czdev.ceemid.eu · Web viewWho We Would Like To Work in 2020? (Version 4) Daniel Antal, CFA. 2019-12-06. Who We Would Like To Work in 2020? After years of preparation, in the summer

Who We Would Like To Work in 2020? (Version 4)

Daniel Antal, CFA2019-12-06

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Who We Would Like To Work in 2020?After years of preparation, in the summer of 2019 CEEMID & Consolidated Independent formed a research consortium with SoundCzech to understand the market development problems of the Czech music industry. In the context of this program, we invited partners from the live music, recorded music and publishing sector to join our consortium and share their development ideas, expected changes in their working environment and form a joint development agenda. According to the plans, the partners were supposed apply for a large grant at the Technologická agentura ČR to put these proposals into practice.

Unfortunately SoundCzech decided a few days later that the original timeline is not feasible, and the workshop participants have not received until know the documents.At this point we would like to go on with any interested partners to finalize this work. We would kindly like to ask you to give your comments to this document in email, or with this simple form where you can easily choose the section of this work that you would like to comment or join.

The best way to review the proposed program is in the online Gitbook format, because there are many-many cross-references.

With the download sign you can also download this document in pdf and epub format if you want to read it on your tablet, e-book reader or other device. There is a simple Word file, too, but it does not retain all graphical elements. It can be used to make suggestions to the text if somebody prefers the use of a word processor.

Beware that document numbers differ in each format. Please refer to the program elements with their short code, i.e. From ‘free’ festivals to ‘paid’ festivals with the (MB1-1).

How To Contribute To This Document?

The warning sign shows that program elements are missing. If you are an expert in the topic, please, give some suggestions.

The following parts require some attention:

• Increasing Active Participation in Music 4.5.2, i.e. programs outside the education system to increase the use of instruments, learning to sing and play. I think that this is an area where venue operators, NGOs could really start to show good examples with almost no investment and earn credits. Please suggest ideas and make pledges.

• Increasing Participation in Live Music 4.5.2, i.e. programs outside the education system to bring in new audiences to concerts or backstages. I think that this is an area where venue operators, NGOs could really start to show good examples with almost no investment and earn credits.

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• There are two warnings for 10.2, because the potential losses from bad regulation in the coming month can cap composer, producer and performer royalties for a decade. This is the single most important threat.

• Changing VAT regulation 10.5.2, because this tax reform is already under way, and the likely losses from wrong regulation are larger than from the lack of good grants.

The important sign shows that your personal cooperation is needed. We would need quotable testimonies, opinions with name, organization name, and a short quote to give credibility to program.

In the workshop, we particularly were missing the impact that you hope to achieve in your own personal career or in the development of your organization or enterprise if the suggested changes would take place. The Consultant would like to ask you to contribute in the following way. (This is just an example with made up names about something we talked about a bit on the workshop.)

Karolína Pavlova, tour manager, Tours s.r.o: In the workshop we talked about various countries’ concert demographies, and the missing middle-aged audience in Czechia. Whenever we tour in Germany, we see more diverse audiences in the club, besides young fans we often see people with grey hair. I completely agree that we should not allow our fans to stop visiting concerts when they are only 35, we are losing people who can actually spend on tickets and merchandise.Jan Svoboda, concert promoter, Concerts s.r.o: The ticket prices in Czech clubs, especially in the smaller towns are ridiculous. We need a bus driver, security, help with the merch, a team for sound and light, and at least a stage hand to put our band of four artists on stage. If you sell 100 tickets for 200 korunas, that 1800 koruna for each crew member after we have paid the VAT and local taxes. These people spend their whole day and whole night preparing the event. And they need to pay for travel costs, accommodation, pension contributions, social security and taxes. We end up with maybe 50 koruna per hour - if we are lucky to sell the 100 tickets. Of course, nobody mentioned the hours spent on rehearsals to the show, preparing the promotion on social media and locally, contracting the location, getting insurance and the rest.

In fact, all program elements require such examples, and they are best when they can be attributed to a professional who works in the market.

• Testimonies that give a credible professionals’ name, position who believes that the text is correct and should be taken seriously.

• Expected positive impact that show how the proposed change and program elements would help indeed a music enterprise or a professional career.

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• Especially ‘soft’ elements, such as music education should be endorsed by businesses, such as concert promoters, startups, etc.

• Some participants were very young, with little work experience, they should emphasise what they want to learn in 6. They should add their views for ??.

The will go the repeating part Program Considerations / Impact On Artists, Professionals & Enterprises . See examples here, and 3.1.1 for music education, 4.1.1 for market building, 5.1.1 for foreign tours, record sales and synch, ?? for joint HR and professionalization, 8.1.1 on better cooperation with radios, TVs, film producers, 9.1.1 on more suitable grants and better grant design and harmonization.

You can give your opinion, comments or testimonies in email or in this simplified feedback form: https://www.surveymonkey.com/r/czdev_2019_feedback_form. Alternatively, you can leave your comments in the Google Doc version of this document, but access to the document requires an authentication. If this is your preferred method, please ask access from Daniel Antal.

And at last, each Program (i.e. chapter in this document) requires dedicated professionals, artists, enterprises, organizations and volunteers to make it happen. Please sign up at the end of the chapter to proposed working groups. If you are a junior in your role, i.e. have less than 10 years of experience, consider to apply as a junior member to help the working group. It is necessary that all working groups have at least 3-4 very senior members. Because very senior people are usually very busy, they should select preferably one working group and encourage their colleagues to sign up to others.

These working groups should form first, they are critical for the activities

• Working Group on Music Education & Advocacy - There was a general consensus that this is the most important working group, and it should include very senior people from national stakeholders, furthermore professionals in music education.

• Working Group on Market Building - mainly for publishers, labels, concert and festival promoters and their associations, very experienced professionals on these fields. Directors of collective management associations.

• Working Group on Music Business Professionalisation - mainly for training companies, employers, and very experienced professionals in artistic, technical or managerial roles, with at least 10-20 years of experience. International experience shows that training programs are most effective if employers are actively involved. This would be a suitable working group for experienced music entrepreneurs. Trade unions, performer associations would be more than welcome.

This working group is needed for the continuation of the work

• Working Group On Market Research and Joint Research and Development - This working group is critical, because the current work is started as a preparation for this. Endorsements and participation is very important - senior university researchers, founders, managing directors of established labels, publishers, collective management,

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https://www.surveymonkey.com/r/czdev_2019_feedback_form

national organizations. Joint membership with the other working programs is possible, because we want to give methodology to the work of all programs.

These working groups are also important but requires specialist knowledge and it is not tragic if they start working later Foreign experts may be needed from the region, as some topics are very special.

• Working Group On Music Export & International Competition - This working group would require the active participation of SoundCzech, publishers, labels, tour managers, and talent managers with many years of experience in foreign sales. The working group should focus on repertoire competition and imports, and potentially with experience on audiovisual and radio quotas. It would be very good if the collective management societies were involved.

• Working Group on Creative Alliances - Very experienced labels, publishers, concert promoters, talent managers, festival promoters who have successfully managed ongoing partnerships. Editors of music programs on TV and radio. Managers, directors of film production companies, film producers, TV or radio stations, movies, houses of culture with an undoubted love and interest for music. Business consultants who have a working knowledge of media, broadcasting, film production and music industry enterprises.

• Working Group on Better Music Grants & Sponsoring - professionals and artists with at least 3-4 successful and not successful grant experience, grant managers, researchers and experts in the field of ex ante and ex post evaluations. It would be very good to involve the Music Fund and the OSA Foundation into this working group. Usually there are similar know-how available around the managers of national and regional operational programs of the EU. Foreign experts may be needed, as this is a very special topic.

• Working Group on Better Regulation of Music - This is working group requires specialist knowledge. Because most music enterprises and organizations are too small to have in-house attorneys and legal professionals, however has such knowledge should be invited, and probably in this working group foreign expertise would be required.

The ConsultantDaniel Antal, CFA is a quantiative economist and data scientist. He had been working in data-driven consulting for 20 years. As a pricing and competition expert with experience in banking, energy and transport, he started to specialize on royalty prices and valuations 9 years ago. He holds an MSc Economics (actuary science and operational research), a MSc Economic Regulation and Competition Policy. He is a Chartered Financial Analyst and holds the Public Service Certificate of the Hungarian Public Administration Institute. He lives in Den Haag, South Holland, in the Netherlands.

Contact: danielantal.eu - linkedin - github - dataverse

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https://dataverse.harvard.edu/dataverse/harvard?q=(dvName%3ADaniel+dvName%3AAntal)+OR+(authorName%3ADaniel+authorName%3AAntal)

https://github.com/antaldaniel

https://www.linkedin.com/in/antaldaniel/

https://danielantal.eu/

Topics: royalty valuation - private copying - grant design - policy advocacy - ceemid observatory

The Research ConsortiumSoundCzech and CEEMID separately and together had been making efforts to set up a collaborative market development consortium, following examples from Slovakia, Hungary and Croatia. On 10 August 2018 CEEMID created a proposal for SoundCzech / IDU to create a Czech Music Industry Report, similarly to the work made in Hungary, Slovakia and Croatia. On 16 March 2019, upon request from SoundCzech, CEEMID modified the proposal into two stages:

• Phase 1 financed by IDU,• Phase 2, to be financed from a pending grant application to TAČR (Technologická

agentura ČR).

The subsequent agreement states that

• CEEMID will carry out a research with the help of future R&D partners among Czech music professionals, and join various datasets to create a solid founding for a Development Plan - the findings are incorporated in this document;

• Creating a Development Plan for the Czech music industry, to be consulted with stakeholders in a Workshop [which happened on 9 October] and subsequent iteration in writing. The preliminary findings were also presented on Nouvelle Prague;

• Assisting SoundCzech to set up Working Groups with the help of the workshop, subsequent collections and refinement of ideas, and creating a working plan for each working group in the framework of the Development Plan;

• The Workshop should be made with a respected ex ante grant evaluation method, that is suitable to align the working plan with many participants and a potential EU-sourced grant of TAČR. However, SoundCzech found the application in 2019 premature, and we can only do this next year.

• Create and open research consortium with the initial partnership of SoundCzech, CEEMID and state51, and inviting all participants of the Workshop to join the research consortium. You are invited to join this initiative.

Memorandum Of Understanding on the Research Consortium

The aim of this MoU is to create a research and development cooperation among Czech music industry stakeholders and some international partners. The Czech music industry is a creative industry, and as it is usual in the European and global creative industries, it is dominated by microenterprises (with 1-2 FTE workers) and occasionally small enterprises. There are no ‘large’ enterprises present by the definition of EU SME policy.

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https://danielantal.eu/post/2019-11-09-nouvelle-prague/

https://danielantal.eu/talk/2019_10_09_praha/

https://danielantal.eu/project/ceemid/


https://danielantal.eu/publication/slovak_music_industry_2019/

https://danielantal.eu/project/grants/

https://danielantal.eu/post/dsm_pcr_19/

https://danielantal.eu/usecase/royalty_setting/

We are aiming to create a Learning Consortium, which conducts learning needs assessments, and fulfills research and development activities and help Czech music stakeholders, i.e. micro- and small enterprises, and non-profit entities, to adopt new innovations in the field of live music performances, recorded performances, with a particular emphasis on understanding the globalization of the sector and opening of export opportunities and increasing importing threats.

Industry Partners / Music StakeholdersThe cooperation is open for any organization that is willing to use the

Research Partners• CEEMID

• state51 music group & Consolidated Independent – is an independent music group committed to researching market developments. Consolidated Independent provided data assets to compare the Czech digital markets to other CEE and developed markets.

The role of research partners is to provide the Czech Consortium with state-of art innovative research that can be put into action in their daily practices.

How to join?You can join as an organization or as an individual. Organizations are asked to help with data, know-how, and access to funding. Individuals are requested to help the working groups as volunteers.

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https://ci-info.com/

https://www.linkedin.com/company/the-state51-music-group/


Developing The Czech Music IndustryCzech musicians are creators, and they would like to see an increasing audience for the live and recorded performances abroad and at home. They would like to see a better working environment that stimulates creativity. They would like to see cultural investments into more European quality stages where they can meet their fans. They want studios to record in world quality, because their music is in competition with the best music of the world in the radios, in shops, in restaurants, on the streaming services or on YouTube.

Czech creators know that they cannot earn as much money as their British or American competitors, but they do not want to fall behind Czech engineers, doctors and other professionals.

Czech musicians, and professionals working in the music industry as technicians or managers, like all Czech citizens, would like to have better working conditions and they would like to see their income catching up with the rest of Europe. They demand to be remunerated proportionally to the rest of the country – while they know that they cannot earn as much money as their British or American competitors, they do not want to fall behind Czech engineers, doctors and other professionals.

