///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

THE MUSIC INDUSTRY IN 2009 …

PREDICTING THE UNPREDICTABLE
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Marrakesh Records Ltd

The Media Village
131-151 Great Titchfield St.
London W1W 5BB
Telephone 0203 178 2294
www.marrakeshrecords.com
Email info@marrakeshrecords.com
Media enquiries media@marrakeshrecords.com
///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

THE MUSIC INDUSTRY IN 2009 …

PREDICTING THE UNPREDICTABLE
///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
Big hitters exclusively reveal how they see the year ahead

If 2008 put the V in volatility for the music industry, 2009 looks set to test powers of prediction
to the limit. This mighty economic force - which generates £billions for Britain – finds itself
again in turmoil just as the credit crunch starts to hit leisure spending.

What is the true state of the industry? We ask the people at the heart of the battle - people
whose secrets are rarely revealed. We have designed the ten most pertinent questions and
collated these insiders' telling and timely answers.

Is the music download about to consign the CD to extinction?

/////////////////////////////////////////////////////////////////////////////////////////

Can a radically revamped EMI regain traction, or do its investors and staff risk
losing everything this year?
/////////////////////////////////////////

Against a backdrop of collapsing ad revenues and expanding online alternatives,

what is the viability of print music magazines?
////////////////////////////////////////////////////////////////////

Meanwhile, web music sources like iTunes, Amazon, Nokia and Myspace
battle for dominance … and face new rivals.
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The implosion of key distribution channels – including Woolworths and Zavvi -

has left the industry facing real challenges. Will consumers be able even to find music
on the High Street by the end of 2009?
//////////////////////////////////////////////////////

Online launches could be the way ahead … or was Radiohead’s success a one-off?
//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

The 360-degree deal, where labels control everything from touring income to merchandise,
faces new scrutiny from artists and managers.
//////////////////////////////////////////////////////////////////

Will credit-crunched fans find their pockets too stretched to go to concerts?

Will Britain’s legendary festival scene find itself against the wall?
//////////////////////////////////////////////////////////////////////////////////////////////

New political debate is set to ignite about the BBC’s state-funded involvement
in Radio 1 and Radio 2.
////////////////////////////////

And finally … is there really a chance of a revival of dear old Top of The Pops?
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All in all, the easiest prediction would be: expect the unexpected.

In this industry, perhaps more than most, successfully foreseeing the future is an inherent part
of any job description. The biggest players in the business, executives who put millions of
investors’ and their own money where their mouths are, reveal their fears and hopes for 2009.
In this survey by Marrakesh Records the answers speak for themselves.

(c) Marrakesh Records Ltd www.marrakeshrecords.com

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THE
CONTRIBUTORS
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{ Mark Collen } { Dave McGeAChan }

Mark spent 20 years in senior management roles at EMI where he
was heavily involved in the development of a range of artists including
Crowded House, Radiohead, Blur, Robbie Williams, Norah Jones and
Coldplay. He is now an independent consultant and a Director of direct
to consumer online platform, Mubito.com.
///////////////////////////////////////////////////////////////////////////////////////////////////
Dave is Scotland’s leading music promoter including organising T in the
Park and running King Tut’s Wah Wah Hut.
///////////////////////////////////////////////////////////////////////////////////////////////////
{ Ben Winchester }
Ben is from Primary Talent International, is one of the UK’s most respect-

{ Ian DUTT } ed live agents. His roster includes the bands Oasis and Glasvegas.
///////////////////////////////////////////////////////////////////////////////////////////////////
Ian is a Director of PIAS UK, the UK’s leading independent music
distributor, and also runs Integral Marketing, its marketing services division.
///////////////////////////////////////////////////////////////////////////////////////////////////
{ Rob Andrews }
Rob is Head of Entertainment and Live Events at Tiscali UK.

