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The Music Industries as Lobbying Industries John Williamson M.Litt (Popular Music Studies) 30 th January 2012

The Music Industries and Lobbying

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  • 1. John WilliamsonM.Litt (Popular Music Studies)30th January 2012

2. Whatis lobbying? [definitions] Why is it relevant to the music industries? Who are the lobbyists and who is lobbied? Case Study / UK Music Problems with lobbying Is it effective? Conclusions 3. Thereis no neat way of defining what isgenerally acknowledged to be a porousconcept. (House of Commons PublicAdministration Committee) The term has generally becomediscredited public affairs Contact between those working in thepublic sector and those attempting toinfluence their decisions (ibid) 4. Lobbying is any activity that seeks to influencegovernment and public policy. Lobbying falls undera sub-sector of the Public Relations industryknown as Public Affairs. A Public Affairs campaignwill encompass a range of activities, of whichforming relationships with politicians andgovernment officials is just one. For example, acampaign may involve commissioning reports fromthink tanks, scientists or academics, which supporta particular position. It may also involve using themedia to influence public opinion to put pressureon politicians to act. (http://www.powerbase.info) 5. Each of the US state legislatures has itsown definitions of lobbying and lobbyists e.g. North Carolina influencing or attempting to influencelegislative or executive action, or both,through direct communications oractivities with a designated individual orthat designated individuals immediatefamily 6. Developing goodwill orcommunications or activities, includingthe building of relationships, with theintention of influencing current or futurelegislation Both formal and informal links reflected inthese definitions. Lobbying consists of both direct andindirect attempts to influence politicians 7. Direct:meeting with politicians and civilservants; supplying and producinginformation; maintaining good relationsand (in some extreme cases) helping todraft legislation. Indirect: organising interest groups andindividuals to drum up support for interests/ viewpoints(petitions, letters, etc.). Placingstories in the media. 8. Lobbyinghas become important in the music industries in recent years due to the involvement of governments in areas of policy /the law, notably: Copyright / Intellectual Property Monopolies and Mergers Arts and Heritage Enterprise funding Education Technology / internet regulation Live Music / local government health and safetyetc. 9. Thisis a relatively recent development. .why? Frith (1993): The British music businesshas been successful enough not to needindustrial support and pop has never beenthought worthy of cultural subsidy Frith (2000): Compared to other mediaindustries (broadcasting or the press) theBritish music industry has not been theobject of much government interest 10. However, there has always been aconnection between government and themusic industries in the UK. Prior to 1999, no immediate threats toindustries, so their need to lobbygovernment was limited. Indeed, BPI supported City TechnologyColleges Brit School formed in 1991. Government (prior to Blair government)deeply ambivalent towards musicindustries 11. Attemptsto add tape levy to 1988Copyright, Designs and Patents Act failed,partly because of what Frith calls poorimage of music industry. Accusations of price fixing andmonopolistic behaviour from Office of FairTrading. These provided the impetus for the recordindustry (BPI) to begin engaging withgovernment in mid 1990s to improveimage of their members 12. 2 other factors in the increased use of lobbying: New government, new engagement with culturalindustries post 1997. Formation ofDCMS, Creative Industries Mapping Exercises etc New technologies, declining sales of recordedmusic. And an outcome the widening of the range of music industries interests involved in lobbying. No longer recording industry = music industry. 13. Lobbyists can be salaried staff of the firmsor industrial organisations they representor . . . Working for multi-client public affairscompanies (lobbyists for hire). The major companies within the musicindustries have responded to industrialcrisis by formation of UK Music and theengagement of public affairs consultants 14. UK Music formed in 2008 after pressurefrom government for music industries tospeak with one voice. Replaced previous umbrella body BritishMusic Rights. Chief Executive= Feargal Sharkey Initially made up of 8 differentorganisations representing different partsof the music industries. . . 15. AIM Association of Independent Music BASCA British Academy of Sognwriters,Composers and Authors BPI British Phonographic Industry MMF Music Managers Federation MPA Music Publishers Association MPG Music Producers Guild MU Musicians Union PPL Phonographic Performance Ltd PRS for Music 16. It was criticised for still not representing the fullrange of music industries interests due to lack oflive music bodies. In 2011, UK Music board was joined by the newlyformed UK Live Music Group, chaired by LiveNations Paul Latham. Includes: Agents Association, Association ofFestival Organisers, Association of IndependentFestivals, Concert Promoters Association,International Live Music Conference, NationalArenas Association, Production ServicesAssociation, Independent Venues and PromotersAssociation. 17. Promote awareness & understandingof: Interests of UK music industry at all levels The value of music to society, culture & theeconomy Intellectual Property rights and how they promotecreativity The opportunities and challenges for musiccreators in the digital age4priority areas: policy and governmentrelations; policy within the EU; Education;Research 18. Jo Dipple promoted in 2012 to replaceFeargal Sharkey. Former journalist Today, News of theWorld, Daily Mirror Trinity Mirror as Head of Public Affairs Worked in Strategic Communications Unitat Downing Street as special adviser to theTreasury. 