The working situation and the working conditions of musicians, and creatives in a more general sense are very different from ‘average jobs’. Almost nobody is employed in the music industry, nobody has a job description, and usually they are not entitled to sick leave. Working as freelancers and as entrepreneurs, music professionals are taxed differently than most people.

How Musician Work?The CEEMID Music Professional Survey compared the relative income of Czech music professionals with the surrounding countries similar artists, technicians and managers. The way the survey was designed to allow comparison with the general public, or the ‘average person’, too.

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In almost all countries that were surveyed, music professionals had more difficulties with paying bills at the end of the month than most people in the population.

The work of musician, music technicians and managers is peculiar. Full-time musicians often receive 60-70 small, unpredictable payments a year – after concerts, tours, festivals, radio and television plays, on streaming services, from grants. Only very few of them can be sure that their income will be provided a year from now.

A typical full-time musician plays at least 15 concerts a year, releases an album, and makes sure that it is played, and with luck, it is included in a film as soundtrack. Very few musicians have a permanent contract with a talent manager for the concerts, with a publisher for film and theatre music or with a record label that would give them an advance for their recording costs - they have to invest their own money into rehearsals, costumes, choreography and recording studios.

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Figure 1: Income Composition of Musicians in the CEE

The income composition of Czech musicians is probably most similar to Hungarian musicians, with somewhat less collectively managed royalty income and somewhat more concert revenues. They are least similar to Austrians (who earn a lot more from modern, licensed music services) and Armenians (who do not rely at all on collectively managed radio, television, restaurant licensing fees.)

Many musicians do not only do artistic work - they often work in music clubs, in record labels, in publishers, in collecting societies, in promoting agencies within the music ecosystem to make ends meet (this is shown in the chart above as other income. And many musicians, technicians and managers are working only with one foot in the music world, because they cannot make ends meet.

All in all, the total survey respondents (not only Czechs) include amateurs, young students, young, middle-aged and older artists and professionals. Concentrating on artists alone, we can see that the sample is not balanced, because participation in music varies over the life cycle, too.

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Figure 2: Full-time, Part-time and Other Musicians by Age

In the beginning, students and amateurs dominate the sample, below the age of 20. By the age of 30-35 ages full-time and part-time musicians dominate the sample, as many amateurs become either at least part-time musicians or give up on playing music. Becoming part-time musician is a dominant model in the late career stage when artists start to retire.

Why are the creative industries are so invisible?The nature of the creative jobs is that they contain a wide range of activities. Economists and government policymakers classify industries with the Nomenclature statistique des activités économiques dans la Communauté européenne, in short, with the NACE classification in Europe. This classification is largely harmonized on UN level and can be used to compare almost all economies in the world.

The NACE classification is rooted in the economic structure of the middle 20th century, and it is more appropriate for the classification of manufacturing and trading activities, such as car manufacturing, or retail sale of cars.

The government statistics are largely based on tax returns and other filings of corporate entities with at least 5 employees. While most manufacturing or trading activities, or licensed service activities such as insurance or banking, are easy to classify, the creative industries are different. Because most creative enterprises are smaller than 5 people, they do not file many data for the government or the tax authorities, and they often carry out heterogeneous activities. For example, the music industry is not even recognized by the

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NACE classification – the live music and compositions can be found in the NACE 90 class, and the sound recordings in the NACE 58 class.

The statistical recommendations that we followed in this work (in more detail, see Mapping the Czech Music Industry) suggest that creative industries are mapped across these NACE classifications and surveyed with the help of the industry stakeholders. This is precisely what we do with the CEEMID Music Professionals Surveys we always ask for a primary role in the music industry and an optional secondary role.

For example, musicians often perform music (NACE group 90), compose music (NACE group 90), and at the same time do sound recordings (NACE group 58) and teach music (NACE group 85). This is the main reason why music is not well represented in governmental statistics, which is mainly based on tax returns data from ‘clear’ activity groups, such as sound recordings only. To add to the difficulty, the music industry do not have a NACE code, so any calculations have to be based on a combination of at least data about NACE 58 and NACE 90 activities.

To create a realistic approach for measuring the economic and employment capacity of the Czech music industry, we first have to map the activities of participants.

Figure 3: Primary And Secondary Professional Roles in the CEE Music Industry

While we do not have a lot of respondents in 2019 in Czechia, and we may have missed some groups, but the activity map is very similar, with a bit more artists who do not have a secondary role compared to the larger CEE picture. Most Czech artists have a secondary role in another artistic field (for example, they perform music, work as producers), and in

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many cases a secondary educational activity. Very few managers and technicians filled out our questionnaire, but they are also involved in secondary artistic or educational roles.

In 2019, only a few stakeholders participated in the survey, and we received only about 10% of the responses that we usually receive in Hungary or Slovakia. Our data shows that we can safely rely on the mapping made in other CEE countries, but further work is necessary so that the development program can help all parts of the music industry, i.e. various players in composition, publishing and author’s right management; performers, producers of sound recordings, labels and distributors; DJs, musicians, sound, light, stage technicians, talent managers, concert and festival promoters (for more details see 7 Market Research, Collaborative Research & Development.

Because of the nature of these economic activities, musicians are often entrepreneurs in micro enterprises, which also do not have a clear economic classification.

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Figure 4: Enterprenurship Among CEE Musicians

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What is Musicians’ impact on the general economy?The Czech economy has many similarities with the Slovak and Hungarian economies. As a relatively small country, its’s production is deeply integrated in the upstream German manufacturing industry, and it sells many products and services abroad. The aging population is not supporting domestic growth, so increasing economic performance and meeting increasing social costs is only possible by extending revenues from abroad.

This makes the Czech economy almost as vulnerable as the Slovak and Hungarian one. It is specialized on industrialized, low value-added manufacturing. The Czech GDP, which is total gross income of worker’s remuneration, corporate profit and government taxes, relies on large-scale, highly robotized manufacturing, which has a low profit rate at a high turnover. It leaves little taxable employment income in the country. It sells low-value added production abroad, so creates a relatively low value added tax base (data on chart: (OECD 2019b, 2019a)). Many corporations are owned by foreign entities and do not leave significant profits in the country.

Creative and cultural industries, including the music industry are very different. They create high-value added products and services, pay very high taxes, and from relatively little turnover they support many jobs, even if these jobs are often precarious and not full time. The music industry has one of the highest potential to create jobs to young people with relatively low level of education – who are the most threatened by long-term unemployment (EYGM 2014).

The music industry has a significant capacity to earn export revenues, mainly in the form of selling concert and festival tickets to foreigners, and to an extend to sell concert tickets and recordings abroad. Compared to manufacturing exports, these are small-scale, but high value added exports which are not highly automated and support many jobs.

A small venue concert is usually produced by a band of four or five artists, the sound, light and stage technician crew, and a support team in transport, logistics, security, and merchandise sales, supported in the background by concert promoters and tour managers.

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On a larger arena or festival stage the number of support crew is up to 200 people. Creating an album of recordings is also a labour intensive work which includes artists, sound engineers, producers and of course the supporting work of a label or the artists’ management.

The music industry has a very important role in the future of the European economy. It creates jobs where automatization and robotization makes them redundant, and creates a high-value income base for workers, entrepreneur and the government that taxes them. In a manufacturing-oriented country like Czechia, preparing for higher levels of automatization and an aging population makes it very important to increase value added in production. The Czech music industry is well-placed to share ideas with Hungarians and Slovaks. (Poland in the Visegrad Group is rather different, partly because of the size of its domestic economy, and partly because of its very different economic structure.)

In 2019 in the Czech economy this is more of a promise than a reality. As we have shown in the previous 2.2 subchapter, before the industry creates its own research program and collaborative functions, it will remain largely invisible to the government and policymakers. The music industry is suffering from social dialog institutions that favor large entities, taxation and regulation that favors manufacturing, and an educational system that is not supportive enough for microenterprises.

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The musicians, technicians and managers who participated in this research are a bit pessimistic - they have lower expectations about the music industry in Czechia than about the Czech economy as a whole, and they see their personal prospects a bit more negative than those of their families. The reason why we started this work is that we would like to draw a more positive future for the next year.

Life satisfactionThe music industry has a fantastic economic potential, but currently it is in its infancy in Czechia. Working conditions are chaotic, people are fulfilling several jobs. Public understanding of how creative industries work, and why royalties are important for musicians is low. Musicians and their support teams feel that the appreciation of music, particularly popular music is low in Czech society and in Czech general education. Nevertheless, the industry is full with positive people.

CEEMID is asking similar questions than standard EU surveys to understand how satisfied are musicians with their work, their careers and their life in general. In spite of material difficulties and lack of public appreciation, Czech music professionals on average are more satisfied with their lives. The difference is mainly due to the fact that while there are many unsatisfied people in the country, music gives at least a fair level of satisfaction for the artists, technicians and managers working in this field.

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This enthusiasm should be translated into collective work to professionalize the industry and set it on a path of growth.

We suggest to set up the following working groups:




These working groups are also important but require specialist knowledge and it is not tragic if they start working later Foreign experts may be needed from the region, as some topics are very special.




• Working Group On Market Research and Joint Research and Development - This working group is critical, because the current work is started as a preparation for this,

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and SoundCzech has a deadline on 31 October 2019 to apply for a grant at TACR to follow the work. Endorsements and participation is very important - senior university researchers, founders, managing directors of established labels, publishers, collective management, national organizations. Joint membership with the other working programs is possible, because we want to give methodology to the work of all programs.

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Music Education & AdvocacyWe would like to see the incorporation of new music education pedagogy and curriculum in primary, secondary school and specialist music education, because this is the only long-term solution to increasing active participation in the Czech music life. Czech people should have a better understanding of the work of composers, producers, performers and the large technical team behind them that creates the music experience, because currently the prestige of the profession and the valuation of the music is too low. This would not only help the music industry and other creative industry, but it would help the next generation require better skills for a highly automated, highly robotized economy where human skills are getting more and more important.

Program ConsiderationsOur analysis shows that participation in the Czech music scene, and especially in concerts is less frequent and less likely than the EU average. Because on average Czech people are not poor by European standards, our analysis also reveals that material factors do not explain the difference. This is why the industry feels that education is the starting point of any music development program.

All over the world, music participation peaks in the early 20s and diminishes over time with age. Those countries where the loss of visiting probability or frequency is smaller in among middle-aged people have far stronger audiences, because that is the age when people can spend the most on recreation and culture. The reason for the relatively weak demand for music in Czechia is explained by the fact that the loss with age is stronger than the EU average, and very similar to the loss of Slovak and Hungarian audiences.

Figure 5: Declining Concert Visits by Age

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There are two proven and one very likely cause of less loss (or, in some Nordic countries, gain) with age:

1. A higher level of general education compared to Czechia, as represented in a high music leaving age, above 20 years;

2. A higher level of music education, and likelihood of playing an instrument or singing as an amateur;

3. A likely stronger general music education in primary and secondary school classrooms.

Figure 6: Factors determining concert visiting probabilities in the EU

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The general possibility of a very strong audience is present in Czechia - in comparison with other European countries, there is no difference in visiting probabilities among highly educated people, or people who play music themselves. Concert visiting frequency and likelihood among young people is almost as strong as in Austria or in the Nordic countries, so the focus most be on avoiding losing these people.

Figure 7: Factors determining concert visiting probabilities in Czechia

We believe that the quality of the music, arts and creative activities education within the general education system matters a lot. In some countries, where creative activities are part of the secondary school curriculum, the otherwise similarly diminishing trend of leaving the audience starts from higher levels and it is slower. In other words, people who were taught

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to appreciate music, who tried to play, record and compose music are far more likely to visit concerts lifelong than those who were not.

The Czech music industry can do very little to increase the general education level in the country, apart from joining policy proposals in the social dialog that aim to reduce school leaving in secondary school level. However, there is a lot more to do increase the level of music education in the general education and in specialized music education.

For this study we created a balanced sample from 9092 cultural access and participation interviews from all EU countries. Half of the people have not played a musical instrument or sung in the year before, and the other half had. Overall, with the exceptions of people with a university degree or students, who are very likely to visit concerts, the ability to play music increased the likelihood of concert visits very significantly: in the least educated group from 11% to 26%, in the group with secondary school education from 31% to 54%. It is not shown in the chart, but the actual effect on concert tickets is even bigger, because people who are actively playing music are not only more likely to visit a concert, but they tend to buy more tickets.

Figure 8: The effect of active participation on concert attendance probability

The vast majority of concerts and recordings can be labelled as “popular music”, while the traditional European music education institutions focus on classical music. Formal music learning - i.e. learning singing or playing an instrument following a course, with the help of tutor - is mainly associated with learning Western classical music in Europe. In spite of

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various efforts to broaden the scope of music education, the European pre-college music schools who prepare pupils to become eligible for a professional music training are teaching Western classical music (AES 2007) and most of the attention of formal music education institutions is focused on this area.

