ANNUAL REPORT 2021
3
© 2022 Recorded Music New Zealand Limited.
This Annual Report contains proprietary information and is provided for informational purposes only. Please do not use any information contained in
it unless expressly authorised to do so by Recorded Music New Zealand Limited. ‘Recorded Music NZ’; the Tūī device; ‘The Official NZ Music Charts’;
and ‘NZ Music Hall of Fame’ are registered trademarks. Designed by Mark Roach.
Cover image:
The Artists’ Tūī © Wētā Workshop.
Inside front cover image:
TEEKS performing at AMA 2021. © Topic Photography.
RECORDED MUSIC NEW ZEALAND LIMITED
Annual Report for the year ended 31 December 2021
CONTENTS
4 Chairperson’s Report
6 Chief Executive’s Report
10 Vision, Mission & Principles
11 Revenue Summary 2021
12 The Official NZ Music Charts 2021
13 NZ Music Hall of Fame
Aotearoa Music Awards
14 Winners & Finalists
16 Artisan Awards
17 Previously awarded
18 Music Teacher of the Year
19 The Artists’ Tūī
Supporting our music industry
20 Market support and Music Grants
22 SoundCheck Aotearoa
23 Auckland City of Music
Financial Statements
24 Approval of Annual Report & Directory
25 Statement of Profit or Loss
26 Statement of Financial Position
27 Statement of Movements in Equity
28 Statement of Cash Flows
29 Notes to the Financial Statements
32 Auditor’s Report
4
CHAIRPERSON’S REPORT
2021 proved another challenging year as the uncertainties created by the ongoing
Covid pandemic affected all areas of our activities. Many of the effects of the
pandemic felt in 2020 carried over into 2021.
The Recorded Music New Zealand team rose to the myriad challenges, and to their
immense credit delivered a record payout to members. Special mention for this
impressive achievement must go to OneMusic, our joint venture with APRA AMCOS
New Zealand.
In a year that saw many events and shows cancelled across the country, the Aotearoa
Music Awards went ahead as a televised event with a reduced audience. Our thanks
to Sarah Owen and her team for managing to honour and celebrate Tūī winners and
produce a great show in difficult conditions.
During the year the Board adopted a new Vision and Mission and a set of Guiding
Principles to guide activities over the coming years, as well as setting a strategic
focus for 2022. The new Guiding Principles include a commitment to our journey
to honour and respect Te Ao Māori and to foster diversity, inclusion and a positive
culture. Recorded Music and its Board is embracing these challenges though we
know there is work ahead to create a truly inclusive organisation.
I would firstly like to thank our CEO, Damian Vaughan and his team for their
dedication and hard work in navigating a tricky year with such success. Secondly
sincere thanks to the Recorded Music New Zealand Board for their commitment in
guiding the organisation during the year. 2022 will see elections take place for the
Independent Rights Holder and Artist Representative Directors. I would like to thank
Nicky Harrop and Nick Atkinson for their effective and meaningful contributions to
those roles over the past three years.
Towards the end of the year Damian Vaughan handed in his notice to pursue a new
family business opportunity. Damian has done an absolutely brilliant job during his
nine-year tenure as CEO of Recorded Music New Zealand. Under his calm leadership
all aspects of the organisation’s activities have shown demonstrable improvement
over this time. The Board extends its sincere thanks to Damian and wishes him all the
very best for his future endeavours.
The Board was delighted to appoint Jo Oliver as CEO effective 28th March 2022.
During her four years with Recorded Music New Zealand as General Counsel and
Govt Affairs, Jo has demonstrated outstanding leadership skills and capabilities both
within the organisation, and in the greater music business, leading industry initiatives
such as the response to the Government review of the Copyright Act and the
establishment of SoundCheck Aotearoa. We are confident Jo will rise to the challenge
of leading Recorded Music New Zealand to new levels of success in 2022 and beyond.
Chris Caddick
Chairperson, Recorded Music NZ
WAHINE TOA
It was a privilege to honour five trailblazing artists into the New
Zealand Music Hall of Fame | Te Whare Taonga Puoro o
Aotearoa in 2021. All five artists were acknowledged at the
Aotearoa Music Awards. Read more about this year’s inductions
on page 13.
5
CHIEF EXECUTIVE’S
REPORT
Tēnā koutou
2021 was certainly another challenging year for the industry, however our music
community rallied once again and adapted to the disruption we all faced due to the
ongoing pandemic. There were periods of calm throughout the year, and for many of
us in the industry that meant live music events and gigs could proceed, but change was
constant and many of us found ourselves in long periods of lockdown where performance
and gathering were impossible.
I am extremely proud of our team and our wider music industry whānau weathering
the uncertainty, adapting, innovating, and doing their absolute best. Our artists and
members persevered and confronted the challenges head on and created opportunities.
Like 2020 last year’s impacts on the recorded music sector were not as significant as
they were on the wider music industry and revenues from the consumption of recorded
music in NZ held up well providing welcome income relief. Total wholesale revenues
returned to the local industry were $125.5M in 2021.
INDUSTRY INCOME 2021 (refer to page 11 for Revenue Summary 2021 graphs)
• Streaming revenue derived from digital services such as Spotify, Apple Music and
YouTube, and social media services such as Facebook totalled $97M and
represent 77% of all income.
• Digital downloads predominantly derived from iTunes and Bandcamp remained
relatively stable in 2021 at $2.1M and represent 2% of overall income
• Physical income derived from CD and Vinyl sales were $9.3M representing 8% of all
industry revenue. Vinyl continues to grow and two thirds of all physical music now
sold in NZ is Vinyl.
• Synch remained the smallest revenue channel representing 1% of all income at $1.5M.
• The income derived from the collective licensing of Recorded Music NZ activities
via Public Performance and Broadcast increased to $15.6M in 2021, representing
12% of all revenue.
LICENSING
Recorded Music’s collective licensing income greatly improved over the course of 2021
after the difficulties we faced the previous year. We are proud to say that we exceeded
our budget expectations for the 2021 year across many of our income areas.
Lockdowns did not have the same effect on advertising revenue that we saw in 2020 for
our commercial radio licensees and whilst their overall revenue hadn’t quite returned to
pre-Covid levels they performed better than expectations and are not far off where they
were at their peak in 2019. The commercial television operators in the most part have
also fared reasonably well throughout 2021 and in some instances performing better
than they were prior to the beginning of the pandemic.
6
continued overleaf
CHIEF EXECUTIVE’S REPORT
The OneMusic team pulled off a massive effort throughout 2021
as they navigated the many and varied challenges our customers
faced in this area. The hospitality, retail and exercise sectors all
faced significant challenges. Our sincere thanks to the team for not
only managing very difficult relationship management issues but
also maximising the return to our artists, labels, songwriters and
publishers. We are pleased to report that OneMusic excelled in 2021
and achieved well over our budget expectations for the year. We look
forward to building on that momentum in 2022 as we learn to live
with Covid in the community.
