................................... 64

Figure 6.3: Price parity ....................................................................................................................... 65

Figure 6.4: Learnings from international artists .................................................................................. 67

Figure 6.5: Enjoy international music above local............................................................................... 67

Figure 6.6: Are local performances good ........................................................................................... 68

Figure 6.7: Availability of local product ............................................................................................... 69

Figure 6.8: SA artists’ role model assessment ................................................................................... 70

Figure 6.9: Are local artists’ as good as international artists’ .............................................................. 71

Figure 6.10: Demographics ................................................................................................................ 72

Figure 6.11: Race .............................................................................................................................. 73

Figure 6.12: Age ................................................................................................................................ 74

Figure 6.13: Artists known to the target market .................................................................................. 75

Figure 6.14: Methods of accessing music .......................................................................................... 76

LIST OF TABLES

Table 2.1: SWOT on South African Music Industry adapted from (CIGS, 2008:77) 25

Table 3.1: Growth of Media Opportunities in South Africa 37

Table 3.2: International vs local units sold in South Africa for 2007 38

Table 3.3: The market: TV competitor with 55 channels to be launched in May 40

Table 3.4: National radio stations 42

Table 3.5: Regional stations 42

xii

LIST OF ABBREVIATIONS AND ACRONYMS

ACOSA African Cultural Organisation of South Africa

AFPRO African Promoters Organisation

ASAMI The Association of the South African Music Industry

BASA Business and Arts South Africa

CIGS Cultural Industries Growth Strategy

DACST Department of Arts and Culture, Science and Technology

FACTOR The Foundation to Assist Canadian Talent on Records

GEAR Growth, Employment and Redistribution

MIDI Music Industry Development Initiative Trust

MUSA Musicians Union of South Africa

NAC National Arts Council

NORM National Organisation for Reproduction Rights in Music in Southern Africa

PANSA Performing Arts Network of South Africa

MFP Music for Pleasure

R&B Rhythm and Blues

RISA Recording Industry of South Africa

SA South Africa

SA-APRS The South African Association of Professional Recording Studios+

SABC South African Broadcasting Association

SAM South African Music and Entertainment

SAMPA South African Music Promoters Organisation

SAMRO South African Music Rights Organisation Limited

SARA South fracas Roadies Association

SARA The South African Roadies Association

SARRAL South African Recording Rights Association Limited

SMMEs Small Medium Enterprises

TRIPS Trade-Related Aspects of Intellectual Property Rights

1

CHAPTER ONE: OVERVIEW OF THE MUSIC INDUSTRY

1.1 Introduction

South African music has come a long way since the early nineties. This period was the height of the

cover (bands playing international artists’ music). All musicians had little or no choice about what they

would perform, especially original material, as the expectation was that they would cover songs that

were internationally popular at the time. Today, we wonder where those bands like ‘Walk This Way’,

‘Mango Groove’ and many others that have recently come through the talent shows, are. Our interest

is based from our direct and indirect love and interest in music and the need to understand why South

African music does not enjoy the hype and exposure that the international counterparts enjoy. More

specifically the Thesis will be limited to artists residing in the Cape Town / Western Cape region as a

significant amount of the top artists i.e. Vicky Sampson, Brenda Fassie and Jonathan Butler, all have

their roots in Cape Town South Africa. The current unfavourable music climate is entrenched in the

poor marketing and promotions campaigns. In an effort to try and gain a better understanding and to

see if there is any correlation between the marketing effort and consumer perception. The research

will look at the youth support base between ages 16 years old and upward as well as established and

non established artists. It will target tertiary institutes as they will conveniently be representative of the

target audience.

1.2 Why is this industry interesting?

“Music is an essential component of life” (CIGS, 1998). Every aspect of our lives is touched by music.

Music has been with us since the dawn of life, it is in the rustle of the leaves, and the breaking of the

waves as it comes ashore, the whistle of the wind, roaring of thunder and the caring tone of your love

ones voice. Music is our common thread, it is what binds us, inspires, lift our spirits, it is what moves

us to action, allows us to connect with our souls and people allowing us to share memories and

experiences, music is the balancing energy that reconnects us with ourselves and the universe.

Music is an integral part of our being and accompanies celebrations such as birthdays and marriages.

It is to be found and present in all aspects of our lives for personal, social purposes creating the

atmosphere to connect and engage with others. It has been there at the time of our ancestors in the

beating of the drum and singing of traditional songs to win political favour and to carry stories of our

ancestry. Music is powerful and it is through the sounds and words of songs like ‘Sophiatown’ and

‘Meadowlands’ that elders can remember, and the youth can imagine, past lives and has the capacity

to transform individuals and society shaping behaviours and culture. Understanding this in the context

of the local market in the responses and the impact it has had especially since 1994 when South

Africa becomes globally connected.

2

1.3 Research problem statement

South African musicians do not to enjoy the same level of support as that of international music artist.

1.3.1 Sub-problems

Low awareness of consumers about South African artists in terms of live performances and

shows.

Local music artists are not as prominent in local media.

Access to local music is limited for the consumer at retail outlets.

Insufficient support in terms of promotional activity from record labels and agents.

No or little support from established artist for one another.

The problem of payola plays on preferential air play.

Not enough local artists having needle-time on major radio stations. Galane (2006) stated

that local radio presenters do not feel comfortable with playing local music.

South Africans tend to support international music ahead of local artists of the same genre or

calibre.

1.3.2 Background to the research problem

In light of the current local music industry we find and question why local artists do not get the same

recognition as international artists. Galane (2006) said that artists are not taken seriously and

recording labels always make them (the artists) behave according to how the labels want them to.

There is also some concern around what has happened to the bands of yesteryear and those who

have just recently been exposed in popular talent search programs such as ‘SA’s Got Talent’ and

‘Pop Idols’. Where are these musicians and why and what is it that makes them less successful than

their international counterparts?

The Thesis reference the CIGS report in an effort to critically analyse this sector to better understand

the obstacles that prevent the music industry flourishing research into the workings of the Music

industry was conducted in a report released in 1998 with the following objectives.

3

1.3.3 The reports three objectives.

The first objective is to understand and explain the structure and functioning of the South African

music industry with a view to identifying its areas of strength and weakness.

In achieving this objective the report draws on:

International and national level statistics;

Interviews with central figures in the South African music industry; and

International studies of the music industry.

This analysis then lays the foundations for the second objective which is the development of an

industrial strategy to support and assist the growth of the domestic music industry.

The third and final objective of this report is to stimulate discussion both within the music industry and

between the music industries, government and other interested organisations as to what projects and

processes would be most useful in building the South African music industry (CIGS, 1998).

The significance of the delivery mechanisms such as radio stations, retail, live music and cultural

quarters are critical to the success of any cultural industry. These delivery mechanisms will give the

consumer the necessary information on availability necessary to drive consumption (CIGS, 1998).

The question becomes, how far have we come with the development and the implementation of the

various strategies? Quite a bit has been written on the reasons from quality of productions, industry

commitment, lack of financing capacity and the intimation is that this directly impacts the market

demand (Kerr, 1994). Does this, what aspects influence consumer behaviour, what other avenues

can be explored? In an effort to establish market equilibrium the research aims to identify the key

aspects that will aid in bridging the gaps between perception and expectation with the current reality

of the music industry and the current state of the market.

1.4 Research problem question

1.4.1 Primary research problem question

Why do South African consumers support international artists ahead of local artists?

1.4.2 Secondary research questions

What are the perceptions toward local music and why do they exist?

What are the expectations of South African’s local music?

4

Where and how do the South African access music?

What opportunities exist for South African musicians to promote themselves?

1.5 Primary Objective

To understand why there is a modest appetite for South African music artist, what the contributing

factors are and how this can be reversed.

1.5.1 Secondary research question

How effective has the collaborative music industry strategies been to create a music industry that is

sustainable and embraced by the broader community.

1.5.2 Secondary Objectives

To identify the perceptions of the South African market.

To understand why those perceptions exist and how these perceptions can be altered.

Bring attention to the market and Industry and their role in influencing the identified areas.

To understand South African market expectations.

To understand why overseas artists are more successfully marketed.

To understand how effective the combined music industry strategies are and how sustainable

are they.

1.6 Delimitations

Information on the industry is quite extensive with regard to news articles but the articles and reports

although broad are not specific and do not deal with topics relating to our research question.

The area of research has been restricted to the Western Cape, South Africa as this allows us to

manage our research by limiting the area covered due to limitations of the scope of research.

Although the area is limited to the Western Cape similar results will be true for all of South Africa.

The interviews will be conducted with established and up and coming artists and the identified target

audience located in various tertiary institutes. The basis of the research methodology will be

qualitative and quantitative how they may or may not coincide with each other in order to draw a

common thread that may or may not substantiate the date collected.

5

1.7 Research methodology

This will be done using the qualitative and quantitative methodology. Guidance will be taken as

prescribed in the publication completing your qualitative dissertation, a road map from beginning to

end by (Bloomberg and Volpe, 2008).

1.7.1 Research design

A survey will be done in the form of a qualitative questionnaire with 7 questions being asked. As each

recording company has different approaches the outcomes may differ but the interviewer will lead the

process therefore the interview will be guided by the response to the set questions. The focus will be

to ask open ended questions. The design will take the form of face to face interviews with people in

the industry. Research will be a combination of qualitative and quantitative i.e. mixed method

application.

1.7.2 Sampling

The questionnaire will be designed for the general public which will sample a representative cluster of

the local community. An additional questionnaire will designed to extract information from industry

representatives, more specifically musicians. All possible leads or references will be followed up and

interviews conducted to understand various experiences by artists.

Market sample will be the public of the Western Cape and students at the following institutes:

Cape Peninsula University of Technology

Stellenbosch University

University of the Western Cape

1.7.3 Data collection methods

1.7.3.1 Interviews

The interviews will be conducted with prominent Cape Town based artists.

1.7.3.2 Questionnaire

The questionnaire will be designed to elicit information from the general public and industry players. It

will try to understand the perceptions, attitudes and motivations of the interviewees and identify their

expectation and preferences.

6

1.7.4 Data analysis

Trustworthiness and validity of the research

Senior management like CEOs, MDs and people employed within the industry will be targeted to

validate the trustworthiness. Credentials will be confirmed by people within the industry. Top radio

stations will be targeted to draw on their success story with the hope of revealing and gaining an

insight to why and what it is that that makes them successful. Established, reputable and long

established musicians will be interviewed to gain an insight of the industry through the exposure and

experience with a view to understand their expectations and possible solutions.

1.7.5 Limitations

The possible limitations will be marginal as the audience sample will be drawn in Cape Town. The

research will minimise this by obtaining a broad random base of participants at the sample location.

With regard to musicians, although we have identified three high profile musicians we will need to also

conduct interviews with un-established artists. In order to identify these prospects it will take leads

from the interviewees.

1.8 Literature review

The section below has looks at the key elements of the music industry. The section discussed

highlights a variety of sectors and services that radiate out from these core sectors. It illustrates how

all these elements are connected and suggest that through the strengthening throughout the entire

value chain that South African music will become a truly global player. It also looks at the challenges

that musician face and what aspects they themselves need to look at in order to actively engage the

industry as well as the various channels for their works. Some of the areas covered are:

1.8.1 The music representatives and legislative aspects

Here a number of industry bodies are listed highlighting their role in the industry. Essentially the roles

of these bodies are representatives for the industry in to provide the necessary support for developing

artist. Amongst these are bodies are those set up to control and monitor the works and use of the

artist to ensure legitimate use and the collection of any royalties that may be owned to the artist.

Various strategic initiatives undertaken to examine the health of the industry in an effort to develop a

strategic plan of action to transform the industry. Various business international models including tax

incentives and strategy implementation are reviewed to identify the elements that have worked in

those counties. The models seem practical and could possibly be a replicated in SA given the right

commitment.

7

1.8.2 Link in the music industry and vertical integration

Linkages between different aspects of the music industry are explored in terms of where it originates

from conceptualisation in the form of publishing right through to the end f the supply chain i.e. retail

outlets. The distribution channels and ownership thereof is also scrutinised in an effort to understand

the process and to possibly uncover the shortcomings in the value chain. Our review of the current

ownership in the distribution system will show a tightly controlled system that is in the ownership of a

few key players.

1.8.3 Viability of the local music industry

Overall the research also looks to assess what the current climate for local artist is. It assesses all

previous research and articles past and present and looks at employment opportunities and the

propensity for local music. Further to this the research also seeks to understand the general

perception artist, general public and the industry players have about the industry and if and how those

perception impact on the industry either positively or negatively. The thesis also aims to understand

and identify the role and responsibility that record companies and broadcasting media play and the

impact they could potentially have. Information about these industries practices and their broad

population reach. They have an important role in creating awareness, generating interest and

development of the industry locally and abroad. Agreeably promotional and marketing is all about

building the brand equity of local music; but the ramifications is wide spread in that it stimulates

growth opportunities by raising sales volumes, employment and elevating the skills set requirement to

deliver a product that will meet the expectations of the consumer. The level of promotional and

marketing of local artist are compared to that of international artist specifically around the lack of

promotional spend and the quality of the programs that are delivered.

The qualitative method will be used in a form of questionnaire with set questions. When references

are given the snow balling effect will be adopted to compile further data. Interviews will be conducted

at the people’s place of work with appointments being made. As mentioned a mixed methodology will

be applied in data collection which will include interviews, literature and questionnaires in an effort to

identify any correlation of data.

8

1.9 Significance of the research

The research will hold great significance to the industry and all its role players as a whole. In

conducting this research the industry will hopefully begin to understand the challenges on a more

fundamental level affecting music industry participants. In investigating market expectations research

may begin to understand what areas of the music industry have contributed to institute the market

behaviours. The hope is that the industry can have an honest look at their culpability, development

strategies and support music initiatives. These findings are intended to raise the awareness, stimulate

interest, identify and advance growth opportunities for all from musicians to record labels and

corporate partners alike. In identifying the shortcomings better thought can be given in aligning

marketing, sales promotions and event planning that is able to identify with the market expectations. It

is also the aim to bring local music across as a passion point that the market not only identifies with

but subscribes too.

1.10 Expected outcomes, results and contributions of the research

The aim of this proposal is to outline the key aspects of what the gaps in the music industry are. The

shortfalls will not only pertain to the challenges that musicians face but will also form a platform on

which industry will take into consideration when they embark on marketing and promotions

campaigns. Buying patters of the youth are and understand the motivations behind those buying

patters may also be revealed from the research. The aim is also to develop a marketing do it yourself

flow chart that will give guidance to the individual artist in order to assist them in self promotion. Artist

through this process will be able to voice their concerns and in turn this will also assist them in finding

solutions to overcome these obstacles.

1.11 Summary

In conclusion the research proposal starts out with the research problem statement of South African

musicians do not to enjoy the same level of support as that of international music artist. The problem

statement was derived from our extensive reading and our direct involvement in the music industry.

The problems identified are vast and varied and range from the lack of government commitment and

enforcement in terms of the policies that have been developed. Media apathy and disinterest deprive

the local musicians of a very powerful platform to market themselves and their product. Control of the

distribution channel is firmly in the hands of the few big record industry players who dictate what is

pushed into the market i.e. retail stores. The question of financing and investing, whether it be through

record deals to cut records or through marketing activities is complex because with investment comes

9

the implication of a return on that investment and the return is a problem linked to sales and demand

liked to marketing and so the circle continues.

The proposal attempts to understand what is in the hearts and minds of the of the South African

music consumer. We believe that as an important starting point, a bottom up approach is required in

order for us to get to grips with the demand and propensity for local music. An understanding of what

is happening on the ground is fundamental if you want to ensure that all that your resources and plans

are utilised in the most effective and efficient way possible.

The survey will be conducted done by way of a questionnaire with the intention of extracting

information about the consumers view point of the local music industry. The questions are structured

to identify the knowledge, awareness, beliefs and interest in South African music. We hope to

recognise some correlation in the answers and bring a resolution to close any gaps.

10

CHAPTER TWO: LITERATURE REVIEW THE SOUTH AFRICAN MUSIC

INDUSTRY

2.1 Introduction

The section below has looks at the key elements of the music industry. The section discussed

highlights a variety of sectors and services that radiate out from these core sectors. It illustrates how

all these elements are connected and suggest that through the strengthening throughout the entire

value chain that South African music will become a truly global player. It also looks at the challenges

that musician face and what aspects they themselves need to look at in order to actively engage the

industry as well as the various channels for their works.

2.2 The Music Representatives

The main Institutions in the South African Music Industry (CIGS, 1998 & de Villiers, 2006: 5) as listed

below play a significant role of control and regulating the collection of royalties through live

performance, air play and publishing rights.

African Promoters Organisation (AFPRO). AFPRO represents South African promoters.

The Association of the South African Music Industry (ASAMI). ASAMI represents the

manufactures ASAMI is funded by the revenues from the manufacture of music.

Music Industry Development Initiative Trust (MIDI). This organisation is privately funded and

has as its area of concern the development of the music industry, through the training of

musicians.

South African Recording Rights Association Limited (SARRAL)

South African Music Rights Organisation Limited (SAMRO)

2.3 Legislation and Administration

2.3.1 Recording rights

South Africa has embraced the requirements of the rights of composers in the Copyright Act by being

a member of the International Convention on Copyright. One of the main sources of income for an

artist would be the protection received from the copyright act. South Africa has a number of member

societies representing the work and performance rights of composers as mentioned above. The

agencies are of critical importance. There main responsibility is to ensure artists receive revenue that

is to them and prevents exploitation of their rights, as defined by the Copyright Act.

11

In South Africa, the South African Recording Rights Association Limited (SARRAL) and the National

Organisation for Reproduction Rights in Music in South Africa (NORM) represent the mechanical

rights of authors. Royalties are collected by the organisation by the number of copies that are

produced annually and also from a variety of other sources including the national broadcaster and the

recording of music programmes for ‘in-house’ music. The South African Music Rights Organisation

(SAMRO) represents the public performance rights of the musical composition and collects revenue

from the public performance of a composition. This is done by broadcasters submitting play lists and

musicians submitting cue sheets that detail the songs that they have played at any given venue. In

essence SAMRO monitors the use of music (CIGS, 1998).

2.3.2 Registration of works

Authors and publishers of music need to register SARRAL and SAMRO in order for them to operate

efficiently. This process of registration is done by a composer submitting a ‘Notification of Works’ and

the publisher also has to put in a ‘publishers notification’. The registration process is complicated by

high levels of illiteracy and unfamiliarity with administrative procedures amongst composers resulting

in many not being registered and not paid accordingly for work produced (CIGS, 1998).

The research CIGS 1998 report uncovered that there are inefficiencies in the distribution of royalties

to the rights holders. This inefficiency is related to a number of factors:

Failure to register their songs with the copyright collection agencies.

The limited understanding of copyright administration and understanding of agency roles.

The challenge remains in improving the understanding and functioning of copyright

collection agencies in an effort to minimising the conflict over royalty distribution.

2.4 Link to the music industry

Linkages between different aspects of the music industry are illustrated in the figure 2.1 below. The

starting point of the process shows that it is the originators, individual or groups of individuals who are

the starting point of the industry. The various music industry sectors are engaged to facilitate the

success of the musician’s work by providing a national and international network of manufacturing,

distribution and marketing. Information is reported directly to record companies who may or may not

provide the artist with information for promotion purposes.

12

Figure 2.1: Linkages in the music industry

Source: CIGS 1998:25

2.5 Vertical and Horizontal Integration

Record companies monopolise the industry by having a big impact on the value chain. The phases of

production in the music industry are manufacturing, recording, mastering, pressing of multiple copies,

distribution and retailing. The major producers own a significant proportion of the facilities in each

aspect of the value chain. EMI for example, has a practice of, as far as is possible, owning production

facilities in any territory that it is based. This gives EMI the capacity to produce 3 million compact

discs daily. This ownership structure is mirrored in South Africa, where the majors own all of the large

manufacture facilities and most of the distribution (CIGS, 1998).

Figure 2.2: Gallo Africa and Polygram’s Ownership Structure

Source: CIGS, 1998:29

13

2.6 Distribution

The music industry’s distribution network is largely owned by the multinational record companies and

Gallo Africa, with a few smaller independent distributors. The diagram above illustrates the ownership

structure of the major record companies. Gallo Africa has the ability to produce its own master

recordings due to the size of its recording studios. The partnership between Trutone and Gallo Africa

together control one of only two compact disk manufacture plants in the country while Gallo

Distribution distributes the majority of the country’s music. Gallo’s partnership with EMI in music for

pleasure gives it considerable access to the retail market. The areas of sound recording, production,

distribution and retail for EMI share the same structure as Gallo Africa and Trutone. BMG is also in

the process of opening its own CD manufacturing plant which would give them their own production

facilities (CIGS, 1998).

The major control of the value chain, both globally and in South Africa, has created a situation in

which horizontal integration which is integration between record companies who have increasingly

become a feature in the music industry. This form of horizontal integration has described by Lopez as

an ‘open system of production’. The open system of production refers to a situation in which

independent record companies sign pressing and distribution deals with the major record companies

in order to ensure that their product gets produced and distributed. Accordingly a major record

company may have a number of independent record companies and their artists distributed through

them. The model captures the structure of the South African music industry with the majority of

independent record companies signing manufacture and distribution agreements with the majors.