Especially in Northern and Western European from the nineties there had been a significant change of perspective. “A point of departure of this perspective on music education research is the notion that the great majority of all musical learning takes place outside schools, in situations where there is no teacher, and in which the intention of the activity is not to learn about music, but to play music, listen to music, dance to music or be together with music” (Folkestad 2005).

The music education literature labels music learning outside the music school system as “informal learning”, referring to the fact that established popular musicians usually acquire their skills outside the formal music school system.

There are very important differences between how different forms of non-classical music, such as traditional folk music and popular music is learned. In folk music knowledge is mainly passed upon the new generation by an older generation, in popular music the learning process is largely solitary and includes interaction with the generational peer group. Most popular musician careers start in the teenage years, and bands are often formed only a few months after being introduced to the instrument, thus popular music learning becomes a group activity. For this reason, “schools are a vital social institution to band formation, even though many bands start up without the aid of teachers. For the resources of the school, any instruments or practice spaces that it can provide, and more importantly, its ready-to-hand population of hundreds of pupils, are crucial.” (Green 2008, 5–6)

Overall, in Czechia, less people pay for shows and far less people pay for music services than in Germany or Austria, and the spending level is like Hungary, Slovakia and Poland.

Impact On Artists, Professionals & Enterprises

Please give your personal example, if the change above would start, what positive impact you would expect to feel on your professional career or on your enterprise / organization?

Karolína Pavlova, music publisher, Publisher s.r.o: Most musicians do not have an idea about what we do. If ….. happened, I believe that we could really get into the international TV series business.

Jan Svoboda, festival promoter, Festivals s.r.o: The free festivals are really killing the value proposition of our business. I know that they cannot be banned, but I would like to see a bit more responsibility on their part. At the very least, they should feature a tent where the audience can buy tickets if they like the band, subscribe to playlists, or buy merchandise.

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Music Education In Primary SchoolsModernization of music education in primary schools (ME 1). At least one element of music education, music appreciation, generally starts in early primary school, but often some basic music and singing is included in the curriculum.

The best place to include music education in the general school system is the secondary school. Secondary school students usually have the interest and the maturity to play, record and compose music, visit concerts or even organize them. They are in an advanced stage of career organization, and because of their more mature age require less special pedagogy to engage. Furthermore, because the number of secondary schools and secondary school students is lower than the number of primary school and pupils, when teacher and funding capacity is limited, a more concentrated effort can be made on this easier level.

Nevertheless, ideally the program elements that we introduce for secondary schools should be introduced in an age-appropriate way for primary schools. However, this requires more organization and more preparation. Young people in secondary schools often allowed to make many choices about their activities without parental consent (though may be subject to parental control.) In the case of primary school pupils, organizing parental and teacher control is more difficult.

We will describe various program elements for secondary schools. All these measures can be incorporated into the primary school level, which can deeply enhance their efficacy. We list the areas of action only for secondary schools.

Music Education in Secondary SchoolsME2 Modernization of music education in secondary schools. Modern popular music education usually targets secondary school students in the Western countries. Informal learning practices typical for popular music are more suitable for the 14-18 years old cohort.

Music enjoyment is mainly formed by the family and the school, and the peer group has a very strong influence. In the secondary school age, schooling is compulsory and the entire cohort can be found in a few hundred schools - later these young people will spread out in hundreds of thousands of enterprises, organizations or universities.

Music appreciation in secondary schools is of paramount importance, because all studies in the past decades consistently showed that the ages 13-23 are formative for life-long music preferences. During the secondary school, and to a lesser extent, at college or university, young people are exchange much music and experiment with their cultural identity. Most people tend to listen to similar or the same music for the rest of their lives. This means for example that if the cohort born between 1996-2006 is not getting familiar with Czech music, it is unlikely that they will listen to it in the next forty-fifty years (Holbrook M.B and Schindler R.M 2013; Holbrook and Schindler 1989; Hargreaves, North, and Tarrant 2016).

For men, the most important period for forming musical taste is between the ages of 13 to 16. Men were, on average, aged 14 when

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their favorite song was released. For women, the most important period is between 11 and 14, with 13 being the most likely age for when their favorite song came out. It also found that childhood influences were stronger for women than men and the key years for shaping taste were tied to the end of puberty. […] For both men and women, their early 20s were half as influential in determining adult musical tastes as their early teens. (Stephens-Davidowitz 2018).

Enjoyment of Music Education• Finding teachers: systematic effort should be made to find qualified teachers who

have an interest in popular music, or they themselves are able to play music. Depending on their specialization, they may be able to introduce new music in the classrooms, or oversee extracurricular activities (such as supervising school rehearsal studios, school radios, school recording equipment.)

• Training teachers: Equipping qualified teachers with the modern pedagogy of classical music and the informal learning pedagogy of popular music, and technical skills to oversee equipment and installations. See also 9.3.2 Grants for introducing new pedagogy

• Introducing music enjoyment in classrooms: following the regulatory requirements, introducing new classroom pedagogy elements and new music enjoyment into the classroom.

• Extracurricular activities: it is extremely important to organize concert, studio, backstage, etc visits from schools to festivals, venues, concert halls, because our research shows that people who never visit concerts in young age will almost never take up the habit later. If schools do not offer such activities to all students, the risk is high that only highly educated, and middle-class parents will take and allow their children to concerts, thus significantly reducing the future concert audience.

• Safe programs for teenagers: festivals and venues should offer programs targeted for teenagers that provide a safer environment to overcome resistance from parents and teachers to allow their children to programs. This is critically important in families where teachers do not have the habit to visit festival or concerts and may be afraid to send their kids to an environment where they may be exposed to excessive drinking, drugs or underage sex.

• Grants for Music Participation: see 9.3.1 Grants for introducing new music into the classrooms

Active Participation in MusicModern popular music pedagogy usually involves the active forms music participation, i.e. learning to sing, play an instrument, create a recording, a video recording and to compose a song or lyrics. Our research shows that people who themselves play music or sing tend to buy far more music products than people who do not have these skills.

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• Training qualified teachers: Related to 3.3.1 Enjoyment of Music Education the volunteers from the qualified teacher pool should be trained to oversee a school recording equipment and a rehearsal studio in the school. Teachers already involved in music education should be trained in the field of recordings and composition. Interested literature teachers should be given training and classroom pedagogy for lyrics.

• Grants and other sources should be made available for introducing recording and rehearsal studios into schools. Existing capacities should be monitored. Music instrument merchants should be encouraged to donate at least a few model studios and actively lobby for public and donor funds.

• Talent competition for teenage performers, composers and lyricists should offer motivation for teachers, students to continue their efforts and inspire new schools, educators and children to join them.

Introducing Music as a ProfessionAn important part of our assessment that the general public, policymakers and politicians know very little about the music and the way music is created. This leads to poor understanding, low appreciation and difficulty in spotting and attracting talent.

• Stakeholders should form volunteer groups and take turns to participate in career orientation classroom and school programs and educate children about the artistic, technical, and managerial roles in music. Foreign experience shows that in the lack of such activities, mainly children whose parents are creative or highly educated orient themselves toward creative industries. Furthermore, girls, who tend to have as much interest, if not more, in these professions, are often discouraged to learn professions that had been dominated by the previous (parent) generations by men. Only a few hundred occasion would provide a 100% coverage of the secondary schools per year, and even a couple of dozen visits could significantly increase the visibility of the music industry in the next generation that is choosing a career path.

• Such visits, which can include a classroom conversation with an artist, a manager, and a light/stage/sound technician, can be ideally combined with a concert/backstage visit. It is important to show that more people work behind the stage than on the stage, and children who do not have the personality traits to go to the stage find interesting work around music.

Music Education in Music SchoolsME 3 Better incorporation of popular music in the music school system. In many European countries, including Czechia, a specialized, extra-curricular music school system teaches vocal and instrumental music for pupils and students. These schools are mainly focusing on training future professional musicians in the field of classical music. They are less likely to teach folk and popular music, and they often discourage children who do not aim to be, or do not seem to have the talent for becoming professional music performers.

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It is questionable that music schools should appropriately force children at a very early age, starting from the age of 6, to choose an adult career path. Music schools should be encouraged to offer tuition for children or parents who explicitly aim to become amateur musicians, or for parents who want to leave this important choice to a later age.

Music schools could be more equipped to teach some elements of popular music, and some instruments that are more likely to be used in popular music than secondary schools or primary schools. The music industry should encourage the expansion of these activities after a consultation with a wide array of music school headmasters, teachers, and parents, children or already professional musicians with a music school experience.

Educating the Public - AdvocacyConstructive Dialogue With the Pirates

ME4-3 Dialogue between the Czech music sector workers, fans and the Pirate Party. The emergence of the Pirate Party in Czech politics put musicians into a very awkward position, because the populist party is popular among young people who dominate their audiences. The Pirate Party is aiming to destroy the most important intellectual property of an artist, the copyright and its various royalties, and potentially creates a division between musicians and fans.

Cynical large tech-corporations are reinforcing the message of the Pirates, and contrary to reality, make the impression that the music industry is ‘big business’ and they are protecting ‘small tech startups’, whereas destroying copyright value is the interest of ‘big tech interests’ and almost all music businesses in Europe are micro- and small enterprises. This problem requires a deeper understanding of the young people’s beliefs and targeted messaging.

Working Group on Music Education & Advocacy

Please give the following details if you would be ready to join this working group: Jan Svoboda, concert promoter, Concerts s.r.o, 17 years of concert promoting experience.

There was a general consensus that this is the most important working group, and it should include very senior people from national stakeholders, furthermore professionals in music education.

Indicators to Measure Progress & Keep Direction in Music EducationThe expected change could be measured already within 3-4 years, because the music consumption is very much concentrated in the 16-23 years old cohorts, and music education usually targets the secondary school student in the age of 14-18 years. This means that over 3 school years already half of the most relevant cohort can receive engaging music education that has an immediate effect on national concert attendance

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statistics. This effect is very strong over 10-20 years, because people who learned popular music are expected to visit more concerts lifelong.

Strategic indicators• Percentage change of the population who went to a concert, dance, ballet in the last 12

month by cohorts, (standard CAP question, to be measured by a CAP survey, see 7 Market Research & Collaborative R&D, particularly 7.4.)

Impact indicators• Percentage of the population who played an instrument in the last 12 month (standard

CAP question, to be measured by a CAP survey, see @ref(#researchdev) Market Research & Collaborative R&D, particularly 7.4.)

• Percentage of the population who sang in the last 12 month (standard CAP question, to be measured by CAP survey, see again: 7.4 )

Effect indicators• Number of teachers capable overseeing school rehearsal studios and informal learning

practices

• Number of teachers passed pedagogy programs

• Number of school visits on concerts & backstage

• Number of visits to career orientation talks in schools

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Market BuildingWe would like to see that the Czech music industry is growing out quickly from its infant stage. We would like to see music businesses focused on value growth and the professionalization of the currently part-time, only informally trained working force. Artists should be proud of their work and should not be shy to demand adequate payment for it. We would like to see a market development in place within the next few years that starts to give a more visible shape for the live and recording parts of the music industry and bring out the publishing sector from its current state.

Markets are institutions that take years, decades to build and nurture to help allocating good services and work. Cultural and creative industries are suffering from over-fragmentation. In the film industry and television, 30 years ago, people worked in large companies that had HR, market research, R&D and legal functions to support the work of artists, technicians and managers. Most people in the film and TV industry do not have this luxury any more, and people in popular music, jazz and folk usually never had them. Increasingly the art/classical music scene is subject to more and more fragmentation.

Figure 9: Musician Income Composition By Country

Program ConsiderationsThe general career equation in the region is simple: artists who have at least 5 years of composing experience, a recent recording and they play at least 15 shows a year can become full-time musicians. However, if we compare the Czech and the Austrian answers, we can see striking differences.

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Figure 10: Decision Tree: What is Needed in the CEE to Sustain a Full-Time Music Career

In Austria, a musician has a 68% chance to make a full-time living as a musician with at least 16 shows a year and 7 years of recording experience, or 6 years of recording and composing experience. In Czechia, at least 46 shows or 13 years of composing experience is necessary to have similar chances for a full-time musician role. Compared to Hungary, a bit more composing experience is necessary.

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Figure 11: Decision Tree: What is Needed in Czechia and Austria to Sustain a Full-Time Music Career

The difference is explained by the following factors:

• The expected income of Czech concerts is lower than in Austria, because both the ticket price is lower, and fewer people buy tickets;

• Czech compositions earn less than Austrians from OSA, and almost none from publishers;

• Czech recordings earn very little income in digital services or via Intergram, and record labels almost never can pay and advance for a recording;

• The availability and size of grants is smaller in Czechia.

Our data shows that many market players are working only on a part-time basis and do not have formal training and necessary capital to invest into human skills and technology. All revenue streams are underperforming, record labels and especially publishers are very weak, and generally music professionals are in a worse economic condition than the Czech population.