MEMBERSHIP, DISTRIBUTION AND INDUSTRY
Once again, adopting our ‘Get Played, Get Paid’ promotion online
the number of NZ recording artists increased and we now have 3,912
registered artists (an 11% increase since 2020). The current number
of NZ Rights Holders registered is 2,983 (including self-released
artists) and those who have also elected to become shareholders is
1,527 (a 38% increase since 2020).
Our distribution in 2021 was $11.2M which was down on previous
years as our income was greatly impacted by Covid in 2020. Despite
that, we were able to manage our costs well and whilst our income
dropped by 14% from the previous year our distribution only dropped
by 8%. One other key point that we are delighted to report was that
$2.2M was attributed to NZ recording artists & respective rights
holders which equalled the previous record amount we distributed in
2020. This comprised 2,650 recording artists and 21,683 recordings.
As our income has increased markedly over 2021 to $15.6M, and we
again managed to keep our costs tight, we are incredibly pleased to
say that the 2022 distribution will be the largest distribution we have
ever made as Recorded Music NZ back to the local industry.
We were also pleased last year to reinstate the Music Grants
programme in 2021 as we diverted that support to the work of
MusicHelps throughout 2020. It has been extremely rewarding to be
able to support not only the operations of MusicHelps through our
grants programme but also many meaningful important recorded
music projects and initiatives throughout the year that had an
educational, archival or charitable focus.
Throughout the lockdown periods in 2021 we again collaborated
closely with other industry bodies to support our members and
the wider music community. Key priorities once again were to get
information out about assistance available from government and
industry sources. We also worked closely with the live sector and the
work of our colleagues at the NZ Music Commission and NZ On Air.
CREATING A POSITIVE CULTURE
We need to acknowledge the problems and challenges with the
culture of the music industry. Media and social media stories in
2021 along with published research have shown us that there is a
serious problem with sexual harassment in our music community. In
July 2021 we welcomed the independent report from SoundCheck
Aotearoa ‘Creating culture change around sexual harm in the
music community in Aotearoa’ which contains a number of
recommendations for what we can all do better to prevent and
respond to sexual harassment. We recognise that culture change
is a long-term project and we made a start in 2021 with a Code of
Conduct for the organisation and a Statement of Expectations for the
Aotearoa Music Awards. Our staff attended SoundCheck Aotearoa
professional respect training days and we adopted new policies on
sexual harassment and bullying. Recipients of music grants are
expected to comply with our Code of Conduct and their health and
safety obligations.
We recognise that there is much more to do both to improve safety
and to drive better representation and inclusion. Our focus in 2022
includes diversity, inclusion and a positive culture as well as our
journey to respect and honour Te Ao Māori.
CHARTS
At the end of the year, L.A.B. took out the NZ single spot with their
huge tune ‘Why oh Why’ and for the second year running Six60 took
the NZ album spot with their third full length album ‘Six60’. Six60
were also number one on the Ngā wiata kairangi I te reo Māori o te
rārangi 10 o runga with their song ‘Pepeha’.
The proportion of NZ music across radio grew once again throughout
the year and will impact meaningfully on our 2022 Distribution. The
final figure for New Zealand music airplay on commercial radio in
2021 was 23.84% which is a record, surpassing last year’s record of
20.95%. That means almost one in every four songs played in 2021
on the main contemporary commercial music networks was from a
New Zealand act.
Additionally, we’re hearing more waiata in te reo Māori due to the
efforts of our artists and many in the industry working to create more
music. In 2019 there were 4,582 radio plays of waiata reo Māori and
this grew to 25,070 radio plays on major commercial networks in 2021.
continued overleaf
7
AOTEAROA MUSIC AWARDS
2021 also saw us deliver a unique Aotearoa Music Awards which was subject to even
more disruption than we experienced in 2020. The team endured shifting sands and
moving targets and I lost count of how many times we changed the ideas and plans
for the event itself. Thankfully with a very talented and experienced team, and with the
support of many of our usual partners we were able to stage a live TV event at Kiri Te
Kanawa theatre in Auckland in mid-December. Our sincere thanks to our partners NZ
On Air, Te Mangai Paho, Mediaworks Events and Radio, Massey University and our new
partner in 2021 TVNZ.
Our congratulations to L.A.B. for winning Album of the Year for ‘IV’ and also single of the
year for ‘Why oh Why’ as well as Tūī for Best Group and Best Roots Artist. We were also
honoured to welcome five iconic artists into the NZ Music Hall of Fame - Annie Crummer,
Debbie Harwood, Dianne Swann, Margaret Urlich and Kim Willoughby and recognise
each of them for their individual contributions to Aotearoa, the inspiration they provided
to local artists and audiences, and their importance in shaping New Zealand’s popular
culture.
2022
And finally, after nine amazing and rewarding years as CEO of Recorded Music NZ, I have
decided to move on and find my next challenge.
I wanted to take the opportunity to thank our members, for the enormous privilege,
opportunity, belief and trust you have given me to lead the company and industry over the
last decade. It has been an honour to have led the sector through such a transformational
period alongside a wonderful, passionate and highly skilled team. It has been a privilege
to serve as your representative, protecting and promoting your rights and championing
your achievements. Reflecting on my time, I am immensely proud of everything that we
have achieved with the organisation, I couldn’t have asked for a better experience.
I want to thank our team for their dedication for working so enthusiastically to ensure that
there is a positive future for recorded music in NZ and our role within the industry. I also
want to thank our Board for their support, faith and backing of our work over many years
and being there as guides to me and our senior team, having our backs and believing in
us. I’m excited to pass the baton on and can’t wait to see how the organisation evolves
with new people at the controls.
Ngā mihi maioha
Mā te puoro, ka tuia. Through music, we are united.
Damian Vaughan
Kaiwhakahaere Matua | CEO
CHIEF EXECUTIVE’S REPORT
8
9
Troy Kingi performing at AMA 2021.
© Topic Photography.
10
OUR GUIDING PRINCIPLES
We exist to serve the
collective interests of
recording artists and
right holders
We are leaders in
fostering a safe,
respectful and inclusive
culture
We act with integrity and
are honest, conscientious,
and fair
We acknowledge Māori as
tangata whenua of Aotearoa
& we are committed to
our journey to respect and
honour Te Ao Māori
OUR PRIORITIES
ADVOCATE FOR THE COLLECTIVE INTERESTS OF RECORDING ARTISTS AND RIGHT HOLDERS to a range of audiences including
government, other industry organisations and the wider music and creative community. We strive to improve copyright law and the legal
and regulatory environment for recording artists and right holders.
SUPPORT DEVELOPMENT OF A SUSTAINABLE RECORDED MUSIC MARKET through providing market analytics and recorded music
data to our stakeholders and industry, leading professional development initiatives, and supporting a range of educational and charitable
projects via collaborations and our Music Grants program.
PROMOTE AND CELEBRATE recording artists, their recordings and the recorded music industry in Aotearoa, through activities such as
the Aotearoa Music Awards, the Official NZ Music Charts and the NZ Music Hall of Fame | Te Whare Taonga Puoro o Aotearoa.
