POLICY BRIEF CONDITIONS REQUIRED TO SUPPORT THE TRADE AND COMMERCIALISATION OF FILM AND MUSIC INDUSTRIES OF EAST AFRICA (DECEMBER 2016)
Executive Summary business added value Lack of art marketing/exporting expertise
This policy brief is a product of research in culture and creative Industries focusing on the film and music sub-sectors contribution to creative economy in Tanzania and in East African Community (EAC) Common Market that is being implemented by Culture and Development East Africa (CDEA). This policy brief has been published with funding from Danida.
o Solicit and facilitate the gathering of regional and national sector-specific data for market analysis, benchmarking, strategy formulation and policy making Trade in Services
One of the tasks of this research is to establish the conditions required to support the trade and commercialisation of the film and music industries EAC region. The EAC region has created recognizable regional artists and bands such as Diamond, Chameleon and Sauti Sol. The digitization of cultural content presents new opportunities for expansion and diversification in the EAC Common Market through digital platforms such as Mkito.com and Mdundo.com for music, as well as regional platforms such Africori.com for artists, writers, composers and producers and Bozza.mobi for video, music and poetry where artists can earn royalties. The distribution of film, however, seems to be predominately through free-to-air broadcasting that is a result of the switch from analogue to digital broadcasting Dataxis (2014), with no royalties paid to the filmmakers. Largely, the distribution of film and music in East Africa remains largely distributed by the pirate distribution network, through hawkers and video kiosks, with artists not benefitting from the trade unless they too pirate their own products.
o EAC member states need to carry out a culture and creative industries audit to establish the services they would like to liberalize o Each EAC member state should include professional services required to support the cultural sector in the next schedule of commitments on the progressive and liberalization of services o Policy makers should remove the barriers for regional mobility by liberalizing trade in services within the creative industries and provide for free movement of natural persons. E.g. BASATA licence fee to EAC musicians, free movement of services to creative incubators and accelerators o There is need for services in IPR/copyright managment so that the creative sector can benefit for the data revolution
The proposed policy recommendations are:
o The National Bureau of statistics to begin collecting routine data on trade in creative services e.g festivals, art auctions so that the contribution to GDP is documented
Trade in Goods
2. Statement of the Issue/Problem:
o Establish a mobility fund for East African artists to enable film and music producers from the region to attend Expo and Performing Arts Markets
Culture and Development East Africa (CDEA) is implementing a project titled: ‘Research in Culture and Creative Industries focusing on the film and music sub-sectors contribution to creative economy in Tanzania and EAC Common Market’ that is supported by Danida.
o Remove excise duty on DVD, VCD, CDs, Video Tapes and Audio Tapes, since these are not mere commodities or consumer goods, but have cultural value.
According to CDEA’s research analysis of the industry-specific framework conditions relevant for growth and investment in Tanzanian film and music industries Tanzania has 7.35 million households and a TV household penetration rate of 17%. (Dataxis, 2015)
o Build capacity at national/regional level to understand and use the Intellectual Property ( IP) assets, in terms of both legal protection and 1
According to Dataxis, within the East African region, Tanzania has the largest Pay-TV base in the region with 592,700 users accounting for 36% of the EAC total. In relation to the digital StarTimes edged MulitChoice in terms of overall market share with 39% against 38%. The largest single platform was StarTimes Digital terrestrial television (DTTV or DTT) with 34% market share, followed by the MultiChoice DSTV satellite offering (20%) and its GOtv DTT service (18%). StarSat, the StarTimes (Direct To Home (DTH) Satellite offering, accounted for a further 4%.
The issues specific to the four modes of serviced categorized by the World Trade Organization (WTO) are: • Cross-border supply: For cross-border supply of services supported by technology, there is the possibiltiy of IP abuse due to weak copyright management mechanism e.g producer beats for a musician • Consumption abroad: Lack of accurate trade/ statistical data in the East African countries consumption of music and film e.g. at festivals, concerts
The key issues in Trade in Goods for film and music industries within the East African Common Market are:
• In Zanzibar, a separate permit is also required from the local Board of Censors to authorize any film screenings or live performance.
o High transport costs for film and music producers from the region to attend Expo and Performing Arts Markets
• For customs, a list of all equipment must be submitted by the organizer. in order to clear incoming instruments before they arrive.
o In Tanzania, Music and Film Products (DVD, VCD, CD, Video Tape and Audio Tape) are charged excise duty of Tshs 44 per unit (PWC, 2014)
The primary audiences for this policy brief are:
o Piracy distribution network controls the market for film and music in the region
1. EAC Secretariat 2. Ministries of Finance and Planning of EAC member states 3. National ministries responsibility for culture in EAC member states 4. International Trade Centre 5. WIPO 6. Copyright management bodies in EAC 7. Business incubators for film and music 8. National Bureau of Statistics in the East African countries
o Weak Intellectual Property protection/ management in the East African countries o Lack of art marketing/exporting expertise o Lack of accurate trade/statistical data in the East African countries for film and music goods sold The key issues in Trade in Services for film and music industries within the East African Common Market are:
4. Statement of CDEA’s interests in the issue: CDEA’s mission is to facilitate multi-stakeholders to use culture as a resource to stimulate innovation and find solutions for sustainable production and lifestyles.