Our research shows that the biggest disadvantage for musicians and almost completely lacking in publishing and record label representation and revenues. Only a very small faction of musicians are represented by professional publishers and labels, and the revenue streams and markets that are only accessible for publishers or labels are not available for them. The market value of most Czech concerts and recorded music is lays lower below the EU average than the value of most Czech industries. Both ticket sales and sales of recorded music are way behind the Czech households ability to spend on recreation and culture. In other words, the Czech music industry is not competitive even in comparison with other forms of culture and recreational activities.

It is true that in the 21st century, most musician income is expected from concerts. But the performing opportunities for musicians are decreasing with age, even if there is a positive influence from long performing histories. This may be partly caused by the fact that audiences like to see mainly artists from their age group, and concerts visits are declining with age.

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Figure 12: Change Of Concert Opportunities by Age And Experience

The two charts show the effect of artist age and experience on stage. Artists’ annual performances are declining from about 50 shows in the age of 25 to about 40 in the age of 40. There is no significant difference in this regard among Czech and non-Czech artists. Years of performing experience have a positive effect, but mainly among part-time musicians and amateurs.

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Figure 13: Change Of Concert Opportunities by Age And Experience in Czechia

The only way to sustain a long musician career is to build up a portfolio of evergreen compositions and recordings that keep adding more and more revenues from the recorded performances as the artist is aging. Or to specialize on recording and composing, and focus on assignments from the advertising, video games, television and film industries.

Indeed, we see that full-time artists who remain in the business report higher and higher number of compositions. (We do not see a similar relationship with recordings, because currently recordings are necessary for both compositions and getting live performance opportunities.) The low value of royalties and the market problems of publishing still keep this revenue source at a rather low level.

The biggest problem of creating successful sales strategies in recordings is the lack of adequate data literacy, data pooling capacity and analytic capacity in Czechia. In the world, most recorded music is solved by algorithms, trained on vast datasets using AI and machine learning. Such analytics is increasingly used in radio programming and even in festival and tour design.

The problem of small nation repertoires like the Czech, Hungarian, Slovak repertoires, that the combined repertoire of all local labels is not sufficient to successfully train algorithms. This puts local stakeholders at a huge disadvantage: their own market is increasingly taken by foreign algorithms and robots, and they have no resources to protect their market and use the same technology to contest markets.

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CEEMID and state51 started the creation of streaming market indexes, similarly to bond and stock exchange indexes, because streaming platform operators, such as Spotify, Deezer and Apple Music give very little marketing guidance for independent labels.

In the Central and Eastern European markets artists are disadvantaged by the smaller local population size, but the lower level of repertoire competition also benefits them. If a song starts its career in Austria or Hungary, it does not typically reach a much smaller audience than in Germany or the UK, but the revenue prospects are clearly different.

Figure 14: Typical Song Revenue Development in CZ, CEE and Mature Markets

As we can see in the chart, the typical revenues were relatively flat in the past three years. While listening quantities were growing, so was the number of subscribers and range of exploited songs. In fact, as more diverse audiences entered the market, the market shares of the typical labels started to shrink. As a consequence, the typical artists did not see any significant revenue growth from the rising number of users.

In the world, most recorded music is soled by algorithms, trained on vast datasets using AI and machine learning. Such analytics are increasingly used in radio programming and even in festival and tour design.

The problem of small nation repertoires like the Czech, Hungarian, Slovak repertoires, that the combined repertoire of all local labels is not sufficient to successfully train algorithms. This puts local stakeholders at a huge disadvantage: their own market is increasingly taken by foreign algorithms and robots, and they have no resources to protect their market and use the same technology to contest markets. This is one of the most important reasons why SoundCzech teamed up with CEEMID and the state51 group to create a Research Consortium (see: Chapter 7 on the Market Research, Collaborative Research & Development.)

We see a lot of problems in all three income streams and in the case of grants, too. More competitive economies with stronger creative sectors, especially in Denmark, the Netherlands, Sweden, Finland solve such problems with strong cooperation and strong

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institutional social dialogue. The cooperation of micro-enterprises and freelancers is necessary to provide funds and professional HR for life-long learning and developing the human capital of creative workers. In the most advanced European countries, annual learning opportunities, sick leave and career orientation is available for freelancers, too. Furthermore, via their strong associations they represent the special regulatory, market-building, labor, pension issues of their members in social dialogue. Market-building activities cannot be successful without building strong institutions for join human resource development (see 6 Professionalisation & Collaborative Human Resource Management, joint market research and innovation (see 7 Market Research, Collaborative Research & Development)

In the Czech Republic, the national institution of social dialogue is the Rada hospodářské a sociální dohody - Council of Economic and Social Agreement. It is essential that the music industry takes a place on both the employer and the employee side of this institution - not necessarily to let its ideas heard in the Council, but because this is essential to participate in any forms of consultation with the government on Better regulation & taxes and probably on Better granting, too. Starting working groups may be the first step to this goal.



Karolína Pavlova, music publisher, Publisher s.r.o: Most musicians do not have an idea about what we do. If ….. happened, I believe that we could really get into the international TV series business.

Jan Svoboda, festival promoter, Festivals s.r.o: The free festivals are really killing the value proposition of our business. I know that they cannot be banned, but I would like to see a bit more responsibility on their part. At the very least, they should feature a tent where the audience can buy tickets if they like the band, subscribe to playlists, or buy merchandise.

Tackling ‘Free’ MusicFree music uses should be adequately remunerated and eventually channeled towards paid uses. There is a general consensus that ‘free festivals’ organized and paid by municipalities contribute to the low valuation of Czech music.

Value Growth - Free FestivalsFrom ‘free’ festivals to ‘paid’ festivals (MB1-1). There is a general consensus that ‘free festivals’ organized and paid by municipalities contribute to the low valuation of Czech music. However, politicians often like the idea of free festivals, and artists, who are struggling to get paid gigs, often participate in these events that in the long run are destroying the value perception of music and undermining efforts to increase ticket sales revenue. A best practice guide should be developed by experimenting with novel forms of hybrid events, where the audience should pay some contribution, or should be encouraged

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https://www.tripartita.cz/

https://www.tripartita.cz/

to offer other forms of compensation, for example, buying tickets or offering voluntary compensation. Whenever possible, it should be encouraged that municipalities are aiming at low-price, affordable local events and not free events.

Understanding the value proposition of live music eventsSimilarly to the movie theaters, concert venues should be able to modernize and re-position their offering to new audiences in order to increase the value of concerts. The CAP survey is particularly good form to empirically segment the audiences and start to understand the value drivers and costs of various audiences. It should be noted that in the absence of many modern venues, countryside audiences often must spend more on travelling to music events than the cost of the event itself.

Because music enterprises are micro- or small enterprises, they do not have market research or R&D capabilities, and the joint research program includes within the CAP survey Chapter7.4.1 understanding the value proposition of live events. The joint research efforts should equip market participants and public concert venues with easy-to-follow guidance and collective actions that can re-position concerts as a high-value social activity.

Private Copying Remuneration, Blank Media Levies

Figure 15: Example of Unlicensed Music Market Share (randomized based on real CEE results)

Again, because even collective management societies are small enterprises with limited market research or R&D capabilities, and the joint research program includes in the chapter 7.4.1 Measuring the Use of Paid and Non-Paid Recorded Music. The joint research efforts should the very least equip OSA, Intergram and Dilia with the ability to measure home copying, and preferably with the know-how to calculate the economic value of home

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copying and the calculation of equitable remuneration of home copying as required by EU and Czech law.

Measuring the Effect of Value Growth Measures• PCR Revenue per Capita: this simple indicator is measured every 1-2 years by WIPO

and de Thuiskopie, the Dutch collective management society and international competence center for private copying remuneration.

• Number of free music events / number of paid music events: this indicator could be produced by OSA, which is licensing all music events in the country.

Increasing the Value of Live MusicLive music revenues should be increased by increasing the sale quantity (ticket sales) and the value (ticket price). Apart from the segment provided by international promoters with some international top artists, ticket prices are generally very low in Czechia. Combating free shows requires special attention (see Value Growth - Free Festivals)

Figure 16: Private Expenditure on Concert, Cinema and Theatre in Europe

Increasing Ticket Sales in Live MusicIn the long run, we believe that the best program to increase ticket sales is the Chapter 3 Music Education Program.

However, ticket sales should be professionalized regardless of the music education efforts. Generally, tickets sales should aim to decrease the high seasonality of concert demand, and increase pre-sales, which is probably the best risk management tool for the extreme high-risk concert and festival promotion business.

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Our data is currently based on the EU CAP survey and Google search intensity models. These provide a useful first step, but a join Czech CAP survey and the validation of big data models against actual Czech ticket sales would be necessary to increase the timeliness and precision of such market research data (see subchapter 7.4.3 Measuring Participation in Live Music). The EU-wide CAP research is only conducted about twice in a decade, and with the aim of policy harmonization. Especially the Hungarian CAP surveys provide useful reference values and methodology to understand demography, the costs and concerns of the Czech audiences.

Increasing the Value of Live MusicThe current price level of concert tickets more or less reflects the differences in purchasing power in the regional countries. (Some quickly depreciating currencies may over or understate the value of the concert tickets in euro, depending on the seasonality of the local markets.) Concert ticket prices are very similar in Czechia and Slovakia, with a slight advantage to the Czech countryside and a slight advantage of ticket prices in Bratislava in comparison with Prague. This also reflects the local purchasing strength.

In the comparison we excluded free concerts and ticket prices above 40 euros.

Figure 17: Comparison of CEE Median Concert Ticket Prices

There seems to be no simple solution to increasing the concert prices. On the sales side, the typical audience size in Czechia is relatively big, around 100 people, and the distribution of usual audience is wider than in the region. This means that Czech concerts yield typical

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around 800-900 euros, which is a higher value than in Austria and Slovenia, and in fact, apart from reported Lithuanian values, higher than the typical values of the region.

Figure 18: Reported Audience Sizes in CEE countries

Participants in the workshop said that they believe that medium-sized venues are missing from the country, which may be the case, but currently the medium-sized concerts are also very rare - 90% of the concerts have less than 200 visitors. There are currently very few concerts that do not fit on a small venue (which is typically defined as venue with less than a capacity of 500.)

The Hungarian CAP survey measured the various travelling costs (in time and money) associated with concert visits in the countryside, and other aspects of non-visiting or not frequent visiting. This is the recommended next step, because there is no clear pathway to increase either ticket prices or audience sizes.

The joint market research and R&D effort subchapter 7.4.1 Understanding the value of music events should provide market participants with more insight on this field. This research should be conducted in the first 1-2 years, during the methodology development phase, and probably included in more in-depth CAP surveys every 5-10 years.

Measuring the Effect of Revenue Growth ActionsBecause the cheapest way to collect market information, when such information is not already published in a correct format from a reliable data source, such as collective management or ministry comprehensive source, the best way to collect data is to ask the

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musicians, technicians, managers themselves. The CEEMID Music Professional Survey was introduced in Czechia as an experiment for the first time in 2019, but in Hungary, it has already a history of 6 years. This comparative survey is already offered in 12 languages and allows the cheap measurement of the fragmented live music scene.

• Average ticket price in Prague & the Countryside: this is a standard CEEMID indicator that is measured in 10 countries in the annual CEEMID Music Professional Survey. (See: subchapter7.5 CEEMID Music Professional Surveys)

Increasing the Participation in MusicParticipation in music is measured by cultural access and participation surveys, which is a standardized way to measure market-oriented (commercial concerts), non-market oriented (free and liturgical events) passive activities and active participation activities (professional and amateur singing, music playing).

The EU-wide CAP surveys usually measure only the top priority indicators, for example, the frequency of concert attendance in each EU country / region. The ESSNet Guide contains guidance on how to measure more in-depth indicators that remain comparable among countries that follow the guidelines. CEEMID has created so far 7 CEE CAP surveys that contain in-depth information about the live music participation, and the use of the CEEMID questions would immediately make Czech participation levels comparable and understandable. The use of other questions will allow to make judgement on relative levels after 2-3 repeated surveying.

Increasing the Participation in Live MusicIn the long run, the best action to increase activity is 3.3 Music Education in Secondary Schools. Because visiting probability and visiting frequency is usually diminishing after 21-23 years of age, it is critically important to introduce all students to enjoyment of concerts, singing and playing music.

Increasing the Participation in Live Music

I think that this is an area where venue operators, NGOs could really start to show good examples with almost no investment and earn credits. Please suggest ideas and make pledges.

This program element overlaps with the @ref(#ME2-2) Music Education: Active Participation in Music program element, but has market building aspects, too. It is very important to cooperate with educators and make sure that all teenagers, even from disadvantaged families, do get access to live music events. Teenagers, and people in their early twenties often cannot afford to spend a lot on concerts, but if they do not learn to appreciate live music, they will never come back to the music clubs and festivals when they start earning normal salaries.