MAXIMISE RETURNS FOR RIGHT HOLDERS AND RECORDING ARTISTS.
We act on behalf of right holders to license music users and collect revenues. From those revenues we deduct our costs and return the
remainder to right holders and registered recording artists via distributions. We maximise returns through operating fairly and efficiently.
OUR FOCUS IN 2022
Our journey
to respect and
honour Te Ao
Māori
Diversity,
inclusion, and a
positive culture
Collaboration &
partnerships to
strengthen our
organisation
WHAT WE DO
Recorded Music NZ represents recording artists and right
holders in Aotearoa through licensing, advocacy and promotion.
OUR VISION
is a thriving music industry in Aotearoa.
OUR MISSION
is to enhance and promote the value of recorded music in and
from Aotearoa.
Providing
excellent and
relevant services
that meet the
changing needs of
right holders and
recording artists
Reviewing and
updating our
technology, to
better meet artist
and rights holders
requirements
Effectively
communicating
our services to
artists, rights
holders and the
wider music
community
REVENUE SUMMARY 2021
WHOLE MARKET
REVENUES
SYNCH 1%
DOWNLOADS
2%
STREAMING
77%
PUBLIC
PERFORMANCE
12%
PHYSICAL
8%
2021
$125.5M
$97.0 m
$15.6m
$9.3m
$2.1m
$1.5m
STREAMING
PUBLIC PERFORMANCE
PHYSICAL
DOWNLOADS
SYNCH
PUBLIC PERFORMANCE
& COMMUNICATION
REVENUES
RADIO
44%
TELEVISION
17%
PUBLIC
PERFORMANCE
32%
OTHER
7%
20192020
$16.0m
$7.3m
$2.5m
$5.1m
$1.1m
$13.8m
$6.3m
$2.5m
$4.0m
$1.0m
OTHER
TELEVISION
PUBLIC
PERFORMANCE
RADIO
OTHER
TELEVISION
PUBLIC
PERFORMANCE
RADIO
2021
$15.6m
$1.0m
$6.9m
$5.0m
$2.7m
OTHER
TELEVISION
PUBLIC
PERFORMANCE
RADIO
11
SINGLES
ARTIST TITLE LABEL GROUP / DIST.
1
GLASS ANIMALS HEAT WAVES POLYDOR UNIVERSAL
2
DUA LIPA FT. DA BABY LEVITATING DUA LIPA WARNER
3
OLIVIA RODRIGO DRIVERS LICENCE GEFFEN UNIVERSAL
4
L.A.B WHY OH WHY LOOP BORDER
5
DOJA CAT FT. SZA KISS ME MORE KEMOSABE SONY
6
L.A.B IN THE AIR LOOP BORDER
7
OLIVIA RODRIGO GOOD 4 U GEFFEN UNIVERSAL
8
THE KID LAROI & JUSTIN BIEBER STAY
COLUMBIAUNIVERSAL
SONY
9
L.A.B CONTROLLER
LOOP BORDER
10
JUSTIN BIEBER FT. DANIEL CAESAR
PEACHES DEFJAM UNIVERSAL
ALBUMS
ARTIST TITLE LABEL
GROUP / DIST.
1
OLIVIA RODRIGO SOUR GEFFEN
UNIVERSAL
2
ADELE 30 COLUMBIA SONY
3
SIX6O SIX60 3 MASSIVE UNIVERSAL
4
POP SMOKE SHOOT FOR THE STARS
VICTORVICTOR
UNIVERSAL
5
DOJA CAT PLANET HER KEMOSABE SONY
6
L.A.B L.A.B IV LOOP BORDER
7
DUA LIPA FUTURE NOSTALGIA DUA LIPA WARNER
8
JUSTIN BIEBER JUSTICE DEFJAM
UNIVERSAL
9
SIX60 SIX60 (1) MASSIVE
UNIVERSAL
10
THE WEEKND THE HIGHLIGHTS REPUBLIC
UNIVERSAL
AOTEAROA ALBUMS
ARTIST TITLE LABEL
GROUP / DIST.
1
SIX60 SIX60 (3) MASSIVE UNIVERSAL
2
L.A.B
L.A.B IV LOOP BORDER
3
SIX60 SIX60 (1) MASSIVE UNIVERSAL
4
SIX60 SIX60 (EP) MASSIVE UNIVERSAL
5
SIX60 SIX60 (2) MASSIVE
UNIVERSAL
6
L.A.B
L.A.B III LOOP BORDER
7
STAN WALKER IMPOSSIBLE SONY SONY
8
L.A.B
L.A.B LOOP BORDER
9
DRAX PROJECT DRAX PROJECT
DRAX PROJECT
UNIVERSAL
10
TEEKS SOMETHING TO FEEL
SONY SONY
AOTEAROA SINGLES
ARTIST TITLE LABEL
GROUP / DIST.
1
L.A.B WHY OH WHY LOOP BORDER
2
L.A.B IN THE AIR LOOP BORDER
3
L.A.B CONTROLLER LOOP BORDER
4
NIKO WALTERS FT. KIANA LEDÉ NOT MY NEIGHBOUR RICOCHET UNIVERSAL
5
SIX60 ALL SHE WROTE MASSIVE UNIVERSAL
6
SIX60 SUNDOWN MASSIVE UNIVERSAL
7
DRAX PROJECT FT. SIX60 CATCHING FEELINGS
DRAX PROJECT
UNIVERSAL
8
SIX60 FADE AWAY MASSIVE UNIVERSAL
9
KINGS FT. SONS OF ZION HELP ME OUT ARCHANGEL DRM
10
SIX60 DON’T FORGET YOUR ROOTS MASSIVE UNIVERSAL
TE REO SINGLES
ARTIST TITLE LABEL
GROUP / DIST.
1
SIX60 PEPEHA MASSIVE UNIVERSAL
2
KA HAP FT. ROB RUHA 35 INDIGINATION DRM
3
STAN WALKER FT. IBANEZ MAEVA
TUA SONY SONY
4
SONS OF ZION FT. JACKSON OWENS
HE AROHA HINEMOA SONY SONY
5
STAN WALKER MATEMATEĀONE SONY SONY
6
MUROKI REHUREHU OLIVE UNIVERSAL
7
ROB RUHA TAERA INDIGINATION UNIVERSAL
8
KATCHAFIRE KARAWHIUA100 KATCHAFIRE KATCHAFIRE
9
STAN WALKER W. LEVITES HE KAKANO AHAU SONY SONY
10
LORDE TE AO MĀRAMA UNIVERSAL UNIVERSAL
Biggest Singles and
Albums of 2021
L.A.B
Top NZ Single
12
Photo: Topic Photography
LOCAL CONTENT
ON COMMERCIAL
RADIO
23.84
%
Our partners
The latest inductees’ hard-fought journeys have left a lasting legacy and
forged a path for others on-stage as well as behind the scenes.