2.7 The Music Industry Business

2.7.1 The Composer and the Musician

Songs are the foundation of the music industry. Revenue is generated through album sales and

copyright revenues. Copyright is the intellectual property of composers and forms a significant form of

revenue for the music industry.

Revenue is derived from:

Public performances, for example radio play of a song.

Mechanical reproduction, i.e. the reproduction of a compact disk.

14

2.7.2 Live Performance

This incorporates both small intimate venues to mega stadiums that hold tens of thousands. These

venues have common features as they employ people, contribute to the revenue of the country and

provide an important link between the countries culture and the tourist sector.

The above reasons are essential and while at the same time provide musicians with an entry-point

into the music industry. Entry level performances in venues such as clubs, bars and school halls are

important in shaping and developing their repertoire and to build their careers. The international

platform for local musicians provides valuable opportunities for learning stagecraft as well as for

crossover between South African and international sounds. This could assist them in accessing

international markets and build musicians from local acts to international stars.

2.7.3 Record Companies

This is the core of the industry as it identifies and promotes the musical talent and skills that are

essential for matching sounds and images with particular market segments. Recording companies

also shape sounds and images to include a wider range of consumers that will buy an artist’s music.

They also need to ensure the domestic and international promotion and sale of South African music.

Regardless of the alternative options for accessing music such as internet this industry body still has

an important role to play to ensure a vibrant growth of the industry.

2.7.4 The Retailer and the Broadcaster

These delivery systems are essential as it is through it that most consumers experience music. A

strong, diverse and comprehensive delivery of music through these sectors is crucial for music

industry growth. These delivery channels are essential in ensuring that sufficient shares of the

potential consumers are exposed to the recordings.

2.7.5 Promotion and Publicity

Promotion and publicity is essential for two reasons as they create and ensure consumer awareness.

This can take the form of posters around the live music venue, point of sale, in-store promotion,

advertisements and music videos. Promotion helps build equity, increase sales, and ensure skills

development and retention in the music industry.

15

2.8 The Domestic and International Market

Local and international success is important for music industry development.

The domestic market needs to be developed because it:

It establishes a sales base from which an artist can move into the international market

It increases sales volumes

Raises levels of employment

Ensures sustainability of the music industry

Figure 2.3: Understanding Copyright

Source: CIGS: 1998

2.9 The music industry comprises of the following aspects

Originators: These are musicians and songwriters who are the creators of raw material i.e. songs,

jingles, poetry and dialogue through the processes of recording and marketing generates the income

stream.

Publishers: Are companies that publish musical works as composed by songwriters and lyricists. They

promote the work of songwriters and administer royalty payments.

Record Companies: Are responsible for sound recordings, the promotion of recording artists and the

manufacture and distribution of phonographs.

Manufacture: This entails the reproduction of phonograms from masters. These commonly take the

form of cassettes and compact disks but may also be in the form of DVD recordings.

16

Broadcast, Retail and Entertainment Sectors: These are the three sectors through which the product

of the music industry reaches the market.

The Retailer and the Broadcaster: Retail and broadcast are an essential delivery mechanism of music

to the market and it is through these points that most consumers experience music. Effective delivery

system is crucial in ensuring access and availability for the potential consumer. Without

comprehensive delivery the market will have a limited connection with the products that is available

and limit the growth potential of the music industry cannot grow.

2.10 South African music in different regions

With a population of 47 million people and greatest percentage being 75% black divided into two

major groups which are Nguni and Sotho. Within Nguni we have the Ndebele, Swazi, Xhosa and

Zulu tribes and in the Sotho we have Twasna, Pedi and Basotho tribes. The British and the Dutch

races orginate mostly from Europe and makes up the white race. The balance is made up of Indians

and Asians with a mix race referred to as Coloureds. With such a diverse population and due to

Apartheid with people living in certain areas different regions would have a dominance of a

population per region. The regions within South Africa are the Eastern Cape, Free State, Gauteng,

KwaZulu-Natal, Limpopo, Mpumalanga, North West, Northern Cape and the Western Cape. Given

that SA also has 11 official languages the music sector is also split into a number of categories being

Sotho-traditional which is also called Zulu-traditional, Tsonga-traditional, Zullu cappella, Pedi-

traditional, Afrikaans and Venda-traditional music. The Afrikaans music is influenced by France and

Germany with Dutch as a base. The main instruments used in the composing of music are drums,

e.g. water drums, tama talking drums, engoma; xylophones; slit gongs; rattles; stringed instruments

like musical bows, harps and fiddles and lastly windblown instruments like the trumpet and flute.

Due to the change in politics in 1994 and becoming a democratic country the face of the country

changed. Opportunities emerged for all people including those in the music industry. Black artists

who were forced to sing in English or Afrikaans could now sing their official language as markets

opened for traditional music. Most artists in the industry switched to all languages to capture

audiences and increase their market share. The demand from the international arena also

increased. A new sound was formed called Kwaito which has become the most popular social

economical form of music amongst the population.

The article (South African music today, 2009) talks of the diversity of music offerings from Pedi, Hip

Hop, Kwaito, Jazz, Afrikaans and Rock which showcases these artistic talents at organised events

such as Oppikoppi and Motherfudd festivals. According to this article the South African music scene

has continued to flourish in the 2000s. The music scene in South Africa is focused around four major

areas, Johannesburg, Cape Town, Durban and Bloemfontein. Cape Town is a hot bed for the

17

underground music scene, generally held to be more experimental than the music produced in the

other centers. The introduction of the SAMA, intended to recognise accomplishment in the South

African recording industry has raised the awareness of local artists and bands. South Africa has a

growing field of music journalism. Print based publications focused on South African music are

South African Music & Entertainment (SAM) tabloid. South Africa will also participate in the world’s

largest music trade fair at the March International du Dispute et de l”Edition Musicale (MIDEM, 2010)

as per the news window article and the question here is who knows about these events, and how

widely is this published but most of all what platform does this provide the artist besides the limited

exposure?

2.11 Future Developments

The rapid growth of the internet and related technologies has opened the avenues through which

consumers access their music. No longer do consumers only use traditional mediums like broadcast

media and through the sale of physical product to access music.

2.11.1 Internet

The Internet has opened a new avenue through which music can be promoted and purchased. The

Internet provides both artists and record companies with the opportunity to access global markets with

relative ease. Indeed for artists the Internet holds the potential to avoid the traditional route of

releasing an album through a record company. Although the Internet has largely been used by record

companies and artists as a promotional vehicle rather than as a site for retail more consumers

especially amongst the youth are turning to technology for their music. To the extent that retail occurs

through the Internet it does so in one of two ways. The first form of Internet based retail allows

consumers to order albums on-line and then the product is shipped to the consumer. That said, whilst

there are the occasional hits that ‘come from nowhere’, for the most part a significant amount of

marketing money is spent in promoting successful albums. Thus, for the foreseeable future, it is

unlikely that the role of record companies will be displaced by the Internet.

Although the Internet is presently not a significant feature of the music industry it is noteworthy for two

reasons: (CIGS, 1998:20)

2.11.2 Electronic media access

This digital capability has influenced the way in which music reaches the consumer. In addition to

acquiring music via the traditional broadcast media or through the purchases of the physical product

consumers can also acquire their music online via internet as well as multimedia downloads.

18

Multimedia is worth noting for two reasons:

The promotional possibilities

The implications for the protection of copyright

The internet provides the opportunity for both artists and record companies to access global markets

with ease and it is used to avoid the traditional route of releasing an album. However there is still

good reason to use the traditional methods of promotion as a significant amount of marketing money

is spent on promoting successful albums.

The music industry, whilst global, is not without borders the global distribution of music is subject to

contingent on reciprocal licensing and distribution deals between record companies. Therefore if a

South African artist wishes their record company, needs to be able to convince record companies in

that particular territory that they are marketable.

Global distribution is depended on two factors:

Local success.

Proof of local success and product acceptability in the new market will make for a convincing

global distribution deal.

2.12 Symptomatic aspects faced by local musicians

2.12.1 Artist recognition

Our summation of the literature review is that it covers a range of issues that centres on the viability of

being a musician. The articles all call out a common theme of why is it that local musicians are not as

successful as international artist. Local artist want to be recognised as equals and their musical

talents and offerings should be appreciated and valued by all South Africans. In a speech by Galane,

2006 who is a musician and lecturer, he says that artists are not taken seriously and recording labels

always make them (the artists) behave according to how the labels want them too.

2.12.2 Business skills of Artist

Emphasises is placed on that artist must know their rights and be knowledgeable about the industry

especially the business end of it. The lack of business savvy of artist’s sees them end up being

unaware of what they are letting themselves into. A better understanding will outline and clarify the

business model of their careers and empower them to be well informed and understand the

obligations of their contracts but also to structure recording deals that fulfils their needs and also

19

requires the performance of recording companies’ obligations to the artist. Recording contracts are

determined by record companies according to the amount of material they have to draw on, the

opportunity to be recorded and a high profile in the market place. The kind of contract signed by an

artist does largely depend on their understanding and what it is they are hoping to achieve by signing

with a record company. It is advisable to consult with a lawyer in the industry who can advise

accordingly so that clear guidelines are set out i.e. marketing, royalties etc (Abrahams, 2003).

Ratshelumela, (2006) expresses concern about the skill level in particular the technical ability of

musicians and that government should look at ways to up skill many artist who mostly come from poor

backgrounds. He contends that not enough is done and very little resources are put in place in terms

of independent workshops or initiatives that occur in the local arts and cultural centres. Kerr, (2000)

comments on the lack of political will, ethnocentric, americanised attitudes and cultural prejudice that

prevails and affects our perception of what is good and what is bad. We have been led to believe that

international is better than local which is perpetuated in all that we do.

Kerr, (1994) Stated the South African music industry has come under some pressure and is teetering

on the brink of collapse, as a result of a number of crucial blows. The Independent Broadcasting

Authority proved to be ineffectual in enforcing legislation. Extremely cynical individuals in broadcast

media used the lack of enforcement to sideline local music, as a host of 'international consultants'

advising them to engage in more mainstream, commercial American style programming to increase

their listenership. The reason for doing so was justified for increase profits by running purely

commercial programming. Of course the problem with this is that royalties that have to be paid gets

channelled out of the country which negatively affects the economy especially against the exchange

rates. The opposite would be true in terms of keeping the money at home and have a positive impact

on job creation and sustainability for the local artist. (Kerr, 1994) In this manner, a river of money has

been flowing out of our country for years and like a leaking tap millions are wasted each year.

The Australian’s who are geographically isolated globally as we, have been successful in music and

sport because they have an inculcated belief that they are good enough to take on the world. Their

track record speaks for itself (Midnight Oil and Savage Garden). They maximise the exposure of their

artists on radio and television, where we find that our local artist’s have to struggle to get airplay

because preference is given to imported music.

"Payola" is alive and well in the South African broadcast industry, where rumours abound of

expensive gifts and overseas trips to persons responsible for play listing.

20

2.12.3 International profit before local commitment.

Record companies in South Africa are driven primarily by their international artists’ sales; thus there is

pressure to focus on international talent rather than their local South African counterparts. According

to Abrahams, (2003) the record companies’ function was to bring international music to South Africa.

Little has changed. The success of these companies is based on their ability to market and promote

international products developed by their international principals. It would not drive international

profitability if South African acts outsold their international counterparts”.

2.12.4 Record Companies

Recording contracts are determined by record companies according to the amount of material they

have to draw on, opportunity to be recorded, and a high profile in the market place. The kind of

contract signed by an artist largely depends on their understanding and what it is they hoping to

achieve by signing with a record company. It is advisable to consult with a lawyer in the industry and

who can advise accordingly so that clear guidelines are set out i.e. marketing, royalties etc. Payola is

a practice of paying DJ’s to play particular songs. Record companies have introduced play lists

although this is not compulsory DJ’s are still able to give certain songs extended playtime. Piracy is

also another activity that impacts on the revenue of the industry. In South Africa with a high piracy

rate this activity limits the investment pool for artists to draw from. Multinational record companies

also own the major distribution network while the smaller companies play a minor role.

2.12.5 Promotional support for international music “cash cows”

The record industry has vast budgets which they can use to promote new artists at their discretion. It

is evident that recording companies have the power to make an artist in the kind of contract it offers

and how that contract is structured specifically in the marketing and branding budget allocations. It is

also important for an artist to sign with an international company due to the kind of marketing and

exposure that can be achieved simply by a large budget. Abrahams, (2003.19) reveals “Major record

labels have the power to market and distribute music at a level impossible for an independent”.

2.13 South African Musicians need to take ownership

2.13.1 Self promotion

Peters, (2009) covers broadly the key aspects of self-promotion and the public relations at a

fundamental level. This is especially useful for artist who are self managed as well as for agencies as

a guide line. This is really great at a micro level but what needs to be expanded on is how the industry

role players can be drawn into the fold .What is the opportunities that are available to engage them.

21

Abrahams, (2003) marketing is expensive and key in this industry as artists have to compete with

international markets, piracy, payola and other obstacles. It’s imperative that this is set out in the

contract especially the various forms the marketing can take i.e. billboards, in-store promotions,

downloads, internet, concerts and various internet social pages. Radio stations are key and marketing

is reliant on the relationship various record companies have with the various stations.

2.13.2 Marketing

Artists also rely on the guidance of record companies but it is important for them to understand what

the marketing strategy is being undertaken. This is done through advertising, getting music played on

the radio and television and getting the artist reviewed and written about in magazines and

newspapers. This is when the marketing research happens, creating concepts and campaigns and

then delivery through various media avenues. Artists also rely on the guidance of record companies

but it is important for them to understand what the marketing strategy is being undertaken.

2.13.3 Channel expansion

Cultural Industries Growth Strategy (CIGS) identifies the forms of retail sales via CD Warehouse to

the sales of cassettes by traders in the rural areas of the Eastern Cape and Kwazulu Natal. These

include the specialist music chain, Musica, with 94 outlets as well as CNA, a generalist store,

consisting of 330 stores. The geographical spread of retail stores and their focus on niche markets

ensures that returns on marketing investment are optimised by a targeted approach to retail.

However, the research raised criticisms that retail stores:

They do not actively promote South African music

They often do not carry a wide range of South African music

The informal channels of hawkers, traders and spaza shops is critical in ensuring that the music

reaches rural areas as well as the lower ends of the market that are not targeted by formal retail

stores. The combination of the formal and informal retail channels ensures that music is readily

accessible to the majority of the consumers.

2.14 Support from industry role players needed

2.14.1 Play list influencing

Payola is a practice of paying DJs to play particular songs. Record companies have introduced play

lists although this is not compulsory DJs are still able to give certain songs extended playtime. Piracy

22

is also another activity that impacts on the revenue of the industry. In South Africa, with a high piracy

rate, this activity limits the investment pool for artists to draw from.

2.14.2 Broadcasting

(Kerr, 1994) currently though, the South African music industry has come under some pressure and

is teetering on the brink of collapse, as a result of a number of crucial blows: (Angus Kerr, 1994).

The Independent Broadcasting Authority (IBA) was established with a clear mandate, and legislation

was drafted that required broadcast media to include a minimum of 20% South African content in

their programming. Up until about 1998, the requirement induced by the legislative requirements

created a massive demand and awareness of music and local artists, and the standard of these

artists increased to a world class quality. The IBA proved to be ineffectual in enforcing legislation.

Extremely cynical individuals in broadcast media used the lack of enforcement to sideline local

music, as a host of 'international consultants' advising them to engage in more mainstream,

commercial American style programming to increase their listener ship. The reason for doing so was

justified for increase profits by running purely commercial programming. Of course the problem with

this is that royalties that have to be paid gets channelled out of the country which negatively affects

the economy especially against the exchange rates. The opposite would be true in terms of keeping

the money at home and have a positive impact on job creation and sustainability for the local artist.

(Kerr, 1994) in this manner, a river of money has been flowing out of our country.

2.14.3 Archaic mindsets

Unsupportive attitudes form and prevail as a consequence of the previous government's propaganda

campaign designed to discredit local music for political reasons. Many of the people directly involved

in the music industry are just as influenced as the general public. This ingrained perception of

inferiority results in an unpatriotic prejudice satellite channels such as DSTV broadcast music

programs such as MTV which only feature Eurocentric / American artists and are not subject to any

commitment to South African, or even African music. South African record companies have severely

cut back their spending on South African music production, mainly due to lack of sales resulting from

a lack of commitment, lack of air play, and most importantly, a lack of passion on the part of the

media. This is a catch twenty two situation and all these various elements from media to sales and

investment are all linked and dependant on each other.

2.14.4 Distribution channel monopoly

Multinational record companies also own the major distribution network while the smaller companies

play a minor role. Although the distribution is effective it does not reach the remote areas in our

country thereby impacting on the marketing and branding strategies of companies. The commitment

23

to dedication in the distribution of artist material is also compromised adding to the challenges.

According CIGS South Africa’s distribution network is largely owned by the multinational record

companies and Gallo Africa, although there are smaller independent distributors. The distribution

although effective does not reach the remote areas in our country thereby impacting on the marketing

and branding strategies of companies adding to the challenges.

2.14.5 Financial strength

A main weakness is the limited finances available for development and promotion of South African

artists. Due to the large amount of piracy and no coordinated strategy also hampers the successful

promotion of recording artists.

Piracy is also cited by CIGS as also another activity that impacts on the revenue of the industry. It has

also been identified as the greatest threat to the growth of the South African music industry.

Piracy results in a loss to all in the music industry:

The recording artist and composers whose work is stolen.

Record companies lose the opportunity of recouping there development costs.

Retail stores are undercut by consumers buying a pirated product.

In South Africa with a high piracy rate this activity limits the investment pool for artists and recording

companies to draw from. As a percentage of the estimated levels of world piracy, South Africa piracy

levels are approximately 1% of that global figure which is 2.5 times more than the percentage that the

South African recording industry accounts for in global turnover of the recording industry. This too

hampers the successful promotion of recording artists.

2.15 Government commitment

It was in 1994 when people in the music industry had much hope and anticipation that with the ANC in

power our musical heritage and culture would receive a commitment and support from political

leaders. This hope would soon fade as the music industry was sidelined as the Independent

Broadcasting Authority proved to be ineffectual in enforcing legislation. This trend continues today as

government focuses on more important issues like unemployment, crime, housing and various other

socio issues. The reality of multi-national companies having big budgets and decision making powers

continue to market international artists who generate revenue for them. The consumer continues to be

influenced by international trends and while music channels like MTV continue to televise international

artists local ones are but small fish in a very big pond.

24

(Kerr, 2000) comments on the lack of political will, Ethnocentric, Americanised attitudes and cultural

prejudice that prevails and affects our perception of what is good and what is bad. We have been led

to believe that international is better that local which is perpetuated in all that we do.

It calls on all industry role players to support and give credos to the musicians by doing there bit to

push and reinforce there commitment of support not only by lip service but commitment through their

actions in supporting government and industry initiatives. Through the commitment it should translate

into an environment that is more conducive, accepting, financially viable and sustainable for artist in

the music industry. The industry for a long time due to political boycotts has been segregated and had

limited access to music. Freedom of speech that restricted the gathering of groups, right of

association and regulated communications controlled what could or could not be heard.

In support of the Growth, Employment and redistribution (GEAR) strategy the Department of Arts and

Culture, science and Technology (DACST) initiated the Cultural Industries Growth Strategy (CIGS) in

an effort to understand and develop the Music industry. This was done in 1996 with the formulation of

a task team initiative in 1998 to implement suggested recommendations. The effectiveness of which is

to be to be determined.

2.15.1 Legislation

It is the feeling of many musicians and players in the industry that the local quota should be increased

to 40%. The FIFA 2010 world cup in South Africa was only made up of about 50% of the local artists

performing where the rest is made up of international artist. Compare this to soccer world cup held in

Australia when 100% of the performers were Australian. Australia’s commitment is shown clearly by

this action.

2.15.2 Passion

South African music needs to be marketed to South Africans themselves. Industry, political

commitment, leadership and support must be given in action, communication and implementation

strategies. The entrenched values and belief systems of those in charge of the broadcasting industry

must be challenged, changed and up rooted in order to have a new philosophy.

25

2.16 SWOT

The table below illustrates the strengths, weaknesses, opportunities and threats of the music industry.

Table 2.1: SWOT on South African Music Industry:

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

Diverse musical heritage and

a wide ranging music

development programmes.

Limited resources to for

quality recording and

promotion of artists.

SA has a strong industrial

base in recording;

manufacture; retail and

broadcast to ensure the sale

of music.

Small market limiting

resources available for

investment.

Tourists from major music

markets.

Piracy

Institutional density. Wide

range of institutions

representing most sectors.

Poor coordination

between different

initiatives.

Industrial and Institutional

density provide the

foundations for coordinated

industry growth.

Payola

Good average growth in unit

sales and market value over

the last decade.

Lack of statistical data

about potential markets.

Growth rate acting as an

impetus for expansion.

Copyright collection agencies

generating more revenue

than any other African

agencies.

Legal disputes over

copyright payments and

artists’ contracts.

Source: CIGS,2008.8

2.16.1 Strengths

Between 1992 and 1996 the number of units sold in the South African market expanded by 60%, the

15th fastest growing market in the world. This quantitative growth indicates strength in the industries

and institutions of the South African music industry.

Contribution to this according to (CIGS: 2008) are:

the promulgation of local content legislation, although this is relatively new and its effects have

still to be realised;

the growth in community radio broadcasting;

emergence of a variety of cultural exchange programs and industry development initiatives

which have increased the synergy both between local musicians and between local and

international musicians;

26

increasing organisational density facilitating a strengthening and articulation of interests and

development projects in the music industry; and

growth in the recording, marketing and sales of domestic repertoire.