Concert and festival promoters should work with educators to promote music in these target groups as an investment, outside their usual concert promoting and sales initiatives.

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http://survey2019.ceemid.eu/

Increasing Active Participation in MusicWhile active participation in the form of singing, playing and playing a musical instrument, or becoming a DJ can be best increased in secondary schools and in primary schools (see: 3.2 Music Education In Primary Schools, 3.3 Music Education in Secondary Schools), music education programs take a longer time to implement. Stakeholders should be encouraged to initiate further action that would encourage people to take out their unsused instruments, or start to learn music at any age.

I think that this is an area where venue operators, NGOs could really start to show good examples with almost no investment and earn credits. Please suggest ideas and make pledges.

As a market building activity, rehearsal studios, instrument manufacturers and merchants, and other stakeholders are encouraged to cooperate with educators to make sure that teenagers throughout the country, but at least in all municipalities which have secondary schools and secondary school dormitories offer opportunities to play contemporary music.

Increasing the Value of Recorded Music

Figure 19: The digital royalty gap between large regions of Europe

• The interest of the music industry and the radio and television industry should be aligned in terms of regulation and taxation, and there should be a joint program that would increase the value of their services and their ability to pay higher royalties via OSA and Intergram to the composers, producers and performers.

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This effort goes hand in hand with the 8 Alliance With Creative Industries, because broadcasting, advertising, film production, and other creative professions suffer from the same economic policies, and at the same time they are the biggest business users of music. Their ability to pay royalties depends on the success of10 Better Regulation & Taxation Of Music, because their business is impacted by the same tax issues. Furthermore, their business models and ability to pay royalties were undermined by the value transfer to media platforms, and the successful adoption of the Digital Single Market Directive. They would also have a material interest in supporting the research elements related to the successful transposition of the 10.2 Digital Single Market Directive.

Increasing the Sale of Recorded Music at Home• A constructive dialog should start with the DSP providers of streaming services,

because it is likely that both the price and the marketing efforts to roll out their services, for example, Spotify’s family plan, is mispriced. Some stakeholders believe that the current subscription price, which determines streaming royalties paid for composers, producers and performers is too low in Czechia.

Comprehensive guidebook of the Czech Music Industry

Figure 20: Mobile INternet Users Who Pay For Music And Film in Europe, percentage of active population

The aim of the first Hungarian music industry report (Dániel Antal 2015b) and the first Slovak Music Industry Report (Antal 2019) was to create a fully documented, common guidebook of the structure, players, and facts, problems and development goals of the national industry.

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Overcoming fragmentation and building cooperation• We are aiming to build working groups that are open to all organizations, enterprises

and professionals with the hope that they will lead to improved collaboration and lasting new institutions. Because most music stakeholders work alone or in tiny organizations, they are lacking HR services, market research, research and development, advocacy and legal services that professionals working in larger organizations take for granted. Learning to work to solve problems together can lead to easier work and more success.

We are planning six working groups to solve common problems, and a further three to start building common functional areas that are available for people working in industries that have larger organizations, such as banks, car manufacturers, government, etc.






…and working groups that can build future institutions to overcome the lacking HR, market research, R&D and legal affairs functions of business microenterprises.

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• Working Group On Market Research and Joint Research and Development - This working group is critical, because the current work is started as a preparation for this, and SoundCzech has a deadline on 31 October 2019 to apply for a grant at TACR to follow the work. Endorsements and participation is very important - senior university researchers, founders, managing directors of established labels, publishers, collective management, national organizations. Joint membership with the other working programs is possible, because we want to give methodology to the work of all programs.

• Working Group on Better Regulation of Music - This is working group requires specialist knowledge. Because most music enterprises and organizations are too small to have in-house attorneys and legal professionals, however has such knowledge should be invited, and probably in this working group foreign expertise would be required.

In this chapter we are recruiting people for the Working Group on Market Building.

Indicators to Measure Progress & Keep Direction in Market Building

Strategic indicators• Number of people visited a concert in the last 12 years - this is a standard CAP metric

(see 7.4) and we have data only for 2007 and 2013.

• Total public performance royalties [ This indicator will be reported only for neighboring rights, unless OSA reports the indicator for composers]

• Total mechanical royalties [ Could be reported by OSA ]

• Total private copying remuneration [This indicator will be reported here in the final version from (Thuiskopie and WIPO 2017) ]

Impact indicators• Ticket presales rate: tickets sold before the gig / festival day reduce the risk, increase

planning, and usually show a higher level of business organization.

• Based on your comments, further suggestions will be made.

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Effect indicators• Average ticket price in Prague, the countryside. The current median (typical) values

are 200 korunas in Prauge and 181.2 korunas in the countryside. The average values are 216 korunas in Prague and 181 korunas in the countryside.

• The typical concert audience size is 100-200 visitor in Czechia, and on average (with few larger concerts it is approximately 350.)

• Median streaming quantity [ This indicator will be reported here in the final version from CEEMID Music Professional Survey]

• Median streaming value [ This indicator will be reported here in the final version from CEEMID Music Professional Survey]

Working Group on Market Building


Mainly for publishers, labels, concert and festival promoters and their associations, very experiencedprofessionals on these fields. Directors of collective management associations.

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Music Export & InternationalizationWe would like to increase our audience and revenues abroad and increase our competitiveness of the domestic music in the global competition for the Czech market. From 2020 artists, technicians, managers, and the supporting organizations of collective management and granting authorities make a joint effort to increase the quantity of music sales and the value of music sales.

The European unification and borderless travel made live music more international than ever, and the emergence of global music streaming increased the global repertoire competition to levels that nobody could imagine a decade ago. Czech music is facing a very strong competition abroad and losing market share in its home market base.

Any increase in quality and professionalization requires increased and more steady revenues from the live music stream, the recorded music stream and the authors’ or publishing music stream. Only parallel growth in value and quantity can result in a non-linear, quick growth for the sector.

Program ConsiderationsIn comparison with other countries in the region, this year the Czech repertoire was very competitive on Spotify, taking 20-30% percent of the most streamed top 50 songs. This is an excellent starting point, because it is always the domestic market that can generate the most stable foundation for significant revenues.

Figure 21: Domestic Production on Spotify National Top 50 in 2019

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However, the strong domestic performance does not translate yet into export success. The cross-border circulation of songs, especially among hits which take home most of the royalty revenues, is generally weak in the EU. Apart from the strong performance of German producers in the Austrian market, usually no European countries’ producers get into among the most streams songs in another European country, except for the United Kingdom.



Karolína Pavlova, founder of record label Label s.r.o: I would like to see that our bands are applying to showcase festivals in markets where they have a chance to build a lasting fan base. The basic analytics of YouTube or Spotify give us very little guidance on where to go. I really hope that SoundCzech will be able to give us some more concrete clues because we are just not big enough to try our luck in all 80 territories that have advanced DSP services. Maybe nobody is big enough for that in Europe.

Jan Svoboda, talent managers, Artist Management s.r.o: Foreign tours are our most stable income, but we currently rely on our own touring experience. We have some destinations, for example, France, where we already know the market very well, but if we’d try to lengthen to tour to Spain, we would run all the risks of having to rely on word of mouth. The financial risk of a failed show is so big that we have to be very cautious in going to new regions. Any market research from a Czech perspective would help - we are just not big enough to keep an eye on more European countries.

Live Music ExportOur research data shows that Bratislava is the strongest “exporting city” in the region, while Prague is the “strongest destination”. In the case of Bratislava, all nearby larger towns are beyond the border of Slovakia (Vienna, Brno, Győr), and Slovak towns are generally small. For Czech bands, Bratislava is the most important foreign destination, which is also the richest city in the Visegrad region.

While for Hungarian and Slovak bands Vienna is the most important point of orientation, Czech bands, if they do not go to Bratislava, go into the direction of Berlin. They can benefit from the proximity of a dense and rich German tour network that gives further access to France and the Benelux. Besides, Vienna and Linz are obvious targets for them.

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Figure 22: Strongest Regional Tour Connections

Recorded Music Export

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Figure 23: Export from CZ, DE, FR, SE to Spotify National Top 50 Charts in European Countries

Czech producers have one market where their performance is strong: the Slovak market. Because of the strong historical ties, geographical and cultural proximity, and a circulation of the artists themselves between the two countries, this is almost a home market for the Czech music industry. However, in the last four month, no other Czech producer scored any hits in any other European countries on streaming services.

We repeat the last chart with a focus on the smaller shares in national hitlists to make it more readable.

Figure 24: Export from CZ, DE, FR, SE to Spotify National Top 50 Charts in European Countries (zoom)

Presence in the Global Publishing MarketsPublishers sell individual licenses to use the music in advertising, films, television shows, and video games. Most of these creative decisions, except for Czech commercials and films are taken outside of the country. However, because the Czech film industry has very strong production ties with important Hollywood studios and large European arthouse film makers, the @ref(#CCI) Alliance With Creative Industries should be an important tool to make progress here.

Czech film-makers, similarly to Hungarians, could only increase their value added if they could send more professionals into the royalty earning creative, art departments of the international productions that are made in Prague and the rest of the country. Composers

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and conductors have to climb the same career ladder that script writers, art directors, costume designers, directors and producers do. They must get first uncredited, later credited, assistant roles, and build positive references and working experiences to become department heads.

For the Czech music industry, of course department leads in music, sound recording or conductor roles are important, because they make decisions that give further work for performing musicians, composers and their teams.

There are positive experiences in Poland and Hungary that Czech publishers could utilize and further adapt to their cooperation with the Czech film, television and advertising industry.

International Repertoire Competition• Radio programming and radio quotas. The working group should monitor the radio

charts and the position of the domestic repertoire on the public broadcaster, local radios and commercial radios. Experience with the Slovak and Hungarian radio quotas should be exchanged, and the introduction of a radio quota should be discussed.

• Evaluation on promoting Czech music in restaurant, retail and hotel background music. OSA & later Intergram, which joined sales in a one-stop-shop, has introduced a scheme, similarly to several other collective management societies, to help the local repertoire in this increasingly valuable channel. The experiences should be evaluated for potential further improvement.

• Monitoring the use of the Czech repertoire in Czech television and the experience with audiovisual content quotes. Audiovisual content quotas may be important for the creative partners, but they affect the music business indirectly, too. When the use of domestic content is higher on television, it is likely that the domestic music component is higher, too, leading to higher public performance royalties for composers, producers and performers.

Working Group On Music Export & International Competition


This working group would require the active participation of SoundCzech, publishers, labels, tour managers, and talent managers with many years of experience in foreign sales. The working group should focus on repertoire competition and imports, and potentially with experience on audiovisual and radio quotas. It would be very good if the collective management societies were involved.

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Indicators to Measure Progress & Keep Direction in Music Exports

Strategic indicators• Royalty income from foreign public performance (to be measured by OSA)

• Czech songs in the radio / streaming charts of other countries, particularly other countries than Slovakia

Impact indicators• Longer tours with more reported tour destinations (to be measured by the annual

CEEMID Music professional survey)

• more songs featured on domestic and international charts, hitlists.

Effect indicators• monitoring reports are available on the market values of Spotify, Deezer, Apple

streams in various territories, likely values of broadcast use in radios and television

• market information is available on contestable markets

• music export grant parameters reflect likely success criteria.

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Professionalisation & Collaborative Human Resource ManagementWe would like to see that music professionals are better equipped with hard knowledge to fulfill their jobs employers have less difficulty to recruit or retain skilled workforce in the Music Industry. Within three years, employers should have the ability to train better trained workforce, or to retain highly qualified personnel from the more competitive film industry. These necessary changes go hand in hand with 4 Market Building.

We would like to make sure that musicians, technicians and managers are well represented on both the employer and employee side of the Czech social dialogue, and actively seek help from EU-level partners. In Europe work-related legislation, funds for life-long learning and vocational training programs are increasingly managed in a social dialogue between employers, trade unions and the government. The problem of the creative industries is that because of the dominant freelancer and microenterprise structure, they are not well present in this dialogue. Musicians typically do not have a clear employer, and especially young composers and performers do not see the merits of unionization. Supporting professions, such as engineers, stage crew are not represented by anybody. This is very problematic, because there are really large funds available for increasing the quality and quantity of professional training, but the demands of the music industry never surface. The necessary changes go hand in hand with 10 Better Regulation & Taxation Of Music.

Program ConsiderationsThe participants of the workshop could mainly relate to the beneficial changes in their organization to this program. They feel that they are overwhelmed, they are not able to recruit or train well-trained people for different tasks, and some people are forced to fulfill too many professional roles.

Some professional qualifications and skills are shared with other creative industries, particularly with the film industry and broadcasting. Because of the higher competitiveness of the Czech film industry, music enterprises find it difficult to retain staff in technical positions.