Annie Crummer, Debbie Harwood, Dianne Swann, Margaret Urlich and
Kim Willoughby were being recognised for their individual contributions
to Aotearoa’s music scene, the inspiration they provided to local artists
and audiences, and their importance in shaping New Zealand’s popular
culture.
All five women got their start in the early 80’s. Annie and Kim, each
having already released music under either solo or group names, found
themselves atop the charts as guest vocalists on Netherworld Dancing
Toy s ‘For Today’. Dianne’s band Everything That Flies was on the rise and
earning plaudits everywhere. Debbie’s talent was picked up early with a
signing to CBS Records and award nominations following soon after. And
Margaret was unmissable as the frontwoman of Peking Man.
“All of us had toured for years in original bands. As the touring circuit
dissolved and radio shut its doors to local music, surviving as an original
band became almost impossible. It was a tough time. The only way to
get to the people at this time was to tour the length and breadth of New
Zealand, relentlessly building up a live fan base,” said Debbie.
Debbie, Dianne, Annie and Margaret had a chance meeting at the 1985
Aotearoa Music Awards where all of them were finalists. Not long after
that, the idea was floated of getting together with the addition of Kim as
When The Cat’s Away. “The idea formed to get together, have some
fun and sing a bunch of songs that we like, learn some harmonies. I don’t
think anybody pictured it as being as popular as it became,” said Dianne in
2004.
“The Cats toured for two and a half years before ‘Melting Pot’ was
released,” said Debbie. “As the single shot to No.1 in 1988, the industry was
incredulous. Considering the lack of support at the time, our success was
like a flower cracking through concrete! The sharemarket crash had just
happened, and the public loved the band because we were optimistic and
energetic. Sometimes I felt like Vera Lynn cheering up the troops. The
preference would have been that our original bands had been supported
by radio and the public, so we reluctantly accepted the huge success of
the band, never fully standing in the glare of it. There was a little bit of
bitterness at the necessity of forming such a band: a band that was born
out of exhaustion from trying to get airplay and support for our original
music, a band that was supposed to be merely a short break from the
slog.”
However, from this unexpected success came a multitude of positives
and an enduring public and peer adoration and respect for these five
supremely talented musicians. It is with great pride that we recognised
and inducted Annie, Debbie, Dianne, Margaret and Kim into the New
Zealand Music Hall of Fame | Te Taonga Puoro o Aotearoa.
13
ANNIE CRUMMER
DEBBIE HARWOOD
DIANNE SWANN
MARGARET URLICH
KIM WILLOUGHBY
2021 WINNERS AND FINALISTS2021 WINNERS AND FINALISTS
TE PUKAEMI O TE TAU
ALBUM OF THE YEAR
L.A.B - L.A.B IV
BENEE - Hey You x,
Crowded House - Dreamers Are Waiting
The Phoenix Foundation - Friend Ship
TEEKS - Something To Feel
Troy Kingi - The Ghost of Freddie Cesar
THREE TE WAIATA TŌTAHI O TE TAU
SINGLE OF THE YEAR
L.A.B - Why O Why
Lorde - Solar Power
Harper Finn - Dance Away These Days
Six60 - All She Wrote
TEEKS - Remember Me
Troy Kingi - Sleep (Slumber)
TE ROOPU TOA
BEST GROUP
L.A.B - L.A.B IV
Crowded House - Dreamers Are Waiting
The Phoenix Foundation - Friend Ship
Shapeshifter - Rituals
TE KAIPUORO TAKITAHI TOA
BEST SOLO ARTIST
TEEKS - Something To Feel
Anna Coddington - Beams
BENEE - Hey You x,
Troy Kingi - The Ghost of Freddie Cesar
SPOTIFY TE KAITUHURA PUORO TOA O TE TAU
BREAKTHROUGH ARTIST OF THE YEAR
Harper Finn - Dance Away These Days
Foley - Vacation
Muroki - Wavy
Niko Walters - Not My Neighbour
TE MĀNGAI PĀHO TE KAIPUORO MĀORI TOA
BEST MĀORI ARTIST
TEEKS
Mara TK
Troy Kingi
THE EDGE TE KAIPUORO AROTINI TOA
BEST POP ARTIST
BENEE
Foley
LA Women
TE KAIPUORO MANOHI TOA
BEST ALTERNATIVE ARTIST
Na Noise
Anthonie Tonon
Wax Chattels
TE KAIPUORO AWE TOA
BEST SOULRNB ARTIST
TEEKS
Mara TK
Troy Kingi
TE KAIPUORO HIPIHOPE TOA
BEST HIP HOP ARTIST
Team Dynamite
Diggy Dupe
SWIDT
TE KAIPUORO TAKETAKE TOA
BEST ROOTS ARTIST
L.A.B
Grove Roots
Tomorrow People
TE MĀNGAI PĀHO MANA REO AWARD
Te Nūtube - Peke
Rei Hoki Mai - Come Back,
The Nudge & Troy Kingi - He Orite
TE KAIPUORO TĀHIKO TOA
BEST ELECTRONIC ARTIST
Paige Julia
Shapeshifter
Sola Rosa
TE KAIPUORO RAKAPIOI TOA
BEST ROCK ARTIST
Dead Favours
Ekko Park
Mako Road
TE KAIPUORO INAMATA TOA
BEST CLASSICAL ARTIST
Claire Cowan
Justin DeHart
Tony Yan Tong Chen
THE EDGE TV TE KŌWHIRI O TE NUINGA
PEOPLE’S CHOICE AWARD
Te Nūtube
TE TOA HOKO TEITEI
HIGHEST SELLING ARTIST
Six60
NZ ON AIR TE RIKOATA MARAKERAKE O TE TAU
RADIO AIRPLAY RECORD OF THE YEAR
Six60
Photos: Topic Photography
14
Broadcast of the AMA show is
available on TVNZ OnDemand.
15
Na Noise
BENEE
L.A.B
TEEKS
Team Dynamite
Te Nūtube
For the sixth year running,
Recorded Music NZ and Massey
University celebrated the
unsung heroes of Aotearoa’s
music industry at the AMA
Artisan Awards.
The 2021 Artisan Award finalists and winners
were celebrated in a pre-recorded showcase
produced at Massey University and made
available on TVNZ OnDemand.
The show featured performances from Jaedyn
Randell and Dream Chambers, The Nudge v
Troy Kingi, and Ka Hao.