19. 2010-11 Ministerial Meetings with JudithWilcox (3), Ed Vaizey (4), David Willetts(1), John Penrose (2) Oral evidence given to ParliamentaryCommittees (Business, Innovation andSkills) by Sharkey and Brian Message. Subjects of meetings include intellectualproperty, music publishing, music, musiclicensing, live music 20. Individualorganisations and companiesalso meet with government ministersbeyond the scope of UK Music e.g. BPI,MPA, EMI, Universal Music, PRS forMusic, PPL, AIM, MMF. Large companies also employ publicaffairs firms. .Universal Music hasemployed Lexington Communications,Open Road, Finsbury Ltd. 21. maintain a positive profile managing business and reputational riskthe political process generates reliable insight and political intelligenceabout public policy developing effective briefing materials staging events, receptions andconferences input on all aspects of legislative processand developing lobbying strategies around 22. Lobbying has become a major political issue,though not necessarily one that transfers tothe public. High profile cases Bernie Eccleston (1997),Lord Ashcroft, cash for honours. Suspicion of influence in return for politicaldonations. Lack of transparency and regulation nostatutory register of lobbyists Relationships and revolving door betweencivil servants/ political staff and lobbyingcompanies 23. Verydifficult to prove connections betweenthese relationships and policyimplementation, but suspicion is arousedwhen former ministers end up working fororganisations in the industries theypreviously regulated . . . The hiring of people with personal contactsand influence within government is aparticularly controversial strategy. 24. Examples in the music industries : Estelle Morris is an example in the music industries: former Arts Minister, now on board of PRS for Music Louise Mensch husband manages Metallica, Snow Patrol, etc. MP4 band comprising Members of Parliament with assorted interests in music industries: releasing album with Revolver; produced by Robin Millar, remix by Pete Waterman; gig with Feargal Sharkey all important figures in music industries lobbying bodies. 25. A further issue with lobbying is the cost.Some indicators of the amounts spent byindustry organisations those this is alsonon-transparent. In 2008, EMI threatened to withdraw fromindustry organisations, claimingmembership cost them $250m per year RIAA lobbying expenditure $2.1million infirst quarter 2011 (Congress disclosurereport) 26. Someevidence of success for music industries in recent years: Copyright extension on sound recordings in EU/ UK (previously in USA) Live Music Act (2012) Digital Economy Act (2010) three strikes legislation in France Setting up of reviews and commissions Mergers of Sony BMG, Live Nation / Ticketmaster etc Government support for music industries Opportunities for access to ministers/ officials 27. BUT.. .the lobbying interests of the music industries are often checked / slowed by a combination of : More powerful vested interests Legal processes Unsympathetic reviews Work of groups opposing the worldviews of large cultural industries conglomerates 28. Stop Online Piracy Act / Protect IntellectualProperty Act both passed through Houseof Representatives in 2011. Major protests / lobbying ahead ofproposed Senate vote in 2012. Google, Facebook, eBay and others tookout NY Times ad in 2011. Blackout by Wikipedia and other sites 18January 2012 29. Google blacked out logo and linked topetition signed by 4.5 million people. 350 000 emails sent to Senators 2.4 million tweets in 4 hours Evidence of impact: Senators withdrawingsupport, vote postponed. However, this was achieved with a hugelobbying spend. 30. Google spent $9.7m on lobbying Congressin 2011; Facebook over $1million 1 company (Google) spent more thanRIAA representing an entire industry. LiveNation spent $220 000 in 2011. Companies lobbying on SOPA/PIPA onall sides - spent $150 million in second halfof 2011. 31. UKs Digital Economy Act (2010) implementation held up by legal process. BT and Talk Talk challenged provisions ofthe Act allowing suspension of internetaccess for serial file sharers / sending outof warning letters. Challenge initially rejected, now at Court ofAppeal. Based on EU law. Has delayed implementation of Act 32. Thegovernment reviews of IP (Gowers andHargreaves) have generally failed to beconvinced by claims of lobbyists botharguing for government policy to be shapedby economic evidence but problems offinding neutral, non-aligned data. That whichis produced is routinely rubbished by contentindustries. Opposition from groups like Open RightsGroup, Creative Commons, ElectronicFrontier Foundation 33. Lobbyingis difficult to define and opaque:it is in the interests of both the lobbyistsand politicians to not reveal anyinformation beyond what they have to Lobbying comprises both direct andindirect attempts to influence policythrough both formal and informal links withpolicy makers 34. Industrieslobby as individual companies,under industrial umbrella organisations and inconjunction with other industries (e.g. RIAA/MPAA) They use both their own corporate affairs staffor public affairs companies depending onperceived effectiveness. Lobbying is increasingly costly fororganisations and not always effective. Biggest challenge may not be resistance ofpoliticians but greater power of other, related(technology) industries 35. Thecultural industries music included have become increasingly involved inlobbying as government has become moreinterested in them economically. UK music industries have responded togovernment interest by conductingextensive campaigns on (primarily)copyright related matters 36. How important is lobbying to the musicindustries? Is lobbying more important to some thanothers? (recording, publishing, live) Who (ultimately) pays for the lobbying? Who (primarily) benefits from it? How does it impact on the creators? How does it impact on consumers?