2.16.2 Weaknesses

The primary weakness facing this industry is the limited finances available for investment in the

development and promotion of South African artists. This is exacerbated by piracy and the lack of a

coordinated strategy for the development of the industry. It is critical to improve the amount of finance

available for investment if the South African music industry is to take advantage of its present growth

phase and industrial / institutional density (CIGS, 2008:8).

2.16.3 Opportunities

The aggregate growth of the music industry coupled with the increased popularity and exposure of

local genres and the variety of initiatives underway to bolster the local music industry provide the

foundations for potentially explosive growth. This will depend on an appropriate degree of

commitment and resources from the various role players (CIGS, 2008:8).

2.17 International best practice

In terms of best practice models CIGS have looked at a number of models that South Africa could

learn from. Their aim was to “develop proposals that would aid in overcoming some of the

impediments faced by the industry and strengthen the growth trends in the South African music

industry”.

CIGS approach was divided into the following sections.

The first section examines initiatives that have been undertaken to assist domestic music industries.

The purpose is to provide ideas on policies and programmes that could be implemented in the South

African industry.

The second section was to assess the few initiatives that are currently available to the South African

music industry.

The third section proposes broad initiatives necessary to address the obstacles in the local music

industry.

The fourth section was to elaborate on the initiatives providing specific examples of the sorts of

projects that might be undertaken by the public sector or in collaboration with private sector agents.

27

This was to provide the basis for a dialogue over what the most appropriate interventions, projects

and programmes.

2.17.1 Australia

AusMusic is a significant initiative that provides educational and training material on the music

industry. These initiatives are ran throughout schools and tertiary levels and provides expertise on all

aspects of the music industry. The effect of this has provided aspirant entrants into the music industry

with a variety of different career paths and mobility within the industry. The creation of broadly skilled

and informed professionals within the music industry has been critical in increasing efficiencies in the

industry.

Radio stations recognise their roll and have played a critical part in the exposure and development of

Australian music. The mobile Earth Campaign allows sound engineers to tour Australia. These

engineers identify potential talent, record them and give them the opportunity for exposure. During

1997 the Australian government also injected $770 000 dollars to the promotion of domestic talent in

the export market while being actively involved in the promotion of cultural development and have

often formulated regionally specific development plans.

2.17.2 Canada

Canada’s music industry development initiatives are channelled through a private non-profit

organisation, The Foundation to Assist Canadian Talent on Records - FACTOR (CIGS, 1998).

FACTOR supports the Canadian songwriters and recording artists through the following programs

(CIGS, 1998):

The Professional Publishers and Songwriters Demo Award Program to help professional

songwriters and publishers to produce a high quality demo tape to promote their work.

The Professional Demo Award, artists with the production of a high quality demo that could be

presented to key music industry professionals.

Independent Artists Recording Loan Program, aimed at assisting unsigned artists without

distribution in the production, marketing and promotion of an independent release.

FACTOR Loan Program for Recording, assists Canadian controlled labels, production

companies, producers, managers and artists by partially financing the production, marketing

and promotion costs of EPs or albums for commercial release.

Video Grant Program assists the financing of music videos to support current releases by

Canadian artists.

28

International Showcase Program’s objective is to support international showcase activities by

Canadian artists.

The Domestic Showcase Support Program supports domestic showcase activities by

Canadian artists.

Domestic Tour Support Program supports domestic touring activities by Canadian artists.

2.17.3 Taxation

One of the more interesting approaches is that of Tax incentives.

The model used in Europe whereby cultural goods receive a tax exemption or tax reduction, for

example in Italy sales tax on books is 4%, whilst sales tax is generally 20% is an interesting concept.

The current tax on music productions is in line with international standards.

2.17.4 Blank tape levies

A blank tape levy imposes a levy on blank cassettes which is intended to remunerate artists and

producers for revenues that are lost due to home taping should be extended to include CD, DVD and

video.

2.18 National support programs

Department of Trade and Industry and the Industrial Development Corporation for the most part target

manufacturing the supply-side. There are only two possible schemes that the music industry could

potentially access:

The Export Marketing and Investment Schemes can be used to fund the gathering of market

intelligence of best possible music markets as well as funding potential showcase of local talent

internationally. On the face of it however it seems to have a long term and indirect impact for

musicians.

The Emerging Entrepreneur Scheme and Standard Credit Guarantee Scheme is a program aimed at

increasing SMMEs access to finance. Most independent record companies fall within the SMME

sector, however they would have to meet the banks normal lending criteria which could be onerous as

a result the level of uncertainty and risk that exist in the local music industry

Three developmental institutions are available to Arts and Culture:

The Arts and Culture Trust.

The National Arts Council.

29

Provincial Departments of Arts and Culture.

2.19 Summary

All the articles and journals covered including strategic government initiative appears on the surface

that it seems to show concern for the local music industry. There can be no doubt that this ambition

can only be realised through the concerted and coordinated effort of all in the South African music

industry. CIGS provides the platform from which this effort can grow. The question becomes what has

been done and exactly how far are we since all these proposals, what progress has been made. The

sense is that little has changed in regard to the value chain especially with reference to all the key

delivery channels. Our summation of the literature review is that it covers a range of issues that

centres on the viability and lively wood of local artist. The articles all call out a common theme of why

is it that local musicians are not as successful as international artist. Local artist want to be

recognised as equals and their musical talents and offerings should be appreciated and valued by all

South Africans. A better understanding of business and the industry will outline and clarify the

business model of their careers and empower them to make well informed decisions understanding

the obligations of their contracts. It will also enable them to structure a recording deal that fulfils their

needs and hold the record companies accountable in the execution of their obligations to the artist.

30

CHAPTER THREE: SOUTH AFRICAN MUSIC INDUSTRY

3.1 Introduction

Music is a fast growing industry in all countries around the world, the potential that comes along with

is limitless revenue and development potential. Music is also a means of identifying with a countries

unique cultural identity. The revenue created by the industry speaks to employment, development of

skills, the generation of social capital and the space for artists to excel in their talent. Like all

industries in South Africa the music industry suffered setbacks due to apartheid’s political economy

resulting in local music not developing as fast as in other countries. It was only in 1994 after the first

democratic elections that government could step in and try to regulate the industry. A Music Industry

Task Team (MITT) was set up to investigate the industry and make recommendations to improve

conditions and protect the local musicians. A report was written making 37 recommendations to the

government on improving the industry. Now that our country has entered the international arena,

stakeholders within the recording industry need to be continually aware of the latest trends in music.

The pace of the ever-changing market has made it imperative to remain abreast of developments,

including new artists, labels, musical styles, and consumer demands. While the current trends are

dynamic and ever-changing, the core of the local industry had its start with early recording

developments within South Africa.

3.2 History

The Christian missions were the first organisation to bring music to SA in a structured format through

teaching. In the 1890s African American spirituals became popular through American musicians and

large cities like Cape Town attracted foreign artists to their shores. The local recording industry itself

can trace its roots back to 1912 when the first commercial recordings were made in South Africa. That

important milestone was followed in the 1930s when the South African music industry pioneer Eric

Gallo established the first recording studio in the country (Afropop Country 2010). Today, Gallo

remains one of South Africa’s major recording companies, along with other local stalwarts Teal, Tusk,

CCP/EMI and BMG. Prior to the dawn of democracy in South Africa, the music industry was

dominated by white artists as a result of the apartheid system. In the midst of the struggle to end

apartheid, people of colour were focused on fighting for democracy while many musicians of colour

pursued careers abroad.

31

3.3 Types of music in SA

In the 1920’s when curfews were imposed by the then apartheid government nightlife in cities was

small and a sound of Marabi was formed. This kind of music was played on a piano accompanied by

cans filled with small stones. The sound was popular in shebeens where black people consumed

alcohol as there were no other forms of entertainment. In the late 1930s and 1940s the sound of

maribi was dominant and additional music instruments were incorporated like guitars and banjos.This

distinctive local sound didn’t emanate from recording studios, but rather grew from the musical skills

and tastes in rural areas (Afropop Country 2010). Many of these rural artists honed their skills and

released their talents in mission school or church choirs before moving onto the formalised space of

the recording studio. Formalisation and influences from outside South Africa have also changed the

sound of music and the industry itself. One example comes from the Zulu people of South Africa.

Traditionally strong singers and dancers, the Zulu took a liking to two western instruments: the guitar

and the ten-button concertina. The song arrangements were choir arrangements which then moved

on to a more electric version in the 70s which was a success in rural areas thanks to artists like

Moses Mchunu, Sipho Mchunu and Kati Elimnyama who went on to produce hundreds of records. At

this time artists also began doing more than singing on stage but moving onto playing an instrument,

dancing and having back-up singers. A lead in this area was Vusi Ximba who had success in acting

out comic skits accompanied by an entourage of female dancers. Such artistry continues to this day,

as Ximba still remains an active player in the recording industry. Artists were sent to London to record

albums as SA had no recording studios. This was made possible by Eric Gallo who sent artists to

Gramophone House to record and in 1933 SA started producing its own music in recording studios.

3.3.1 Gospel

Gospel music was introduced into SA by the Zionist Christian churches who had parishes throughout

SA. Additional music instruments were incorporated into hymns giving it a distinct gospel sound. The

region of Natal brought in the cappella sound in the 1930s influenced by the Zulus. This kind of music

is famous for the song “The Lion Sleeps Tonight”. The oldest choir in SA is at the Stellenbosch

University Choir who specialises in cappella and was formed in 1936 made up of students from the

university.

3.3.2 Afrikaans

This kind of music was influenced by Dutch folk styles with French and German influences.

Sentimental songs called “trane trekkers” (tear jerkers) were common and sung by artists like Jim

Reeves. In 1996 however the sound of music changed to more lively tunes sung by artists like Kurt

Darren, Nadine’ and PJ Powers.

32

3.3.3 Pennywhistle jive

In 1962 the SA government introduced a programme for Bantu Radio to control separate

development and to encourage independence for the Bantustans. Exceeding government’s

expectation there music proved to be popular on the airwaves and measures were introduced to

control lyrics especially if it was viewed as being a “public hazard”. The most popular style to emerge

was the pennywhistle jive which later became known as the kwela. It originated with cattle herders

who played a three hole reed flute, although when moving to the city it progressed to a six hole flute.

Groups played the flutes on the streets in cities attracting a white audience which became known as

ducktails.

3.3.4 Soul and jazz

In the 1960s the sound of soul came across the waters from the USA. Artists like Percy Sledge and

Wilson Pickett inspired SA artists to change their performance on stage with additional music

instruments. The electric guitar got its life and became an essential instrument when performing. In

1963 the jazz fraternity produced an album called Jazz The African Sound but was soon banned by

government forcing many artists to emigrate to the United Kingdom or other European countries. In

Gauteng the African Jazz of the north was being promoted while Cape Town had its own jazz heritage

come to life. The city had a connection with sea faring players who gave rise to the Coon Carnival and

the talent of the Dollar Brand with sax players like Basil Coetzee and Robbie Jansen.

3.3.5 Punk rock

This sound came to light in the 1970s with UK bands influencing the sounds of SA bands. The sound

was popular in major cities across SA and soon had a cult following.

3.3.6 Disco

In the mid 1970s disco beats were added to soul music, which brought a standstill to other music

genres. This sound of music put music back into the spotlight with movies like Grease and Saturday

Night Fever. For many SA’s things changed as focus was drawn to the political situation and

pleasures such as listening to music was not a priority. With the world being more aware of SA, artists

like Anton Goosen and Bles Bridges dominated the music industry in SA. Afrikaans music also took

on a punk rock theme to it thereby moving away from the ballad style of music people were

accustomed to.

33

3.4 A new era in music for SA

It was in 1976 with the student uprising in Soweto when the country realised a turning point and the

generation shunned their parent’s choices including music and embraced a more aggressive attitude

towards the future. The genre of choice in music became soul and disco. Other styles were South

African jazz, kwela, mbaqanga, mbube, soul, disco and reggae. One artist who seized this opportunity

in 1976 was Paul Simon who released the album Graceland thereby creating a platform for the South

African music industry. Other bands who received recognition were Ladysmith Black Mambazo,

Stimela and Moses Mchunu amongst a few others. Johnny Clegg became known as the white Zulu by

being a white musician playing black music to predominately white audiences. In 1994 Afrikaans

music took a turn with growth of new young artists who released CDs and DVDs and attracting large

audiences at “kunstefeeste”(art festivals) such as the “Klein Karoo Nasionale Kunstefees - KKNK”

held in Oudtshoorn, “Aardklop” in Potchefstroom and “Innibos” in Nelspruit. The turnabout came about

with Afrikaans people now being allowed to share their culture and music with others. The culture was

no longer regarded as a state secret and losing its privileged protection by government meant that it

was accessible to all SA’s allowing followers to develop, embrace their language and culture.

Afrikaans pop artists like Kurt Darren and Steve Hofmeyr changed the face and sound of Afrikaans

music. It was when Bob Marley performed at Zimbabwe’s independence in 1980 that reggae became

a hit across Africa. Lucky Dube a SA artist became the best selling artist whose sound and style was

similar to that of Peter Tosh. Ragga which was an electronic sound influenced kwaito music.

Psychedelic trance also took stage in the 1990s which has a rhythmic, melodic and danceable beat.

Today the music of choice is kwaito and hip-hop which is very popular combining elements of rap,

reggae and other styles into a distinct sound with kwaai jazz now gaining momentum.

3.4.1 A structured music industry

The music scene in SA is focussed around four major cities, Johannesburg, Cape Town, Durban and

Bloemfontein. In the industry within these cities there is a strong sense of community which sees

artists, promoters and venues actively involved in promoting the local talent. Bloemfontein focuses

mainly on metal and Afrikaans music, while Cape Town, Johannesburg and Durban has a far wider

genres of music. Cape Town also an underground music scene which is more experimental

compared to the other cities. The impact of the South African music industry is not simply cultural but

economic and the South African Department of Arts and Culture has noted that government has

committed itself to harnessing music’s potential. In addition to its cultural value, music plays an

important economic role in the country thereby generating significant copyright revenue” (Department

of Arts & Culture 2010). The generation of revenue could clearly contribute to a more solid base of

local talent and the further development of the industry. Building a strong foundation of local artists

could have a significant impact on the industry as a whole. These foundations are being built on

34

South African Music Week, a school education program run in conjunction with the Department of

Basic Education and the Moshito Music Conference and Exhibition.

3.4.2 Recognition of SA musicians

An annual event, South Africa Music Week creates a platform for the industry to celebrate South

African music on radio, television and live events in the respective communities. Various projects are

run on broadcasting, workshops, awareness and promotion of local music products. South African

Music Week is considered the largest platform for developing South Africa’s live and recording music

industry. During this week that broadcasters increase airplay of local music thereby providing an

opportunity for musicians to market their products. One other platform for the promotion of local

musical talent is the South African Music Awards (SAMAs), which is the highest musical achievement

that a recording artist can be awarded in our country. The ceremony now in its 16th year represents

over 50 categories and more than 100 artists nominated in 2010 some of whom are from

Johannesburg, and most of whom started out their careers there. Johannesburg is the home Town of

SAMA nominees and without doubt the hub of the South African music industry. An artists breaking

into the Johannesburg market establishes a good base and finds it easier to move onto other parts of

the country. The SAMA event is sponsored by the cellular network MTN and recognises all genres in

the industry from traditional Afrikaans, rock, pop, African and is the highest accolade in the South

African music industry. The concept is proudly South African and only South African born producers

and artists are eligible.

In a published article by Chris Moerdyk (2010 trends) what is in store for marketing and media? He

predicts the following:

Getting closer to the consumer

Social Media

Online advertising will continue to grow

Online media

Media convergence

2010 and the FIFA World Cup

3.5 Communication trends 2010

Among the communication trends listed in Bizcommunity for 2010 affordability will see more South

Africans owning smart phones and access to broadband user adoption rising. The advertising

revenue growth rates will increase around 20 – 25 % year on year. This will impact on how South

Africans access their music as well as the potential of exacerbating the levels of piracy.

35

Due to the nature of technology consumers are acquiring and carrying their music with them on new

platforms and in new ways like never before. This is also evident in the growth of 3G and 4G networks

enabling better, faster and cheaper access to the network. As the product reaches its mature stage in

the cycle prices begin to drop making the technology easily affordable to the consumer market. The

market has become competitive due to the Neotel entering and offering competitive rates.

Rise of social media

The companies who have invested in media expenditure will see benefits as more and more

South Africans continue to consume it on a daily basis.

Social media has had an effect how artists can promote themselves and communication across fan

groups and fan pages. This affects how fans can follow artists through facebook, myspace and twitter.

This levels the playing fields as local artists can have as much exposure in the mentioned media as

artists who have a major record label backing them.

Augmented reality

Allowing customers to find and buy products that they interested in wherever they are. This is

made convenient by banks allowing customers to transact online.

An example of this service is Nokia who has its own online music store available to consumers who

owns a Nokia cellphone.

3. 6 Sales Trends and Data

3.6.1 Sales

According to statistics released by the Recording Industry of South Africa (RISA) in 2007 the music

industry saw a small growth in year on year sales unlike the rest of the market worldwide which saw a

drop in music sales. RISA’s figures show that the physical industry as a whole grew by 2.4% which

excludes sales of track downloads, ring tones other digital products. Operating costs which include

production, recording, videos media and marketing rose by 7 to 10%. The wholesale price also

dropped across all formats.

The increase of piracy impacted on bottom line profits resulting in overall music sales falling by

around 30% between 2004 and 2009. According to Dave Laing “It is important to distinguish between

the piracy sector and what might be termed the “gift economy” of recorded music”. This refers to

private copying from “home taping” of the 1970s and 1980s to CD burning and file sharing. Despite

36

attempts to determine the financial loss, no accurate figure could be determined. However it is

estimated that 20 billion tracks are downloaded illegally in this “gift economy”. Piracy has resulted in a

loss of jobs as recording artists lose contracts and the manufacturing of CDs and DVD’s have to be

outsourced. Piracy also discourages investment in a country if intellectual property is not protected,

government looses revenue in that taxes are not paid and money has to be spent on anti-piracy

measures thereby influencing the price on sales to consumers. RISA is the organisation in South

Africa that promotes to protect the rights of all in the music industry, recording companies and artists

alike.

3.6.2 Data

On a global scale the following facts remind the industry of the power of music and of the revenue it

contributes. According to Kennedy (2008) the :

Global digital music sales totalled an estimated US$3 billion in 2007, a roughly 40% increase

on 2006.

Single track downloads, the most popular music format grew by 53% to 1.7 billion (including

those on digital albums)

Digital sales account for an estimated 15% of the global music market, up from 11% in 2006.

In the world’s biggest digital music market which is the United States online and mobile sales

account for 30% of all revenues.

Over 6 million tracks are offered worldwide with 500 legitimate digital music services.

The ratio of unlicensed tracks downloaded to legal ones are 20 to 1, with tens of billions illegal

files that were swapped in 2007.

China has a digital piracy rate of 99% thereby directly impacting on poor returns to the rightful

artists.

Japan is the only country in which the music market has shown growth in digital sales allowing

it to offset the decline in CD sales producing overall growth.

The total industry sales rose from R996 million in 2006 to R1020 million in 2007.DVD’s grew

from one million to 1.2 million in the international market and 1.1 in the South African DVD

market over the past year.

It is for this reason the industry has to be protected therefore the Trade-Related Aspects of Intellectual

Property Rights (TRIPS) was signed in April 1994. This was done to improve the copyright legislation

around the world. Being a member allows record producers rights in producing and rental as well as

37

setting a minimum term of protection for sound recordings. Piracy rates in most countries are

estimated to be more than 50%. Currently two out of five music products sold are pirated so how does

a country go about enforcing the TRIPS agreement?

3.6.3 Trends

South African media have increasing opportunities to access their markets. The growth is in television

now at 100 television stations up from seven looking back at 1991, this giving a huge opportunity of

choice and availability. Radio stations have also increased fourfold from 34 to 138 giving the

opportunity for endless airplay and the promotion of local artist’s. The media segment which includes

internet web pages shows the biggest growth and most rapid growth trend in the media industry. This

clearly indicates a trend towards electronic versus print media. Sales budgets could be spent in these

media streams with the opportunity to advertise and promote on web pages are also being a reality.

The table below shows the opportunities for various media streams through which advertisers are

able to communicate the products messages.

Table 3.1: Growth of Media Opportunities in South Africa

Medium Dec

1991

Dec

2000

Dec

2004

Dec

2006

March

2008

March

2009

March

2010

TV stations 7 56 67 74 85 92 100

Radio stations 34 105 117 115 135 137 138

Daily newspapers 22 17 18 20 21 21 21

Major weeklies 25 21 25 28 29 27 26

Consumer mags 250 480 550 610 690 660 655

Bus to business 300 580 640 725 775 735 700

Community

newspapers &

mags

N/A 260 330 375 475 470 470

Internet web pages 1.4bn +8B 9.7B +12Bn

Source: Media Fact 2010

Cassette sales provide an interesting sales figure between the local and international artists. Local

artists were still producing music in this format whereby for international artists it was minimal.