Massey University Te Kaiwhakaputa Toa
Best Producer
Delaney Davidson
& Jol Mulholland
Troy Kingi
'Black Sea Golden Ladder'
Joel LittleHarry Huavi
Team Dynamite
'Respect The Process'
Te Toi Ataata Pukaemi Toa
Best Album Artwork
Frances Carter
TEEKS
'Something To Feel'
Amanda Cheng
Wax Chattels
'Clot'
Matthias Heiderich, Jaime Robertson
& Andrew Spraggon
Sola Rosa - 'Chasing The Sun'
Recorded Music NZ Kaiwhakahaere Puoro o te Tau
Manager of the Year
presented by Music Managers Forum Aotearoa
Cushla Aston Lorraine Barry Nicole Thomas
& Paula Yeoman
Te Kaipukaha Toa
Best Engineer
Ara Adams Tamatea
& Lee Prebble
L.A.B -
'L.A.B IV'
Simon Gooding
L.A.B - 'L.A.B IV'
Jol Mulholland
Troy Kingi
'Black Sea Golden Ladder'
NZ On Air Te Puoro Ataata Toa
Best Music Video Content
Anahera Parata
Louis Baker
'Brighter Day'
Alexander Gander
Georgia Lines
'No One Knows'
16
Te Kaipuoro Waiata Tamariki Toa
Best Children’s Music Artist
Blast your trumpets and blow your
horns! fleaBITE took home the Tūī for
Te Kaipuoro Waiata Tamariki Toa | Best
Children’s Music Artist for the third time
at an invite only Children’s Music Awards
celebration in May. Aimed at older
children, fleaBITE's style is cheeky, bold,
innovative and entertaining, and there
are always special guests to spice up
the mix.
Te Kaipuoro Taketake Toa
Best Folk Artist
Tennessee-based New Zealand duo
Tattletale Saints, made up of Cy
Winstanley and Vanessa McGowan,
won the 2021 Tūī for Te Kaipuoro
Taketake Toa | Best Folk Artist for their
third studio album ‘Dancing Under The
Dogwoods’ at the Auckland Folk Festival
in January.
Not every award is presented on the big night.
Other important Tūī are awarded within various hapori
puoro throughout the year.
Te Kaipuoro Tuawhenua Toa
Best Country Music Artist
Country music superstar Tami Neilson
was presented with the Te Kaipuoro
Tuawhenua Toa | Best Country Music
Artist at the NZ Country Music Awards
for her sensational 2020 album
CHICKABOOM!. It is Tami’s 5th win,
having previously won this award in
2009, 2010, 2012 and 2015.
A YEAR OF TŪĪ
Te Kaipuoro Tautito Toa
Best Jazz Artist
Wellington jazz octet The Jac received
the Tūī for Te Kaipuoro Tautito Toa | Best
Jazz Artist for their album ‘A Gathering’
on home ground at the Wellington Jazz
Festival in June. ‘A Gathering’ marks
a decade of making music together –
showcasing their intricate and immersive
compositions, tight ensemble playing
and assertive, individual improvising
voices.
Te Pukaemi Toa o Te Moana Nui
a Kiwa
Best Pacific Music Album
After the release of her self-produced
debut album ‘Mrs Tree’ soul sensation
Tree led the nominations at this year’s
Pacific Music Awards, taking home 2
awards including the Recorded Music
NZ Te Pukaemi Toa o Te Moana Nui a
Kiwa Tūī.
17
Kaiārahi Puoro o te Tau
Music Teacher of the Year
We again recognised the enormous impact music teachers have on the beginning of our
homegrown talents’ musical careers and the foundation of their understanding.
The nominees for Music Teacher of the Year were Papakura High School’s Andrea Rabin,
Hobsonville Point Secondary School’s Jeni Little, with Gisborne Girls High School’s Jane
Egan winning the award on her third successive nomination.
Jane Egan
Andrea Rabin
Jeni Little
18
THE
ARTISTS’ TŪĪ
The winners at this year’s Aotearoa
Music Awards were presented with a
unique Tūī designed and created by
Wētā Workshop CEO and creative
director Richard Taylor and the team at
Wētā Workshop.
A long-time contributor to the creative industries in
New Zealand, Richard and his team have provided
creative service work for local and international films,
TV series and location based experiences. Best known
for their work on The Lord of the Rings and The Hobbit
trilogies, Avatar, Gallipoli – the Scale of our War and
most recently their Unleashed experience in Sky City in
Auckland.
“It’s an absolute thrill to be creating the 2021 Tūī for this
year’s Aotearoa Music Awards. Music has always played
a major role in my life.” says Taylor.
DESIGN INSPIRED BY NATURE
Taylor’s take on the iconic award is inspired by the
beauty of the Tūī bird as well as Aotearoa’s native flora
and fauna.
“The twisting forms of the piece are suggestive of the
way Tūī perch on a branch while turning their bodies to
feed on kowhai flower,” says Taylor. “The interweaving
helix in the body forms are representative of the weaving
together of musical inspiration to make a song or
composition, and at the foot of this spiral is a G-Clef
- acknowledging one of the foundations of the music
celebrated by the award.” The whole piece is underlit
by a soft pale green light illuminating the sculpture and
capturing the iridescence of the Tūī feathers in the light.
19
20
SUPPORTING
OUR MUSIC
INDUSTRY
Recorded Music NZ supports the wider music community through support
services, collaborations and our Music Grants programme.
Supporting the development of a sustainable recorded music market is a key priority for us.
We do this in a wide variety of ways, and across a range of projects each year. Organisations
and projects we supported in 2021 include:
Music Grants are our way of extending our contribution to the sustainability and vibrancy
of the recorded music community. In 2021 the Music Grants Programme proudly
supported the following organisations and projects:
Dunedin Fringe Arts Trust - Amped Music Project
NZ Music Commission - The Art of the Record
Parachute Arts Trust - Producer Development Programme
Play It Strange Trust - The Peace Song Competition
Raise Up - New Found Sound Workshops
YAMI - SOUNZ Summit
Girls Rock Aotearoa - To The Front Holiday Programmes
Parachute Music - PA System/Communal Area Development
Matthew Hoyes - Research project
RECORDED MUSIC NZ MUSIC GRANTS
Bret McKenzie & Linda Perry, Aotearoa Sync-Posium 2021.
Photo: Amanda Ratcliffe
22
SoundCheck Aotearoa is an action group formed in 2020 with the mission to foster a safe and inclusive culture for the music
community. Recorded Music NZ was one of the organisations that founded SoundCheck Aotearoa, and has continued to support it
via an annual financial contribution.
The focus for SoundCheck Aotearoa in 2021 was the prevention of and response to sexual harassment in the music community.
The message is that everyone is entitled to a safe workplace where they are respected and free from harm whether that workplace
is a music venue, an office, a meeting in a bar or a recording studio. Key initiatives from SoundCheck Aotearoa in 2021 are
summarised below.
Professional Respect training
Building skills and knowledge is one of the key recommendations for change. Professional Respect
training is a full day of training on preventing and responding to sexual harm. Participants learn
about definitions, guidance for receiving disclosures of harm, strategies for preventing harm
and practical tips for bystander intervention. In 2021 130 people completed the training across
Auckland, Wellington and Christchurch. Face to face training will resume in June 2022 alongside
online modules.
Creating culture change around sexual harm in the music community
From February to April 2021, SoundCheck Aotearoa engaged independent experts to guide a
process of reaching out to the music community to ask for their views and feedback: what are the
problems/challenges in the culture of the music community and what might be done to address
them? Over 200 people gave feedback via in person and online group sessions, one on one sessions
and anonymous online feedback. Independent experts Rachel Harrison and Debbie Teale took the
feedback and drew on research and experience to produce a report published in July 2021: Creating
culture change around sexual harm in the music community. The report contains a set of ten
recommendations for action to create culture change in the music community. SoundCheck Aotearoa
called on everyone in the music community to step up and play a part in creating change.