{ Will KinsmaN } ///////////////////////////////////////////////////////////////////////////////////////////////////

Will is Associate Editor of Clash Magazine and was previously Editor of

The Fly Magazine.
/////////////////////////////////////////////////////////////////////////////////////////////////// { Dharmash Mistry }
Dharmash is a partner at venture capital firm Balderton Capital. He
was previously Managing Director of EMAP Consumer Media and EMAP

{ Paul STOKES } Performance, and part of the management team that sold the con-
sumer magazine business to H.Bauer for £1.1bn. Balderton recently
Paul is news editor of NME and spent much of 2008 heavily involved in announced that it had completed raising a £282m fund that will focus
the launch of NME Radio and NME.com. on early stage investments in the media and technology sectors.
/////////////////////////////////////////////////////////////////////////////////////////////////// ///////////////////////////////////////////////////////////////////////////////////////////////////

{ David Mogendorff } { Robert Reynolds }

David is Digital Talent and Music Manager for MTV Networks UK.
Career highlights include booking Gonzo on Tour and the Spanking New
Sessions, including debut TV performances from Bloc Party, Kaiser
Chiefs, Hot Chip, Adele, Florence and the Machine, and many more.
///////////////////////////////////////////////////////////////////////////////////////////////////
Robert manages The Killers and is an attorney specialising in media
and entertainment law at the Las Vegas law firm, Callister-Reynolds.
///////////////////////////////////////////////////////////////////////////////////////////////////

{ Nick Bubb }
{ Tim Parry } Nick is Retailing Analyst at stockbrokers Pali International and one of
the most respected retail analysts in Britain.
Tim is one of the two co-founders of BigLife Management where he ///////////////////////////////////////////////////////////////////////////////////////////////////
has been instrumental in the career success of The Verve, Richard
Ashcroft, Snow Patrol, Klaxons and The Futureheads.
///////////////////////////////////////////////////////////////////////////////////////////////////
{ Stephen Godfroy }
Stephen is Director of Rough Trade Retail, the music-only

{ Charlie Marshall } independent retailer.

///////////////////////////////////////////////////////////////////////////////////////////////////
Charlie is Business Development Director at Ingenious Media Consult-
ing. Ingenious Media is an investor in and adviser to multiple music and
music-related companies and artists.
///////////////////////////////////////////////////////////////////////////////////////////////////
{ Dominic Hardisty }
Dominic is Founder and Managing Director of Marrakesh Records and
first signed multi-platinum band, The Killers. His previous career was

{ Dave Goldberg } in senior general management with several media companies including
the Financial Times.
Dave is entrepreneur-in-residence at the Silicon Valley venture capital firm ///////////////////////////////////////////////////////////////////////////////////////////////////
Benchmark Capital. He was previously worldwide head of Yahoo! Music af-
ter selling launch.com, the company which he co-founded, to Yahoo! in 2001.
///////////////////////////////////////////////////////////////////////////////////////////////////

(c) Marrakesh Records Ltd www.marrakeshrecords.com

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What will happen

to EMI in 2009?
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The industry giant starts the New Year with its boss
Guy Hands unveiling his strategy for survival …

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» Mark Collen EMI will no longer be consid-
ered a major player by the end of the year.
Guy Hands will do his utmost to offload the
recorded music side of the business. There will
be further desertion of high-profile artists and
staff and more cuts before March. With a bit of
luck a consortium led by Roger Ames will buy it,
or more likely, Warners. ‘EMI 2.0’ will go down
as a very high-profile mistake.
//////////////////////////////////////////////////////////////////
» Dave Goldberg Citibank will take the busi-
ness from Terra Firma and re-auction it.
//////////////////////////////////////////////////////////////////
» Will Kinsman I don’t think there can be any
argument that EMI was a company that had
been running out of control for too long, and
as such many of the Guy Hands-directed cuts
were necessary, if not always palatable. I’ve
visited most of the majors recently and been
quite astonished by the flagrant excess of
their offices. Saving 20% by having an office
that’s smaller and in a less-fashionable part
of London - not to mention limiting people’s
travel and entertainment budgets and all the
other perks of major label life - would surely
make it easier to operate profitably.
//////////////////////////////////////////////////////////////////
» David Mogendorff EMI seems to have made » Dominic Hardisty EMI is living on borrowed
some bold steps in the recent restructure. time and borrowed money: not a healthy rec-
There are a lot of smart people there and they ipe in a credit crunch. Guy Hands should sell
still have some world-class artists on their ros- the catalogue to the highest bidder (prob-
ter. For the sake of the UK industry let’s hope ably Universal), close down all remaining
they have a strong year. operations, then license the company’s label
////////////////////////////////////////////////////////////////// brands to smart, VC-funded entrepreneurs
in return for license fees and profit-shares.
» Tim Parry They have taken on good execs This would move EMI from a high-risk and
in Nick Gatfield and Rob Stevenson and are low margin model into a low-risk and high-
talking about doing different types of deals. margin one.
It’s a question of how long will Terra Firma be //////////////////////////////////////////////////////////////////
prepared to keep funding a company that is
doing so badly. I hope it survives. But I worry » Charlie Marshall No comment!!!
that it won’t. //////////////////////////////////////////////////////////////////
//////////////////////////////////////////////////////////////////
» Robert Reynolds EMI’s new website was
an interesting step in the right direction, but
probably too little, too late. Until EMI delivers
on the site and brings it out of beta mode, I’m
not holding my breath. There are some good
people over at EMI, but I’d be surprised if this
leads to significantly-improved pricing of their
music or any real connection with the average
music consumer.
//////////////////////////////////////////////////////////////////