• In Rwanda and Tanzania, A withholding tax of fifteen (15%) percent of Performance payments made to an artist or musician irrespective of mode of payment
As a service provider, CDEA aims establish the conditions required to support the trade and commercialisation of the film and music industries in EAC region.
• The EAC will in 2017 begin process of deliberate the services that should be considered for progressive liberalization for five new sectors, which includes the Recreation, Cultural and Sports sector. This is an opportunity to pitch for services that can support the development of the film and music sectors 2
5. Policy Recommendations: Trade in Goods o Establish a mobility fund for East African artists to enable film and music producers from the region to attend Expo and Performing Arts Markets o Remove excise duty on DVD, VCD, CDs, Video Tapes and Audio Tapes, since these not mere commodities or consumer goods, but also have cultural value o Facilitate creative enterprises get access to distribution networks in importing markets o Build capacity at national/regional level to understand and use the Intellectual Property ( IP) assets, in terms of both legal protection and business added value Lack of art marketing/exporting expertise o Solicit and facilitate the gathering of regional and national sector-specific data for market analysis, benchmarking, strategy formulation and policy making Trade in Services o EAC member states to need to carry out a culture and creative industries audit to establish the services they would like to liberalize o Each EAC member state should include professional services required to support the cultural sector in the next schedule of commitments on the progressive and liberalization of services o Policy makers should remove the barriers for regional mobility by liberalizing trade in services within the creative industries and provide for free movement of natural persons. E.g. BASATA licence fee to EAC musicians, free movement of services to creative incubators and accelerators o There is need for services in IPR/copyright managment so that the creative sector can benefit for the data revolution o The National Bureau of statistics to begin collecting routine data on trade in creative services e.g festivals, art auctions so that the contribution to GDP is documented
5.1 Primary Target Audience Trade of Good Stakeholders
Capacity issues
Action Points
EAC Secretariat
Addressing high transport costs in the region
Establish a mobility fund for East African artists to enable film and music producers from the region to attend Expo and Performing Arts Markets
Ministries of Finance and Planning of EAC member states
Understanding the dual nature of cultural goods for the economic and cultural value
Remove excise duty on DVD, VCD, CDs, Video Tapes and Audio Tapes, since these not mere commodities or consumer goods, but also have cultural value
International Trade Centre/ WIPO and Copyright management bodies in EAC
IP protection and management
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Build capacity at national/ regional level to understand and use the IP assets, in terms of both legal protection and business added value
Business incubators for film and music/ International Trade Centre
Art marketing/exporting expertise
Facilitate creative enterprises' get access to distribution networks in importing markets
International Trade Centre/ National Bureau of Statistics in the East African countries
Accurate statistical data
Solicit and facilitate the gathering of regional and national sector-specific data for market analysis, benchmarking, strategy formulation and policy making e.g. CDs, DVDs, online downloads of songs, caller tunes
Trade in Services Trade of Good Stakeholders
Capacity issues
Action Points
National ministries responsibility for culture in EAC member states
Identifying services gaps that they would want to import from the region
EAC member states to need to carry out a culture and creative industries audit to establish the services they would like to liberalize
Ministries of East Africa Community Affairs (MEACAs)
Understanding the dual nature of cultural goods for the economic and cultural value
Each EAC member state should include professional services required to support the cultural sector in the next schedule of commitments on the progressive and liberalization of services
National Arts Council Tanzania/BASATA
High performance license fee of TZS 1.5m
Remove the barriers for regional mobility
Business incubators for film and music/ International Trade Centre
Art marketing/exporting expertise
Facilitate creative enterprises' get access to distribution networks in importing markets
International Trade Centre/ National Bureau of Statistics in the East African countries
Accurate statistical data on trade in services
Solicit and facilitate the gathering of regional and national sector-specific data for market analysis, benchmarking, strategy formulation and policy making
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International Trade Centre/ Copyright management bodies in EAC
IP protection and management
The National Bureau of Statistics of EAC member states
Tools for routine data collection
There is need for services in IPR/copyright managment so that the creative sector can beneďŹ t for the data revolution e.g. song writers, producers, script writers. The national bureau of statistics to begin collecting routine data on trade in creative services e.g festivals, art auctions so that the contribution to GDP is documented
6. Sources Consulted or Recommended: 1. CDEA (2016): Tanzania Film and Music Industries: Analysis of Industry SpeciďŹ c Framework Conditions Relevant for Growth and Investment 2. Dataxis: PAY-TV / FTA Broadcasting in East African Community (Burundi, Kenya, Rwanda, Tanzania & Uganda) http://dataxishop.dataxis.com/brochure-pay-tv-ftabroadcasting-in-east-african-community.pdf 3. ITC (2004) Position paper: Challenges and opportunities in export development of Creative Industries: ITC's future technical assistance for the product sector (with a special focus on Visual Arts: artistic crafts, painting, sculpture, photography
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For more information : Ayeta Anne Wangusa Executive Director CDEA-Culture and Development East Africa, Plot No. 421, Nyumba Na.1001, Mikocheni B, P.O.Box 13355,Dar es Salaam, Tanzania. Phone +255 22 2780087; Tel : +255 784856866 Email : Ayeta.Wangusa@cdea.or.tz Ayeta_Wangusa@yahoo.com Cdea.Tanzania@yahoo.com
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