Compact discs (CDs) prove to be the format with most units sold across international and local artists

of which the numbers were almost on par. The same could be said for DVD sales. The trend is clearly

towards the digital format versus analog. Part of the reason for the growth and parity of digital formats

such as CDs is accessibility to digital recording technology for local artists. Digital recording can be

done inexpensively with existing desktop technology whereas analog recording requires a studio for

38

additional tasks such as mastering and editing the material. In the data reflected below the same

could be said for music videos with the sales far local artists exceeding the international ones by far.

Table 3.2: International versus local units sold in the recording industry in South Africa for 2007

Recording International

Units

Local

Units

Total

Units

Cassettes 179 261 2 187 163 2 366 424

Cassingles 246 37 600 37 846

CD singles 204 266 931 266 727

Compact discs 9 784 078 9 256 166 19 040 244

DVD 1 208 675 1 241 433 2 450 108

Music video 642 20 668 21 310

TOTAL 11 172 698 13 009 961 24 182 659

Source: Marketingmix.co.za

3.7 Factors that have a direct impact on music sales

3.7.1 Choice and Availability

Growing availability of music, more choice and the spread of portable devices have helped translate

music demand into additional sales. There are more than 500 licensed online sites worldwide offering

over six million tracks. Record labels are continuing to digitise their catalogues of music thereby the

need for iTunes became necessary. This is further extended as to how people acquire their choice of

music. In South Africa there are various music chain stores like Musica, Look and Listen in addition to

major retailers who sell music e.g Edgars, CNA, Exclusive Books and Christian bookstores where

purchases can be made. They also offer the service of selling gift vouchers which make ideal gifts if

one is unsure of the taste of the receiver. On television various providers offer a sms service for a

nominal fee. The options available are songs and ring tones relating to various themes like rugby

songs, religious prayers etc. Furthermore music is shared amongst friends via Bluetooth and pirating

by cutting personal CDs with their choice of music.

3.7.2 Portability

The availability of portable music players such as the iPod, Nokia and Ericsson phones which support

MP3 formats changed the market drastically. With a new generation of devices there is a growing

convergence between the cell phone and portable player e.g. iPod Touch, iPhone and the Zune

player. This enables people to bring their music with them to share it with others and to align it very

closely with their lifestyle. Examples of this would be where people listen to music in their cars,

students with their cell phones and earplugs on campus, people out walking and jogging with

39

iPhones. Not only do the new platforms allow for portability but also with the convergence of mobile

technology music can be purchased, shared and enjoyed on the same device.

Recorded music boosts USS130 billion sectors and demand for music is at record levels – up 15% in

2007, according to Nielsen Soundscan. This is boosting the entire music supply chain, from hardware

manufacturers to broadband suppliers, live music to radio station’s advertising revenues. However,

record labels are not seeing the benefit of this increased revenue, despite investing heavily in music.

3.8 TV and Radio - consumption patterns

3.8.1 Television

The viewership trend continues in flux as stations fight it out for audience by the programming times

and opportunities it present. From the above table its clear SABC1 is owned by SABC and broadcasts

free-to-air in all the official languages. This station reaches 78.3% of all blacks and 46.6% of all white

viewers. On the SABC television channels the following opportunities are provided for marketing

music, SABC 1 gospel music programmes “Gospel Time”, SABC 2 would flight programs like “Noot vir

Noot”, “Supersterre” and Africa Café’ while SABC 3 would have magazine programs “Top Billing” and

do promotional inserts of artists “Side Track” as program fillers for local and international artists. Etv

would flight magazine programs like “Club 808”,”Popstars” and “The Showbiz Report”. Mnet has very

little music programs as they predominantly a movie channel. Dstv has a specific channel dedicated

to music “Entertainment Channel” and is mainly of an international content. Weekends artist bonanza

programs are televised dedicated to a particular artist.

40

Table 3.3: The market: ODM, a new pay TV competitor with 55 channels to be launched in May 2010.

Station Ownership

language

Comment Total

‘000

Black

%

Coloured

%

Indian

%

White

%

SABC 1 SABC all

official

languages

Free to air 23359 78.3 76.0 81.6 46.6

SABC 2 SABC all

official

languages

Free to air 20473 60.9 88.2 80.4 69.4

SABC 3 SABC all

official

languages

Free to air 16797 48.7 71.0 84.9 61.7

eTV eTV mainly

English

Free to air 19476 58.6 79.1 83.2 64.3

Mnet M-Net

mainly

English

Analogue/digital pay TV

station, predominantly

upper income audience,

subscriber base under

120,000 and shrinking in

favour of DStv.

2181 3.0 8.9 13.5 27.3

DStv Multichoice

Mainly

English

Pay station with over 100

channels plus interactive

offerings, 39 which carry

advertising. Subscriber

base over 2 million in SA

only.

6831 15.8 21.5 41.0 52.0

Source: Koenderman, 2010:18

3.8.2 Radio

In 1950 the first radio station Springbok Radio began broadcasting on the airwaves in South Africa.

This was state owned and was the mouthpiece of the then government and the ruling National Party.

In 1959 Radio Bantu was formed to broadcast in African languages to the “homeland areas” in African

languages thereby maintaining the Apartheid government ideal of a separate mouthpiece. For many

people this was their only means of obtaining information with regard to the rest of the world.

Thereafter many others were formed like Capital Radio and Radio Thohoyandou but were shut down

41

due to operating illegally. It was only in 1992 when Bush Radio in the Western Cape became the first

legal station that was granted a temporary licence. Post 1994 opened up the airwaves allowing radio

stations to mushroom in different provinces and communities.

Today there is an estimated 10 million radio listeners across the country who tune in to listen for

different reasons. The broadcast ranges from classical music, hip-hop, news and other topics.

Broadcasting is achieved through airwaves, via satellite and on the internet with some radio stations

offering live audio streaming through their websites and this is done in all 11 official languages

thereby catering for all population groups. The radio broadcasting industry falls into three categories:

commercial, public service and community radio stations. The public service broadcaster is state

owned by the South African Broadcasting Corporation, commercial radio stations privately owned with

a few subsidized by the state and lastly community radio stations which are owned by various

communities, cooperatives and religious bodies. Community radio stations today are in excess of 100

stations broadcasting in languages of those who live in them and thereby have a great influence of

the kind of music played on the radio. Most times community radio stations struggle to access

financing and marketing as the general assumption is made that these communities are not an

identified target market. What marketers forget is that these are the very people who influence the

music industry and who make up the majority of the population.

This medium is probably the most important due to its portability, accessibility, impact and

inexpensiveness compared to print and television. Additional to this is the reach of its target audience

due to national and community radio stations that have mushroomed due to the opening if the

airwaves and granting of licences. Metro FM has the highest listenership 15.4% followed by 5FM at

7.5% due to concentration of the population also larger in the North. With the release of annual data

in the industry accessing your target audience is easier and cheaper thereby easing the task of

decision making when advertising. Majority of the national broadcasting radio stations are stated

owned thereby assured of continuing there place in the media industry. One national event to promote

local artists is South African Music Week when as must playtime possible is afforded to music artists.

This done by all radio stations for a week however it could be done on a more regular basis. In South

Africa radio is the medium to reach the audience especially nationally and regionally due to its

extensive reach. The significance of radio stations is important in finding the appropriate station that

will be suitable for the artist, type of music and the intended target market.

42

Table 3.4: National radio stations

Station Language/Owner Format/Target Audience

000

%

5fm English/SABC Popular music format 2372 7.5

Metro FM English/SABC Contemporary black orientated

music, news & talk shows

targeted to trendy sophisticated

blacks

4840 15.4

SAFM English/SABC Public service content 654 2.1

RSG Afrikaans/SABC Public service national

community/cultural station

1864 5.9

Radio 2000 Eng/Afr/SABC Mainly sports 693 2.2

Radio

Pulpit/Kansel

Eng/Afr (+others) Religious 195 0.6

Source: Koenderman 2010: 20

Regional radio focuses as the table below shows specific language groups in geographical areas of

the country. In local music airplay consideration needs to be given to local audiences and their

preference of music. Due to international artist mostly performing in English South Africa’s diversity of

languages can create difficulty for access to local artists i.e. a listener in KZN might not want to listen

to a artist in Xhosa but preferably on Zulu or English.

Table 3.5: Regional stations

Station Language/Owner Format/Target Audience

000

%

702 Talk

Radio

English/Primedia Mainly talk & news format to

Gauteng audience

512 1.6

94.7 Highveld

Stereo

English/Primedia Adult contemporary mainly to

Gauteng audience

1520 4.8

Classic FM

102.7

English/Classic

FM

Classic good music & news.

Gauteng based

199 0.6

Kaya FM 95.9 English Adult contemporary & smooth music

for urban blacks in greater Gauteng

1627 5.2

99.2 YFM English/HCI Youth station mainly black to greater

Jhbg.

1596 5.1

94.2

Jacaranda

Eng/Afrikaans

Kagiso

Contemporary music format with

news, sports bulletins & morning talk

to Gauteng and beyond.

2118 6.7

43

North West

FM

Setswana/English

Various

Adult contemporary to NW Province

& surrounds. Launched Feb. 2008

559 1.8

M-Power FM Mainly English

Various

Adult contemporary to Mpumalanga

& surrounds. Launched Dec. 2007

99 0.3

Capricorn FM Mainly English

Various

Adult contemporary to Limpopo &

surrounds. Launched Dec 2007

1310 4.2

567 Capetalk English/Primedia Talk & news for Cape metro areas

linked with 702

174 0.6

Good Hope

FM

Eng./Afrikaans

SABC

Adult contemporary music format

with news & sport to Western Cape

750 2.4

Heart 104.9 English/Makana

Trust/Kagiso

Adult contemporary music format

broadcasting to Western Cape

metro area

670 2.1

94.5 KFM Eng/Afrikaans

Primedia +

Broadcape

Adult contemporary music with

news, sport & entertainment info to

Western Cape metro area

1282 4.1

East Coast

Radio

English/Kagiso Adult contemporary music with news

and sport to KwaZulu-Natal

1936 6.1

Source: Koenderman 2010: 20

3.9 Market share of the music industry in SA

In 2007 South Africa saw a slight increase in sales whereas around the world they experienced a drop

in music sales. The whole music industry grew by 2.4% however this excluded the sales of ringtones,

track downloads and other music products. DVD sales grew from 1.1 million to 1.2 million in the South

African market alone. The main share of the market is taken by EMI with a 22.4% followed by Select

with 13.5%, Gallo with 12.2% and Sony BMG with 10%. Gospel Urban/Afro Pop and Afrikaans remain

the dominant genres in this sector.

With sales of international content in the local sector Sony BMG led the pack with a market share of

29.1% followed by Universal with 28.3%, Warner Gallo with 17.9% and EMI with 17.1%.

Sony BMG also was the no 1 seller in the overall market seller with a 20.8% compared to Universal’s

19.4%, EMI’s 19.2% and Warner Gallo’s 15.5%.

In spite of the S.A reflecting good sales the operating costs, studio recordings, video production,

marketing and advertising costs rose by 7 – 10% with the wholesale price falling across several

formats.

44

3.10 Recording Industry of South Africa (RiSA)

In South Africa we have The Recording Industry of South Africa (RiSA) protecting the interests of all

artists and producers in the music industry. It was formerly known as ASAMI (Association of the South

African Music Industry) and formed in 1970 to represent all music artists and producers. The record

companies who apply to join RiSA are seldom rejected by the board of twelve members. RiSA is

funded by levies paid from products that are manufactured or imported. Currently there are 600

members who all have equal status at board meetings although additional votes are ceded to those

who contribute more financially from levies through the sales of CDs, cassettes and DVDs produced,

exported or imported into South Africa. The organisation is also recognised by the International

Federation for the Phonographic Industry (IFPI) as the official National Group for the Recording

Industry in South Africa.

3.11 Digital

Digital formats came into the music industry in the 1980s almost completely replacing vinyl records.

Music is now available on compact discs (CDs) thereby the sound quality of music was improved, the

convenience of buying and storing music was also greatly improved and the added convenience of

transmitting music from one format to another and storage on home computers. The popularity of

digital music also became popular due to its manipulation, mass production and sharing of music.

Sharing of music via the internet via online stores allows for digital audio to be downloaded, bought or

copied for free. The most popular digital format is MP3 due to its convenience, size and space utilized

for storage on a laptop, phone or MP3 player. Some of the advantages of digital music is cost

savings, convenience and the changes of under or over production is reduced. Another advantage is

music is perfectly copied as if it was the original recording. The disadvantages could be that music is

unsecured on the internet and the non exclusivity of music. Manufacturers of the music equipment

makes it easy for the public to copy music by ensuring equipment has the necessary devices to

record or copy music.

Digital sales are now overtaking the sales in the music industry with worldwide market share with

games 32%, recorded music 27%, films 5%, newspapers 4% and magazines at 2%. In 2009 the

digital revenues grew by 12% totalling $4.2 billion in sales. Record companies’ sales are now more

than double compared to film, newspaper and the media industry, a market opportunity for the South

African music industry to watch. The growth and uptake on this type of technology is a factor that can

not be ignored and industry will have to plan and evaluate how this may impact on future revenues

negatively in the form on piracy or how it may present opportunity for increased sales.

45

3.12 Piracy

Piracy is the biggest factor that erodes the revenue of the music industry. This activity is continually

on the increase year on year, while between 2004 to 2009 revenue dropped around 30% alone. The

ratio 20 to 1 was the amount of illegal tracks downloaded and it’s predicted that tens of billions of

illegal files were swapped in 2007. Due to the expansion of the broadband in developing countries,

the increase in unauthorized file sharing on P2P networks continued to rise. Today it’s second habit to

download, Bluetooth and swap music without thinking about it. This kind of activity has a direct impact

on revenue and the artist’s right to an income.

3.12.1 What is Music Piracy?

In the cost of enforcing RISA’s anti-piracy law piracy also continued to increase. One in three CDs

sold are pirated amounting to $4.6 billion thereby killing investments in the industry. In 2004 alone 1.2

billion disks were sold worldwide being 34% of the total market. The countries where piracy levels are

unacceptable with Spain being number one followed by Brazil, China, India, Indonesia, Mexico,

Pakistan, Paraguay, Russia and Ukraine. In Bulgaria, Canada, Korea and Taiwan where piracy and

physically on the internet is of special focus for the international music industry. Piracy on the internet

in on the increase. To continue supporting the industry other streams had to be viewed of increasing

revenue as piracy is estimated to cost artists R500 million every year. One of the main reasons young

artists don’t make it in the industry is due to music piracy. Pirated music is music copied from a

legitimate or pirate copy normally by computer without the consent of the artist and for commercial

reasons. Other factors to consider are packaging, compilations of greatest hits or a collection of songs

from a specific genre. The packaging of a cover might not look the same as the original but the sound

certainly is. Piracy is also rumoured to support organised crime as this results in loss in jobs. In the

London 2005 bombing it was revealed that the man who co-ordinated the bombing was making his

living from selling pirated CDs and DVDs at flea markets in Johannesburg. Other investigations have

linked sales of pirated music material funding terrorist groups and activities. Some record companies

have had to lose up to 20% of there recording artists and outsourcing the manufacturing of CDs and

DVDs. Further impacts are discouragement in investment if intellectual rights are not protected.

Government loses millions in tax revenue, income from sales is affected as more money has to be

spent on anti-piracy and artists receive no income for creativity in the music industry.

3.12.2 Categories of Music Piracy

When a person talks about piracy in layman’s terms broadly speaking it copying of information

however in the music industry it can be broken down into different categories such as those listed

below.

46

3.12.3 Simple Piracy

This is the selling of copied music without the permission of the rightful owner.

3.12.4 Internet Piracy

This is music that is compressed, loaded onto the internet and transmitted without payment to all

parties involved in the production thereof.

3.12.5 Counterfeit

This music is packaged and copied to resemble the original packaging as far as possible. The original

trademarks and logos are also produced to mislead the customer by thinking that they buying an

original product.

3.12.6 Bootlegs

These are recordings of live or broadcasted performances that are unauthorised. They are copied and

sold at a retail price without the knowledge of the artist, record company and composer.

3.13 Enforcement

In 2005, six containers were seized containing pirated CDs and DVDs on route to Lagos in Nigeria.

There were 1.5 million CDs with an estimated street value of R60million and 200 000 counterfeit

DVDs valued at R16million. On further investigation copies were sent to London for forensic analysis

and the syndicate was linked to five manufacturing (replicating) factories in Singapore. For the year

2006 enforcement meant 396 cases of which there were 432 suspects. The number of arrests

amounted to 44 with warnings issued totalling 358.

In confiscated equipment there were two laptops, 36 desktops, three external hard drives and 17

printers.

From the above it’s clear that there is a continuous need for law enforcement in the music industry.

With losses escalating year on year there is a definite need for government to make a consorted effort

to recover revenue due to them.

3.14 Awareness and Education

Awareness around enforcement is key through education to the public and corporate companies. The

RiSA anti-piracy unit tries to reach people through public events, and having stalls at KKNK (Klein

Karoo Nasionale Kunstefees), ABSA Soweto festival, Aardklop and Awesome Africa etc. Ongoing

47

interviews on radio stations, educational magazines for school children, newspaper articles,

presentations to social forums and workshops are other initiatives that are embarked on.

3.115 Summary

This chapter highlights the music industry in our country and the work still required to be done. The

country has come a long way post apartheid and work done by government. The challenge is to

govern industry in order to recognise the artists and the revenue they generate for the country. If

crucial piracy issues are not addressed seriously revenue will be continued to be loss. The findings of

the MITT report needs to be reviewed or re-commissioned as the findings could be outdated.

South African music week could also be part of the solution in giving additional exposure to

musicians. The various mediums are in place to reach targeted audiences i.e. television and radio; it

is about how the industry uses it in the future.

48

CHAPTER FOUR: PREVIOUS RESEARCH ON MUSIC

4.1 Introduction

This chapter researched previous articles that are relevant to our study and similar to our research

topic. The research examined, read and compared there findings and conclusions to our own

research topic. The research articles that was scrutinised and compared to our own where on

government primary schools in the Cape Peninsula, reports compiled by Montfellaz marketing

agency, reports by The Department of Arts, Culture, Science and Technology and papers that

investigated digital piracy among the South African youth. Once we investigated their findings, results

and conclusions we compared them to our own and where able to see a trend developing.

4.2 Government Schools

Anri Herbst, Jacques de Wet, Susan Rijsdijk conducted an investigation into the government primary

schools on the Cape Peninsula. There focus was to investigate the state of the music education

system and what are if any where their short comings. What they where able to deduce was that the

government schools music education system has been changed dramatically since 1994. What they

stated is that the actual content has changed and even to the point that the schools do not have there

own music specialist teachers any more but are using general class teachers to teach musical

instruments, history and content within the Arts and Culture learning area (sagepub.com). This has an

effect on the student’s as well as their passion for the subject decreases and in most cases it is seen

as a have to more than a want to. The main reason for the changers is that the budget has been

decreased and there is ultimately less money available for specialist teachers. A structured

questionnaire was sent to all primary schools in the Cape Peninsula; the response rate was 51.7%.

4.3 Montefellaz

Monatefellaz prepared a document that they titled the South African music industry research report in

2008. Montefellaz is a Marketing agency with specific focus on research, marketing, brand consulting

and communications strategies.

There main objectives for conducting the research was

To gain an understanding of the general perception of the entertainment industry.

To begin a conceptualized framework for the industry that will increase an understanding of

the South African entertainment market as a whole.

49

To provide feasible ways to increase presence, impact and affect the bottom line sales.

The report has also managed to capture the views of the artists, media as well as the consumer in

order to ascertain their varying perspectives. Montefellaz made use of online surveys, focus groups,

questionnaires and opinion leader’s interviews in order to reach a conclusion. In total, responses and

submissions amounted to four hundred and ninety six (496) participants. Four hundred and fifty one

(451) of them were online surveys and interviews. Eleven (11) responses were derived from face to

face interviews with various artists and entertainers. Thirty five of them (35) were in a focus group

(Monatefellaz 2008).

Monatefellaz went further by breaking down the respondents into age groups of Thirty four point four

percent (34.4%) of the respondents are between 15-20 years of age, Fifty five point two (55.2%) are

between 21-30 years old and Ten point four (10.4%) are between 31-40 years of age (Monatefellaz

2008).

4.3.1 Montefellaz figures on South African music growth

Statistics compiled by RISA Secretariat documented by Montefellaz reveal that the South African

recording industry had a wholesale turnover of just over R976 million for physical product in 2006, up

10% on 2004. The value of digital sales was estimated at R50 million for 2005. This means that, for

the first time, the trade value of the South African recording industry has exceeded one billion rand.

The 10% value growth was shared equally by international and local repertoire. CD sales were up by

20% for international repertoire - from 7.8 million units to 9.5 million units with a value growth of 8.1%.

Local CD units grew by 17.8%, from 6.5 million units to 7.6 million units and a value growth of 10.4%.

DVD growth was particularly spectacular. International repertoire value grew by 32% and units by

50%. Local repertoire tripled in value from R14 million to R42 million and units grew by over 220% to

just over 600 000 units (Monatefellaz 2008).

As you can see according the RISA Secretariat report the South African music industry is on the way

up and growing everyday from CD sales to DVDs but there are certain areas for improvement.