New website – pathways to support services
Feedback indicated that people don’t know where to go for help. In December 2021, SoundCheck
Aotearoa launched a new website listing recommended support options:
• practical help and counselling for people who have experienced harm
• harmful sexual behaviour services for people who have been accused of harm
• guidance, training and support for businesses responsible for managing risks of harm
• a variety of external resolution options including restorative practitioners
SoundCheck Aotearoa acknowledges the support of its funders: NZ Music Commission, Recorded Music NZ,
APRA AMCOS and NZ On Air. For more information see www.soundcheckaotearoa.co.nz
or info@soundcheckaotearoa.co.nz
Tailored resources
Feedback indicated that many people in the music community, from sole traders to larger businesses,
want to adopt a code of conduct, use posters and policies for their event or display information about
sexual harassment. SoundCheck Aotearoa created a range of tailored resources that are free for
anyone to use and adapt. The resources include:
• template Code of Conduct and harassment policy for workplaces
• posters and other visual resources for venues and office spaces
• guidance and checklists for live music events
• flow charts and guidance for managing sexual harm when it happens
Creating culture change around sexual harm
in the music community in Aotearoa
by Debbie Teale and Rachel Harrison
SoundCheck Aotearoa Summary and Backgrounder
SoundCheck Aotearoa is an action group formed in 2020 with the mission to foster a safe and inclusive culture for
the music community. We believe that action is needed to address inequitable representation, challenge systemic
discrimination, and advance impactful change, and we are looking at ways to work together across the music community
to achieve this.
Our first project is about preventing and responding to sexual harassment and assault (sexual harm) in our music
community. We believe that everyone is entitled to a safe workplace where they are respected and free from harm,
whether that workplace is a music venue, a festival stage, a meeting in a bar, or a recording studio.
It is clear from the Amplify Aotearoa research and multiple other sources that there is a serious problem with sexual harm
in our music community and we need to act urgently to address it.
Reaching out to the music community
In February 2021 SoundCheck Aotearoa commissioned independent experts Rachel Harrison and Debbie Teale to guide
us through a process of reaching out across the music community to hear everyone’s feedback and ideas about sexual
harm and safety in the workplace. From February to April we held a series of workshops focussing on the challenges and
issues in our music community, and what might be done to address them.
We heard from around 200 people across our Auckland, Wellington and online workshops. A massive thank you to those
who participated in the workshops and provided valuable feedback, and to everyone who has contributed their energy,
enthusiasm and commitment to this process so far.
The independent report
Following the workshops, Rachel Harrison and Debbie Teale have taken all the feedback and ideas, and drawn from their
own experience and from research around the world, to produce
Creating culture change around sexual harm in the music
community in Aotearoa
. The report contains a set of ten recommendations for what our music community can do to
prevent and respond to sexual harm.
A safe and inclusive culture for the music community
Hei kōrero, hei wero, hei kōkiri anō hoki
soundcheckaotearoa.co.nz
1
READ THE
FULL REPORT
HERE
SUPPORTING
OUR MUSIC
INDUSTRY
23
ACOM celebrated being named Best Global Music Office at the Music Cities Awards on
9 November 2021. The aim of the awards was to promote best practice and demonstrate
the value of music to the world. 250 global music cities professionals attended the virtual
award ceremony, which had recieved 120 applications from twenty-one countries and five
continents. The ceremony comprised ten talks, one for each award category, with the award
winner announced at the end of each discussion. ACOM Director, and Recorded Music NZ
Special Projects manager Mark Roach, was also nominated for in the category for Public
Service Awards for a Leading Music Cities Professional. More information: https://www.
musiccitiesevents.com/awards
Auckland City of Music (ACOM) continues to be a valuable asset for Recorded Music to lead and shape local Government policy
discussion, as well as provide a platform to enable numerous projects which align with the company’s vision and values.
ACOM published a 4-year summary of its actvities as well as the wider activity in the Auckland music ecosytem. The report is available
for viewing and download at https://bit.ly/3CQo7cl
Songlines was a celebration of our musical whakapapa. Working in partnership with
Auckland Council’s urban regeneration agency, Eke Panuku Development, ACOM
developed a pilot programme in Takapuna which included decal song lyrics placed on
pavements in the area. Each decal carried a QR code that takes audiences to the audio
track on Spotify. The lyrics were also referenced in displays in the town centre which
provided the public with further information regarding the artist and song. This activation
provides ACOM with a means to test the idea, gather feedback, and make plans for
permanent Songlines both in the Takapuna area and other neighbourhood communities
around Auckland and further celebrate our local music stories.
The EQ project is a mixed format project that provides grants, professional development
and an ongoing network support to female music and screen sector professionals.
Applications were opened for three, $10,000 music video grants in September 2021 with the
workshop and networking component of EQ scheduled to take place in May 2022. Funding
support was provided by ACOM, NZ On AIr and the NZ Music Commission. The grants
attracted applications from over 60 musicians and 60 directors, highlighting the depth
of talent available. From this talent pool, 3 musicians were chosen by a specialist judging
panel. ACOM then proactively worked with these musicians to pair them with filmmakers
from the director shortlist, with ongoing support offered by ACOM and our partners to
enable delivery of the projects in 2022.
The inaugural Aotearoa Sync-Posium was staged in June 2021 at Auckland’s Roundhead
Studios. Organised by music supervisor Karyn Rachtman and music producer Greg Haver
the event covered all areas of music placement in film, TV, games and associated media.
ACOM and Recorded Music NZ were able to support this initiative financially, as well as
provide marketing support through the development of the brand design and all associated
marketing collateral. Thanks to to the involvement of music supervisors and music heads
of major media platforms such as Nickleodeon and EA Games, Sync-Posium has so far
generated over $1.2 million of income to NZ artists from syncs, compositions and scores for
local and international projects.
SONGLINES
EQUALISER EQ
SYNCPOSIUM
GLOBAL AWARD
2021 HIGHLIGHTS
SUPPORTING
OUR MUSIC
INDUSTRY
Year of Incorporation 1957
Company number 10515
Registered Office Level 1, 2A Hakanoa Street
Grey Lynn
Auckland
Business Address Level 1, 2A Hakanoa Street
Grey Lynn
Auckland
Directors C Caddick (Chair)
N Atkinson
K Boshier
S Cockle
N Harrop
A Holt
Shareholder Extensive shareholding
Auditor RSM Hayes Audit
Auckland
DIRECTORY
FOR THE YEAR ENDED 31 DECEMBER 2021
24
Chris Caddick, Chairperson
Dated 10.05.22
Adam Holt, Director
Dated 10.05.22
APPROVAL OF ANNUAL REPORT
In the opinion of the Directors of Recorded Music New Zealand Limited (‘the Company’) the financial statements and notes, on
pages 25 to 31:
• comply with New Zealand generally accepted accounting practice and present fairly the financial
position of the Company as at 31 December 2021 and the results of operations for the year ended on that date;
• have been prepared using the appropriate accounting policies, which have been consistently applied and supported by
reasonable judgements and estimates.
