The Lion city international music market: A descriptive and analytical report on the legal,

social, political, cultural and economic requirements of exporting musical content of

Australian emerging artists to Singapore.

A Class Presentationin Partial Fulfilment of the Requirements in

BMI205 – International Music Business

Presented toPenny Weber, NMIT Lecturer

Presented byBenjamin Noynay, NMIT Student

17 April 2013

Coverage of the Report

1. Introduction: Why it’s a good idea to explore international music market especially for emerging artists?

2. What is the process of direct signing to an international label and the associated possible risks?

3. What are the legal, social, political, cultural and economic requirements of exporting musical content of Australian emerging artists to Singapore?

4. What specific attributes Australian emerging artists need to achieve success in Singapore?

5. Conclusion and Recommendation

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SINGAPOREThe Lion City

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Singapura is one of the smallest breeds of cats,

noted for its large eyes and

ears, brown ticked coat and

blunt tail.

GENERAL FACTS ABOUT SINGAPORE

The Republic of Singapore sits 137 kilometres north of the equator, separated from Malaysia by the Strait of Johor and from Indonesia by the Strait of Singapore.

Singapore has a total area of approximately 714 square kilometres.

In 2011, the total population of Singapore is 5.18 million. This figure includes approximately 1.4 million foreigners.

The three major ethnic groups within the local community are 74% Chinese, 13% Malay and 9% Indians.

Singapore has four official languages: Chinese (Mandarin), English, Malay and Tamil. English is the language of administration and commerce and is widely spoken across the island (www.cia.gov).

Why it’s a good idea to explore international music market?

The Internet, transport technology, international trade agreements, and the spread of free-market trade policies have all contributed to the opening of borders to trade and to the speed and agility with which emerging artists can get their music into foreign hands (Lathrop, 2007).

Some of the most evident benefits include larger audiences, increased earnings, economies of scale, decreased risk through diversification, and competitive advantage (Lathrop, 2007).

Signing to an international label:What are the possible risks?

“To have this ambition is understandable but bringing it to a reality is extraordinarily difficult” (Simpson & Munro, 2012, p.663).

The process may be simple but it definitely requires a lot of work and dedication. The first step is for the artists to have their music ready as a product to be presented to the international record label. This step involves a lot of work by a lot of people aside from the artists themselves. Success in an international market is a team effort (Simpson & Munro, 2012).

More team members are required to finalise the deal. The lawyer, the manager and the agent have their own specific tasks in order to get the best international deal for the artists. Needless to say, this will cost the artists some initial capital (Simpson & Munro, 2012).

The most important risk to consider is to answer a very scary question: “what if our music doesn’t sell in Singapore?”

The possibility of being shelved and completely forgotten is not a far-fetched concern especially in a foreign market. This is the main reason why Australian emerging artists and their team must do their ‘homework’ in getting the necessary business intelligence about how to do business in Singapore (Lathrop, 2007).

Signing to an international label:What are the possible risks?

LEGAL REQUIREMENTSSOCIAL REQUIREMENTSPOLITICAL REQUIREMENTSCULTURAL REQUIREMENTSECONOMIC REQUIREMENTS

Requirements to export Australian musical content

to Singapore.

LEGAL REQUIREMENTS

All Australian businesses in Singapore are strictly governed by the Singapore-Australia Free Trade Agreement (SAFTA) which entered into force on 28 July 2003.

SAFTA has made it easier for Australian exporters to access and do business in the Singapore market.

SAFTA also offers a more open and predictable business environment across a range of areas, including business travel, competition policy, customs procedures, e-commerce, government procurement, intellectual property, technical standards and telecommunications regulation (www.dfat.gov.au).

According to the Media Development Authority, Singapore has the following organisations to look after the interests of local and foreign artists:

Record Industry Association of Singapore (RIAS)

Composers and Authors Society of Singapore (COMPASS)

Intellectual Property Office of Singapore (IPOS)

Music Publishers (Singapore) Ltd (MPS)

Recording Industry Performance Singapore Pte Ltd (RIPS)

REFERENCE: www.mda.gov.sg

LEGAL REQUIREMENTS (cont’d.)

Social Requirements Relationship-building is a very important aspect to doing

business and is best achieved outside of the workplace, usually during lunch or dinner.

It is important to exchange business cards upon introduction.

Please understand the structure of Chinese, Malay and Indian names. Many Singaporeans adopt a European name. It is important to use title plus family name upon introduction. The European (or given) name is to be applied only once you are confident that a relationship has developed.

REFERENCE: www.austrade.gov.au

Social Requirements (cont’d.) For men it is common practice to wear short

sleeves and open neck shirts. However, Australian visitors on a first call should consider wearing long sleeve shirts and tie. A jacket is considered very formal.

For women, a formal blouse and skirt is the usual attire, and stockings are optional.

REFERENCE: www.austrade.gov.au

Political Requirements

Singapore is a republic, with a parliamentary system of government and an elected President as the Head of State.

The Singapore Parliament has a single house, which is elected by general election every five years. The Parliament and the President of Singapore are known as the Legislature.