Mr Lebogang Poonyane wrote that he believes that the South African music industry needs to

elevate. What he means by this is that there are many areas of the music industry that need to

change from the actual quality of the music that is being played, produced and recorded all the way to

management of the music. The musicians need to realise that this is their livelihood and they need to

take more responsibility and ownership than they do at the moment. As technology changers so

should everything with it, Mr Pooyane advises that the record labels must find other areas where they

can create revenue due to the fact that the traditional music retail space is on the decline. The days of

in-store purchase of CDs are almost over, Montfellaz was able to calculate that out of the entire

50

sample that was questioned there was a staggering amount of respondents that admitted to illegally

coping music onto there music devices.

Have you ever copied music that you bought illegally onto an I-pod or mp3 player?

Yes. 79.4%

No. 20.6% (Montefellaz 2008).

Mr Lwazi Mngoma responded that the South African music industry is incredibly volatile and

experiences phases regularly (Montfellaz 2008). Once the musicians and music producers are able to

deliver the same type of product which should be a great finished product and products that can cover

all the different genres then the industry will start growing to be a serious industry.

4.3.2 Monfellaz survey findings

Montefellaz survey was able to put into perspective the state of mind of the local consumer and what

they where thinking and doing. Montefellaz made use of online surveys, focus groups, questionnaires

in order to formulate a statistics of there results. Below are a few of the findings that Montfellaz was

able to deduce from the quantitative answers that their sample gave to them.

Despite the fact people assume that the majority of South Africans are not connected to the

internet more than half the respondents said that they download music online whenever they

get the chance.

As seen with online purchases there are no definite times that individuals download music.

69.2% of the respondents purchase music whenever they get the opportunity to do so.

78.5% of the respondents indicated that they would be willing to pay anything between R5 and

R10 for a digital download. Currently a digital download would cost you on average R7 this

would mean that an increase to R8 would not adversely affect the sales of a firm.

Almost half of the respondents have internet access at home and are able to download music.

Faster connection would probably see the number of individuals downloading increasing due

to ease. Schools are also a huge downloading area for the respondents.

Style was a major factor. The industry has a number of different genres but the respondents

felt strongly that the industry was too similar in these individual genres. There was no

diversification and this lead to a general sound coming out the whole industry.

The respondents felt very strongly that there is potential in the local industry to grow and

produce much better material. This is a good sign that the consumers have faith and will

constantly support the local artist because of this faith that they have in them and the industry.

51

An artist may have lots of loyal fans but if he or she is unable to perform live the concert will be

a flop. The quality of the performance will dictated the sales in the future.

Slightly more than half the respondents felt that they local standard of music is of international

standards and the rest disagreed. This could be a good thing for local artists as they can only

get better and people would naturally see the improvement in their music.

R90 was the price that the majority felt was a fair amount for the cost of local CDs. People

argued that it would not be fair to pay similar prices for local CDs which are produced and

made here in South Africa as compared to imported international ones. On the other hand

people felt that the industry standards are similar therefore the price should also be similar

(Montfellaz 2008).

4.4 The Department of Arts, Culture, Science and Technology.

The Department of Arts, Culture, Science & Technology formed a task team that comprised of

individuals that where from as high up as the advisor to the minister, professional music composers

and presidents of various music organisations. The task team was called the Music Industry Task

Team (MITT) and there main purpose was to investigate the music industry, identify any short

comings and report on possible recommendations or changers that could be made to keep the South

African music industry heading in the correct direction. MITT made use of written and oral

submissions to be able to pin point and identify any major problems (MITT 2000).

MITT Findings and results

What MITT was able to confirm was that the problems that are in the industry are not predominately in

one area but more so over the entire industry as a whole. They showed that the problem was not only

piracy, legislation or funding but all of them together.

The growth of the local music industry is being hampered by the large amount of piracy and copyright

infringements that are taking place on all levels. When the potential target markets are copying the

music, the artist and companies will not be receiving any royalties on the songs that are out there

currently being listened to.

There is a local monitoring system that monitors the amount of local content being utilized in the

media from advertisements, television and radio. MITT states that the amount of local content needs

to be increased and used more often in order for the local artists to receive more marketing and

publicity.

There is a lack of access to education and training about the music industry. How the industry works,

how the contracts should be drawn up and the lack of transparency are all factors that MITT has been

52

able to single out as major pit falls in the music industry that would need to change in order for the

industry to grow correctly.

In order for the musicians to grow and become successful they need to perform, market themselves

correctly and produce music that can be sold locally and even abroad but MITT has identified that

there are insufficient funds available to the artist to perform these exact tasks (MITT 2000).

4.5 ICASA chargers local radio stations

ICASA’s job is to regulate, issue all the licenses and monitor what is being aired and broadcasted on

our local radio stations. There has been a quota set down that the radio stations have to adhere to or

they will be fined and in some cases their broadcasting licence can be revoked. According to a large

amount of the past research that has been conducted there is a constant out cry on the amount of

local content that is aired on our local radio stations.

Highveld Stereo was called to appear before the BMCC to answer charges of failing to meet the

prescribed music quotas in the South African Music Content Regulations. Highveld Stereo was found

guilty and fined an amount of R5 000, 00 and was further ordered to desist from any such

contraventions in the future (ICASA report 2002).

4.6 Digital piracy among youth in South Africa

Jean – Paul Van Belle, Brandon Macdonald and David Wilson wrote a paper that investigates digital

piracy among the South African youth. They called it the Determinants of Digital Piracy among Youth

in South Africa.

The reason they wrote and investigated such a paper was due to the affect that the digital piracy is

costing the country and businesses millions of rand each year. It prevents artists from growing and

being able to expand in other areas e.g. better equipment, marketing and exposure abroad. The

piracy rate of music and video products in South Africa during 2004 was estimated to be 40 percent,

translating into a loss of US$35 million in revenue to the local music and video industries (Curtis,

2006).

In order for them to able to come to some kind of conclusion they made use of questioners which they

distributed at the University of Cape Town. Their sample varied from first year students in Information

Systems and Philosophy all the way to forth year students in the honours class. They had a total

number of 470 questioners where distributed which 225 of them where valid and completed which

would have turned out to be a 48% response rate.

53

Of these responses; 42% were first year IS students, 47% first year philosophy students and 11%

were IS Honours students. Ages ranged between 17 and 25 years with a mean of 20 years. 126

students (56%) were female and 99 male (Determinants of Digital Piracy among Youth in South

Africa).

4.6.1 Determinants of Digital Piracy among Youth in South Africa findings

Jean – Paul Van Belle, Brandon Macdonald and David Wilson findings on their topic are listed below.

We have not included the findings that they noted as not having enough evidence to verify them.

These are the findings that they listed:

Affordability of legal goods negatively influences piracy intention.

Attitude towards piracy positively influences piracy intention.

Perceived behavioural control positively influences piracy intention.

Ego strength negatively influences piracy intention.

Convenience of acquiring goods through piracy positively influences piracy intention

(Determinants of Digital Piracy among Youth in South Africa) (Curtis, 2006).

4.7 Impact caused by digital piracy

In 2009 there was an article published titled “The impact of digital piracy on music sales: a cross

country analysis”. The authors Bender, Mark T.; Wang, Yongheng detailed the rise of digital piracy

when Napster was created in 1998. Napster enabled uses to link on to each others computers and

swop there music. Many law cases where put in to play and Napster have since been taken off the

internet and had to sell off its assets in a bankruptcy auction. What Napster started was a system

called P2P which is the Peer to Peer file transfers which is still around today. They stated that as of

June 2009 a programme which allows for large amount of data transfer with little hard drive space

required had reached 181 million downloads. P2P is by far the most damaging and common form of

piracy. Research has shown that in 2009 one in four P2P shares do not spend any money on any

form of music. The authors made mention of the fact that so many computers available today come

equipped with the hard ware and soft where required to download, copy and save most forms of data.

This in turn makes the distribution and download of digital music that much easier. CD players have

been replaced with digital formats which decrease the demand for CD purchasers. This increases the

demand to download the music but in many cases end up being downloaded illegally

(Highbeam,2009).

54

4.8 Digital Rights Management

When you download music legally form sites such as iTunes there is an invisible layer of software that

limits what you can do with that file. This is called Digital Rights Management (DRM) and has mixed

emotions among the public. DRM is preventing the downloader’s from loading that particular track on

to numerous other computers, it only allows you to copy that file five times. This is obviously limits that

file from being distributed at an uncontrollable rate but the consumers who have purchased that track

feel that it is unfair. The consumers feel as if the retailers are making them out to be copyright

criminals and reiterate that they have purchased that track which they now own. Amazon.com in an

attempt to compete against Microsoft iTunes wants to sell MP3 tunes with the DRM having been

removed. This will allow the tracks which the consumers have purchased able to do what they wish to

with that track. These tracks that have had DRM removed could be used for mass distribution but

more that likely not. If you end up copying that particular track you may enjoy it and that band will

have a new fan. In many cases when you obtain a track that you did not pay for and enjoy it you will

go and purchase the full album, go to the concerts that the band is performing in and purchase there

branded items. All of this made possible by music down load and “illegal” distribution

(Highbeam,2009).

4.9 Piracy overshadows rising digital music sales

Alex Jacob of the International Federation of the Phonographic Industry (IFPI) indicates that trade

revenue increased 12 percent but this is overshadowed by the 10 percent overall decreases in music

sales. Consumers are changing the way they obtain their music. Previously you would purchase your

CD from a music store, then purchase the album from the internet but know consumers are going to

illegal file sharing net works and down loading from there. “Illicit sharing accounts for 95% of all

worldwide music downloads” dwworld.com.

4.10 Local artists around the world are suffering

Piracy is not only a concern among the local artists in SA but also threw out the world. Brazil, France

and Spain are all countries that produce exceptional artists and have vibrant music scenes but are

also being affected by piracy. They are all noticing a decline in their album sales and release

volumes. Spain has seen a decline in their local artists in the top 50 fall by as much as 65% up to

2009 and Brazil’s five largest music companies have seen a decline in their full priced local album. In

2008 they had dropped by as much as 80% dwworld.com.

55

4.11 Government and businesses intervening

The governments know that something has to been done to curb this illicit sharing and illegal

downloading. President of France Sarkozy has started to lead the way in 2009 by introducing a

“graduated response” which warns the users before any action is taken against them, if they persist

they can get a sanction which could end with their personal account being suspended or terminated

all together. France is not the only one that has realised the problem that we have and their are many

more that are following suit in their own way. Laws have been put into the statute books of South

Korea and Taiwan and at this particular moment the United Kingdom and New Zealand are passing

legislation through parliament. In February 2009 Italy passed a rule that blocked a bit torrent service

called “The Pirate Bay”. This particular service helped access a large amount of copyright infringing

material to be shared and loaded on to personal computers. A film production company called Kudos

used a programme to prevent users from illegally downloading an episode of Spooks. Even though

they had 340 000 attempts only 50 000 were successful.

4.12 Digital music sales increase

Digital music is growing at an alarming rate but failed to stop the slump in the international recorded

music industry and the music pirates remain a major problem. The International Federation of the

Phonographic Industry states that downloads of singles increased by 10 percent to 1.5 billion units in

2009 and digital sales were up by 20 percent (physorg.com). Even with these positive sales the total

revenue including the sales of CDs fell 12 percent in the first half of 2009. Even with the number of

licensed music services having increased from 50 to 400 in the past five years illegal downloads still

account of about 95 percent of all music downloads. Rob Wells who is the senior vice president for

Universal Music Group International says that they are trying to cater for the ever increasing demand

to consume music legally by launching programmes such as “Orange Monkey” which is a pay as you

go programme. This particular programme had acquired 110 000 subscribers in its first six months of

launch.

4.13 Accessing digital music

Amarendra Bhushan of Ceoworld magazine updated an article in January 22, 2010 highlighting what

governments are doing to try and curb illegal downloads. She stated that that the ways the consumer

can access music is growing rapidly and developing all the time. They included various options from:

Subscription services

Broadband bundle with music

56

Streaming services with applications for mobile devices

Download from hosting sites

Mobile copying

Downloading from forums and blogs

The digital music business is huge and has still massive growth potential all around the world. Only 18

percent of internet users aged 13 and over regularly buy digital music (NPD Group, 2009). In Europe

these figures are even lower with only 8 percent of internet users in the top five EU markets frequently

buying digital music (Jupiter Research, 2009).

4.14 Summary

The findings and results from all the organisations and companies that was investigated where able to

shed further light on the current situation of the South African music industry. It was obvious to us that

they where able to positively single out problem areas that would need to be rectified in order for the

industry to grow in the correct way. There findings carried a large amount of value due to the samples

that they interviewed and in the manner in which they conducted the interviews. The results

documented showed us that there are problems and they are not in one particular area but spread

across the industry. The areas that where documented of concern where the lack of professional

music teachers in government primary schools, the large amount of illegal downloading and copying

that is taking place and the small quantity of play time that local artists have on the local radio

stations.

57

CHAPTER FIVE: RESEARCH METHODOLOGY

5.1 Introduction

There are many forms and ways of conducting research, each with its own positive and negative

aspects. Use of the Qualitative and Quantitative research methods due to them both being able to

produce certain information required from the potential sample. During the course of the interviews we

came across many difficulties and delimitations which we had to overcome in order to reach a

conclusion. We designed a questionnaire that we used to gather information from the respondents

which was documented to arrive at a conclusion. This will be done using the qualitative and

quantitative methodology.

5.2 Research Methodology

This will be done using the qualitative and quantitative methodology. Our decision to make use of

both types of research methods is based that each one will offer the interpretation that is required to

reach a conclusion to our problem statement. The term Qualitative and Quantitative are often used

hand in hand but they both could not be further apart. Some research looks at qualitative data to dig

out truths that could be tested to see if they can, in principle, be universalized, or tested to see if they

are universally true (Hackley 2003). When it comes to quantitative research Hackley describes that a

large amount of this type of research will have qualitative components and they could very much well

over lap each other.

5.3 Reasons for deciding on qualitative and quantitative research

The methodology chosen had a lot to do with the fact that we had not much time and no budget which

can influence the choice of methodology quite substantially. When research focuses on issues of

evaluation generally in education, health or business it is called evaluation research but this tends to

be highly controversial. In some cases of research methodology organisations pair up staff members

with researchers who together design and carry out research studies. Thomas (2004.) explains that

action research carries high risk but is as important in businesses and management. One of the most

common forms of research and the one most used is the quantitative and qualitative research. These

two methods are desirable for many researchers due to the time factor and minimal cost that would

be incurred compared to other forms. Thomas has broken down research strategies into four different

types namely experimental, survey, case-study and ethnography.

Experimental strategy is used when a causal connections between variables are identified, one of the

variables are under the control of the investigator while the other is not. A survey strategy aims to

58

produce generalizations about a population by collecting information from the samples, a case study

strategy seeks to examine a single instance of some broader instance in order to generate an

understanding of it and finally the ethnography strategy aims to achieve an understanding of human

behaviour by direct observation. What is important to understand is that there are many research

methodologies available for us to use but there are certain ones that are better suited for certain

instances. Murdick states that whichever research methodology is chosen it must have a defined

problem, that appropriate research methods are used, that adequate and representative evidence be

gathered and once a conclusion has been decided upon that is was formed from unbiased and have

logical reasoning. What is also very important is being in a position to be able to prove the conclusion

that you have arrived at and that the results of the research yield general principles.

Decision has been made to go ahead with qualitative and quantitative survey/questionnaires and

randomly select respondents. Hackley explains that the research need not be random but it does

need to be systematic. In qualitative and quantitative research methods we plan to arrive at insights

offering as much evidence and reasoning as possible. The research reasoning must be transparent in

order for the interpretation to be persuasive. Hackley (2004.) explains that it is important to qualify

findings carefully so that they are grounded within the social context that is being researched.

When doing the research you could interview twenty people and only four would agree with you, then

that will be your sample. Making the best of imperfect samples is part of research. In order for the

research to be credible it would need to show and be aware of the limitations and show the

advantages of our sample. When deciding on how much data to collect it all depends on the

objectives of the research, what kind of data is wanted and the quality of the data already obtained.

Hackley implies that the sample should be decided on the grounds of pragmatism and quality of

insights generated

5.4 Data collection

Our research topic has reached a stage where it has to research our topic in depth to determine if our

problem statement does exist. The element of primary data being chosen is due to the nature of our

research with interviews conducted by ourselves through personal face to face interviews using a

standardised questionnaire. The information required is the cheapest and most cost effective and

trustworthy in that personal achievements would be at best interest. This method of gathering data

from respondents is cheap as there is a minimal financial expense involved and could be conducted

at convenient times for all involved. Because the information required is of a personal choice and can

not be accessed through one particular person or a research company the need for interviews arise.

The investment of time is the key to ensure that the data gathered is useful. In this way, one is in

control of the process and information collected thereby eliminating the chance of useless data. The

key to gathering information is to have a clear plan of what it is you are wanting to achieve and how.

The success of the assignment also weighs on the amount of participants to argue.

59

5.5 Research definition

When choosing a research method there are many factors that need to be taken into consideration.

As already documented our literature review has indicated what the problem is that needs to be

researched as well as how the research will be conducted. Swartz refers to many researchers

preferring to adopt a pluralistic approach using multiple methods. The researcher’s used previous

case studies to give them some kind of grounding. Then they use a survey to back up what is being

stated in previous case studies and finally a longitudinal study can also be implemented to see if the

effect of some action research is sustained. What is important to understand is that the research

methodology that you have decided on can and do change as your understanding of the research

problem changes and you start looking at the problem from a different angle.

(Leedy, 1989) formally defines research methodologies as an operational framework within which the

facts are placed so that their meaning may be seen more clearly. Swartz indicates that one of the

most common used taxonomies differentiates research into empirical or theoretical studies. Empirical

is based on, or guided by, the results of observation or experiment only and theoretical is

contemplative, of mind or intellectual only. (Thomas, 2004) goes further and breaks down research

methodology into applied and policy research which are more geared for government and large

commercial organisations that have funding that can support such a substantial research activity.

Their results help policy makers, senior managers and administrators to make informed policy

decisions.

5.6 Data analysis

5.6.1 Difficulties and problems experienced

During the course of designing the questionnaire a certain age group was in mind. Two of the biggest

problems with stipulating the age were that it narrowed our ability to obtain accurate figures. The age

category was changed to accommodate a wider field of respondents. Increasing the age of the

possible respondents to 40 + but kept the lowest age still at 18 years of age.

A trend was picked up in some cases when the respondent would say to us “I don’t know any South

African artists”. This was done in order for the questionnaire to still be captured and to be valid is that

if there was no reply or marking concerning a particular figure. This was factored in as a zero

response. It was found that by doing this the information could still be captured correctly and

accurately.

60

As the interviews were conducted it became apparent that small details on the questionnaire were

overlooked concerning the flow and the way questions are read and interpreted. Minor adjustments to

the quantitative section and qualitative section of the questionnaire were made.

5.6.2 Interpretation the data

Once a suitable sample size was completed the meaning needed to be interpreted. At this particular

stage Alan Berkeley Thomas has made us aware of two key problems that we would need to

overcome:

How can all this data and paper work that we have accumulated be converted into something that

people will understand and be a meaningful description of what has been seen and experienced?

(Thomas, 2004) explains that once the valid and coherent descriptive account has been

constructed, how can it be connected to the problem field? Has new material describing the

sample answers been created?

The questionnaires will be scrutinised in relation to the objectives set out, but the purpose analysing

and interpreting the samples answers is to also be able to make sense of it all. There must be form

and structure in the data that is analysed. (Thomas, 2004) stipulates all the generalities and

commonalities within all the variety and the differences that are displayed in the dataset, linkages,

patterns and connections among elements, variables, categories and types.

5.6.3 How many interviews is enough?

Respondents where questioned using a qualitative and quantitative method survey/questioner where

they where randomly questioned. Hackley explains that the research need not be random but it does

need to be systematic. In qualitative and quantitative research methods the plan is to arrive at insights

which will offer as much evidence and reasoning as possible. The research reasoning must be

transparent in order for the interpretation to be persuasive. (Hackley, 2003) describes that it is

important to qualify findings carefully so that they are grounded within the social context that is being

researched. In conducting research only applications that are complete with all the relevant questions

being answered will be considered and will form your sample. In order for our research to be credible

it would need to show and be aware of the limitations and show the advantages of our sample. When

deciding on how much data to collect all depends on the objectives of the research, what kind of data

is wanted and the quality of the data already obtained. Hackley implies that the sample should be

decided on the grounds of pragmatism and quality of insights generated.

With the use of technology and formulas it was able to accurately determine what our sample size

needs to be for our interpretation to be credible. Our calculations have described to us a sample size

61

of 377 respondents; it was decided to interview between 400 and 450 respondents which will supply

us with a sample size that will be large enough for us to be able to obtain the information that is

required and for that sample to be an accurate representation.

5.7 Sample size

5.7.1 Sample size formula

What is important is not how many samples is enough but more so, how many responses will give us

the correct information that is required. There are certain factors that we needed to take into

consideration before we could calculate the sample size.

How accurate should it be, can it be accurately pin point the meaning of the sample.

What financial resources are required to conduct the interviews? Accurately gathering a sample

can be very time consuming as well as very expensive.

How confident are we in the results that we want to obtain. 100 people accurately interviewed will

carry more information and be more valid than 500 people interviewed incorrectly (ehow.com).

5.7.2 Sample size calculation

The sample size that you choose in order to obtain the information required is very important. If we

choose a sample size that is too small we would not have enough range of participants to see

adequate results. If the sample size is too large then the time factor as well as the cost factor would

have to be taken into consideration. The sample formula was obtained from Hans Albeirs who is

currently a lecture at the Cape Peninsula University of Technology.