The Directors believe that proper accounting records have been kept which enable, with reasonable accuracy, the
determination of the financial position of the Company and facilitate compliance of the financial statements with the Financial
Reporting Act 2013.
The Directors consider that they have taken adequate steps to safeguard the assets of the Company, and to prevent and detect
fraud and other irregularities. Internal control procedures are also considered to be sufficient to provide reasonable assurance
as to the integrity and reliability of the financial statements.
The Directors are pleased to present the annual report including the financial statements of Recorded Music New Zealand
Limited for the year ended 31 December 2021.
REVENUE
Licence Fees
Interest Income
TOTAL INCOME
EXPENSES
Operating expenses
Administrative expenses
Impairment of asset
TOTAL EXPENSES
Less tax expense
TRANSFER TO NET FUNDS AVAILABLE FOR DISTRIBUTION
PROFIT FOR YEAR
Note
6
8
3
2021
$
15,584,584
73,703
15,658,287
(3,049,538)
-
-
(3,049,538)
(42,639)
(12,566,110)
-
2020
$
13,636,162
221,945
13,858,107
(2,675,768)
-
(147,577)
(2,823,613)
(268)
(11,034,494)
-
This statement is to be read in conjunction with the notes to the financial statements.
STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED 31 DECEMBER 2021
25
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021
ASSETS
Cash and cash equivalents
Trade and other receivables
Short term deposits
Right of use asset
Property, plant and equipment
TOTAL ASSETS
LIABILITIES
Trade payables and accruals
Lease liability
Funds held available for distribution
EQUITY
Contingency reserve retained for provisions
TOTAL LIABILITIES
Note
5
7
5
3
2021
$
1,032,611
3,337,104
10,335,929
199,908
108,209
15,013,761
1,090,000
199,908
12,923,853
15,013,761
2020
$
772,320
2,246,989
10,041,226
307,596
77,055
13,445,186
734,836
307,596
11,402,754
13,445,186
This statement is to be read in conjunction with the notes to the financial statements.
26
27
STATEMENT OF MOVEMENTS IN EQUITY
AS AT 31 DECEMBER 2021
BALANCE AT 1 JANUARY 2020
Restatement of contingency fund
Restated balance at January 2020
PROFIT FOR THE YEAR
Release of reserve to funds for distribution
Balance at 31 December 2020 (restated)
PROFIT FOR THE YEAR
Release of reserve to funds for distribution
Balance at 31 December 2021 Note 2(e)
-
-
-
-
-
-
1,150000
1,150,000
(150,000)
1,000,000
(200,000)
800,000
1,150,000
1,150,000
(150,000)
1,000,000
(200,000)
800,000
This statement is to be read in conjunction with the notes to the financial statements.
Contingency
reserve
Retained
earnings
Total
equity
28
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts of licence fees
Distributions to rightsholders and recordings artists
Paid to suppliers and employees
Net cash from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
Acquisition of property, plant and equipment
Movement in short term deposits
Net cash from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Finance Lease Payments
Net cash from financing activities
NET DECREASEINCREASE
Opening cash and cash equivalents 1 January
Closing cash and cash equivalents
Made up of:
Bank balances
TOTAL CASH AND CASH EQUIVALENTS
2021
$
14,388,781
(11,045,012)
(2,695,379)
648,390
73,703
(59,410)
(294,703)
(280,410)
(107,689)
(107,689)
260,291
772,320
1,032,611
1,032,611
1,032,611
This statement is to be read in conjunction with the notes to the financial statements.
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
2020
$
13,403,680
(12,180,316)
(2,729,567)
(1,506,203)
221,945
(28,421)
940,830
1,134,354
(100,199)
(100,199)
(472,048)
1,244,368
772,320
772,320
772,320
29
NOTES TO THE FINANCIAL STATEMENTS
1. GENERAL OVERVIEW
a) Reporting Entity
Recorded Music New Zealand Limited (the “Company”) is a limited liability
company incorporated and domiciled in New Zealand.
The Company acts as an authorised representative of the master right
owners in New Zealand to license, control and promote the public
performance and broadcasting of their copyright in sound recordings and
music videos and to collect fees in respect thereof. Distributions are then
made to the appropriate copyright holder.
The Company is registered under the Companies Act 1993 and the financial
statements comply with the Financial Reporting Act 2013. The Company
is considered to be a profit-oriented entity for the purposes of financial
reporting as it seeks to maximise distributions to its shareholders.
The financial statements presented are for the Company as at and for the
year ended 31 December 2021 and were authorised for issue by the directors
on the date specified on page 24.
b) Basis of preparation
These financial statements have been prepared in accordance with
Generally Accepted Accounting Practice in New Zealand (NZ GAAP).
They comply with the New Zealand Equivalents to International Financial
Reporting Standards - Reduced Disclosure Regime (‘NZ IFRS RDR’) as
appropriate for Tier 2 for-profit entities applying reduced disclosure
reporting concessions. The Company has elected to report under Tier 2
For-Profit Accounting Standards on the basis that it does not have public
accountability.
These financial statements have been prepared on the basis of historical cost.
The financial statements are presented in New Zealand dollars ($) which is
the Company’s functional currency, rounded to the nearest dollar.
The Company has not reported any profit or other comprehensive income.
This is because all income, net of expenses, is distributed to the appropriate
rightsholders and recording artists.
The statement of financial position is presented in order of liquidity. The
Company has uncalled capital and no retained earnings.
c) Use of estimates and judgements
The preparation of the financial statements in conformity with NZ IFRS RDR
requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported amounts
of assets, liabilities, income and expenses. Actual results may differ from
these estimates.
Please refer to note 5 for information about judgements made in applying
accounting policies that have the most significant effects on the amounts
recognised in the financial statements.
2. ACCOUNTING POLICIES
a) Revenue
Revenue is recognised in the statement of profit and loss when the
performance obligation associated with the respective contract is satisfied
and can be reliably measured. The main types of revenue are licence fees
from radio and TV, public performance and music service providers. Net
income from sponsorship and other income received in relation to the Music
Awards is included in operating expenses with the net result a loss of
$6,114 for the year.
b) Trade and other receivables
Trade and other receivables are initially recognised at fair value, being their
cost, and subsequently measured at amortised cost using the effective
interest method, less any provision for impairment.
c) Distributions to licensees
The annual income from broadcasting and public performance licence fees
and miscellaneous income received, less the amount retained (to meet
liabilities contingent and otherwise), are apportioned to the New Zealand
rightsholders and recording artists. An expense is recognised in full in the
period that the income is received as the Company has an obligation to its
rightsholders and recording artists to distribute these funds. This obligation
is shown on the statement of financial position as funds available for
distribution.
d) Funds available for distribution
The funds for distribution are retained in Trust pending the receipt
and analysis of airtime data received from broadcasters. The pro-rata
distribution of surplus funds is determined on Radio and Television airtime.
