Music cash hits right note

Date: 02/05/02

By Peter Chapman

CULTURE Commissioner Viviane Reding is planning to offer an EU cash boost to the flagging regional music sector with support for Euro-wide tours.

Reding says she wants to plug a gap in the system of subsidies that has helped film producers and other European 'culture' - but largely ignored small regional music acts.

Her spokesman Christophe Forax said a pilot scheme, to be launched next year, would probably have a budget in the 'low millions of euro'.

Spending would be less than similar schemes under the multi-million euro Media and Culture 2000 programmes because the EU's musicians had been more successful than film-makers at breaking through to a wider audience.

Many European acts, mainly backed by the major record companies, have shrugged off competition from North Americans such as Britney Spears and Celine Dion to dominate the charts.

Statistics from the International Federation of the Phonographic Industry show that two-thirds of total European music sales come from EU-based acts. But independent record companies say many acts are signed with major labels that put their financial muscle behind the few who make the most money.

For the rest, social factors such as language and financial constraints, including complex tax rules, mean it is a massive struggle to gain popularity outside their immediate locality.

Take the independent Sain label, for example, based in Llandwrog, North Wales: most of its acts perform in Welsh and, although a few have made it to the big time, such as rock band Catatonia, former chorister Aled Jones and opera baritone Bryn Terfel, it was only after they recorded in English.

The vast majority of its artists are unknown outside the Welsh-speaking areas of the country. Spokeswoman Menna Medi said: 'We get very limited help through the Welsh Arts Council and would welcome backing from the EU.'

Forax said such help 'has to be defined, together with the Parliament, but for example we could have support for European tours for acts supported by small music companies. We could also have support for export of their products and training.'

The Commission's programme will be accompanied by efforts to boostthe role of the European Investment Bank in the music sector.

The Luxembourg-based institution has a €600 million budget line for information society and audiovisual projects through its €15 billion 'Innovation 2000 Initiative'.

But so far the bank has made few inroads in the music sector. Industry experts say the bank's reluctance to take part in projects worth less than €25 million was a key barrier to small local players who could benefit from a far lower cash injection.

Forax said the Commission was organising a meeting before the summer break with the EIB and 'music people' to try and bridge the gap.

Philippe Kern, secretary-general of the Independent Music Companies Association - which campaigns for small record companies - welcomed the moves: 'One of the reasons we set up was because everything in the industry is not so rosy.'

European Commissioner for Culture, Viviane Reding, is planning to offer an EU cash boost to the flagging regional music sector with support for Europe-wide tours.