CL = 95%

Z Value = 1.96

Estimated at 0.05

D = 0.05 (5% margin of error)

Proportion formula:

62

5.8 Summary

Qualitative and Quantitative research methods where used which proved to be exactly the correct

form of research required. The research design was able to supply us with a broad response from our

sample both highlighting concerns and positive aspects of the local music scene. The questionnaires

were scrutinised in relation to the objectives and a conclusion has been made. The thesis reveals the

challenges faced by musicians in the music industry and what can be done in order for the industry to

grow as well as what the man on the street thinks about the standard of the local music being

produced and performed.

63

CHAPTER SIX: RESULTS

6.1 Preliminary Synopsis of Quantitative survey

Part of understanding the market is to determine how much time they spend listening to music across

the different forms of media or devices that are available to them on a daily basis.

18%

33%

48%

0%

10%

20%

30%

40%

50%

60%

0-1hr 1-2hrs 2-4hrs

Figure 6.1: Frequency of music listenership

When conducting this research an important question for us was to understand how often people

listened to music. We had to take into account that they would listen to music via various media and

hence we specifically asked for them to answer it in terms of broadcasting media i. e. radio and TV.

The above figure reflects the hours spent on engaging with broadcasting medium. Naturally a large

percentage of the results represent the younger age categories as they have more time available to

them during the day. The opposite can be said about the more matured age category as they are

mostly employed full time and are office bound for most or all of the working day. What we have

drawn from this however is that a significant amount of time of their free hours is spent in listening to

the radio in the car or at home. With the majority of the population owning and listening to the radio

64

the influences of this medium has a big impact of what people are exposed to and the level of

awareness of what is available in terms of music product choices. It is therefore imperative that the

local airtime quota be enforced and even increased to ensure that it assist in establishing a healthy

and vibrant South African music culture.

and vibrant South African music culture.

6.2 Quality perception of SA music

Ascertaining what the local consumer feels towards the local artist’s music that they are introduced

and exposed to on a daily basis is extremely important. Does the local music that makes it onto the

airwaves carry any quality and how does the consumer feel towards it.

4%

6%

32%

37%

19%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Strongly

Disagree

Disagree Neutral Agree Stongly Agree

Figure 6.2: Quality perception of SA music

In relation to the question is South African music is good was not what we expected to find. What we

found was a very large amount of the sample (32%) opted to saying that they are neutral when it

came to the question. This is a very large amount of the sample and this could be due to many

factors. It could be due to them not having enough knowledge on the musicians in this country to be

able to make a confident decision or choice or lack of advertising and promotion. The sample that we

interviewed had to think about this question in some cases which is surprising taken that the sample

lives in the country and should have up to date knowledge on which musicians are doing well and

who is not. What is a very positive aspect which we have picked up on the calculations of the

65

interviews was the large amount of the sample that agrees that South African music (37%) is good.

This account for the largest section of the sample which makes us believe that there is a very strong,

informed and patriotic following for the South African musician. What was also very positive was that

19% of the sample strongly agreed with the quality of South African music. This enables us to say that

according to our sample 56% are positive about the quality of South African music. This is a very high

and positive margin which leads us to say that a large proportion of the population have very high

regards for South African music. This percentage overshadows the small percentage that disagreed

and strongly disagreed with the question. Questions need to be posed as to why and what can be

done to increase and improve South African music in order for us to change the negative responses

around and enable the industry to grow in a positive manner.

6.3 Price parity perception of SA music

Understanding how the consumer rates the cost of local music will indicate to us if they are informed

about the current prices and if they are aware of the cost of international artist’s music to which they

would need to be able to compare.

4%

29%

52%

13%

2%

0%

10%

20%

30%

40%

50%

60%

Strongly

Disagree

Disagree Neutral Agree Stongly Agree

Figure 6.3: Price parity

What we where able to find when we interviewed the sample was that there was an overwhelming

response of neutral respondents when posed the question is “South African music is expensive” That

66

is more than half of the respondents either do not know the current prices, are not aware of what the

international artists charge or have no need to purchase the music. These findings makes us think

why do they not answer in a different way, is it due to them copying music from all other sources and

in doing so they have no need to purchase the music or is there a decline of people not buying music

from the main stream music stores around the country. Both opinions are extremely worrying due to

both having negative effect on the South African music industry. With 33% of the sample either

disagreeing or strongly disagreeing with the cost of South African music makes us aware and

acknowledge that a relatively large proportion of the sample are informed when prices are concerned.

They are aware that in many cases South African music is cheaper than international artists due to

many factors. The 33% shows us that there must be a small percentage of South Africans that still do

or want to purchase South African music in compact disc, digital video disc or internet formats. What

is concerning is that out of the entire sample 15% agree that South African music is expensive. Do

they think that international artists are better and that warrants the larger asking price or are South

African artists not talented enough or good enough to ask the prices that they are asking? Those

samples that agree that South African music is to expensive would either download illegally or copy in

order to obtain the music they would like to listen to.

6.4 Learning’s from international artists

Respondents from all backgrounds where questioned whether local artists can learn from their

international counterparts to assess how our local artists measure up.

4%6%

19%

40%

29%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Strongly

Disagree

Disagree Neutral Agree Stongly Agree

67

Figure 6.4: Learnings from international artists

What we found in respect to this question was that there was an enormous response that South

African artists can learn from international artists. 40% agree and 29% strongly agree that South

African artists are not on par and can learn from international artists.

6.5 Enjoy international music above local

This question would give us an indication of how our sample size feels about music and if they have a

particular preference of the origin of music. This information could also give an indication for future

reference use and how local artists compare to their international counterparts.

4%

7%

20%

27%

40%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Strongly

Disagree

Disagree Neutral Agree Stongly Agree

Figure 6.5: Enjoy international music above local

After the sample had been interviewed and the totals calculated we found that once again there is

overwhelming support for the international artist as apposed to the local South African artist. The

respondents were broken down into 27% agree and 40% strongly agree that they enjoy international

artist’s music more than the South African artist. That is a combined total of 67% of the sample do not

enjoy local music if asked to choose between the two. The 20% of the respondents that preferred to

stay neutral makes us believe that they may not enjoy international artist but that they also are not a

supporter of the South African artist either. It could also be an indication that they feel that they are

both on par with each other and are unable to make clear cut choice as to which one they prefer. This

68

20% in our opinion is a small positive to be taken out of these particular respondents. We were able to

calculate that there was a small percentage (11%) of respondents that states that they prefer and

enjoy local music as apposed to international music. That particular percentage is extremely low and

has to be addressed in order to change the opinion and views of the South African public. What we

noticed was that there seemed to be a possible contradiction when we compared questions against

each other. There was a large following of respondents that agreed that South African music is good

(56%) but there was still a large following of respondents that enjoy international music more than

South African. We find this as a positive outcome if the local artist are able to find out what they need

to do different in order for more South Africans to prefer there music over International artists.

6.6 Are local performances good

Respondents rate local performances and gives us an indication of loyalty and feelings towards local

musicians performances. This will also tell us whether there is consistency in relation to other

questions that relates to the local music industry.

22%

32%

25%

15%

6%

0%

5%

10%

15%

20%

25%

30%

35%

Strongly

Disagree

Disagree Neutral Agree Stongly Agree

Figure 6.6: Are local performances good

What we found was not the expected outcome for this particular question based on the answers of the

respondents. When you take into consideration that performances, be they local or international are

gauged on many different points but you can and do find average music with exceptional stage

69

presence and that are extremely entertaining. These particular performances would be able to obtain

positive feedback with constructive criticism. When you take into consideration that 32% disagreed

and 22% strongly disagreed that local performances are good makes us want to believe that the 54%

of the sample have little positive aspects and not much support when it comes to local music and their

performances. A large amount of the sample take the time and spend the money in order to view and

partake in the live performances but end up being disappointed and do not enjoy the local artist

performances. There are some positive aspects with 25% of the respondents opting to remain neutral

on the topic. This can be due to them having some positive and negative views when it comes to the

local performances of the artists. If the local artists are able to improve their performances in certain

ways they could increase their following. We take the 21% of the respondents that agreed and

strongly agreed that the local performances are good as an extremely positive aspect. We expected

there to be a larger following of positive answers with this particular question. Performances are a

vital part of any musician wanting to grow their name and create a following. If the artist is unable to

perform let him be a local or an international artist they will find it very hard to reach the top of their

chosen profession. Performances are a form of marketing and if not done correctly you will end up

wasting a large amount of time, money, and will not be able to reach their goals.

6.7 Is information about the local artist readily available

This is in relation to what respondents think of availability of local music products and information to

the general public for purchase or interest. This question needed to be probed by the interviewer to

understand what kind of information they would like to access on local artists.

4%5%

34%

42%

14%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Strongly

Disagree

Disagree Neutral Agree Stongly Agree

Figure 6.7: Availability of local product

70

The question could be asked why 34% of respondents remain neutral about information being readily

available. Is it because they don’t know where to access information or is it because they have very

little media exposure to local artists? 14% strongly agrees that they don’t know where to access

information so if the two is combined i.e. 14+34=48% then we can assume that almost half of the total

respondents don’t know where to access information on local music. It could then be safe to say that

more advertising or information should be made available or brought to people’s attention. This could

be a missed opportunity for the media industry to make this information available.

6.8 SA artists are not good role models

This question relates to the perception of local musicians in the public arena and whether they worthy

of being role models to others. In most cases fans also look to musicians for inspiration and

motivation to achieve success. Society places great value on artists in the industry due to their

influence they have over the general public

11%

36%

39%

9%

4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Strongly

Disagree

Disagree Neutral Agree Stongly Agree

Figure 6.8: SA artists’ role model assessment

From the above one can see that 36% of the respondents disagree South African artist are not good

role models meaning the respondents do view artists as good role models. The 39% who remain

neutral is important to keep in mind when reading the balance of the data as you can never assume

71

information. The lifestyle of a South African music artist could potentially serve as a role for young

South African consumers of music.

6.9 Are local artists as good as international artists

Respondents are asked to make a comparison of local musicians to international artists. This could

also give an indication of what respondents expect from local artists. This question when combined

with the above could reveal a pattern in the ratings given i.e. age group, race and preference.

12%

22%

27%

52%

13%

0%

10%

20%

30%

40%

50%

60%

Strongly

Disagree

Disagree Neutral Agree Stongly Agree

Figure 6.9: Are local artists’ as good as international artists’

Over half the respondents believe that South African artists are as good as international artists.

Combining neutral and disagreeing respondents could have an impact on the parity of SA and

international artists. 52% of the respondents agree and therefore one can assume that audiences are

happy with the kind of music available locally. The belief is in our industry and what it represents and

stands for.

72

6.10 Demographics

Part of understanding the market is to determine what and how the perceptions differ from males to

females and what their preferences are with regard to international verses local music.

46%

54%

Female Male

Figure 6.10: Demographics

The demographic for male and female is almost in line with the national statistics shown in chapter 3

as a 50/50 ratio. We are satisfied with this result as it will add to the consistencies of the research that

equally represent the population. It is important to for us to sample as close as possible to the national

statistics to accurately measure and reflect the general consensus of the population. Both male and

females derive different emotional reasons for listening to music and it is important for us to capture a

fair share of the sample market from both perspectives. Making the research inclusive of all genders

is valuable in any research and even more so as woman especially has become more empowered

and have themselves moved out of the traditional role of housewife to a career centred individual.

Women are now involved with buying decisions and directly impact all sales in the economy including

the purchases of music.

According to stats SA 2010 mid year population estimates that 51% of the population are female

therefore 49% are male. This relates closely to our respondents demographics.

73

6.11 Race

Race assessment is important in terms how people access music, the type of music, and how the

socio economic environment impacts the behaviour and possibilities to the market. For the purposes

of this study we restrict this around ensuring we get the appropriate sample in line with the

demographics that represent the broader South African populous. We also look at the access and the

perception of the market towards local music.

30%

59%

11%

Black

White

Coloured

Figure 6.11: Race

In terms of the above graph the results are not reflective of the race ratios shown in Chapter 3. The

results are skewed due to the sample area restricted to the Western Cape that has a higher density of

coloured people. Added to this is that a large portion of the sample market were limited tertiary

institutes, social circle and the work place in the Southern and Northern suburbs where the local

population is representative of mostly the coloured population.

However that said we still manage to sample a significant number of black participants drawn form the

tertiary institutions. A relatively small portion of participants refused to classify themselves as they felt

it had racial undertones. We have included these questionnaires because we feel that all people

should be included regardless of the preferences. All groups are representative of the market at large

and needs to be included to be reflected as such.

74

6.12 Age

The age categories are analysis to ascertain how age impacts on how they access, what they

purchase and what their musical preferences are.

35%

25%

17%

12%11%

0%

5%

10%

15%

20%

25%

30%

35%

40%

18 - 21 21 - 24 24 - 30 30 - 40 40 +

Figure 6.12: Age

The ages categories show a larger percentage of individuals have been approached between the

ages of 18 and 24. This again points to the market sample being largely focused at the educational

institutes which inevitably constitutes of a large number of youths. Although the 18 to 24 category

represents just over 50% there is still a good sample of the other categories 24 to 40 plus. For the

purposes of the theses it is important to get a cross sample of the different age categories as we will

be able to develop a better picture of what the consumer thinks about local music. More so we are

also able to understand and see how they access and interact with the various media.

Access to music by the youth is largely done by and interactive medium i. e downloads while

purchases of CD’s are done in the older categories. What this points to is that both the evolution

technology and the communications systems as well as the different stages of life in which the

consumer is in. The buying power together with the old behaviours of going to a record store,

selecting your music and taking home a tangible product seems to be a preference for the old group.

75

6.13 Memory recall of artists known to the target market

Question is asked to observe how easily respondents remember artist.

37%

63%

0%

10%

20%

30%

40%

50%

60%

70%

Local preferences International preferences

Figure 6.13: Artists known to the target market

It is evident that respondents relate to the international market more that the local one. It’s a known

fact from our research that the bulk of budgets are spent on the marketing and promotional activities

of international artists. This is enforced by radio stations playing more international content. The

success of an artist’s album solely rests in the hands of radio DJs as they are the final decision

makers of the kind of music that is given air play in their shows.

76

6.14 How the target market access their music

This question wants to understand how people access their music. In understanding one can

hopefully get a feel of the reasons for accessing via the various mediums and what the future buying

trends will be. A window on this may allow industry and musicians to gear themselves to take

advantage of possible opportunities and limit the risk by aligning themselves to market behaviours.

34%

36%

10%

7%

1%

10%

2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Buy Download

internet

Friends Pirate Gifts Bluetooth Radio

Figure 6.14: Methods of accessing music

36% download versus 34% buying tells us that consumers still prefer to shop for music. With

customers coming into stores this means there is an opportunity to market products in stores. The

results relating to piracy and friends could be information that needs to be explored more. In

completion of questionnaires some respondents did admit verbally that they were not comfortable

responding yes to piracy honestly. The answers to download internet and bluetooth also indicate the

opportunity to expand on website access and in this way reducing costs.

77

6.15 Preliminary Synopsis of Qualitative survey

6.15.1 Findings of artists’ survey.

After having conducted an in-depth artist profile questionnaire with numerous individuals that are in

the music industry as artists, performers and producers we began to notice a trend in what they were

saying as well as some aspects that we never considered which was raised by certain interviewees. A

common theme in their responses is the lack of funding which is necessary to advance their careers.

Funding would enable them to purchase better equipment, acquire longer studio time and be able to

market themselves more often and in the correct media. Media is crucial in the successful marketing

and exposure in the raising the awareness level of emerging artists to create interest for the artist and

their product. Accessibility to various and appropriate media coupled with reduced rates would go a

long way in providing the necessary support in the industry.

When asked what type of exposure and marketing effort is required to advance their career we

received the answers that we were expecting, such as, more local radio airplay and local songs to be

used in local television advertisements and films. The general feeling is that access to skilled and

informed agents will better represent the artist. Artists feel that accessibility to the internet, in terms of

the rates that are offered, should be more affordable as this is an additional financial burden in trying

to market themselves. Training, for artists and agents, is necessary as this does not seem to be at

the required level.

6.15.2 Comparative assessment

When we compared the answers to the advantages that international artists have over South African

artists, it was almost the exact opposite of what resources are needed locally. International funding is

more readily available due to government funding and tax incentives. They mentioned that the

developed music industry abroad is due to the highly skilled artists and businessmen and that this is

what drives the industry. According to our profiling qualitative artist questionnaire, our local market

sees local musicians as inferior to their international counterparts. The results reflected that the local

markets have unrealistic expectations when it comes to performances and the quality of productions.

South African music as well as the live performances are good.

A statement was made that local artists should take a more central stage or at least be the preferred

attraction at main concerts. What was more interesting was that more visible promotions and point of

sale material should be visible in music stores. Better promotional activity in retail centres for local

artists is required with adequate point of purchase material activated to connect with your shopper

and ensure the necessary pull through of local musicians. Currently, international artists get more

78

exposure in this regard. The CIGS’ strategy of imposing at 20-50% local content airplay does not

appear to be enforced as international artists continue to dominate the airwaves.

6.15.3 Observations

All the interviews that were conducted we noticed that there was large support when it came to the

pricing of the compact discs; most wanted the prices to be the same as international artists. They

state that local compact discs should be priced equally with that of international artists due to the

music being just as good and in some cases better. Only a small percentage wanted to see them

reduced to a lower amount in order for more people to be able to purchase them thus possibly

increasing volumes.

An overwhelming response was that local radio stations tend to play more international music is

because it is more profitable for them to do so. The radio stations only play artists that have had their

record companies secure them the space, the radio station will only play and support what is “safe”. In

one instance, they referred to the market as being colonised and even to the extent that if the local

music was played it was out of obligation. As previously mentioned the market is driven by economics

according to our profiling artist questionnaire. There response was once again overwhelming when

asked what can be done to combat this and help allow more local artist airplay. Enforce legislation,

introduce a penalty system, incentive systems introduced and even as far as saying that it should be

a condition into obtaining and retaining their broadcasting license. All the interviewees would like to

see local content take up more of our local airwaves and less international artists.

6.16 Summary

In summary the research proposal starts out with the research problem statement of South African

musicians do not to enjoy the same level of support as that of international music artist. The problem

statement was derived from our extensive reading and our direct involvement in the music industry.

The problems identified are vast and varied and range from the lack of government commitment and

enforcement in terms of the policies that have been developed. Media apathy and disinterest deprive

the local musicians of a very powerful platform to market themselves and their product. Control of the

distribution channel is firmly in the hands of the few big record industry players who dictate what is

pushed into the market i.e. retail stores. The question of financing and investing, whether it is through

record deals to pressing records or through marketing activities is complex.

The proposal attempts to understand what is in the hearts and minds of the of the South African

music consumer. We believe that as an important starting point, our bottom up approach is required in

order for us to get to grips with the demand and propensity for local music. An understanding of what

79

is happening on the ground we believe is fundamental if you want to ensure that all that your

resources and plans are utilised in the most effective and efficient way possible.

The survey will be conducted done by way of a questionnaire with the intention of extracting

information about the consumers view point of the local music industry. The questions are structured

to identify the knowledge, awareness, beliefs and interest in South African music. We hope to

recognise some correlation in the answers and bring a resolution to close any gaps.

80

CHAPTER SEVEN: FINDINGS OF RESEACH DATA

7.1 Introduction

The objective of the Thesis was to understand why South African consumers support international

artists ahead of local artists. In doing so a study was aimed at look at how effective the collaborative

music industry strategies are in creating a music industry that is sustainable and embraced by the

broader community.

A closer examination is made of the almost 400 respondents that participated in our surveys.

Together with the results of the questionnaires, the findings set out in Chapter 6 and the review of the

various literature evaluations is made to formulate suggestions and possible solutions for the South

African music industry. Each question from the questionnaire as well as the literature is dealt with is

categorised in terms of the secondary objectives and expounded.

The secondary questions are:

To identify the perceptions of the South African market.

To understand why those perceptions exist and how these perceptions can be altered.

Bring attention to the market and Industry and their role in influencing the identified areas.

To understand South African market expectations.

To understand why overseas artists are more successfully marketed.

To understand how effective the combined music industry strategies are and how sustainable

are they.

7.2 Identifying the perceptions of the South African market

How South Africans’ feel about local music? Questions about quality performances by local artist

allow for some insights about how South Africans feel or perceived local music.

In interviewing respondents the question meant different things to different people depending on their

age and preference. Jazz lovers would thing South African jazz is good due to the North Sea Jazz

festival being hosted here amongst others attracting jazz artists from all over the world so the belief is

that its good. This could be completely different for Opera or R&B fans as they believe the overseas

market is bigger and better due to training and opportunities.

81

7.2.1 The impact of political sanctions

As times change and we move into the future the access and right to information is very prevalent

compared to previous years. In South Africa we have the legacy of apartheid which as we all know

was a period where access to most things was restricted. Due to international boycotts South Africa

was cut-off from the rest of the world. For people of colour this was more so in so called “coloured and

black areas” where movement and access to the arts was restricted. This generation has not lived

during a period where older people have lived through restricted access to music and apartheid.

There attitude is different in that they have more confidence and comfortable in using electronics.

