New report for the European Commission calls for the creation of a European Music Observatory

A report commissioned by the European Commission's Directorate for Culture and Creativity has concluded that a European Music Observatory would be a significant tool to help “fill data gaps, contribute to a better knowledge of the sector and help inform music sector policy within Europe.” We published here an edited version of the report's executive summary. The full report, penned by Panteia and KEA, can be found here.

As part of the 2018 Preparatory Action “Music Moves Europe: Boosting European music diversity and talent”, following a 1.5m EUR budget allocation from the European Parliament, the Commission's EAC Directorate for Culture and Creativity launched four calls in the spring of 2018, among which was “The feasibility study for the establishment of a European Music Observatory (EMO), and a gap analysis of funding needs for the music sector”. This final report, published this week by the European Commission, addresses the feasibility study for the establishment of a European Music Observatory.

  The aim of this study was to investigate the options for a data collection organisation, called "the Observatory" as a core strategic resource to drive relevance and value for future policy actions in the music portfolio and across the sector. The specific objective of this study was to analyse different scenarios for the set-up and operation of the Observatory, including considering the models from other European (cultural) observatories, taking into account the specific characteristics and requirements of the European music sector.

In order to meet this objective, several tasks are carried out:
  > Determining the scope of a future Observatory (what data should and can be covered);
  > Identifying gaps in data availability;
  > Researching the potential costs and possible organisational basis for a credible Observatory function;
  > Analysing the different options, taking into account the above elements, and identifying the most viable option. 

  One of the key findings of this research has been to confirm the fragmented, scarce and poorly-harmonised nature of the data collection landscape in the field of music. These data conditions and the problems they present for effective management and policy development are the fundamental reasons for supporting the creation of a European Music Observatory. 

  In particular, robust and meaningful comparative data collected at a regular basis are essential when it comes to assessing the need for interventions at the EU level to address gaps in the market and enhance the efficiencies and global competitiveness of the sector. The sector is therefore calling for systematically-collected and centralised music data and an intelligence hub at European level.

  A European Music Observatory would help fill data gaps, contribute to a better knowledge of the sector and help inform music sector policy within Europe. 

Benefits of a European Music Observatory

  The authors of this study have found that the creation of a European Music Observatory would have an impact on the European music ecosystem by identifying gaps in the market and informing policies to address these challenges.

  At a general level the following benefits were identified: 
  > It would contribute to setting better data standards for the music sector on a pan-European level.  
  > It would stimulate European statistics agencies to incorporate new and more granular standards for data pertaining to the music sector.  
  > It would encourage national statistics agencies in EU Member States to work in sync with EU statistics agencies and provide country comparable economic data on a structural basis about the sector across the EU.  
  > It would incentivise music industry organisations representing the various sectors to improve the quality of their data collection and distribution, and, in some case, to generate schemes to collect and start providing data which was previously unavailable (e.g. on live music, music publishing and neighbouring rights, societal impact of music, among others).  
  > It would create a set of best practices in terms of data collection that will trickle down to all levels of the music sector. 
  For European and national policymakers, a European Music Observatory would provide additional specific benefits:
  > Act as a structure providing data and intelligence about the music sector in order to identify issues specific to the sector and pave the way for targeted evidence- based policies and solutions for the sector.
  > Being able to monitor quantitative indicators on the sector, in order to measure the impact of public policies, and assess improvements in the way the sector operates.
  > Greater in-sight and understanding of the importance of music for society by looking at participation in music activities per Member State and across Europe, including educational, amateur and volunteering work, considering social and environmental impacts.
  > Information gathered by an independent specialised institution rather than information provided by the sector on an ad-hoc basis to inform public policies related to the music sector. 
  For the music sector, the benefits would be as follows:
  > There would be a European structure the sole purpose of which would be to collect and produce data and intelligence about the sector, covering all the aspects of the music eco-system, and providing this insight to the sector.
  > The European music sector would be able to have a pan-European overview of the economic and social value of the sector, with the opportunity to monitor the evolution over time.
  > The music sector would have the tool to research gaps, barriers and challenges in the way the sector operates in order to suggest remedies and policies.
  > It would foster a culture of transparency in the sector, by setting up new tools to monitor the changes and progress made by stakeholders.
  > The music sector would have the proper tools to monitor the circulation of repertoire within the EU, but also outside the Union and measure diversity within the sector. 

Four pillar structure  

  One of the main tasks of this study was to analyse the main data needs of the music sector. The backbone of the proposed data collection structure should be EU-added value. Taking these elements into consideration, the report suggested a “four-pillar” model that would categorise data-collection and analysis as follows:

Potential options for a future European Music Observatory

  Based on the research carried out in the context of this report, several feasible options were developed:
  > A light touch Observatory function that would be maintained by the Commission centrally managing and contracting out several studies per year through calls for tenders/proposals.
  > Another option the authors explored was integration of the tasks (or certain tasks) of a European Music Observatory within the structure of existing cultural or related observatories. In particular, the European Observatory on Infringements of Intellectual Property Rights (EUIPO) and the European Audiovisual Observatory (EAO) were identified as possible options for integration of European music data collection activities. 
  > The most advanced solution proposed by this study is an autonomous fully-fledged European Music Observatory, based on the model of the European Audiovisual Observatory. This would be an autonomous structure, which would require a large amount of political support to develop, both from within the EU institutions and Member States, as well as very significant financial resources. Very importantly, it would also require more staff in order to carry out the larger scope of work, as well as a suitable location to work, implying very significant financial resources. However, it would allow for efficiency gains, in that there is a consistent and dedicated team working on the analysis and research activities. 
  > As a short-term means to deliver on some form of a European Music Observatory, the most feasible option that is recommended by this study would be the ‘scale up’ approach. This would involve creating a light initial support structure and increasing the scope of the Observatory over time, allowing it to expand and develop its activities over time.

Conclusion

  The main message of this study is that the majority of stakeholders and policymakers consulted support the establishment of an independent European Music Observatory which should be financed mostly (if not exclusively) with European Union funding. Stakeholders consulted in the course of this research expressed interest to cooperate with the European Commission in the development of a future European Music Observatory.

  The creation of an independent and trusted source of data and intelligence would help achieve greater transparency in the sector. For example, policies would no longer be influenced by the needs of a particular sub-sector, but based on the analysis of empirical data. Transparency would also be achieved by ensuring that each sub-sector would indeed contribute – with help and incentive from the European Music Observatory – to the data mining processes, helping to create a larger set of data than the existing one.   

  The creation of a European Music Observatory has been part of discussions within many European stakeholder organisations, as well as within the broader European music community. This “appropriation” of the EMO idea by sectoral stakeholders also is a clear sign that the Observatory is seen as an important potential tool for the sector. A European Music Observatory would be of collective interest for commercial, not- for profit and public operators active in the field of music.

  The creation of a European Music Observatory would ultimately be a sign that the music sector is receiving the full attention from European policymakers and Member States as part of the efforts to support and promote Europe's cultural and creative sector. The music community was among the first to be hit by the digital revolution, which shook its established business models, and yet it has proven extremely resilient, thanks partly to the strength of the booming live environment, music streaming and the recorded music sector’s ability to adapt quickly to a fast-changing environment.

  Now that there is a renewed optimism as a result of the rise of streaming, the music eco-system is also more complex and interconnected than ever. Not only should the European Music Observatory reflect and monitor these systemic changes, but it should also provide the tools to make the European music sector stronger and fitter for purpose in the digital age while fully playing its role in the building of a knowledge- driven, culture-centric and community-diverse Europe in the 21st Century.