In the interim, these funds are placed on short term investment to attract
interest income.
e) Contingency Reserve
An amount has been retained from the funds available for distribution
to rightsholders and recording artists to meet liabilities, contingent
and otherwise. In previous years this was disclosed as funds retained
for liabilities. As there is no present obligation, this amount has been
transferred into a contingency reserve in the current year.
f) Investments in short term deposits
Investments are measured at cost less accumulated amortisation and
accumulated impairment losses. Interest income is earned on funds
invested and term deposits. Interest income is recognised as it accrues in
profit or loss, using the effective interest method.
g) Trade payables and accruals
Trade and other payables are measured at amortised cost, being their fair value.
h) Taxes
The Company acts as a nationwide non-profit representative for New
Zealand rightsholders and recording artists. Surpluses are fully distributed
and consequently the Company is only liable to pay taxes on timing
differences arising from accruals made. The withholding tax on interest
income has been deducted; however, due to an IRD ruling no terminal tax is
payable by the Company but will be payable by the members. The financial
statements have been prepared on a GST exclusive basis except for
receivables and payables that are stated inclusive of GST. As a result of an
impairment (refer to note 8) there was a $42,639 tax liability which was paid
in the current year.
i) Financial instruments
Financial assets and liabilities are classified into the following categories:
• Loans and other receivables include cash and cash equivalents, trade
and other receivables, and short term deposits.
• Other amortised cost include trade payables and accruals, and funds
retained and distributable.
j) Leases
For contracts entered into after 1 January 2019, at inception of a contract,
the Company assesses whether a contract is, or contains a lease. A contract
is, or contains, a lease if the contract conveys the right to control the use
of an identified asset for a period of time in exchange for consideration.
30
3. MOVEMENTS IN FUNDS FOR DISTRIBUTION
The Company pays a distribution to its rightsholders and recording artists each year, consisting of the prior year earnings,
less any deductions for expenses and reserves for future anticipated expenditure.
Funds at the beginning of the year
Funds distributed to rightsholders and recording artists during the year
Transfer to funds retained for provisions
Funds receipted (net of expenses) available for distribution next year
Funds at the end of the year
4. RELATED PARTIES
Funds distributed to shareholders that are represented on the Board are related party transactions. Distributions to those shareholders and related
entities are calculated and paid on the same terms as for all other rightsholders. Board members are not directly involved in the calculation or payment
of distributions. There are no allocated distributions to related parties that are unpaid at balance date. Related parties will be entitled to a share of
distributable funds held in the statement of financial position when the next distributions are made in 2022
The following remuneration was received by directors during the year:
Chris Caddick
Nicky Harrop
Nick Atkinson
Total
5. LEASES
Statement of financial position
Right-of-use asset
Lease liability
Statement of profit and loss
Depreciation on right-of-use asset
During the year ended 31 December 2021 lease payments were $121,730 (2020: $107,828).
Within this payment, $14,041 is repayment of interest for lease liabilities, $107,689 is repayment of principle of lease liabilities.
When measuring lease liabilities, the Company discounted lease payments using its incremental borrowing rate as at 1 January 2021.
Rate for buildings : 5%
2021
11,402,754
(11,245,011)
200,000
12,566,110
12,923,853
2020
12,548,576
(12,330,316)
150,000
11,034,494
11,402,754
2021
199,908
199,908
107,688
2020
307,596
307,596
107,828
2021
54,000
7,000
7,500
68,500
2020
54,000
7,000
8,000
69,000
To assess whether a contract conveys the right to control the use of an
identified asset, the Company assesses whether:
• the contract involves the use of an identified asset;
• the Company has the right to obtain substantially all of the economic
benefits from use of the asset throughout the period of use; and
• the Company has the right to direct the use of the asset.
Recognition and measurement
The Company recognises a right-of-use asset and a lease liability at the
lease commencement date. The right-of-use asset is initially measured
at cost, which comprises the initial amount of the lease liability adjusted
for any lease payments made at or before the commencement date, plus
any initial direct costs incurred and an estimate of costs to restore the
property at the end of the lease.
The right-of-use asset is subsequently depreciated using the straight-
line method from the commencement date to the earlier of the end of the
useful life of the right-of-use asset or the end of the lease term.
The lease liability is initially measured at the present value of the lease
payments that are not paid at the commencement date, discounted
using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the Company’s incremental borrowing rate. Generally, the
Company uses its incremental borrowing rate as the discount rate.
The lease liability is measured at amortised cost using the effective
interest method. It is remeasured when there is a change in future lease
payments arising from a change in the market rate in accordance with the
contract.
When the lease liability is remeasured in this way, a corresponding
adjustment is made to the carrying amount of the right-of-use asset, or
is recorded in profit or loss if the carrying amount of the right-of-use has
been reduced to zero.
31
2021
$
108,209
15,838
-
-
(1,584)
14,254
27,659
-
-
(1,332)
26,327
31,553
80,411
-
(45,574)
66,390
2,005
-
-
(767)
1,238
2020
$
77,055
18,000
-
-
(2,162)
15,838
29,196
-
-
(1,537)
27,659
29,008
29,310
(2,800)
(23,965)
31,553
685
1,912
-
(592)
2,005
6. OPERATING EXPENSES
The required specific disclosures included in Operating Expenses
are as follows:
Employee Benefits
Legal and consulting costs
Depreciation
Employee benefits in 2020 reflect the receipt of the Covid 19 wage subsidy, which has been netted off against the above expenditure, and the decision to
constrain expenditure that year due to decreased revenue.
7. PROPERTY, PLANT AND EQUIPMENT
The breakdown for Property, Plant and Equipment is made up of the following assets:
Buildings
Opening Balance
Additions
Disposals
Current Depreciation
Current Book value of Buildings
Furniture and Fittings
Opening Balance
Addition
Disposals
Current Depreciation
Current Book Value of Furniture and Fittings
Office equipment
Opening Balance
Additions
Disposals
Current Depreciation
Current Book value of Office Equipment
Plant and_Equipment
Opening Balance
Additions
Disposals
Current Depreciation
Current book value of Plant and Equipment
8. INVESTMENTS
The Directors determined in 2020 that the Investment in Media Sauce was no longer supportable and therefore the investment was impaired
in full in that year.
9. COMMITMENTS AND CONTINGENCIES
There are no capital commitments at balance date (2020: nil). There are no contingent liabilities (2020: nil).
10. SUBSEQUENT EVENTS
There have been no subsequent events which impact on the financial statements (2020: nil).
2021
1,972,124
180,994
49,257
2020
1,647,840
123,382
28,256
32
33
34
Tami Neilson (Te Kaipuoro Tuawhenua Toa |
Best Country Music Artist) at AMA 2021.
© Topic Photography.
35
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