There perception of the world is different and so is the attitude towards music. This statement is

supported by “those over 30 are less inclined to enjoy international music.” One thing we also need to

remember of this generation is that there are no barriers for younger ones due to changing history

and SA place in the world. As per (Kerr, 2000) who comments that the lack of political will,

Ethnocentric, Americanised attitudes and cultural prejudice that prevails and affects our perception of

what is good and what is bad. Thus reinforces the believe that international is better that local which is

perpetuated in all that we do. This

7.2.2 The influence of Technology

The majority of the respondents indicated a neutral stance or agreed that SA music is good.

Only 10% of the respondents disagreed about the quality of the South African artists produced. The

age group of these respondents were over thirty. This generation accessed music differently in that

those options were limited to radio and television in the time of them growing up. Social activities were

limited in the evenings prior to television resulting in most households listening to various radio

programmes or music. For most people this was their connection with the outside world and the most

up to date means of accessing news of the world other than newspapers. The electronic format of

accessing to media had not begun yet. Prior to 1976 which was when television was launched in

South Africa the only access people had to music was via the radio. Even at that stage television

networks were government owned and this had a big impact on the kind of music that people were

allowed to listen to. Music videos were non existent so fans formulated their own idea of what artists

appeared like. In the apartheid era most people assumed all artists were white as blacks were not

perceived to be able to sing or even be considered to enter the industry. This perception is

contradictory with regards to the results in terms of the youth accessing music. It would seem that

although there is a support for local music, access and availability is problematic. Previously South

Africans were only exposed to international artists via television by way of music video and pre

recorded live shows which had the advantage of being edited to produce a more professional end

product. This gave the impression of a superior performance by international artist compared to local

artists.

82

7.2.3 The power of marketing campaigns

Of all of the respondents in the survey it has also revealed there is a direct relationship between youth

and the enjoyment of international music over South African music. This speaks to exposure on the

different mediums i.e. television, radio and magazines. The youth aspires to this lifestyle through

seeing music videos which has a big influence. The videos show artists dressed hip and bling with

flashy cars and that entire styling of the video impacts on the youths need for dressing the same and

aspire to that lifestyle. Music video’s also allows the youth to view international artists in a positive

light due to the exposure on television. In seeing the videos they are remembered longer and could

become aspiration for many. Over all the packaging of the international artist is presented in a way

that appeals to the youth through the visuals in the film by way of fashion, cars, location, setting and

also the cast used are generally appealing to look at. This association of the artist, music linked to the

visuals helps to build the artist brand and ultimately the desire element. Besides the music videos, the

marketing plan is broad and extended through various media and promotional channels ensuring

continuity. In terms of needle-time where the artists are marginalised by limiting the amount of air

play, (Angus Kerr, 1994). The Independent Broadcasting Authority (IBA) was established with a clear

mandate, and legislation was drafted that required broadcast media to include a minimum of 20%

South African content in their programming. Up until about 1998, the requirement induced by the

legislative requirements created a massive demand and awareness of music and local artists, and the

standard of these artists increased to a world class quality. The IBA proved to be ineffectual in

enforcing legislation. Commitment and enforcement this strategy will in effect add to the marketing of

South African musicians.

7.2.4 The influence of International collaboration

Due to the collaborations that we have seen over the last few years between artists such as Lady

Black smith Mombaza and Paul Simon, Shakira and Freshly Ground in the World Cup compilation

CD. This puts South African artists in a good position by changing the world’s perception on the

quality and professionalism of the music industry. All was not good though some artists like Jonathan

Butler, Richard John Smith, Miriam Maqeba left the country to seek opportunities abroad. It was at

this time the industry was dominated by white musicians and no opportunities given to people of

colour. Since 1994 the industry has opened its doors seeing lots of international artists coming to

perform in South Africa. Some would come purely to increase revenue while others would come to

thank there loyal fans who supported them in the apartheid years. Most artists boycotted South Africa

not to punish fans but rather in support of the struggle experienced in the apartheid years.

83

7.2.5 The opportunity to attend live performances

Another contributing factor is that we have seen an increase in international artists performing locally.

Due to local artists being used as the opening act local audiences can experience both local and

international artists on the same stage and can witness first hand how well South African artists stand

up against there international counterparts. This has created a platform to showcase local artists and

the experience of performing with international artists. Some artists have used this opportunity to

market themselves and gone on to perform internationally or record.

Loyalty towards South African music could also be stronger as music fans have had disappointments

with international artists who has cancelled concerts and some who have just given poor

performances. This could be due to productions costs just being high or not enough tickets sold to fill

venues. Sometimes promotion contracts are also linked to filling a particular venue and if it is not filled

it is not financially viable for the promoters or the artists to proceed due to possible losses. Due to the

costs linked to production costs and paying the entourage it is important to break even to be

profitable. Some fans would view the cancellation of concerts as betrayal and therefore would rather

support local artists. The whole experience and perception of there favourite artist is also questioned

as that memory lingers for a long time. Interest or the mindset could shift to artists in other African

countries who are prepared to come and perform locally.

Aspects of SA music that respondents most enjoy and the extent of their loyalty to the industry.

7.2.5.1 The actual performance

As a result of our political isolation from the rest of the world for many decades we have been both

fortunate and unfortunate in the learning and the interpretation of how to deliver a stage performance.

What we have been fed is mostly the best of the best and presented to us in a polished music video,

quality audio recording and an edited live performance.

7.2.5.2 Perspective from the audience.

The audience have been largely exposed to international product that has been professionally

packaged. This is the basis against all local content is measured.

7.2.5.3 Technical support and skill

This is looked at in terms of the audio visual perspective that is the lighting, sound and special effects.

The coordination and choreography of movement sight and sound has an incredible ability to create

mood and ambiance. The setting elevates the body mind and soul elevating the senses and

experience for the performer and audience alike.

84

7.3 To understand why those perceptions exist and how these perceptions can be

altered.

The objective was stated in order to understand if price is a barrier and to see if the consumers see a

relationship between price and quality.

7.3.1 Purchase power

Majority of the respondents where neutral and by far disagree or strongly disagree, money is not an

issue in this instance. This shows us that the consumers have disposable income in order to purchase

music. In looking at the overall offering of SA music versus international music the price parity does

not seem to be an issue as the consumer believes they are getting value for money.

Even though the sample verifies that the cost for SA music is relatively cheap they seem to go for an

even cheaper option by downloading or copying from each other. The value proposition created in the

consumers mind varies per person due to disposable income so perception varies again. This is

where the fine divide comes into play into whether consumers actually buy a legal product or buy a

pirated copy or just get it from friends.

The prices of CD’s are also questionable as there are only a handful of importers and distributors who

own the market in South Africa e.g. Sony and EMI. The number of music retail stores who dominate

the market are very limited e.g. Musica, Look & Listen and CNA who dominate the market. As a

consumer one could question the retail prices and question why as consumers certain music products

are still expensive. One could question if prices are fixed to dominate and own the market i.e. “price

fixing”. At time’s retailers do have reduced prices for CDs which stimulates the market by offering

unbelievable specials on certain products.

Another market for sales of CDs and DVDs has been created by recycling music through second-

hand sales at flea markets and shops like Cash Crusaders where shoppers can buy music relatively

cheap. This kind of second-hand market allows loyal followers and lovers of a particular kind of music

to buy music legally and own it. Sometimes there are fans who enjoy trying to find a particular song or

version especially amongst serious collectors of music who would pay anything to own or add to their

collection.

7.3.2 Piracy

Over the years CDs have not become easily accessible for everyone in comparison to the

international world in countries such as the United States of America. The latter option of access to

computers and the internet that makes it convenient always seems an easier option. Due to “relaxed”

laws or not being able to enforce them the market for piracy is created. In most cases due to the

85

enormity of the market it is very difficult for the industry and government to enforce the laws governing

the music industry. Piracy around the world continues to grow at billions of rand and eats in the very

pockets of the artists and producers who provide us the audience with the pleasure of music.

7.3.3 Technology growth

The music retail market is open to growth opportunities in South Africa. The youth is the future and to

capture their attention by ways of extending the electronic media accessibility is unlimited as

electronics is the future. Perceptions and attitudes need to change and this could only be done

through extensive marketing and giving potential customers options in how they can access or buy

music. Pricing is key in any industry and only when customers believe they getting value for money

will their attitudes change in paying for products or services. The same could be said for games and

DVDs in the music industry as the perception to the average man on the street is that it is expensive.

Marketing departments needs to look at better ways to get people to spend their money and seek

marketing activities that extend beyond billboards and in-store marketing.

A large portion of the respondents opted for downloading has been identified as the youth segment.

This would be no surprise as this generation accesses electronic media from an early age by being

taught at school and having access to computers at home. The same could be said for cell phones

which has made communication easier and majority of phones having features that can access radio,

mp3, facebook and twitter. This has changed forever and allows users to bypass laws to protect the

music industry by freely exchanging information via bluetooth or downloading. The cost involved is far

less as apposed to finding the time to commute to a music store. Another big benefit is being able to

select or buy songs of personal taste rather than buying an entire CD with only one or two songs that

appeal to you. In this way owners are able to personalise their music by creating playlists of different

genres for different times of the day or for activities to be done. 46% of our sample makes use of

electronic media to access music.

7.3.4 Exposure

Familiarity would seem to be the reason why South Africans feel this way and this relates to our

quantitative questions where we asked the respondents to name their favourite local artists and

songs. An overwhelming majority of respondents where familiar with international artists and songs

but had trouble recalling SA artists. Respondents had to think about SA artists where as international

artists where immediate. Which speaks to the concept “on top of mind” that could allude to continued

exposure of international artists threw different media forms. Many of the respondents that where able

to remember a local musician with no trouble at all where predominately the artists that are currently

receiving a large amount of publicity and involved in large marketing campaigns. i.e. The Parlatones,

who are currently part of a nationwide tour, involved in a large marketing campaign with Kentucky

86

Fried Chicken and are also part of the guest judging panel on Idols with other famous celebrities such

as Gareth Cliff from 5FM radio station. Another was the Prime Circle who have been one of the

leaders on the local rock scene for the past few years who have accumulated a large following of very

loyal fans who go to the performances that Prime Circle have all over the country. Respondents

remember these artists due to the large amount of publicity they generate and concerts that they

perform at.

7.3.5 Recall of International artists

This is the same when it comes to the respondents recalling the international artists with ease and in

many cases could have inputted more examples than what was asked of them. Many of the larger

radio stations rely so heavily on the international artist attracting their listeners that they play such a

large amount of these international artists music on a daily basis. This is good for the radio stations

due to the large amount of listener’s that they have, which of course the advertisers want but it is

having a negative affect on the local music scene. When international artists are releasing a new

album such as Eminem or Jay Z the radio stations continuously remind the public where and when

the album will be available but the same advertising is not seen for the local musicians other than for

a few of them. The local artists are not receiving the publicity that they require and in many cases

deserve. With out this publicity and marketing the local musicians are going to have an up hill battle

against the international artists. South Africans can not recall their own local music artists when

questioned but can recall five international artists with out any problems.

Many international artists’ music videos that are able to be viewed on television or internet are of a

very high standard and quality. This could be a reason why the recall of international artists may be so

good compared to local musicians. Consumers may enjoy a music video more than the actual song

due to the graphics being used, the scenery and visuals on the set or the interesting idea that the

producing company came up with. Once again the money that is available has a direct affect on the

production of music and the music videos. To produce music videos that is of high standard costs

money in order to purchase or rent the equipment and the expertise to produce the video. If the music

videos are good consumers will remember them and in turn remember the artists that were in it.

68.3% agree or strongly agree of enjoying international music more than SA music.

53.5% disagree/strongly disagree that local performances are good/majority believe local

performances are not good, so favour is towards international performances, International artists

charge more for tickets and more for the production of concert.

87

7.4 To understand South African market expectations.

In terms of the above objective the samples answers where contradictory and now we need to

understand what it is and how international music is better while preferring international music more.

Why it is that international music is better is what we need to understand.

7.4.1 Collaboration of the music industry strategies.

It is our belief that although significant talks and strategies have been initiated over the last couple of

years not must has changed since the CIGS report of 1996.The report was an investigation identifying

and linking key elements and role players of the industry. In 1998 a task team was formed to

implement and suggest recommendations of understanding and developing the music industry. To

date this report has not been followed threw with any commitment. In our research we have found that

the department of arts and culture will run programmes in silo while the SA music association will run

the award ceremonies held annually in Johannesburg. E.g. MTN music awards. Radio stations also

embark on individual programmes like SA music week and from time to time may promote flame of

the month artists. Looking at the picture holistically one can safely assume that there are to many

South African music bodies creating an environment of segmentation and are not working towards a

common goal.

7.4.2 Product pricing strategy

Based on our stats covered in chapter three they show us that there is a demand for local content.

We should also look at the demand in terms of the format in which the local consumer prefers. The

findings in our research line up with the statistics and confirm that overall there is a demand for local

music. We know that there was a large demand for cassette and CD single format but the market has

evolved due to trends and technology.

Due to South Africa’s ever changing exchange rate perceptions for locals are that imported goods are

expensive. This is no different when it comes to the price of CDs and how they fluctuate with the

exchange rate. As owning CDs is a luxury to most people due to economic reasons. Buying music is

at the bottom of needs when one takes Maslows Hierachy into consideration. Prices have also not

dropped drastically since the introduction of CDs into the music industry if one considers what they

cost in the states and the east. The same could be said for DVDs and electronic games which have

not dropped much in price either. It is cheaper to watch a movie at a cinema due to loyalty cards

offered by Edgars and Discovery offering members discounted prices. The rationale of having a CD or

DVD library is considered a luxury by most.

88

7.5 To understand how effective the combined music industry strategies are and

how sustainable are they.

Currently as the music industry today stands in South Africa there are many organisations in

existence however there is no way in measuring there effectiveness singularly or combined. The

organisations all seem to operate in silo with their objectives and ultimately not having the interest of

the artists or those in the music industry best interest at heart. There are music festivals, community

shows and talent searches like “Make me a superstar” televised on Etv and sponsored by various

sponsors however there is no collaboration with the DASCT, RISA or any organisation within the

industry. Currently there are more than 15 organisations registered in South Africa but there is no

common thread in how they interlink and support each other. Even to obtain the most recent retail

sales data proved to be difficult in searching on the internet. There was a attempt by government to

regulate the industry through the DACST. A enquiry body CIGS was commissioned by the department

of arts and culture to formulate a strategic plan in 1996. After the strategic plan was formulated MITT

was formed to investigate the inconsistencies of the SA music industry. Their aim was to understand

the short comings in the industry and come up with recommendations in an effort to make the industry

lucrative for the role players as well as sustainable for the SA music artist. Some of the

recommendations made by MITT where:

Adequacy of the legislative framework governing the industry

Contracts

Coordination of existing efforts by human resource development

Piracy

Distribution and marketing

Wholesaling and retailing

Quota level and monitoring of the local music industry

Access, control, and copyright of local music

Work permits for artist in the music industry

Transparency in the collection of royalties due to music artists

Addressing the issues of the apartheid system

Recognising SA music in a holistic culture sense

Dealing with alleged racism in the industry

Based on the MITT report it has been found that many broadcasters are not adhering to the local

content quota. The impact of this non compliance on the both economics of the local music industry

and the development of SA culture are severe.

89

The MITT team followed a process by calling for submissions which where advertised extensively

though print and electronic media and via the internet. The following problems were found in the

music industry:

Based on the written and oral submissions, the MITT identified the major problems in the music

industry as follows:

Inadequate and outdated copyright legislation, particularly with regard to Needletime.

Widespread piracy and copyright infringement that disables the growth of the local music industry.

The ineffectiveness of the IBA's local content monitoring system and the low levels of local

content in the media.

The prevalence of unfair contracts - historic and current - leading to a polarised and hostile

industrial relations environment.

A legacy of disempowerment and lack of access to education, training and information about the

economics of the industry among musicians and related workers, coupled with a lack of

transparency and accountability of key players within the industry.

An imbalance in power relations in the industry that negatively impacts on its growth - in particular,

the inadequate definition of musicians’ status as workers in labour legislation which undermines

their access to legal protection and other benefits.

Widespread experience of ongoing racism and sexism within the industry.

The isolation of aspirant musicians living outside of Gauteng.

Inadequate funding for music development (MITT, 2010)

7.5.1 Broadcasting media

Out of our previous qualitative and quantitative research the feedback received was that there is still

insufficient local content being played on local radio. The only local campaign is the SA music week

which receives extensive advertising before the promotion. Once the campaign is completed there is

no aggressive marketing or air time play given to SA artists. Based on the MITT report it is of view

that the local content quote of 20% is to low and should be increased to at least 50%. Highveld stereo

were recently found guilty of non compliance and fined R5000.00.

This is a collaboration enforced by the local music industry however the success of this campaign

depends on the radio stations. For many radio stations revenue is donated or received by means of

advertising.

90

7.5.2 Identifying the perceptions of the South African market

Generally the perceptions of the past decade have been favourable due to the globalisation of the

music market. The more favourable perceptions are lined with the youth as apposed to the older

generation. The research conducted shows that local market appreciates the talent and the quality of

SA artists compared to that of international artist. This is clearly shown in the figure international

versus local and South Africa is just as good as international artists. This is substantiated by the latest

2007 sales data published by marketing mix. It clearly shows South Africa’s music sales are greater

than that of the International market. Although sales data gives an indication of the success of the

industry it doesn’t speak to the collaborations of the various organisations and how effective they are

in the industry.

The website that had the most current information on the music industry was RISA. There is updated

information on the rand value of material seized from pirates and the cases that went to court within

each province. There is co-ordination in tracking syndicates, ensuring they go to trial all with the

assistance of a dedicated team. Other topics covered are kinds of piracy, media coverage received,

contacts, education, newsletter and informing the public how to identify fake CDs for sale.

Till today there have been no further developments or reports written on the MITT team’s

recommendations to the government on the music industry.

7.6 To understand why overseas artists are more successfully marketed.

The findings make the distinction between demand and popularity as the SA music industry unit sales

are larger than that of the international market. Popularity is a direct result of a robust marketing

campaign due to the financial backing that international artists receive. This is rolled out in a number

of ways for example in store promotions, advertisements and air play which is largely funded by the

large margins that are made off of international music sales. One factor can help turn local artists

around sales around is i.e. pricing architecture and format selection with regard to CD versus cassette

to maximise the profit margin. These profits can be channelled into a marketing campaign which will

further elevate the status and demand for local content.

7.6.1 There is little support from media i.e. radio and the South African consumers

Artists have little or no support from the government institutes who are responsible for developing the

growth of the local music industry. Not only have they showed a lack lustre approach to the

implementation and enforcement of the prescribed quotas but they have also recently been charged

with not paying the artists the millions in royalties due. The most recent report published was that of

the SABC not paying royalties totalling R28 million in music video royalties. The broadcaster is

currently being sued in the High Court by 1 500 members of RISA and the four leading recording

91

labels in SA being Universal Music, Sony BMG, EMI and Warner Music Gallo Africa. . "The recording

labels and owners of videos had given these videos to the SABC in good faith, but now that they are

failing to negotiate we have resorted to this action," said David du Plessis,(Ndebele 2010).

7.6.2 Government commitment

If one refers back to the MITT report of 2000 recommendations where put forward to the DCAS on

dealing with its findings. To date there is no published response on how the issues have been

addressed. The music industry now finds them in a situation that a task team has been set up with

recommendations, however no formalised process/blue print has been provided to give direction to

the industry.

The question was asked in order to ascertain if the consumers feel if there are any areas of

improvement for SA artists. Other aspects looked at were those of local artists which are unrelated to

the performance and production of the music i.e. live performances.

SA artists can learn from int. artists most respondents agree or strongly agree (70.5%).

This could be interpreted that SA artist have a lot to learn or international artists have access to more

things in order for them to teach us something. This could be in the way they conduct and present

themselves.

7.6.3 Live Entertainment

The live concerts are also something to consider as audiences expect an evenings entertainment and

not to watch a badly planned event. This relates to the whole experience of local performances from

the venue and how the production is run. When the consumers want to purchase the tickets for the

local artists performances they want the process to smooth from where they purchases the tickets,

paying for the tickets and entering the premises. The production needs to be safe, fast and on time.

The venues would have to be modern, with state of the art equipment and facilities available i.e.

wheel chair friendly, toilet facilities must be of a certain standard and must be logistically be able to

cope with the number of concert goers. Many venues do not meet the criteria to be able to cope with

large amount of concert goer’s as well as the older venues are left for ruin and in a serious need of a

cash injection.

7.6.4 Lack of finance or experience

Many consumers have seen international artists perform either abroad or locally and this gives the

consumer the ability to compare and gauge the difference between local and international artists. Is it

the actual performance the artists put on or is it the lack lights and effects that enhance the

experience for the concert goers. Many international artists’ performances on stage have excellent

92

pyrotechnics, stage graphics, sound coordination, dance routines, large stage items and dance

routines involving a number of dancers, backup singers and stager performers. These performances

require a large amount of man power in order for performances too run smoothly. All of the

employees, equipment and time to organise the event cost an enormous amount of money, money

that many local artists do not have or the money is not being utilised in the correct way due to certain

factors. Factors that must be taken in to consideration is the inexperience of organisers and

performers, lack of training and experience when it comes to equipment required and the incorrect

marketing that was done post concert.

When the consumer compares the local artist to the international artists they are also taking into

consideration certain things when it comes to the production and manufacture of the DVD’s and CD’s.