(c) Marrakesh Records Ltd www.marrakeshrecords.com

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Will people still read music magazines

at the end of 2009?
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Print magazines, already under pressure from falling ad revenues in the recession,
face a second challenge: the growth in online alternatives.

///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

» Paul Stokes Yes. Like the resurgence of vinyl
you can’t over estimate people’s attachment
to lovingly made, beautiful physical products.
Music magazines can do pictures, longer
articles and portability better than the web
and I feel we’re going to have to play to those
strengths more and more. I think the music
press is going to have to accept that we are
specialist interest publications, like aircraft
magazines or gardening mags (don’t laugh). I
think it means a return to real, exciting music
journalism and great iconic rock’n’roll photog-
raphy. We have to give people value for money.
//////////////////////////////////////////////////////////////////
» Dharmash Mistry Yes, but less frequently.
There will always be a need for a lean-back,
photography-rich read with longer features,
which the web is less able to deliver. However,
there will be further consolidation in the sec-
tor due to lower circulations and significantly
less endemic music advertising. So fewer,
smaller music magazines with less staffing.
//////////////////////////////////////////////////////////////////
» Will Kinsman I am confident that there is still
a demand for the printed word. The challenge is
for magazines to adapt to the changing climate.
The publishers who prosper will be those that
fully embrace and integrate their print, online
and mobile platforms.
//////////////////////////////////////////////////////////////////
» Dominic Hardisty Stop and chat with » Rob Andrews The standard quality ones -
under-25s on the street and you will quickly NME, Q, etc- will still be around but advertising
discover that they read free newspapers, send money is increasingly going online. Obviously
dozens of texts/emails each day and surf mu- online users can actually hear the music which
sic sites on the web when they have the time, gives a massive advantage.
but just are not interested in paid-for music //////////////////////////////////////////////////////////////////
magazines. Ad budgets will be extremely
tight in 2009 and more effective CPMs can be
achieved in other media, which doesn’t bode
well for existing titles. That said, there is room
in the market for a free music and entertain-
ment weekly along the lines of ShortList
Magazine. There are willing investors out
there, despite ad market doldrums.
//////////////////////////////////////////////////////////////////
» David Mogendorff Yes, people will still read mu-
sic magazines, but 2009 will see further accelera-
tion in the popularity of reading this type of material
online and a decline in the economic feasibility of
publishing specialist music writing on paper.
//////////////////////////////////////////////////////////////////
» Charlie Marshall Sales haven’t been that bad
and there are some signs of growth. Most mu-
sic magazines will remain profitable but keep
trying to stretch their brands (cf. NME Radio
and more-successfully NME tours). The trick is
to pick your tribes - we still think that NME and
Kerrang have a future as they have evergreen
younger tribes. Q, we’d be less positive about.
//////////////////////////////////////////////////////////////////

(c) Marrakesh Records Ltd www.marrakeshrecords.com

///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Will CDs still be

for sale at retail in 2009?
///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
CDs killed-off large-scale vinyl. Now music downloading could mean it’s CDs’ turn for extinction.