Karolína Pavlova, founder of record label Label s.r.o: We are making the most of our recordings, not to mention mastering, in Germany. We had a very talented team in a Prague studio, but the time we went back to work with them again, they were involved with film post production work, because it pays so much better. But somehow the Germans manage to train good sound engineers and producers, and they keep them, too. etc etc etc.

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Jan Svoboda, talent managers, Artist Management s.r.o: I could immediately hire a …., …., and a ….., but there is no reliable training for these roles in Czechia. So instead I have to start with five trainees, spend my time teaching them on the job, and praying that they will not leave to Austria when they have learned something. I only have three very senior colleagues who can instruct new recruits, but I need them most in the production work. I think that schools were invented for this. I would be very happy to offer stage for students, but I really cannot take on the job of teaching the basics, this is bad for everybody.

Social DialogueStrategic HR functions, such as measuring the quality & learning needs of the workforce, and designing life-long learning, improving compensation, social and pension benefits can only be achieved via national organization and representation in the social dialogue, because only very few organizations have HR professionals or an HR department.

In Europe, social partners play a very important role in setting working conditions and forming many economic policies of the EU and the Czech Republic. Musicians, technicians and managers must find ways to be fully represented in these forums, and seek ways to include the sectors vocational and life-learning needs in existing national and EU-funded programs.

Working Group on Music Business Professionalisation


Mainly for training companies, employers, and very experienced professionals in artistic, technical or managerial roles, with at least 10-20 years of experience. International experience shows that training programs are most effective if employers are actively involved. This would be a suitable working group for experienced music entrepreneurs. Trade unions and performers associations would be more than welcome.

Indicators to Measure Change and Keep Direction in Professionalisation

Strategic indicators• Number of qualifications certified for formal training

• Number of learners in certified formal training

• Difficulty of paying bills: this is a standard relative wage indicator that is used across Europe.

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Figure 25: Difficulty of Paying Bills - Comparison of Musicians And General Public

Impact indicatorsImpact indicators in this field could only be developed with the cooperation of employers. This may be a suitable task for the Working Group on Music Business Professionalisation.

Effect indicators• number of musicians represented in the Czech social dialogue

• number of enterprises represented in the Czech social dialogue

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Market Research, Collaborative Research & Developmentwe would like to create a strong, national, internationally open collaborative research consortium that supports the market research and R&D needs of microenterprises, small enterprises, associations and small public institutions in Czechia. Building on best practices from Europe, we would like to pool data assets, research material, analytics tools, research capacities and find funding for them in national and EU grants.

As a starting point of this development program, SoundCzech, CEEMID and the state51 music group formed an open Research Consortium. The workshop was facilitated with information resulting from this cooperation. The invitation to be involved was extended to all participants, including young researchers present.

The special problem of the creative and cultural industries is that very small enterprise size and the complexity of economic activities in a small enterprise. These small enterprises do not have their own market research and R&D capacities, which makes them less competitive against large global players or competitors from EU countries where national stakeholders have already formed collaborative research functions.

Program ConsiderationsBecause most countries apply simplified accounting, tax reporting and statistical reporting for SMEs and especially for microenterprises, there is usually not enough information is available in governmental statistical systems about the music industry. Industry stakeholders must make efforts to survey their members and workers, and to map their activities among many interrelated activities. (Bína, Vladimir et al. 2012; UNESCO Institute for Statistics 2012) Some CEE stakeholders started CEEMID with this mandate, originally with the invitation of OSA, who decided to opt out from this work.

SoundCzech started a research consortium with CEEMID and Consolidated Independent, the creators of the Central European Music Industry Report, to provide the data and know-how to help achieving the goals set out in this programme, and to provide indicators to make sure that all work is going into the right direction. This document is the first result of this cooperation.

This research consortium is open for all music stakeholders, i.e. associations, collective management organizations, granting authorities, labels, publishers and concert promoters. We would like to welcome private people, musicians, technicians and managers as volunteers to help reach our aims. We are also aiming to internationalize some of our efforts, for example, in the field of data analytics and algorithm-design, because these critically important sales ares require more data than the combined data assets of all Czech music stakeholders.


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Karolína Pavlova, founder of record label Label s.r.o: Our research budget is non-existent, our team is only three people. Our Dutch partners can rely on market research provided by their indie association, and I think that we should also find a way to collaborate on market research, otherwise we are just wasting a large part of our tiny promotion budgets.

Jan Svoboda, club owner, Rock Club s.r.o: In the program preparations the most surprising comparison was the much higher presence of medium-aged people in German or Benelux clubs. We have very little experience in this field, and I believe that understanding what keeps richer, older people away from the music club is absolutely necessary to increase the value of our programming.

Mapping the Czech Music IndustryCEEMID uses a methodology that has been recognized as a standard mapping of the music industry in the United States and later adopted for the EU. (Hull et al. 2011; Leurdijk and Ottilie 2012). CEEMID further adopted these mapping to Hungary, Croatia and Slovakia (Dániel Antal 2015b, 2015c; Antal 2019).

In the preparation of this work, SoundCzech, in cooperation with Intergram and SAI, helped to start surveying the music professionals. However, a full mapping is not possible without a broader access to data and the involvement of all stakeholders.

Economic Impact AssessmentIn Hungary and in Slovakia detailed economic impact assessments supported the music industry reports to collect good argument for taking the industry more seriously and to understand what the economic policies in place that are benefit or harm the industry. In these two countries, the biggest problem was a tax system that is favourable for car manufacturing, electronic appliance manufacturing, which are favoured industries of the

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local economic policies. These economic incentives were very counterproductive for the creative and cultural industries, and they are hampering employment and tax base growth.

CEEMID has produced an open-source software iotables on the basis of Eurostat’s manual how to make such calculations (Beutel 2008; OECD 2010). This software is already available, but rather difficult to use. We would like to offer the opportunity to the Working Group on Better Regulation of Music to create meaningful cases studies, and within the research program to create such detailed impact assessment as Sziget’s assessment was, which helped changing its tax status (KPMG 2005, 2011).

Measuring Cultural Access & ParticipationCEEMID has processed the EU-wide CAP Surveys of 2007 and 2013 (European Commission and TNS Opinion & Social 2012; TNS Opinion & Social 2013), which provide a very important comparison and methodological basis for further research. Furthermore, following the technical guidelines of the Eurostat ESSNet-Culture, and the developers of the original CAP methodology (Haan and Adolfsen 2008; Haan and Broek 2012), CEEMID has conducted so far 7 in-depth CAP surveys designed specially for music and film.

In 2020 and 2021 we suggest adopting and create in-depth, high quality CAP surveys in Czechia to understand in detail issues that are deemed highly relevant for the industry stakeholders, similarly to the Hungarian CAP surveys of 2017 and 2018. From 2022 cheaper, potentially online CAP surveys can focus on market developments without the aim of methodological adaptation and in-depth research.

Understanding the value of music eventsSimilarly to the movie theaters, concert venues should be able to modernize and re-position their offering to new audiences in order to increase the value of concerts. The CAP survey is particularly good form to empirically segment the audiences and start to understand the value drivers and costs of various audiences. It should be noted that in the absence of many modern venues, countryside audiences often must spend more on travelling to music events than the cost of the event itself.

This element of the CAP survey should be included only when needed, and probably only 1-2 times in every decade.

Measuring the Use of Paid and Non-Paid Recorded musicThis element of the CAP survey should be incorporated in the deeper, methodological surveys of 2020 and 2021 and in the simpler, annual surveys, like in Hungary.

Measuring Participation in Live MusicOur data is currently based on the EU CAP survey and Google search intensity models. These data was presented in Nouvelle Prague and will be incorporated into the final version of this documents with your comments. This is a useful first step, but a join Czech CAP survey and the validation of big data models against actual Czech ticket sales would be necessary to increase the timeliness and precision of such market research data.

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http://www.ceemid.eu/iotables

This element of the CAP survey should be incorporated in the deeper, methodological surveys of 2020 and 2021 and in the simpler, annual surveys, like in Hungary.

Measuring the Value Transfer To Media PlatformsThis element of the CAP survey should be incorporated in the deeper, methodological surveys of 2020 and 2021 and in the simpler, annual surveys, like in Hungary.

Increasing Royalty LevelsIFPI Commissioned a study in 2008 to PriceWaterhouseCoopers to show the possible ways how music can be evaluated, and the price corresponding to this value can be set (PwC 2008). CEEMID has introduced all of these models into practice in Hungary, Slovakia and Croatia, after successfully mapping the CEE industries and modifying these models (Leurdijk et al. 2012; Leurdijk and Ottilie 2012), taking into consideration European statistical guidelines (Bína, Vladimir et al. 2012) and new IFRS Fair Value international accounting principles (Their use is mandatory in the EU.) (EUR-Lex 2012).

We would like to introduce this methods in Czechia, because we believe that royalty levels are currently not (always) follow the economic conditions, and they may not beneficial for local stakeholders.

CEEMID Music Professional SurveysCEEMID had been asking local music stakeholders to help persuading their members to provide annual data in the form of anonymous surveys. In some countries, we have 4-6 years of data history, which was used in many price setting and grant design exercises.

In many cases, asking musicians and professional, who are present in the concert, who actually receive (or not) royalty statements, who ask the help of technicians is the main source of information that is not recorded anywhere else. The hard indicators that could measure the progress with the proposed development program can only be produced with this annual survey. Because the survey is made every year in more and more countries, it also offers a comparison of best / worst practices and helps setting realistic aims.

Annual data collection is important, because people’s memory is not limitless, and any information or data that may be important for the Czech stakeholders in 2023 will not be available if it was not collected in 2020, 2021 and 2022.

Analytics Support for Digital SalesIn the world, most recorded music is sold by algorithms, trained on vast datasets using AI and machine learning. Such analytics is increasingly used in radio programming and even in festival and tour design.

The problem of small nation repertoires like the Czech, Hungarian, Slovak repertoires, that the combined repertoire of all local labels is not sufficient to successfully train algorithms. This puts local stakeholders at a huge disadvantage: their own market is increasingly taken

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by foreign algorithms and robots, and they have no resources to protect their market and use the same technology to contest markets.

The founders of the Research Consortium realized that independent actors and small country music export offices cannot rationally plan their promotion efforts, because their sales prospects are based on many unknown factors:

• The (future) availability of new platforms in their key markets• Number of subscribers in their domestic territory and key foreign markets• Strength of repertoire competition in their domestic and key markets• Subscription fee and advertising revenue in the respective markets• National currency exchange rate in platform / distributor functional currencies• In the early stages of market development, minimum licensing requirements distort

the revenues

The combination of these five factors cannot be intuitively guessed and the information is not available to local market players. To make meaningful comparisons, we combined cc 700m royalty statements and selected for in each national territory to the ‘typical’ songs in each month between January 2016 and February 2019. We defined the typical song(s) in a territory as the sound recording that took the median position in number of plays on the Spotify, Deezer and Apple Music, i.e. half of the songs in our database had less, half of them had more plays in the channel..1

1 If Spotify or Apple Music was not present in the market in a period, we treated the median value as zero

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Figure 26: CEEMID streaming indexes

Based on these initial work, we would like to create meaningful tools for concert promoters, labels, publishers, and for SoundCzech itself that can rank contestable markets and market segments based on similarity of taste to Czech repertoire supply, local price level, local repertoire competition and other factors. Because Czech players are too small to gain market intelligence on all 200 music markets of the world, we would like to offer a practical toolset that can focus their efforts, and design marketing budgets for contestable markets.

Working Group On Market Research and Joint Research and Development


This working group is critical, because the current work is started as a preparation for this, and SoundCzech has a deadline on 31 October 2019 to apply for a grant at TACR to follow the work. Endorsements and participation is very important - senior university researchers, founders, managing directors of established labels, publishers, collective management, national organizations. Joint membership with the other working programs is possible, because we want to give methodology to the work of all programs.

Indicators to Measure Progress & Keep Direction in Research and DevelopmentStrategic indicators• Number of participants in the Research Consortium

• Research budget of the Consortium

Impact indicators• Analytics tools are available for publishers and labels to promote their music abroad

• Analytics tools and market research is available for concert and festival promoters to increase their audiences

• Tools available for venue operators to better manage seasonality and capacity

Effect indicators• All other program indicators are calculated, measured and presented for the working

groups working on music education, market building, music export, professionalization, granting, regulation and creative alliances.

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Alliance With Creative IndustriesWe would like to align the interests of the music industry with other creative and cultural industries to have a better impact on economic policy formulation business development in the Czech economy. We would like to improve particularly the relationship with creative and cultural industries that are big commercial users of music, particularly radio and television broadcasting. We would like to see more Czech music being used in Czech regional, local, and national broadcasting.