What do album covers look like, are the album names easy to remember and interesting. The

consumer looks at the lyrics and compares what the artists are trying to say and what relaters’ to

them as a consumer? Song writing is a very large market and artist pay large sums of money to have

professional lyric writers create songs for them.

7.6.5 Negative publicity

Recently SA artists have received a lot of negative publicity i.e. Brenda Fassie who died of drug

related illness, Jubb Jubb who was jailed for drunken driving and under the influence of drugs. The

artists that become famous need to understand that they are in the limelight on a constant basis and

need to act correctly and always be on their best behaviour. It is clear that the sample feel that the

local artists are not up to scratch with the way they conduct themselves on a private bases or in the

standard of their production.

The marketing and support offered by recording companies is vital in the success of a musician. Due

to competitiveness in the industry it’s imperative that artists play a role in how their image is perceived

and portrayed in the media. Therefore it’s important to build relationships in the industry to have a

support structure. The support of media, fans and location of venues with decent facilities is essential

in building an image for any artist if sustainability is key.

With a government owned broadcaster who hasn’t pay its royalties this kind of leadership impacts

negatively on the industry and those finding themselves working in it.

93

CHAPTER EIGHT: CONCLUSION AND RECOMMENDATIONS

8.1 Introduction

The research on the subject matter has aloud for a broad over view of the local music industry. In

doing so it has examined many aspects of the industry which includes the market for local products,

industry bodies, industry players and the interaction between all the elements and how they impact

and influence the industry as a whole. The Thesis began with the research problem statement of

whether SA music musicians enjoy the same level of support as international artists. Finding from the

survey which was analysed in Chapter 6 and then interpreted in Chapter 7 has now lead us to this

point of recommendations with regard to the various aspects related to the objectives of the Thesis.

The here is to highlight the areas of concern in an effort to point out what the necessary focus areas

should be.

8.2 Identifying the perceptions of the South African market

The opportunity here is to relate to the how the perceptions have been created and reinforce the

positive ones that support the South African Music Industry and alter those that do not.

8.2.1 Recommendation to the impact of political sanctions

The research has shown that there is no central body that everybody reports to that is in charge of the

industry strategies that coordinates the efforts of all the industry bodies. Currently there are three

bodies i.e. SAMRO, SARRAL and NORRM that are responsible for collecting royalties. Due to these

bodies acting independently a central body is needed that is in charge of developing a strategy and to

focus on the collected efforts of all the music industry bodies.

Industry bodies should be reduced and absorbed in amalgamating common functions. Most of all the

Government must demonstrate political will in imposing and forcing the strategic initiatives of CIGS to

ensure a sustainable future for South African Musicians.

Further to this a relook at the Labour Act should be commissioned. The SA constitution embodies the

rights of all citizens in all spheres of life. In reference to the labour act of SA covering the basic

conditions of employment we have found that musicians are excluded from the act. As a result

musicians are vulnerable allowing for abuse and exploitation. We recommend that the department of

labour in consultation with DASCT amend the act accordingly to include performing artists.

94

8.2.2 Recommendation for the influence of Technology

Improvements around the control of various interactive media such as cell phone technology and

internet downloads need to be looked at as this is a form of piracy and deprives artist form potential

earnings. Record companies in particular will need to increase the level of involvement in the various

technologies to take advantage of the marketing advantage as well as the revenue potential.

8.2.3 Recommendation to the power of marketing campaigns

The lack of money to embark on a robust marketing campaign hinders successful marketing of local

artist. Currently lot of the margin which is received from the sales of international artist are used to

subsidise their marketing campaigns such as in store promotions, advertisements and payola. With

out putting to much demand on the consumer in terms of loading the local price of the CDs to support

local marketing campaigns we suggest that a portion of all international sales revenue be redirected

to subsidise local artists. This also has a two fold impact in that it discourages excessive international

air play and exposes local artists. The idea is to redirect the additional profit from the sales of the

international artists in a form of a “tax levy” to be utilised in development programmes.

We would like to see much more activity with regard to in store promotions, live performances,

appearances, interviews and road shows. Retailers also need to play an active role in marketing local

artist and music.

The South African music week could be increased to be held maybe quarterly and turned into a

festival of speaking to different aspects of music, marketing, song writing, music production and

recording. Career opportunities could be marketed and this can be done in collaboration with all

regional and community radio stations. SABC our state owned public broadcaster is the primary

custodian of our culture and should therefore play a primary role.

8.2.4 Recommendation for the influence of International collaboration

Music events including film, television, stage and radio production should always seek to include

South African contribution. The CIGS strategy should be inclusive of all the areas of performing arts.

Giving preference to South African artists in this way will improve the status and credibility of the artist

while favourably positioning in the minds of South Africans.

8.2.5 Recommendation for the opportunity to attend live performances

South Africans have the ability to embrace challengers and passionately support events such as ruby

world cup, cricket and the FIFA world cup. We can also look at events such as the Argus cycle tour,

95

Winex and the Two ocean marathon which are examples of events that are continuously supported.

What we need for the SA music industry are more frequent calendar events such as Oppikoppi, Jazz

festival and the Grahams town festival. These events have shown that given the necessary platform

we will throw our full weight behind campaigns and events, so with this in mind if we need to take the

initiatives and provide the platforms in the music industry we will with out doubt offer our full support.

What is needed are calendar events specially geared to show case local SA talent. We need events

that will bring together all the local musicians at a set time and venue, such as the North Sea jazz

festival held at the CTICC.

8.3 To understand why those perceptions exist and how these perceptions can be

altered.

8.3.1 Recommendation on Piracy

Piracy is a result of limited access to music and the inability to pay for the product. Record companies

need to investigate ways in improving the security and encoding of all forms of music i.e. CDs and

downloads. With the fragmentation in the industry i.e. government bodies not working together we can

assume that the piracy will continue to increase unless a solution is formulated by all parties in the

industry. It is evident that the trips agreement signed in April 1994 and the recording industry of SA

(RISA) is not doing enough to enforce the rights and protection of the music artist. This is evident in

the piracy statistics that continue to escalate. That indicates that the governing body trips and RISA

are not collectively performing there mandate. It also appears that major recording companies that

dominate and own the SA market are sales driven in that they promote international artists on a much

larger scale versus supporting and protecting local artists.

8.3.2 Recommendation for increased Exposure

A lot has been said about the percentage quota that has been allocated for needle time for local

music artists from the view point of the artist and of the local public. They feel that these quotas are

not being adhered to and that they would like to hear and see a lot more local music being aired over

the air waves as well as the national television stations. In order for the SA music industry to become

economically sustainable, adherence to the quota system is one of the first steps that will insure that

we create the necessary awareness of the local products on offer. In creating this awareness we at

the same time develop a local SA music culture that view SA music in a positive light and thus

insuring the necessary levels of support to sustain this industry. The airtime play needs to be

increased. This was established in 2000 through the BITT report however to date this has not

transpired. Finding the means to ensure DJs are consistent in airtime play remains a challenge as

some expect payola. The existing penalties needs to be enforced but how remains a challenge.

96

One of the initiatives that radio stations should embark on is to create a platform that publicise their

commitment to local content. This could be doe in various ways by reporting it on their web page, DJs

stating the stats on their radio slot and in the various publications that are available.

In the spirit of “lead SA” a campaign widely publicised by all radio stations which essentially is a call to

all of us to not only do the rite thing but to take the initiative in displaying exemplary behaviour that will

positively influence ourselves and the people we interact with.

8.4 To understand South African market expectations.

8.4.1 Recommendation on Pricing

The research has shown that people are not too concerned about the pricing of local music given the

content and the quality of the product. Information drawn from chapter three with regard to the sales

of the various product lines i.e. CD and cassette, the latter has shown high and increased volume

sales which can be linked to affordability. If you also look at the level of downloads, bluetoothing and

file sharing this will also suggest that pricing is a factor as to how people access their music. Hence

the pricing strategy with regard to local music should be realigned taking into consideration the cost of

downloading music. A more attractive price strategy and pricing architecture should be looked at in

line with the available mediums of accessing music.

8.5 To understand how effective the combined music industry strategies are and

how sustainable are they.

8.5.1 Recommendation on broadcasting media

Broadcasting media that are meeting the criteria to play a recommended percentage of South African

music should be awarded incentives by way of tax breaks i.e. if they meet or exceed the quota they

should receive a preferential tax rebate against licensing or broadcasting fees. The companies that

are meeting the criteria set out to them should definitely be recognised in some form or manner.

Some form of awards ceremony should be held or the music awards ceremonies that are currently in

motion should have new category added to them with the company with the highest and most

accurate quota percentages being awarded. In doing so this will give that company even more

positive advertising and turn it into a competitive situation amongst companies as apposed to a rule

that needs to followed. Companies that are the more “popular” or have the greater listenership may

not be meeting the prescribed quota system and should be open to the general public for scrutiny.

97

8.5.2 Recommendation on Blank CD levy

With reference to the MITT report published in 2000 reference was made to the fact that 90% of tapes

bought in SA where used for illegal purposes. A conservative estimated loss of R42 million rand per

annum was lost in the industry. Blank tape levies where imposed on countries threw out the world to

focus on the growth of the music industry. The levy imposed was used to combat piracy and also to

kick start a security fund for artist. As blank tapes are now obsolete we propose that the blanket levy

be introduced on blank CDs.

8.6 To understand why overseas artists are more successfully marketed.

8.6.1 Recommendation to stimulate support from the media

Government institutes that are responsible for the implementation and management of the quota

systems need to be held accountable for the enforcement of those quota systems. There should be

measurable criteria put in place targeting the collection of royalties against expected budgeted

revenue income. The quota system should be increased to at least 50% local content, all events and

TV production should have as mandatory local content. The penalties that are currently prescribed for

the radio stations should be increased and enforced with more severe penalties. Their have been

radio stations that have not followed the prescribed quota systems and after the necessary

investigations where carried out where found guilty. These findings and fines should be more publicly

advertised in order for the local consumer to know exactly who are not following the predetermined

quota system. In order for the local radio stations to be able to renew there licenses they would have

had to have met the stipulated air time quota. If they have not complied, they stand the chance of their

license being with drawn all together or fined weighted against the percentage of the quota played.

This percentage should be set against the revenue of the organisation in order for the fines to have

significant consequence.

8.6.2 Recommendation for lack of finance or experience

Artists are at a disadvantage by losing out on royalties and revenue that is due to them. Recognition

also needs to be given to contracts signed in the apartheid years due to different labour laws which

disadvantaged artists. Still today some artists are still blinded by these contracts robbing them of

income and creating the perception of mistrust. There are many freelance artists in the industry like

backup singers who are also short changed due to no protection in the labour law act. A minimum

standard contract needs to be adopted and enforced by the DACST.

Companies within the music industry can use their social responsibility and funding to stimulate the

development of musicians. A trust could be formed and funds drawn from there when needed. Music

98

as a subject at school should be enforced as pupils are not taught about the history of South African

music. People in the music industry could then be employed to teach. As most musicians are

unemployed this will stimulate the teaching profession and they could also benefit from training

provided by SETA. Workshops could be coordinated through SETA to inform and train artists on their

rights in the music business. A legal frame work could also be established representing the artists.

8.6.1 Ombudsman

In our research we have found no ombudsman in the industry to protect the rights of artists. As the

industry has a high number of complaints due to artists who fall outside the labour legislation act and

who don’t have access to legal representation for resolution some kind of establishment is needed.

An ombudsman needs to be established to resolve problems to enforce minimum standards, ethical

practices and a minimum code of conduct towards all employees in the music industry.

8.7 Conclusion

The MITT Report which was completed in 2000 commissioned by the DACST is the last

comprehensive document advising government on the way forward. While researching our topic in

2010 very little has changed in the music industry which tells us the industry is far from being

regulated and controlled to benefit all participants. In addition to the findings of the report we have

identified further gaps in the industry thereby increasing the scope for improvement. In closing we

recommend that the MITT report be revisited and redrafted so that it is current. This will also provide a

base for DACST to work from and implement the injustices within the music industry. Throughout our

research which included the literature reviews, journal strategies and reports we have found

commonalities in all previous research. We are optimistic about the future growth of SA music given

the wealth of talent in the industry. There should be a streamlining of the various industries to ensure

fairness and consistency of the artist. Most of all there should be a governing body to protect the

rights of all within the industry. This would be in government’s best interest in order to recoup lost

revenue and to reduce the levels of piracy. There should be one goal and one vision for all industry

players to ensure a collective way forward.

99

Reference List

3rd ear Music. N.d. The South African Music industry in Crisis.

http://www.3rddearmusic.com/forum/saicrisis.html [18 March 2010].

Abrahams, R.2003. Spinning Around, The South African Music Industry in Transition. Social Cohesion

and Integration Research Programme, Occasional Paper 3. Cape Town, HSRC Publishers.

Afropop Country. 2010. http://www.afropop.org [28 July 2010].

AIRCO. 2010. Association of Independent Record Companies South Africa website.

http://wwwairco.org.za [16 July 2010].

Alexander, M. 2010. Community radio in South Africa. http://www.southafrica.info [5 October 2010].

Alexander, M.2010. South Africa’s radio stations. http://www.southafrica.info [5 October 2010].

Albini. S 2006. The problem with music. http://www.six-love.co.za/2010/06/the-problem-with-music-

by-steve-albini [31 July 2010].

Amorfousmusic.n.d. Cry beloved SA Music.

http://www.amorfousmusic.com/articles/cry_beloved_sa_music.html [18 March 2010].

Arsham, A. 2010. Topics in Statistical Data Analysis:Revealing facts from Data.

http://home.ubalt.edu/ntsbarsh/stat-data/topics.htm [01 July 2010].

Bloomberg, L. & Volpe, M. 2008. Completing your Qualitative Dissertation. California: sage

Publications.

Buglear, J. 2005. Quantitative Methods for Business: The A-Z of QM: Oxford: Elsevier.

Burke, S. 2009. Cry, Beloved SA Music.

http://www.amorfousmusic.com/articles/cry_beloved_sa_music.htm [22 February 2010].

Cappel, J. J. & Windsor, J. C. 2008. A Comparative Investigation of Ethical Decision Making:

Information Systems Professionals versus Students. The Database for Advances in Information

Systems, vol. 29 no. 2.

100

Ceoworld.biz 2010. How piracy hit music business industry? http://ceoworld.biz/ceo/2010/01/22/how-

piracy-hit-music-business-industry [03 September 2010].

City of Johannesburg 2010 http://www.joburg.org.za [28 July 2010].

Cultural Industries Growth Strategy (CIGS) The South African Industry Final Report November 1998

to the Department of Arts and Culture Science and Technology.

Cuming, M. 1992. A Manager’s Guide to Quantitative Methods. Huntingdon: ELM.

DACST.1998 .Cultural Industries Growth Strategy, The South African Music Industry. Report to the

Department of Arts, Culture, Science and Technology.

Department of Arts, Culture, Science & Technology n.d Music industry task team (MITT) report.

Department of Arts & Culture (South Africa). 2010. http://www.dac.gov.za/ [28 July 2010].

De Villiers, W.M. 2006 Aspects of the South African Music Industry. Unpublished Mini thesis,

University of Pretoria, Pretoria.

Dwworld.com. 2009. Piracy problems overshadow rising digital music sales. http://www.dw-

world.de/dw/article/0,,5272948,00.html [03 September 2010].

Ehow.n.d. calculateing sample size formula. http://www.ehow.com/how_5262463_calculate-sample-

size-formula.html [31 July 2010].

General news. n.d. Assoc. of independent record companies South Africa – Chairman’s report

http://www.airco.org.za/general-news/chairperson-s-report [18March 2010].

Guest writer 2009. South Africa’s best male vocalist sings in isiXhosa.

http://kwaito.com/articles/south-africa%E2%80%99s-best-male-vocalist-sings-in-isi-xhosa.html1. [30

July 2010].

Hackley, C. 2003. Doing research projects in marketing, management and consumer

research. Routledge, Canada.

101

Harris, M. 2010. The art of making money from music, Turning your tunes into notes takes talent and

some business sense. The Sunday Times: 10; April 4

Highbeam. 2009. The impact of digital piracy on music sales. http://www.highbeam.com/doc/1G1-

217511897.html [03 September 2010].

ICASA Annual report 2002. Broadcasting.

IFPI. 2010. “Music industry calls for better enforcement of rights on 10th anniversary of TRIPS”

http://www.ifpi.org [16 July 2010].

Investec. 2010. “Investec event brings together music industry professional”. http://www.investec.com

[28 July 2010].

Jansen. E. 2005. My Hip Hop Is African And Proud Cape Town: Emile Jansen

Jansen, E. 2010. Interview with artist from Black Noise on 24 February 2010, Cape Town

Amorfousmusic.com n.d Cry beloved SA Music.

Johnson, R.A. and Wichern, D.W.1997. Business Statistics: Decision making with data.

New York: John Wiley & Sons

Kennedy, J. 2008. “Digital Music Report – Summary”.

Koenderman, T. 2010. “South Africa and SADC Mediafacts 2010. OMD South Africa.

Marketing Mix. 2010. “A Dynamic South African Music Industry” http://www.marketingmix.co.za [1

August 2010].

Laing, D. 2009. “World Music and the Global Music Industry” in World Music: Roots and Routes, ed.

Tuulikki Pietilä. Helsinki: Helsinki Collegium for Advanced Studies. Pp 14-33.

Ndebele, G. 2010. “SABC owes R28m royalties”, Times Live.

Midem. 2010. To come alive to the sounds and sight of South Africa.

http://www.music.org.za/newswindow.asp?ID=152 [24 February 2010].

Monatefellaz. 2008. South African Music Industry Research Report.

Murdick, R.1969. Business research concept and practice. New York: International textbook

company.

102

Music globalization. 2009. Music industry biggest problems.

http://www.musicglobalization.com/2009/10/music-industrys-biggest-problems.html [26June 20010].

Physorg.com 2010. Digital music sales rise but piracy is sour note.

http://www.physorg.com/news183301096.html [03 September 2010].

Ratshilumela, P. 2006. Talking about musicians. http://www.mio.co.za/article/sello-galane-talking-

about-musicians-2006-09-28 [20 February 2010].

RISA. 2010. Recording Industry of South Africa http://www.risa.org.za [28 July 2010].

Sagepub.com 2005. A Survey of Music Education in the Primary Schools of South Africa’s Cape

Peninsula. http://jrm.sagepub.com/content/53/3/260 [01 August 2010].

Samroblog. N. d. Running an independent Music label part 2.

http://samroblog.co.za/featured-articles/running-an-independent-music-label-part-2-of-2/ [18March

2010].

Swartz, E.,Money, A.,Williams, B. & Remenyi, D. 1998. Doing research in business and management.

London: Sage publications.

Statistics South Africa. 2010. Mid-year population estimates 2010. http://wwwstatssa.gov.za [18

March 2010].

Thomas, A. 2004. Research skills for management studies. USA: Routledge.

Time.com. 2009. Magazine article.

http://www.time.com/time/magazine/article/0,9171,1625209,00.html [03 September 2010].

Van Belle J.p, Macdonal dB & Wilson D. n.d Determinants of Digital Piracy among Youth in South

Africa.

Wertham-Aymes, G. 2010. “Ten communication trends for 2010”. Bizcommunity.com website.

http://www.bizcommunity.com [28 July 2010].

Wikipedia, 2010. Digital audio. http://en.wikipedia.org [5 October 2010].

103

Wikipedia, 2010. Music industry. http://en.wikipedia.org [5 October 2010].

Wikipedia, 2010. Music of Africa. http;//en.wikipedia.org [5 October 2010].

Wikipedia, 2010. Music of South Africa. http://en.wikipedia.org [5 October 2010].

Wikipedia, 2010. South Africa. http://en.wikipedia.org [5 October 2010].

Wired.com 2010. Dumb labels, laws (not google) to blame for music blog deletions.

.http://www.wired.com/epicenter/2010/02/dumb-labels-laws-bots-not-google-to-blame-for-music-blog-

deletions [31 July 2010].

wisegeek. n.d. What is statistical sampling? http://www.wisegeek.com/what-is-statistical-sampling.htm

[2 July 2010].

104

Appendix 1 Target Audience Profiling Questionnaire

Yes/no

How often do you listen to music 0-1hrs 1-2hrs 2-4hrs

How often do you attend concerts a year 1-2 2-4 4-6

Essay

Name three of your favourite music artists and songs?

Name three of your favourite local SA artists?

How do you obtain your music?

Quantitative

Rate questions on a scale of 1 to 5.

Str

on

gly

dis

agre

e

Dis

agre

e

Neutr

al

Agre

e

Str

on

gly

agre

e

1 2 3 4 5

South African music is good.

South African music is expensive.

SA Artist can learn from international artist.

I enjoy international music more than local music.

I do not know where to get information on local music.

Local performances are good.

SA artist are not good role models.

SA Artist is just as good as International Artist.

Demographics

Gender Male Female Race B W C A Other

Age 18-21 21 - 24 25-30 31-40 40 plus

105

Appendix 2 Target Audience Profiling Artist Questionnaire

Qualitative

What type of recourses would help you advance your career and why?

What type of exposure and marketing effort is required to advance your career and why?

What advantage do international musicians have over S.A. artists?

How do you think the market perceives local musicians?

How and what would create the desired or improved perception?

Do you think pricing structure of local CDs is correct?

What should local CDs be priced at?

Why do local radio stations not play local content?

What can be done to change this?

Is there local product available in retail stores?