///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

» Stephen Godfroy Of course CDs will sur-
vive, as physical formats have a clear value (as
an artifact, sense of ownership) that cannot be
replaced by digital formats. The decline in CD
sales is a natural result of the commoditisa-
tion of music since the arrival of e-commerce.
Relevant and exciting retail experiences will
result in increased CD/vinyl sales, as Rough
Trade East has proven.
//////////////////////////////////////////////////////////////////
» Ian Dutt They will, but I’m not sure I’d give you
the same answer for 2011. Singles will prob-
ably disappear entirely from the High Street in
2009. But with physical products continuing to
make up 90% of the albums market they will be
around for a bit longer.
//////////////////////////////////////////////////////////////////
» Nick Bubb HMV is just about the last man
left standing in the High Street selling music,
and even there you have to battle past all the
DVDs and gaming racks to get at the CDs. But
yes they will still be part of the mix at HMV next
Xmas and no, not everybody will buy them at
Amazon and Play.com
//////////////////////////////////////////////////////////////////
» Mark Collen People still overwhelmingly
buy CDs. Labels need to become more aware
of who is buying their music and focus on
those audiences. For instance Take That’s
and AC/DC’s fans are most definitely physical
purchasers. Smart labels understand that
people can and do buy CDs and download
tracks and bundles, often of the same tracks,
depending on where they want to consume
their music. Tracks are easy and disposable -
CDs make better gifts.
//////////////////////////////////////////////////////////////////
» Rob Andrews Yes. CDs will continue to be on
sale, but retail space available will decrease.
Even HMV, I noticed over Xmas, has less space
for CDs than it does for DVDs and games.
The fight for remaining sales space could
spell the end for niche genres/bands on
the High Street.
//////////////////////////////////////////////////////////////////
» Dave Goldberg CDs will die slowly
over the next five to seven years but will
become increasingly irrelevant to the
music business.
//////////////////////////////////////////////////////////////////
» Dominic Hardisty CDs will continue to offer
a cheap, portable and well-packaged second-
ary medium even in a world dominated by
downloads. Much of The Top 200 will remain
available in retail multiples for as long as its
contribution can justify the floor space; full
catalogues will remain available from Amazon
and from HMV. The challenge for music
companies is to make album packages as at-
tractive as possible so as to encourage people
to buy them rather than just download the
occasional single.
//////////////////////////////////////////////////////////////////
» Robert Reynolds Of course. The CD is dying
fast, but everyone will still be driving cars with
CD players this year.
//////////////////////////////////////////////////////////////////

(c) Marrakesh Records Ltd www.marrakeshrecords.com

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Who will win in 2009: itunes, Amazon,

Nokia, Myspace, OR somebody else?
///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
The music download sector is evolving at rocket pace …

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» Mark Collen iTunes will start to feel the
heat. Amazon and Nokia will do well. Play
and Amazon will continue to dominate online
sales. And Amazon’s digital offering will find
favour. Myspace will struggle as labels
continue to wrangle with artists over
royalties and artists realise they can make
more money with their own direct to
consumer offerings.
//////////////////////////////////////////////////////////////////
» Will Kinsman iTunes’ current dominance of
the download market means they are able to
wield a disproportionate influence - in partic-
ular, their standardised pricing policy, I think,
hinders smaller bands and labels. There’s a
chance that the range of music people have
access to will be dictated by what mobile
handset they own, and that can’t be healthy.
If there has to be a winner, I hope it is whoever
puts the most money back into music in terms
of supporting new bands and artists.
//////////////////////////////////////////////////////////////////
» David Mogendorff The savvy music fan will
win – by continuing to discover and access the
music that they want for free, from wherever
they want to get it.
//////////////////////////////////////////////////////////////////
» Rob Andrews I don’t see many massive win- » Dharmash Mistry iTunes will remain
ners in 2009. Nokia will find that their proposi- dominant but may lose share given increased
tion isn’t as attractive or profitable as they competition, digital music lockers, loss-leader
think it is. For most people it’s not enough of a pricing and segment-based offerings with bet-
reason to swap mobile phones and there are ter range and recommendation engines.
cheaper ways of getting music anyway. For me //////////////////////////////////////////////////////////////////
it’s more a question of who will lose in 2009 and
I’d say that I wouldn’t like to be a major record » Robert Reynolds iTunes will win. They
label right now. remain one of the few innovators in the
////////////////////////////////////////////////////////////////// music business that actually listens to the
consumer. Going DRM-free and offering
» Tim Parry None of these companies are variable pricing are both smart steps in
“music” companies - they use music to sell the right direction.
hardware or encourage website visits. They //////////////////////////////////////////////////////////////////
and many other companies are building huge
businesses on the back of music without pay- » Ian Dutt Why on earth does there have to be
ing an acceptable price for the privilege. They a winner?”
will all win - it is the ARTISTS who will lose! //////////////////////////////////////////////////////////////////
//////////////////////////////////////////////////////////////////
» Dominic Hardisty There are some global big
guns bearing down on music retail, yet none of
these is really interested in making money from
music: Apple and Nokia want to sell phones,
Myspace wants to sell advertising and Amazon
wants to sell pretty much anything it can (the
contribution from an American-style fridge/
freezer is somewhat higher than on a CD).
//////////////////////////////////////////////////////////////////

» Ben Winchester P2P and pirate bay, obviously.

