News

Significant change ahead for music funding

After considering Chris Caddick's comprehensive review of our domestic music funding schemes, NZ On Air is now planning wide-ranging changes to the way we fund and promote New Zealand music.

We commissioned the review to determine the best way to respond to changes to the music industry and broadcasting environment. The review makes it clear that we can afford to, and should, diversify our music funding approach.

Chris Caddick has done a great job in sifting through a multitude of often-conflicting opinions and finding some clear options. 100 industry people were interviewed and a further 655 public responses to a detailed online survey were assessed. NZ On Air is grateful for the interest in this project and the time people have spent in conveying their views.

The review notes our legislative requirement to achieve broadcast outcomes. When NZ On Air was set up in 1989, only 2% of music on commercial radio stations was home grown. Kiwi music now fills up around 20% of our radio airtime. We're really proud of that.

The review also notes that radio is still people's most common source for hearing New Zealand music, with 74% of people relying on radio for their daily music fix.

But we have known that the rapidly changing technological and music industry environment means that our funding programmes need to evolve.

The review's three key recommendations are centred around these concepts:
• Promoting greater diversity and encouraging new artists to achieve airplay success
• Bolstering NZ On Air's promotional activities, and
• Promoting greater professionalism in the industry.

Changes will remain consistent with our core philosophy of connecting songs with audiences, and are likely to include:
• Alongside commercial radio activities, making greater use of alternative platforms such as student radio, online and digital platforms, to broaden funding opportunities for new New Zealand music
• Weighting funding support more towards emerging artists (rather than established artists)
• Using a wider range of music experts to help select funded projects
• Placing support for music from more established artists on a more business-like footing: for example, cost-sharing and income participation
• Providing a maximum of three grants per artist per year, all on a fully contestable basis
• Focusing available funding on tracks (including music videos). Album funding will be abolished
• Tightening eligibility criteria for funding. Demand for funding currently outstrips supply by up to 100: 1

We welcome the findings which give us the basis we need to make significant policy changes. The changes will be funded through internal reallocation and the music team is now working energetically on developing criteria. We expect to have changes ready to implement by 1 July 2011.

Read the review here (PDF 1.74 MB)