GLYNIS O’HARA on some serious problems facing the umbrella body of the South African music industry
THE umbrella body of the music industry, which pursues matters of mutual interest like piracy and payola as well as running the annual South African Music Awards, is in “a state of shambles” according to a highly placed industry source.
With the last annual general meeting, held on April 21, unable to pass the year’s financial accounts, and thus unable to elect a new executive, and the Johannesburg office without a general manager, the Association of the South African Music Industry (Asami) is not looking good, according to some.
Others say the problems have been grossly exaggerated. Guy Henderson, last year’s Asami chairman, said Asami was far from disarray and that “there will always be industry issues. Maybe there were a few more this year. I don’t see that this is an important story.”
“It’s a storm in a teacup,” says Eric Frisch of Mob Music, who was on last year’s executive committee.” There’s nothing wrong with Asami and we will handle what we have to internally.”
But, said the source: “It is a matter of public interest that this gets sorted out, because the public pays for the music and this body is supposed to look after everybody’s interests.”
For example, he said the only way to compete with piracy (one of the major concerns of Asami and they’ve spent a great deal of time and money on the battle) was for the cost of music to come down. One of the ways to do this was to lobby for ad valorem (luxury) tax on local product to be eliminated. Another route was to lobby for a blank tape levy to compensate music companies for piracy.
Besides payola, there was the issue of “pay for play,” he said. Currently, only composers get a fee every time their song is broadcast, not the performers or producers. “It’s hugely iniquitous,” said the source. “It’s obscene in the context of the fact that Radio Highveld sold for R325- million, which is money paid for delivering an audience to advertisers. And they do that via the music.”
Asami now has “a dramatic constitutional crisis,” he said, “and we expect urgent action”.
The AGM failed to pass its financial accounts after questions were asked over R100 000 given to artist/producer Chicco to fight cassette piracy in poorer areas. With no details of this operation forthcoming, the accounts were not put to the vote and a new executive was not voted in.
But, says Henderson, the account had been fully audited, the operation had been explained and Asami was putting forward another explanation, in writing, to BMG, the company that raised the objections.
“In the course of various executive committee meetings, those amounts were discussed,” he said. “It’s strange that three months later BMG is asking questions.” BMG declined to comment.
“The accounts could have been passed by virtue of the fact that we had a majority,” said Henderson. “But we chose to wait, give BMG an explanation and hold another AGM in a few weeks. The issue is really whether that money should have been spent or not. In the end, the company that disagrees may have to make a harsh decision …”
Chicco’s anti-piracy contribution was “over now anyway – it was only for a short period. That operation is going to be integrated into a new anti-piracy company we’ll be using, called MS Services.” The company is run by Mike Snow, already conducting anti-piracy work for Asami.
Frisch said he could not understand the objections raised, as piracy was a huge problem. “The executive tries to do something about it – and Keith Lister (BMG) is anti. There’s nothing untoward happening, there’s no money missing. There is no problem. It’s a lot of nit-picking and it’s not good for the industry.”
Asami has also had no general manager since Willem Groenewald resigned about four weeks ago. “So effectively five employees are sitting around with no head and no direction,” said the source.
But Henderson replied he and vice chairman Harry Voerman of Polygram were running Asami until a new appointment was made, probably within the next few weeks.
Other problems facing Asami – and the music industry throughout the world – include “boot sales” and the implications of the Internet.
A “boot sale” is just that – someone in a record company selling CDs and cassettes from the boot of a car, bypassing proper accounting, and thus eliminating payments to people like the artists, producers, publishers, the recording studio, and, ironically, the 14c anti-piracy levy.
A lot of Asami’s important work had ground to a complete halt in the current climate, said another source. “Things like addressing the problem of how to treat intellectual property have fallen by the wayside. Also, music is not recognised as a trade item by the government, so we can’t get state subsidies to establish a national booth.” Countries like Jamaica had “wonderful” national booths at the annual Midem fair at Cannes, he said, but not South Africa.
“Its importance was proved when Gallo sponsored their own company stand there in 1995 and their artists – like Lucky Dube and Mahlathini – are still touring the world.”