REFERENCE: www.cia.gov

Political Requirements (cont’d.)

The Twelfth Parliament has 99 Members of Parliament (MP), consisting of 87 elected MPs, three non-constituency MPs and nine nominated MPs who represent various professional and business sectors.

As a result of changes announced by Prime Minister Lee on 27 May 2009, opposition MPs are guaranteed a minimum of nine seats in parliament.

The judiciary administers the law independently of the Executive.

REFERENCE: www.cia.gov

Cultural Requirements

Singapore was a part of British Malaya for many centuries. It was ruled by the Sultanate of Johor.

After World War 2, Singapore became an independent nation and a republic, which it remains today.

Singaporean culture is best described as a melting pot of mainly Chinese, Indian, British, and Malay cultures, a reflection of its immigrant history.

REFERENCE: www.cia.gov

Cultural Requirements (cont’d.)

Singapore, as a country, is socially conservative.

The system of meritocracy in Singapore ensures that the best and brightest, regardless of race, religion and socio-economic backgrounds are encouraged to develop to their fullest potential.

Everyone has access to education, which equips them with skills and knowledge to earn a better living.

REFERENCE: www.cia.gov

Economic Requirements

Singapore is an important hub for the South-East Asian region.

It has traditionally had a dynamic economy, with strong service and manufacturing sectors, and one of the highest per capita gross domestic products (GDP) in the world.

Its airport, port and road systems are among the best in the world. Singapore's economy has always depended on international trade.

REFERENCE: www.dfat.gov.au

Economic Requirements (cont’d.)

Singapore's small population and dependence on external markets and suppliers has pushed it towards economic openness, free trade and free markets. This, as well as government policies that foster economic development, have been key factors in Singapore's historically strong economic performance.

Singapore's highly globalised economy grew by 4.9 per cent in 2011. This followed growth of 14.5 per cent in 2010 and a contraction of 0.8 per cent in 2009 in line with global economic uncertainties.

The Singapore Government expects the economy to grow by between 1.5 and 2.5 per cent in 2012.

REFERENCE: www.dfat.gov.au

Specific attributes that Australian emerging artists need to achieve success in Singapore.

Simpson and Munro (2012) seriously warn Australian emerging artists that there is no easy recipe for overseas success whether in Singapore or anywhere else. They said that:

“Success is not just a question of talent. Many artists are enormously gifted but don’t have sufficient faith in that talent. Others can’t bear the weight of success and the darkness of frequent disappointment. Some simply can’t cope with the difficulty of maintaining strong interpersonal relationship in the face of the loneliness and isolation that is inherent in every artist who is stretching out to establish an international reputation” (Simpson & Munro, 2012, p. 663).

One of the most important attributes that emerging artists must possess in order to succeed in a foreign market is a healthy ego to realise that they can’t do it on their own and that if they have achieved success, they haven’t done it on their own.

It is a very important thing to understand that they are part of a team of talented people, each of whom deserves and needs respect and recognition of their role in the overall success (Simpson & Munro, 2012).

Specific attributes that Australian emerging artists need to achieve success in Singapore.

CONCLUSION One of the most essential aspects of success in the music

industry is marketing and promoting the talent. When looking to establish an overseas market such as Singapore, finding the appropriate way to market an act is quite difficult. It’s hard to get noticed by decision-makers and it’s even harder to get noticed by the public. Simpson and Munro (2012) again warn:

“What works in Australia, with all the benefits of playing on your own home ground, doesn’t necessarily work when playing in New York or London. Perhaps the biggest issue is whether there is a market at all, for what you have to offer. What is it that is different from what is already locally available in the overseas territory?” (Simpson & Munro, 2012, p.664).

RECOMMENDATION

Therefore, after giving some considerations into the legal, social, political, cultural and economic requirements of Singapore as an international music market, the author recommends that the artists must be prepared to understand and comply with all of these requirements.

Finally, the artists must be prepared to relocate to Singapore when the time comes. It is very hard to run an international career by remote control. If the artists want to succeed in Singapore, they must be in Singapore.

REFERENCESBooks: Lathrop, T 2007, This business of global music marketing, Billboard Books, New York. Simpson, S & Munro, J 2012, Music business, 4th edn Omnibus Press, London.  Yew, L K 1999, The Singapore story: Memoirs of Lee Kuan Yew, Simon & Schuster (Asia) Pte Ltd, Singapore.  

Websites: Australian Trade Commission 2013, Doing business in Singapore, accessed 15 April 2013,

<http://www.austrade.gov.au/export/export-markets/countries/singapore/doing-business.html>. Central Intelligence Agency 2013, The World Factbook-Singapore, accessed 15 April 2013,

<https://www.cia.gov/library/publications/the-world-factbook/geos/sn.html>. Department of Foreign Affairs and Trade 2013, Singapore-Australia Free Trade Agreement (SAFTA),

accessed 15 April 2013, <http://www.dfat.gov.au/geo/singapore/singapore_country_brief.html>. Media Development Authority, Industry overview, accessed 15 April 2013,

<http://www.mda.gov.sg/industry/music/industry_overview/pages/industry_overview.aspx>.