//////////////////////////////////////////////////////////////////

(c) Marrakesh Records Ltd www.marrakeshrecords.com

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WHAT DO THE BANKRUPTCY OF EUK AND

PINNACLE MEAN FOR THE UK MUSIC BUSINESS?
///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
The collapse of Woolworths’ CD distribution arm EUK, then independent distributor Pinnacle and
now Zavvi present huge challenges for the industry in getting music to its customers.

///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

» Ian Dutt Devastating for the really good
people that worked at both companies, but the
industry will cope. We made a point not to go
“ambulance chasing” after the demise of Pin-
nacle and it was scary how quickly their roster
found new homes.
//////////////////////////////////////////////////////////////////
» Nick Bubb The problem for EUK was always
that it was reliant for half its volume on as flaky
a business as Woolworths and that the other
half came from ruthless supermarkets who
would sell their own grandmother to get a bit
more margin.
//////////////////////////////////////////////////////////////////
» Paul Stokes In the long term probably the
only way you'll get nice physical-released
music from acts on indie labels will be through
mail order, directly through the band or label.
It will be a shame not to see these acts in
the shops, but it probably means the bonus
material and packaging will be better as they'll
know how exactly how many they need to make
before making them.
//////////////////////////////////////////////////////////////////
» David Mogendorff Unfortunately it’s just
part of the relentless march away from the
old model of physical product driving the
business. The knock-on effects on the labels
are massive, but those who have a well-
developed, solid digital proposition should
be ok.
//////////////////////////////////////////////////////////////////
» Tim Parry Pinnacle hadn’t been massively
important for music for a while and one of the
distributors was always going to fail as physical
sales declined. As for EUK, it was a middleman
- everybody will sell direct now which makes
much more sense.
//////////////////////////////////////////////////////////////////
» Dharmash Mistry It will increase the
bargaining power of the grocers. Worst case
scenario would be the US model of distribu-
tion and the power held by Walmart, where
every album is sold at a loss but you
cannot get into the top end of the charts.
//////////////////////////////////////////////////////////////////
» Robert Reynolds The fact that a mainstream
distributor's death helped cause the demise
of one of the top independent distributors
reminds us that it's not just the major labels
that are hurting right now. In the short term,
the indies are going to feel the blow and some
will fold, but in the end the indies will rise up
smarter and more innovative.
//////////////////////////////////////////////////////////////////
» Dominic Hardisty The crazy thing about
EUK is that the industry allowed itself to sleep-
walk into a situation in which one supplier basi-
cally controlled the entire industry’s access to
Sainsbury, Asda, Morrisons, Woolies, Smiths
and Zavvi. We need to play our cards better
going forward.
//////////////////////////////////////////////////////////////////
» Ben Winchester The chickens have finally
come home to roost.
//////////////////////////////////////////////////////////////////

(c) Marrakesh Records Ltd www.marrakeshrecords.com

///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Have we learned anything from

‘In Rainbows’ and was it a good idea?
///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
Radiohead’s launch of In Rainbows online with consumers able to pay what they liked
was a major innovation. But the formula may not work for others.

