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Preliminary results of mapping the Croatian music industry
Policy, market and transaction analysis
across central and southeast Europe
Mapping of the Croatian industry
The governmental economic statistics of the UN and EU member states were designed in the 20th
century to represent manufacturing and agricultural production. Creative industries are very
difficult to find in these statistical systems, so we have to create a data map. Especially live music
is difficult to find, because in most statistical system it is combined with all performing arts,
including theatres. Fig: ESSnet-Culture Technical Recommendations, p48, music industry emphasised.
Mapping of the Croatian industry
Creative and cultural industries are made of a network of micro enterprises and freelancers,
often working in different roles. The data of the Croatian music industry is to be fined in a many
boxes. We follow the US and EU classification of the three income streams, from creative works
(music and lyrics, staged for live performances and recorded for sales, broadcast and streaming.
Music publishers Uses:
#printed sheet music Uses:
#advertisement #film rights #film rights
#theatre rights #advertisement #advertisement
Booking agencies #software #theatre rights #theatre rights
#sound recordings #software #software
Music sheets #sound recordings #sound recordings
Radio & TV Background m Wholesale
Promoters of cultural venue operators
Independent and integrated concert promoter and publishers
Club venues WebshopStreaming Record shops
Audience of production music, such as
advertisement, soundtracks, software games.
Other Creative Industry uses
Entertaining music audience: concerts and
Sale of audio devices
Advertising industry, audiovisual industry,
software games, theatres.Festivals Concert halls
Independent concert promoters
Cultural and music education public performance and broadcasting via
Musical instrument manufacturing and retail
Audio- and stage technology
Rehearsal studios ZAPRAF performers' CMO
SOZA authors'right CMO HDS ZAMP HUZIP producers' CMO
Concert Promoters Aggregators
Live entertainment stream Author's stream Sound recording stream
Management, tour management, assisting
reproductionBackground industry and services
#size of the repertoire exploited on Slovak stages #total Slovak repertoire #total Slovak repertoire
Bands Ensembles, choirs Record labels
#no of concerts, no of concert venues used per year #no. musical works and lyrics per yer #no. of sound recordings made in Slovakia
#music festivals, music festival capacities in Slovakia #exploited Slovak repertoire #no of songs exploited in Slovakia (active repertoire)
Performing musicians Music composers and authors Performing musicians
Musicians who play on live states Authors who create music and lyrics Session musician
The music ecosystem
The music industry is colorful. Artists are supported by managers and technicians. Creative
workers often do administrative or physical work. In order to understand the full value
created and the full employment affect of music we need to a way with our survey to
managers and technicians. Most artists perform 1-3 other music related jobs to make a
difficult but independent, creative living.
ton majstor/član tima (u
podučavanje glazbe ili
pjevanja, 13%ton majstor/član tima (za
nastupe u živo), 10%umjetnik-izvođač kao DJ, 8%
vizualni identitet ili
brendiranje glazbenika ili
organizator programa u
koncertnoj dvorani ili agenciji,
ostali administrativni ili fizički
poslovi za skladatelja, 3%vođenje glazbene
vježbaonice, 2%rad u cd shopu, 1%
0 5 10 15 20 25 30 35 40 45
Three income streams
At first sight, the income structure of Croatian artists is similar to their colleagues’ in the UK.
However, we were able to invite only established, professional artists into our survey. We must
make a bigger effort to find part-time, upcoming and underground acts to remain compatible
with these countries.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Live music Authors' Revenue RecordingRevenue Other
Institutions and atypical employers
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Individual revenue Music and Record Publishing Collective Rights Management Other
The relatively high level of royalties is probably due to the fact that less part-time and
young artists participated so far in our survey. However, it is clear that the collective rights
management is very important in Croatia. Probably CMOs can take on some roles played by
publishers, but the very different type of business development and income that music
publishers can bring to the market is missing from all over the region.
Key insights #1 – creative industries
1. The importance of creative industries, especially the music industry is often lost to
economic policy makers, because the economic output and related tax income and the
contribution to employment is not directly accessible for them. It is hidden in many boxes
and behind atypical work arrangement. Colleagues in the film or advertising business have
We need to create detailed data maps and share data among collective management
organization such as HDS ZAMP, HUZIP, HDU, ZAPRAF and HGU and business entities such as
music and record publishers, concert and festival promoters, concert halls and arenas in
order to understand and present music industry problems.
The CEEMID collective database allows organization to share market research resources and
via a trusted third party share confidential data sources. Please join the CEEMID initiative!
Our surveys are long, a bit boring, but it is essential to create the data map and fill in the
missing gaps. Please distribute our survey and fill it in!
Live music: employer for the young
The music industry is the biggest creative employer in Europe. It creates about 2 million
jobs, most of them for young people who are critically affected by unemployment. Music is
the most important input of the radio industry, and it also creates jobs in advertising, the
film industry, TV broadcasting and theatres. Data: EY, GESAC, Candole Partners. Further reference in study.
Employment beyond the artists
Staging a live event requires technicians for sound, light and stage setting or building. A
transporter is almost always needed. Ticketing and merchandise sales also require at least one
help. Even amateur musicians employ about four people for such roles. Full-time musicians are
supported by on average by 8 people on a concert. Venues often employ many people. A well
equipped music club has about 20-40 people on duty during a live event. Arena shows employ
about 100-200 people and festivals with their temporary installations often far more.
Problems: #1 seasonality
Seasonality is a huge problem for venue operators, cultural facilities and music professionals,
because in many months there is no work available. Festivals and cultural tourism can play a
great role in making work less seasonal. Potential incentives should be discussed.
