The Hot Seat: Bob Aird, MD, Universal Music Publishing Group, Australia

01 August 2011

by Lars Brandle

Australia Music publishers have gone some way to casting off that dusty image of the industry’s bankers. They’re more proactive in pursing new talent. How so?

Publishers are in constant contact with managers, lawyers and venues, and they’re trawling the Internet in search of emerging writers and bands to develop to a level where they can be presented to labels and managers. Publishers traditionally didn’t have much profile in consumer-land so there could be a dusty image in the outside world, but definitely not from within the music and creative industries. Music publishers control some powerful rights on behalf of songwriters and they’re the engine room of the music industry. Smart, experienced label A&R staff know this and have always regarded publishers as satellite A&R departments and the go-to operators when looking for that hit song. As do film and TV producers, games developers, advertising agencies and anyone needing music for their productions. That’s what it’s all about... the songs.

What are the biggest issues facing Australian publishers today?

There is no doubt that piracy and illegal file- sharing continues to be the major issue for the industry, although some excellent news has just come out of the US following considerable discussion, the major US ISPs have agreed with the music and film industries to install a system of copyright alerts which highlights non-copyright works and directs the consumer away from piracy and towards legitimate streaming and downloads operators. Rights-holders around the world can take heart from this. Practically everything we do in our leisure time involves music. And all this music has to be correctly licensed at a fair fee, which can sometimes be an issue.

Is there money out there that songwriters aren’t getting their hands on?

The most important role of the music publisher is to ensure that songwriters are correctly and promptly compensated for their work. Of course there is money out there that song writers and publishers are not getting their hands on, many millions of dollars, and that’s due to illegal file sharing and piracy. It goes without saying that the music industry can’t keep investing in new talent if it cannot get a fair return for its investment. Look at Spain where there is a very high piracy rate and the consequence is that there was not one new local artist on the Spanish singles chart last year.

Although the record business has been banging the drum for a long time, do you think the Government is truly aware of the role of music publishing and songwriting?

They’re very much aware. Music publishers via APRA, AMCOS and AMPAL have a very positive relationship with Government and are in regular contact with Attorney Generals, Arts and Communications departments on issues relevant to songwriters and publishers. Some current issues are the value of music creators’ rights particularly in the digital world, addressing online copyright theft via an ISP Code of Practice, and the economic value of live music. We are also involved in meeting with Federal and State MPs and departmental staff supporting the message that Music+Rights = Respect. The APRA Song Summit which is co-sponsored by the NSW Government attracts plenty of attention.

Sync has been the buzz-word in publishing circles for some years now. Where are the big areas of growth for music publishers?

Yes, sync has become a major marketing and promotional tool and a solid revenue stream which has returned to pre-GFC levels. It’s worth noting that publishers secure many sync licences, locally and internationally, on tracks which are not released, which highlights the fact that publishers can generate income for songwriters even though they may not be getting any interest from labels. Publishers have five main sources of revenue: mechanicals, performing, sync, digital and print. Predictably, mechanical revenues for the industry are decreasing but I can happily say that for Universal Music Publishing Australia all other sources are on the increase. APRA recently reported a 7% increase in payments to members, and although digital has slowed a little it still shows year-by-year increases.

And the weakest?

Well, what’s really annoying me today is the devaluing of music by people in the industry who should know better. Music is being licensed for well-under its real value by short-sighted people for a quick buck.