///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

» Ian Dutt What intrigued me the most was
that plenty of people still paid full price for the
album at iTunes after the official release date.
It shows that no matter how much of a good
idea something may be, people will always
consume in the same way. It’s a bit
mental really!
//////////////////////////////////////////////////////////////////
» Stephen Godfroy It proved that if artist and
audience can connect efficiently then physical
music formats will always deliver greater value
(to both artist and audience) than the value
derived from selling/owning digital music files.
It remains a great ‘circumnavigating’ moment,
one that continues to give confidence and
inspiration to anyone with the freedom to think
for themselves.
//////////////////////////////////////////////////////////////////
» Will Kinsman In Rainbows showed that
creative ideas and out-of-the-box thinking can
work. That said, it’s not a model that would
work for all bands; a number of factors – the
band’s loyal fan base, the fact that they were
out of contract with EMI and thus free to record
and release an album on their own, the fact
that they’re a clued-up band backed by a highly
resourceful management team – meant Ra-
diohead were able to make a unique business
model work.
//////////////////////////////////////////////////////////////////
» Dave McGeachan It was a good, refreshing
idea but needs to stay as a one-off. If it hap-
pened on a regular basis it would have a major
negative effect on most strands of the
music industry.
//////////////////////////////////////////////////////////////////
» David Mogendorff It was a genius idea
for Radiohead, and proved that music fans
respect the work of their favourite artists
and are prepared to pay for it. I think it could
work again in the right circumstances but is
in no way a model for all. Younger consumers
especially are used to getting music free, will
continue to take it for free and will access
it in the way that they want to access it, as
shown by the torrent activity around the In
Rainbows release.
//////////////////////////////////////////////////////////////////
» Ben Winchester It was all about the public-
ity. Ideas like that can only be used once.
Ultimately, you have to ask whether it changed
their career path.
//////////////////////////////////////////////////////////////////
» Dominic Hardisty From an industry point-
of-view, they turned the supply curve on its
head so that supply and demand matched
one another exactly. The result? Most
people chose not to pay and the average
amongst those who did was about £4.50.
The industry needs to do some serious PR
to explain to its customers why the current
typical download price for an album of
£7.99 (from which the label typically re-
ceives about £5.00 as it happens) can
be justified.
//////////////////////////////////////////////////////////////////
» Paul Stokes Big established bands don’t
need record labels, fair play to them.
What we didn’t learn, though, is who will
take a risk and pay for new talent in
the future.
//////////////////////////////////////////////////////////////////

(c) Marrakesh Records Ltd www.marrakeshrecords.com

///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

What will happen

to the live sector in 2009?
///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
In a recession, promoters are likely to find fans’ wallets are squeezed
when it comes to buying live show tickets …

///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

» Dave McGeachan Hopefully people will
still be attracted by the whole live experi-
ence – looking forward to going to the gig,
meeting up with friends and obviously see-
ing the show. We have six stadium shows
booked for next summer as well as T in the
Park, a projected 330 shows in King Tut’s
Wah Wah Hut and approximately 850 gigs
across various venues throughout the year.
Overall ticket sales are good, but as
promoters we have to keep an overview
of how many shows we put into the market,
especially in the current financial climate.
People are maybe being a bit more particu-
lar about what they choose. As a company
we put on more shows in 2008 than
ever before.
//////////////////////////////////////////////////////////////////
» Will Kinsman After a few years of unprec-
edented growth, I fear the live sector may
suffer in 2009. At the top end that shouldn’t
be so much of a problem; it will simply mean
bands playing smaller venues, or fewer
nights at the biggest venues. My hope is
that the bottom rungs of the ladder aren’t
too badly affected, as this might make it
unviable for smaller bands to tour, at a
time when fewer bands can rely on the
deep pockets of a major label to provide
tour support.
//////////////////////////////////////////////////////////////////
» Rob Andrews Kids now want to play » Robert Reynolds Ticket prices will decrease.
in a band rather than become a DJ. Some venues will try the “season ticket” model
The increase in bands has led to an increase where one fee lets you see multiple acts. We
in venues for live music. Social networking ought to see some innovation here – I’m looking
sites have proved invaluable in getting band forward to it.
awareness out there which has meant that //////////////////////////////////////////////////////////////////
gigs are better attended. I think we reached
saturation point with the number of » Stephen Godfroy Alas, the live show sector
festivals last year and predict that only will continue to serve audiences with
the really big ones will survive in the terrible beer.
long term. //////////////////////////////////////////////////////////////////
//////////////////////////////////////////////////////////////////
» Dominic Hardisty Punters’ wallets are re-
ally feeling the pinch from the credit crunch
and historical evidence suggests that people
will spend more time at home than out
and about.
//////////////////////////////////////////////////////////////////
» Charlie Marshall Things will get tougher
for the medium size acts but remain robust
for the stadium fillers, festivals and the
grassroots mass (very low margin, make
your money from the beer). Maybe the
recession will bring more vibrancy to live
music - it has in the past. Sponsorship
and advertising needs to get smarter –
expect more corporate cash to flow
towards live music but with more strings
attached.
//////////////////////////////////////////////////////////////////

(c) Marrakesh Records Ltd www.marrakeshrecords.com

///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Should Radio 1 and Radio 2

be privatised?
///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
Political debate raises key issues about the wisdom of taxpayer-funded radio.