Program ConsiderationsMost of the considerations mentioned in the 2 chapter Developing The Czech Music Industry, for example, about the 2.2 invisibility of the music sector are almost identical to the problems of the radio, television, film, video games and advertising industries. The music industry will only be more successful, if it finds a joint policy and advocacy platform with these industries. Particularly the film and television industry has a bigger impact on forming the national agenda.

Particularly the development of the composer’s income stream and publishing relies critically on better relationships with the film and television industry. Including them in the Research Consortium may be a first step to understand the similarities. For example, the Czech public broadcasters are facing many similar challenges that record labels and publishers are facing in the global content competition.

Similar work is being undertaken in Poland and Hungary - regional cooperation may benefit the Czech industry, especially because some of the big user creative industries, such as cable re-transmission companies also take a regional approach, often at the expense of the music industry.


Please give your personal example, if the change above would start, what positive impact you would expect to feel on your professional career or on your enterprise / organization? These are just made up examples.

Karolína Pavlova, founder of record label Label s.r.o: Our recordings are never played in Czech radios, so we never get anything from OSA and Intergram, either. I would really like to know a bit more about our Slovak colleagues experience on the introduction of their radio quotas. We have tried everything, but I believe that …., ….. prevents radios to even listen to us.

Jan Svoboda, publisher, Music Publisher s.r.o: We should really try to set up a joint project, just for one film and a soundtrack album with the Audiovisual Fund. Czech film is often very successful internationally, but Czech film producers never take the music very seriously. Better music, a better trailer could really take their films to new audiences, and we would not need to beg them to consider a few thousand euros for the track that will sell their film on YouTube. We could also recommend each other abroad, and get business for each other.

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Finding a Joint Policy Agenda with Creative IndustriesFinding a joint policy agenda with the creative industries can help in achieving goals, and can also improve relationships, that can lead to higher audibility of Czech music, or a mutual understanding on how royalties should catch up with the European average in line with the growth of the Czech economy.

Many countries do have a joint public policy paper on how to develop the creative and cultural industries, and a separate one for each industry, such as the music industry. However, even this is not feasible, it is important to find common topics that may be interesting for them.

• In several CEE countries, royalty payers and music royalty collectors are facing the same, discriminatory tax regimes. If this would change, there would be a higher after-tax revenue that could increase the royalty collection base, for example, in television and radio.

• Creative industries and their stakeholders, such as actors’ trade unions, local radio association, theatres have similar problems with lacking representation in the social dialogue, and special problems with pension.

• The audiovisual industries are suffering from the same illegal, home copying and value transfer problems as the music industry, and they share the interest in a better transposition of the DSM directive and higher home copying compensation.

A dialogue with such industries is essential to align the joint interests, and to make a more elaborate and larger impact advocacy campaign to change public perception and public policies.

There are no specific recommendations here, but many examples can be given from the CEE and Western countries.

Working Group on Creative Alliances


Very experienced labels, publishers, concert promoters, talent managers, festival promoters who have successfully managed ongoing partnerships. Editors of music programs on TV and radio. Managers, directors of film production companies, film producers, TV or radio stations, movies, houses of culture with an undoubted love and interest for music. Business consultants who have a working knowledge of media, broadcasting, film production and music industry enterprises.

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Indicators to Measure Progress & Keep Direction in Creative Alliances

Strategic indicators• Number of non-music partners in the 7 Research Consortium for Market Research,

Collaborative Research & Development

• Joint statements, policy briefs, advocacy activities with film, television, radio, video games, advertising industries.

• Joint projects with televisions, radios, for example, for developing new programs.

Impact indicators• Increasing publishing revenues which are independent from collectively managed (and

potentially publisher re-collected revenues) - should be measured in the annual CEEMID Music Professional Surveys.

• Increasing revenue from the public performance of Czech music in television, cable retransmission and radio [indicators should be measured by OSA & Intergram]

Effect indicators• Number of co-productions with the Czech film or television industry

• Number of songs synched to Czech films and television programmes

• Number of works used in video games

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Better GrantingWe would like to see that grants available for musicians on national, regional and municipal level and grants available for the creative enterprises of the industry are supported with more suitable and more available grants. Because Czech cultural spending is not very low, but very few musicians and music businesses are granted, we would like to initiate a review of the current granting system, a better coordination among different levels of the government, and the introduction of better practices.

Program ConsiderationsThe CEEMID Music Professional Survey 2019 has shown a very low level of grant availability for Czech musicians in comparison with the region. Because of the small sample size, it is difficult to judge suitability, but our data does not support a negative view on suitability.

Figure 27: Musician Grant Availability in the CEE

In Czechia, until the country’s economy catches up with the EU average development level, most regions are available for structural and cohesion grants. The structural programs are often aiming at small- and medium sized enterprises, and technically all organizations of the industry, except for OSA, maybe eligible for grants. Because the music business has an exceptionally strong employment records, especially among low-skilled young people, and it has a strong ability to create a high value added and high tax base, it should be very much supported in these grants (Manyika et al. 2017) . The methodology we use for this

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development program is actually a Dutch method used in preparing grant calls in this framework.


Please give your personal example, if the change above would start, what positive impact you would expect to feel on your professional career or on your enterprise / organization? These are just made up examples.

Karolína Pavlova, singer, The Band: I applied to the Grant A, and I regreted that I won. It turned out that I cannot provide the documents for ….., …., so eventually I gave up on 45% of the sum. However, they gave me …. for …. which I had no idea how to spend. Of course, I could have ‘got’ an invoice for this activity, and could have paid my visual artists instead, but I did not want to cheat.

Jan Svoboda, festival promoter, Festivals s.r.o: I think that people who give grants to regional festivals do not understand the concept of a festival in itself. We are going to a small town, because they do not have the money to build and maintain a concert house, so of course, the local population is small. etc etc.

Granting Needs AssessmentGranting needs assessment and the creation of suitable grant calls is the responsibility of the granting authority. It is, however, the responsibility of music industry stakeholders that they are involved in this process. Because the next programming period for EU funds will start in 2021, it is essential that the music industry is well prepared for this.

Whenever EU funds are used, there are institutional guarantees that in place that the granting goals are made in partnership with the affected organizations and civil society. It is not always the case with national, regional and municipal grants that these procedures are followed, and even in the case of EU grants, the needs assessment may be formal.

• Using a suitable methodology, for example, the one used in the making of this development programme, granting needs, development and learning goals should be professionally collected and presented for the relevant grant planners.

• In the framework of creating this development program, sufficient level of Czech language documentation should be prepared, which can be directly used in granting. In fact, for the continuation of this work, our Consortium is planning to apply for a TACR or EU grant.

The Hungarian granting needs assessment was made in an 8-fields workshop with about 80 professionals in various artistic, technical and managerial roles, followed by an online questionnaire on granting goal priorities, contract forms, available funds and required funds for granting needs with the participation of about 1000 music professionals and entrepreneurs in 2015 (Dániel Antal 2015a).

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Grants for music educationIt would be great if an overall modernization of the music education in the Czech general education system would not be based on a grant but as a general improvement work within the continuous improvement of curriculum. However, the music is very special field and a methodological grant could give a momentum to such activities.

Grants for introducing new music into the classrooms• Grants should help teachers learning new methods, acquiring and overseeing

recording equipment, instruments, rehearsal rooms.

• Grants should help teachers bringing musicians and performances to the classroom, or to take students to concerts and to the backstage to learn about the artistic, technical and managerial aspects of music.

Grants for introducing new pedagogy• Incorporating of popular music, and the learning of a new music pedagogy should be

supported by grants and within the framework of lifelong learning for teachers.

Ex Post AssessmentA very good practice in preparing better grant is the ex post evaluation of existing grants and making corrections to make them more efficient and suitable. Superfluous funding that cannot be used for the granting goal should be reduced, and new elements that can help the grantee better achieving goals should be strengthened. Grant sums should be adjusted to market values, both to make the fulfillment of the granted activity realistic, and to avoid distorting the fragile infant markets.

• In cooperation with the Ministry of Culture, create an ex post evaluation of existing granting schemes, if possible, in the same project as (GR-NA) Granting Needs Assessment.

• Music industry stakeholder’s specialists should be involved in the marco-level ex post assessment of existing structural grants, and highlight the strong potential of the music industry to create jobs, reduce youth unemployment and create a larger tax base than manufacturing or agriculture.

Working Group on Better Music Grants & Sponsoring


Professionals and artists with at least 3-4 successful and not successful grant experience, grant managers, researchers and experts in the field of ex ante and ex post evaluations. It would be very good to involve the Music Fund and the OSA Foundation into this working group. Usually there are similar know-how available around the managers of national and

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regional operational programs of the EU. Foreign experts may be needed, as this is a very special topic.

Indicators to Measure Progress & Keep Direction in Granting

Strategic indicators• Percentage of music professional who received a grant in the last 12 month [see chart

above]

• Percentage of grant income in the income of music professionals

• Number of ex ante and ex post grant evaluations

Impact indicators• Accepted / rejected grant applications per granting agency

• Anonymous survey evaluation of grants [ we will show the baseline data in the final version ]

• Due to ex ante evaluation, the grants are more suitable and more appropriate for the individual development goals of artists and music SMEs, startups.

Effect indicators• Number operational programs for the 2021-2027 period that are suitable for music

enterprises

• Number of music enterprises and professionals who were asked about their development priorities, existing resources and additional needs.

• Number of grants in total subject to quantitative ex post evaluation for the period 2014-2020, including EU-funded, national, regional and municipal grants.

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Better Regulation & Taxation Of MusicMusic Industry Stakeholders would like to see the passage of a Live Events Act that addresses the particular problems of applying laws and lower level regulation for music businesses. Such regulation may take the form of a broader legislation that is not only concerning concerts, festivals, and music recordings, but also the very similar problems of performing arts and sports events. Joining forces with these creative and cultural industries increases the chances of success and can lead to further cooperation on more creative-friendly economic policies, including tax policies.

The Music Industry would like to see a more creative activity friendly tax administration and tax policy, because creative industries have a bigger potential to create jobs and contribute to public expenses than other, more favored industries. This effort goes hand in hand with 8 Alliance With Creative Industries, because broadcasting, advertising, film production, and other creative professions suffer from the same economic policies. In Europe work-related legislation and taxation, similarly to funds for life-long learning and vocational training programs are increasingly managed in a social dialogue between employers, trade unions and the government. The problem of the creative industries is that because of the dominant freelancer and microenterprise structure, they are not well present in this dialogue. Musicians typically do not have a clear employer, and especially young composers and performers do not see the merits of unionization. Supporting professions, such as engineers, stage crew are not represented by anybody.

No wonder that the music industry is usually taxed more than most professions, and there are no clear procedures to avoid double taxation on foreign tours - not even within the EU.

Program ConsiderationsThe live music industry is subject to a vast array of regulation because it is working with dangerous technology, temporary installation and large crowds. Fire, safety, noise, building and technical regulations, as well as certifications and tax administrations affect artists and event promoters, venue operators in a rather special way, and the stakeholders would like to see a legislative act that clarifies such regulation for the music sector and potentially for other performing arts and sports events.

Much of this regulation is national regulation, but a lot of local regulations apply too, which are usually created by less knowledgeable municipal authorities, who sometimes have no experience with live events or festivals at all.

Several countries realized that the live music sector is under a very serious threat. All over the world, in the CEE region, the rest of Europe and globally there the vast majority of the available stages, clubs closed down in the last 15 years, because the increasing regulatory burden and the increasing investment needs into modern stage technology made smaller venues (under 1000 audience capacity) is not viable. The United Kingdom was the first country that mobilized enough grassroots support, and eventually cross-party support in the legislation to create a Small Venues Act. (See for example: (Music Venues Trust 2015;

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Larney 2015)) In the Czech Republic, a similar initiative would be necessary in the coming years with a slightly similar focus. In the CEE region, due to the weak infrastructure, festivals operating on a temporary infrastructure are equally important as small- and medium sized venues.

The revision of the EU VAT system is under review, and this is an excellent opportunity for music stakeholders to make an economic impact analysis of their situation and present their ideas via the social dialogue in Czechia and on the EU level, too (European Commission 2017; Commission 2018).



Karolena Pavlova, chairperson of Gigs Associations: We are lobbying for a Live Music Act for years, but I had little knowledge about the experience in other countries. I believe that learning from the UK experience was really help us get focused in our work.

Jan Svoboda, talent managers, Artist Management s.r.o: I have given up on the taxes that we paid on our last tour, The Devils in the US. I know that there is a treaty between Czechia and the U.S. on this topic, but we could not find anybody at the tax authority who would have been able to help which form to declare. There is simply too much paperwork for each show, and we end up paying twice. I am also not convinced that our bands receive their composer royalties next year from OSA. These things just do not work very well in Czehcia yet. I am sure that if we had at least some sample forms, we could get a lot more money back for our artists and our company and I would appreciate any help.

