1. Welcome to Moshito ‘05

2. Moshito ‘05 Realising the Potential of the Economic Benefits of the SA Music Industry – A Case for SA Music Inc.

3. “I think I should have no other mortal wants, if I could always have plenty of music. It seems to infuse strength into my limbs and ideas into my brain. Life seems to go on without effort, when I am filled with music.” George Eliot English novelist (1819 – 1880)

4. Areas to Cover The battle of Two Worlds Economic Performance SAMICI – Incorporating SA Music

5. SA Music Inc. The Battle of the Two Worlds

6. The Battle Field Older Generation Nationalism Western Influences Traditional Foreign Content Younger Generation Local Content Contemporary and futuristic Regionalism & Globalisation African heritage & identity Globalisation

7. The Battles To Fight – Mapping the Landscape Competitors Customers Complementors Suppliers SA Music Inc.

8. CustomersCustomers Key Music Consuming Markets –Americas, Japan & Europe Combined potential of over 90% of world music consumption –For the picking Parts of West and East Africa –Combined potential spending power of –The Anglophone world Power shift –Buying habits (where and when) –Consumption on demand –Younger people making purchase decisions –SA consumer still fairly tolerant –Best quality at the lowest price (on the rise)

9. CompetitionCompetition The battle for market share –Recorded product –Airplay Major music export markets –United States & United Kingdom A [political] boundary-less economy Lessons from the EU – breaking the national boundaries in collective administration of copyright

10. SuppliersSuppliers The challenge of vertical integration –Equipment + Content + Distribution –Globalisation + e-space An opportunity for smaller and highly specialised suppliers. Emergence of new supply chains

11. ComplementorsComplementors Emergence of new alliances and coalitions –Coalition on Cultural Diversity –The Government to Government bilateral agreements French-SA; Greece-SA Technology providers NEPAD processes The healthy economy

12. Economic Performance The Radar Screen

13. ProvisoProviso The overriding challenge is the lack of scientifically or economically researched data.

14. Must Deliver on… Job Creation Exports / International Trade Value Added (GDP growth)

15. The South African Music Industry Cooperation Initiative (SAMICI) Unleashing the Economic Potential of SA Music Inc.

16. The Rationale Under performance on potential Fragmentation A need for a common vision The imperative of a concerted effort The Cross roads –Declining sales on recorded product worldwide –General Increase in music consumption –An opportunity to change direction

17. A Closer Look: An Analysis of the Industry Strengths Skills and expertise Quality products and talent Better developed industry Strong growth in sales of locally produced music Globally competitive copyright admin. Weaknesses Poorly developed organisational framework Silo approach No coherent economic data Lack of an industry-wide strategy Disproportionate influence by non-SA interests Opportunities Strong economy SA standing in African and World trade discussions Cooperation with ICASA in establishing optimum quotas for local content. Public-Private partnerships Threats Physical product and online piracy Legislative environment Bandwidth Transmission/ connectivity costs

18. Mobilisation for establishment of other structures The Process On-going open dialogue and communication Cooperation with DAC and ICASA Identification of Key Themes => Establishment of Moshito Decision to formalise: Steering Committee Export Council Association of Independent Labels Composers Association of South Africa (CASA)

19. Steering Committee Nick Motsatse- SAMRO Tale Motsepe- DAC Sipho Sithole- Gallo Music Group Mbongeni Ndlovu- MUSA Karl Gostner- NAB Rosie Katz- MIDI Trust Roshnie Munsamy- SAMPA Sarona Malope- Zakheni Trust Pfanani Lishivha- ICASA

20. Work In Progress Inputs are welcome through: Working Sessions open to industry members. –Dates will be posted on Moshito website Written comments to samici@samro.org.za