///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

» David Mogendorff The BBC is a unique and
incredibly valuable piece of British culture
and should be protected at all costs. Having
said that, I do believe that their remit should
be reviewed to ensure that they are provid-
ing a service that a commercial broadcaster
couldn’t (or wouldn’t) deliver in both their
daytime and specialist slots. Given the
amount of influence that rests with their
music team, it’s important that they are not
open to allegations of favoritism to any
major labels.
//////////////////////////////////////////////////////////////////
» Charlie Marshall From the BBC’s point of
view, losing R1 would be disastrous for many
reasons, primarily its reach into 14-21 year olds
- the only other BBC brands which consistently
cut through for this age group are Match of the
Day and Eastenders. So the theory of a lost
generation comes one step closer. R2’s appeal
is broader, so demographics are less of an is-
sue. However, the reach and cross-promotion-
al might of R2 is clearly key to the BBC’s entire
portfolio.
//////////////////////////////////////////////////////////////////
» Dharmash Mistry The BBC’s public sector
objectives can be met in other ways. There is
sufficient supply of music radio via traditional
channels, digital radio, internet jukeboxes and
access to global stations on the net. With con-
sumer choice being so abundantly available, the
BBC no longer needs to meet this need, hence
R1 and R2 should not be tax-payer funded.
Privatisation seems a credible next step.
//////////////////////////////////////////////////////////////////
» Will Kinsman For all the BBC’s faults, I think
it’s important to maintain a broadcasting
service that is independent of commercial
considerations. I would like to see wholesale
changes to both stations, not least the playlists
and DJs, but in general I support the concept of
licence fee-funded mainstream broadcasting.
//////////////////////////////////////////////////////////////////
» Paul Stokes We need a public service broad-
caster that is prepared to shine light on new
or minority talent and we have to accept that
in order to gain that audience in the first place
they have to compete with commercial chan-
nels part of the time. I just wish they would stop
staging concerts and events that would exist in
the private sector. The Killers at Royal Albert Hall
would take place anyway. It would be good to see
these resources used on artists who couldn’t do
that themselves.
//////////////////////////////////////////////////////////////////
» Dominic Hardisty It is only a matter of time
before politicians realise that R1 and R2 don’t
offer any public service benefits that couldn’t
just as easily be provided by commercial
franchisees. Further, BBC Radio - with a 55%
share of listenership - significantly distorts
an already troubled commercial market that
now faces life-threatening competition from
myspace, youtube and last.fm. Privatising R1
and R2 would yield a windfall that could provide
years of financial and editorial independence
for other BBC services such as R3 and R4 which
could not survive in the commercial sector.
//////////////////////////////////////////////////////////////////
» Dave McGeachan Without the BBC stations,
there would be no real mouthpiece for new
music. Both also manage to cross a variety of
genres and present the latest offerings on the
new music scene, challenging people’s tastes.
R1’s new music programming is also the most
effective way for independent artists to reach a
substantial and new audience.
//////////////////////////////////////////////////////////////////
» Dave Goldberg I don’t think that the govern-
ment should be in the broadcasting business.
We do fine in the US without government
broadcasters.
//////////////////////////////////////////////////////////////////

(c) Marrakesh Records Ltd www.marrakeshrecords.com

///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Will 2009 be the year in which the industry

calls time on 360-degree deals?
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Many question the wisdom of bundling deals for record sales, touring, merchandising
and music publishing into one package.