Digital Single Market DirectiveThe Digital Single Market Directive is the single most important legislation that will affect the composers’, producers’ and performers’ royalties in the next decade (“Directive (EU) 2019/790 of the European Parliament and the Council of 17 April 2019 on Copyright and Related Rights in the Digital Single Market and Amending Directives 96/9/EC and 2001/29/EC” 2019).

The DSM Directive was also the most fought ever legislation in the field, because large tech companies, particularly Google, financed an unprecedented PR campaign and gave support to privacy NGOs to fight against increasing royalties from media platforms.

This fight is now in Prague, where the directive must be transposed into national law. It is very problematic that in Czechia through the Pirate Party there is a popular and populist opposition against paying artists’ royalties. Therefore, Educating the Public - Advocacy Program element and particularly a Dialogue between the Czech music sector workers, fans and the Pirate Party is particularly pressing. (see 3.5, 3.5.1)

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Calculating The Value Transfer To Media PlatformsMeasuring the Value Transfer To Media Platforms 7.4.4 is a necessary first step to calculate the value at stake and inform the legislation and the public about how much money Czech composers, producers and performers are loosing every year because of this regulatory loophole. Tech companies will create arguments that will claim that the loss is negligible, however, in Hungary and Croatia we have shown that several million euros, about 15-25% of the total copyright and neighboring right royalties are at stake.

Needless to say that the window of opportunity is closing every month, and any bad legislative solution will cap the income of all Czech artists, labels and publishers for at least a decade.

Legislative Proposals to Close the Value GapVarious international organizations, for example, GESAC are offering a lot of PR and legislative training for this topic, but local evidence and a deep knowledge of the Czech legal system is necessary to make good proposals.

Needless to say that that tech companies have already a very strong lobby in place and they have excellent links to piracy campaigners and Pirates. They usually claim that the DSM Directive support the needs of ‘majors’, and ‘big business’, although in Czechia it supports only freelancers and microenterprises.

Live Events ActMany EU-level, national and local regulation applies to music businesses. The festival organizers have been lobbying for a separate act of parliament for some time. This may be desirable because it would draw attention to music and increase the public reputation of the music industry. Naturally, removing the regulatory barriers and problems in any form would provide similar benefits, and generally the stakeholders should not concentrate on the legislative form but the content of the proposed changes.

International ExperienceInternational Experiences (RG1-1). The United Kingdom pioneered similar legislative proposal with the creation of the cross-party Small Venues Act.

Factfinding Tour In CzechiaFactfinding guide for Czech Venues (RG2-1). It seems that nobody has a comprehensive view on the regulatory problems faced by festivals and various music clubs, culture homes, restaurants with a stage and other small or medium sized venues. These venues often do not have the necessary professional staff.

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• We encourage a tour of facilities with inspectors of relevant authorities, and senior technical and managerial staff on at least 20 festival sites, culture homes, café venues, music clubs, and collecting all actual regulatory problems from zoning, crowd management, fire, safety, nose, and other aspects, and list all the unusual parameters for music venues, and all applying regulations (in case of municipal or lower level regulation, also higher level regulation that empowers local authorities to set rules.)

• Based on this factfinding mission a simple technical survey should be created and sent to all known sites, venues, venue operators, and potential other venues, such as culture homes, even if they have not staged concert in recent years.

Plugging In Small VenuesRG4 Problem mapping, regulatory proposals for small- and medium sized venues. After considering international experience and actual, hard facts based on case studies, the industry should create a full problem map, i.e. considering every currently functioning and potentially renewable venues, including all problems of crowd management, fire and safety regulation problems, noise and zoning, potential logistics/transport issues.

• Create a database of all venues, with all necessary regulatory and investment interventions.

• Provide venue managers, who often do not have music professionals present (for example, in Culture Houses) with a practical guide on a) giving information on their technical parameters to bands b) receiving information or best value/for/money technical scenarios c) guidance on regulatory compliance d) model contracts to hire bands, stage/light/sound technicians. Standardization of model contracts, data about venues, riders can help designing interventions, re-open venues, prevent closures, and it significantly reduces the costs and risks of domestic touring.

Taxes & Tax AdministrationMusicians and their technical and managerial support teams are facing similar problems in tax administration as other creative professions on one hand, and when they are touring, similar problems than ‘travelling professions’, such as stewardesses, pilots, train and boat crews. They are serving their audiences under various tax and social security regulations, and because of their low income, they often struggle to take advantage of double taxation avoidance treaties.

The CEE economic policies and tax rules are generally far more favorable for manufacturing and agricultural activities than for creative services. The Slovak Music Industry Report has shown that touring acts, compared to car manufacturers in the country are subject to proportionally up to 100x more tax burden on 10,000 euro turnover. The Hungarian Music Industry Report also highlighted the unfavorable tax administration as the biggest obstacle to music industry growth.

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Reducing Double TaxationRG3-1 Reducing Double Taxation. Through the participation in EMES, SoundCzech should import know-how on double taxation issues, and find local tax professional support to translate these into actionable recommendations for legislation.

Changing VAT regulationRG3-2 More creative friendly VAT administration and brackets in Czechia. Similarly to the Slovak and Hungarian Economic Impact Assessments, a Czech impact assessment should be made within the Czech Music Industry Report that shows the disadvantageous tax treatment of the Czech music sector.

The first steps of the general overhaul of the 25-years old EU VAT system are already under way, and the Hungarian, Slovak stakeholders have created economic impact assessments years ago. This problem is more serious in Hungary, Romania, Croatia and Slovakia, but it should not be neglected in Czechia either. The effect of unfavourable taxation is likely to be greater than the lack of good grants.

Indicators to Measure Progress & Keep Direction in Regulation

Strategic indicators• Legislative proposals adopted by the Czech legislation

• Number of municipalities following local regulatory guidelines

Impact indicators• Number of small venues re-plugged to the live music infrastructure [indicator could be

created from the OSA licensing database]

• Less (double) tax paid on foreign tours

• Less effective tax burden on music industry enterprises

• An empirically sound, ‘shadow claim’ is calculated for media platforms such as YouTube, and it is effectively advocated during the transposition of the DSM directive

Effect indicators• Creation of a unified position on the VAT directive

• Creation of a detailed legislative proposal on the Live Music Act

• Creation a working program for small venues

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MethodologyCEEMID Music Professional SurveyThe data collection period was April-July, longer than originally planned, because in some countries, the data collection by local partners were not well prepared on time. In Czechia, the data collection was very late and the total replies collected was significantly lower than in Austria, Hungary, Slovakia, where the author’s societies were involved in the data collection, and asked their members to fill out the questionnaire.

The master questionnaire was provided to SoundCzech’s translator in English and Slovak language. Unfortunately, there was no significant testing of the Czech survey, and this may have resulted in lower completion rates than in Slovakia, for example, where the survey was extensively tested by stakeholders and musicians.

In Czechia, almost all responses arrived after the final deadline to fill out the questionnaire, in July and August 2019. OSA appears to have sent out the questionnaire to a very limited number of artists, because the answers received from their entry link (17) is only a fraction received from similar Austrian, Hungarian, Slovak, Slovenian societies. SAI reached out to 37, and SoundCzech to 22 music professionals. Compared to the Austrian, Hungarian, Slovak samples, which contain 400-700 answers, the Czech subsample is rather limited.

Various Czech stakeholders, including SoundCzech itself, Intergram, SAI and smaller partners distributed the questionnaire with a short background information in Czech language and extensive linked English background information and data protection guidance.

The information sent out by SoundCzech and its partners made it clear to the respondents that no data will be provided to a third party, neither to SoundCzech or anybody else.

Music professionals can decide to fill out the survey anonymously or semi-anonymously. In either case, the individual answer will never be shared with anybody except with the respondent. Any statistical reports created for collective management societies, granting agencies and music export offices will not contain individual answers or any answer elements that could identify the music professional personally.

The problems with the data collection are partly understandable. In Croatia this was the second data collection, in Slovakia the third, and in Hungary the 6th. The trust in the survey and the trust among research partners is higher in these countries, and this results in hundreds of questionnaires filled out each year. The first Czech collection was less successful in the number of responses collected than the first Austrian, Bulgarian and Slovenian collection, but more successful than the Armenian, Estonian and Serbian, and roughly equally successful to the Lithuanian collection. The credibility of such a research can be improved year by year, partly with more focus on quality (test surveys, translation checks) and partly by extending the partners who distribute the survey.

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For the exploitation of the information, SoundCzech, state51 and CEEMID formed a research consortium. In the Phase I of the project, SoundCzech, like all research partners, receives statistical summaries, that were created

a) for the preparation of a stakeholder workshop on 8-9 October, 2019 - this was reduced to various reasons to less than one day, hence the written commenting periods

b) for this Document and

c) the originally planned final presentation of the Phase I of the project, which due to the lateness became an interim presentation on Nouvelle Prague on 8 November, 2019.

The Phase II of the Project, subject to a grant application for Creative Europe, would create analytics and predictive analysis for the semi-anonymous answers, which will be analysed against the state51 anonymized streaming dataset.

We used an ex ante development program evaluation methodology, the 8-fields method, to get a 360-degree view on the desired changes in the Czech music business and Czech music life. SoundCzech made an effort to organize a workshop with the consultant where all interested parties

• We invited professionals from the live, publishing/composer, recording/performer, and education functions of music.

• We made sure that classical and popular genres were present.

• We made efforts to encourage female professionals to participate and have a gender-balanced view.

• We made sure that artistic (musicians, DJs), technical (sound, IT, etc) and managerial (tours, labels, publishers) were present.

• We invited all national stakeholders to the event.

• Unfortunately, the collective management societies and Platforma accepted the invitation but could not participate in the workshop. We asked their input in email.

The workshop was facilitated by Daniel Antal, CFA, who has many years of experience in ex ante evaluations, music development programs, music pricing and legislative proposals. He collected structured proposals from the participants that were recorded on short-hand memo cards and transcribed into a memo by Ms. Brenda Dobrovicsova in the English language. These inputs were edited into a first English draft by Daniel Antal and circulated among all participants.

8-fields Music Development WorkshopThe workshop was organized by SoundCzech following the instructions of the Consultant. Because of organizational difficulties, the workshop was postponed by 6 weeks, and most of the recommendations of the Consultant how to administer the workshop were not strictly

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followed. However, the location of the workshop was very suitable, and generally the workshop, with the following limitations, was successful.

The significant changes from the planned workshop, which was also contracted, were the following:

The original workshop was supposed to be a 2-day workshop, allowing enough time for most participants to record the problems (first 4 steps) and on the second they with a limited number of stakeholders to design indicators. Instead of the week 26-31 August, October, 8-9 October, then eventually after a further change, 9-10 October was selected. The first day, 9 October coincided with the OSA 100 anniversary gala, and the collective management societies were not present. The 2nd day was cancelled by SoundCzech.

On the first day of the workshop, only very limited amount of documentation was made. The reason for this was that while the Consultant suggested 3-4 pre-trained co-moderators with a bilingual working capacity in Czech and English, only limited help was available. Compared to the sample documentation of the similar Hungarian workshop, which resulted in more than 10 pages of raw memorandum, sound recordings, and many table, only a short, English language table was prepared by SoundCzech. Therefore, the workshop was moderated by the Consultant alone in the English language, which, on the one hand, made the workshop somewhat faster, and on the other hand, made participation more difficult for some stakeholders. Nevertheless, the English language skills of the people present were generally good, and the participants were very constructive and helped at all tables colleagues who were not confident in speaking English.

To compensate for the lost 2nd day, the absence of the collective management societites, and limited documentation, it was agreed on 10 October between SoundCzech and the Consultant to add a one-week written consultation round, based on a filled up text that

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contains examples and elements based on the Hungarian workshop documentation (Dániel Antal 2015a). The Consultant offered to hire a local assistant to call participants and individually help with emails and calls to get structured feedback, comments from the participants, but this was rejected by SoundCzech who preferred to do this part of the work without the Consultant.

The aim of the written consultation part was to clarify exactly what changes the stakeholders in various artistic, technical and managerial roles expect in their own professional environment, i.e. in their own freelance or microentrepreneurial working situation from the recommended changes. The other aim of this round was to identify suitable indicators and data sources to measure the change. It was also expected that some participants, especially those who found the workshop very useful, will give testimonies for the grant application necessary for the Phase II of the project.

Because the Consultant did not receive any feedback, expectations, comments, and data sources, or indicators, the Consultant included proposed indicators, whenever possible, with starting indicator values in the final version of the documentation, which is also part of the Final Study.

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https://www.mckinsey.com/~/media/McKinsey/Global%20Themes/Future%20of%20Organizations/What%20the%20future%20of%20work%20will%20mean%20for%20jobs%20skills%20and%20wages/MGI-Jobs-Lost-Jobs-Gained-Report-December-6-2017.ashx



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