Problems: #2 value added taxes
Western European countries apply lower VAT rates on live music due to its very high labor
component. The tax rates on music events is very high in Croatia, which curbs domestic
demand and makes cultural tourism less competitive for the country.
Data: Live Nation Central & Eastern Europe. * Austria before VAT level rise.
Problems: #3 young audience
The Central European audience is very young, but not because more young people visit concerts
but because middle-aged people stop visiting at a very early age. Croatia has a relatively favorable
audience composition, especially in Zagreb. Understanding audience needs and demand drivers is
key to increase the most important revenue source of the industry.
Key insights #2 – the live music industry
2. Musicians typically perform 27 shows in a year. Performing artists, technicians,
transporters, tour managers usually require 50-150 events to earn a decent living. The
income from music events is risky and it requires a large working capital. Better managing
seasonality, making small venues more competitive and understand demand is critical.
We need data from ticket vendors, event portals, concert and festival promoters to validate
these results and compare them to Hungary, Slovakia, Austria, Germany and the UK. In
Slovakia and Hungary we understand why people do not visit concerts. It has financial,
cultural and even logistic components.
Performing artists, their management , most concert promoters and venue operators do
not have the necessary expertise and resources to conduct market research, analyze data
and conduct an effective PR and advocacy function. In Scandinavia and Germany industry
associations pool resources. This is the aim of the national reports and CEEMID, too.
In Central Europe, collective right management societies play a very important role in
maintaining the recorded repertoire. In 2014, about 40% of the industry income came from
collective management of radio and television broadcasts, public performance in the
HORECA sector and certain digital streams.
But digital distribution will bring unseen competitions among Croatian and international
Data: IFPI, compilations for CEEMID.
0 5 10 15
0% 20% 40% 60% 80% 100%
Problems: #1 investments & cost recovery
Artists are investing into recordings, because recorded music has a bigger audience than live
music. Recorded music is the main form of music discovery, it is impossible to get on the ever
costlier stages without a good recorded performance. Yet recording budgets are not recovered.
Very little means remain for market research and promotion, which is very dangerous in the
currently increasing competition.
Data: preliminary survey results in Croatia.
Problems: #2 increasing competition and
lack of data
In Central Europe, collective right management societies and performer’s unions play an
important role, because most of the artists’ revenue comes from fragmented sources. In the UK,
music and record publishers play this role.
Data: EchoNest, CEEMID.
EU ranking population % plays instrument EU ranking population % plays instrument
Problems: #3 digital distribution strategy
Digital streams came a bit late to Croatia, but they will soon change the market. Each stream has
a different distribution and promotion strategy, so income from YouTube, Spotify, Deezer,
Bandcamp and SoundCloud requires a differentiated strategy, both at the level of CMOs, record
labels and artists. Again, survey data are crucial to understand this extremely important topic.
Data: preliminary survey results in Croatia, market estimate calculated for Artisjus (2015), actual digital
distribution data of a successful independent catalog in 2014, courtesy of WMMD.
Key insights #3 – the recording industry
3. Understanding digital distribution and creating data-driven, intelligent national repertoire
promotion strategy is essential in the increasing competition generated by YouTube, Spotify,
Deezer, Bandcamp and SoundCloud. In order to maintain the market share of Croatian
music, a new public broadcasting vision is needed.
We need more respondents in our survey to have a better understanding of the particular
market situation in Croatia. Especially important to have a view on self-published artists
whose data is only partly compiled by HDU and IFPI. It is impossible to obtain data from the
global companies so local data collection is essential for survival.
In the era of radio and television, access to broadcast channels was share and the national
repertoire protected, partly by public broadcasters such as Hrvatska radiotelevizija. In the
increased competition from global digital distribution schemes, even national repertoires
are too small for effective distribution strategy, and a regional strategy is needed.
“Anketa je odlična i siguran sam da će
pokazati pravo ( jadno) stanje i status
hrvatskih muzičara i svih koji su na bilo
koji način involvirani u taj posao.”
“Nisu svi glazbenici autori, tj zive i od
reprodukcije pa mi s cini da se tu mogao
urediti odnos izvodjenja glazbe i autorskog
izvodjenja ili stvaranja. Inace zanimljiva
anketa. Hvala vam.”
“Drago mi je da je
“Odlična i potrebna anketa, ali
samo glazbeno tržište je u
uvijek može i
“Puno i previše pitanja..
neka su slična.”
Your opinion counts
“Nadam se da će nešto pomoći u
ostvarenju boljih uvjeta za sve koje
svoju egzistenciju ostvaruju unutar
hrvatske glazbene industrije”
“nemam sve podatke
odmah pri ruci, ovo
je dobrim djelom
“Kao član banda koji radi alternativnu
glazbu, smatram da se i dalje takvi
bandovi nalaze na margini u ukupnoj
slici hrvatske glazbene industrije. “
“Moj status je nezaposlen, a
ustvari radim preko ugovora o
djelu u hotelskim kućama ,
uglavnom, cca 300 nastupa
godišnje. Kako regulirati status
glazbenika i plaćati naknadu za
Daniel Antal, CFA is senior consultant. Daniel has worked as an economic regulator, promoted policy and
investor interests in Hungary and Southeast Europe in the past 15 years. He serves customers in Budapest
and the Benelux region. He is specialized in the regulated price setting (royalty tariffs) and business
development in regulated environments. Within Candole he is specialized on creative industries, especially
live and recorded music, film production and distribution, radio and television, online media and publishing.
Daniel holds an MSc Economic Regulation and Competition Policy from the City University London, and has
finished the Chartered Financial Analyst program in 2014. He is currently enrolled in the John Hopkins
University Data Science distant learning program.
firstname.lastname@example.org or nl.linkedin.com/antaldaniel 22