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» Tim Parry I think that 360-deals will still
be around but the way they are initiated will
change. Management companies and smaller
labels are best positioned to develop new
artists, then working in tandem with majors to
accelerate later-stage growth. The majors will
expect a part of other income without trying to
move directly into other areas of the business.
The deals will be centred around management
companies and smaller labels.
//////////////////////////////////////////////////////////////////
» Robert Reynolds No, but it damned well
should be! We need to find ways to profit
from the creation of music, not just taking
money from an artist’s right pocket to fill his
left. This practice also shifts the focus of
labels from signing good music and finding
a way to monetize it towards signing bands
that make money touring. 360-deals are not
a solution to our struggling business – this
is surrender.
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» David Mogendorff The “360” label itself is
very clichéd, but the basic principle of doing
deals encompassing more than one part of
the mix will remain. It is down to the artist and
their management to choose a strong team
for every aspect of their business; if more
than one function can be served best by the
record label then it would make sense to take
advantage of it.
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» Dave McGeachan I would like to see them
disappear, but it’s not very likely given the cur-
rent financial climate. Most of the time I think
they do very little to help the majority of artists.
//////////////////////////////////////////////////////////////////
» Dave Goldberg They clearly don’t make any
sense for major labels. The only thing labels
should focus on is recording and publishing rights.
Ironically, most 360-deals exclude publishing.
//////////////////////////////////////////////////////////////////
» Dominic Hardisty 360-degree deals repre-
sent a triumph of spin over substance: there
are few if any circumstances in which a 360-
degree deal makes sense for either artist or
investor. Then again, since when did the music
industry behave rationally? Instead we favour
creating a ‘360-degree web’ to help the artist
attract the best label, manager, publisher
and live agent, then have these work together
whilst each concentrates individually on what
they already do best. Which … erm … looks
rather like the “old” way of doing business!
//////////////////////////////////////////////////////////////////
» Stephen Godfroy There will always be a force
for ‘catch all’ agreements out of simplicity,
efficiency and greed. But as Harry Callahan
said in Magnum Force after he dispatched his
self-deluded boss, ‘A man’s gotta know his
limitations’.
//////////////////////////////////////////////////////////////////

» Ian Dutt Every band needs a different type

of deal. Those who heralded the 360 deal as
the saviour of record companies and scourge
of management were simply headline-seeking,
since neither are true.
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(c) Marrakesh Records Ltd www.marrakeshrecords.com

///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

And now guys and gals …

should BBC1 bring back Top of the Pops?
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Seen as a dinosaur of a show, ToTP, the programme that gave us Jimmy Savile and Pan’s People,
seemed long defunct … until Christmas specials hinted at revival.

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» David Mogendorff It is still a very strong
brand, there’s nothing else like it out there at
the moment and it still has the potential to
sell records. However, if they do bring it back
they need to get it right – make it for the
audience and not the producers, pundits or
industry. Ensure the music featured on it is
exciting, relevant and occasionally surpris-
ing (not just another place to see the same
bunch of artists who are currently doing
promo). Leave out the patronising interviews
and concentrate on quality live performanc-
es. Get the time slot right and give it time
to bed in. And back it up with strong
interactive elements to engage
the audience.
//////////////////////////////////////////////////////////////////
» Charlie Marshall Definitely! Just before
it was canned we tried to explain to the BBC
that ToTP is not primarily a music show but
an entertainment show for the family. It
could be a solid success if it stops trying to
be CD:UK and tries to be what it always was
- a show which mum, dad and the kids could
watch and comment on. The mag and the
press around the Christmas show demon-
strate the power of the brand. It needs
some careful planning though – which we’d
love to have a crack at!
//////////////////////////////////////////////////////////////////
» Mark Collen Only if they can give it a slot
that will give it a guaranteed 3-4 million prime
time audience and a strong production team. I
would vote for a 7.30 Thursday night slot. Back
to basics. Oh – and it’s way beyond time Jools
was retired from Later. I’d love to see Dermot
O Leary host it - his Radio 2 show sessions are
excellent and he has a great manner with both
artists and audience.
//////////////////////////////////////////////////////////////////
» Paul Stokes Not if it’s going to be like that
yawn-fest on Christmas day this year, no.
If they’re up for revitalising it and making
it exciting and relevant to 2009 then yes. It
seems ridiculous that music doesn’t have a
platform on primetime television. They can
start by getting rid of the presenters!
//////////////////////////////////////////////////////////////////
» Dave Goldberg Sure.
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» Dominic Hardisty A viewer interested in
Girls Aloud is unlikely to then want to watch
the Kings of Leon. However, ToTP remains
a heritage brand (think Dr. Who) that could
easily be leveraged into several, more tar-
geted music television shows at different
times and on different channels.
The BBC could perhaps hold a beauty
parade for independent producers to
make different, genre-based shows,
letting the most successful rise to the
top of the pile.
//////////////////////////////////////////////////////////////////
» Stephen Godfroy No. It would be like dating
an old girlfriend! Life moves on, even if
you don’t.
//////////////////////////////////////////////////////////////////

(c) Marrakesh Records Ltd www.marrakeshrecords.com

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