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LONDON — Paul Pacifico, the outgoing CEO of the U.K.’s Association of Independent Music (AIM), has been hired to head the Saudi Music Commission, which is responsible for developing and championing the burgeoning music sector in the Kingdom of Saudi Arabia.
Pacifico takes up the post in January. He will succeed Mohammed Al Mulhem, who is listed on the Saudi Music Commission website as the incumbent chief executive.
The Saudi Music Commission was established by the Ministry of Culture in 2020 as part of a wider push to grow Saudi Arabia’s economy and status as a high-end global tourist destination.
The commission says its objective is overseeing the development of Saudi’s music market through building world-class infrastructure, providing universal access to music education, empowering music artists and creating job opportunities in the country, which has a population of 35 million.
Specific market data for Saudi Arabia’s music industry isn’t currently available, with IFPI grouping the country within its Middle East and North Africa (MENA) regional statistics. According to IFPI’s latest Global Music Report, MENA was the fastest-growing region in 2021, with recorded music trade revenues growing by 35% to $89.5 million.
International artists have, however, often faced strong criticism for performing in Saudi Arabia and helping promote a country widely accused of human rights abuses.
Last year, the Human Rights Foundation and the fiancée of murdered Saudi journalist and Washington Post columnist Jamal Khashoggi led calls for Justin Bieber to cancel his headline performance at a concert in the Red Sea city of Jeddah to mark the end of the Formula One season.
Despite public pressure for Bieber to pull out, the concert went ahead on Dec. 5, with R&B singer Jason Derulo also performing at the show. In 2019, Nicki Minaj canceled her appearance at a concert in Jeddah. At the time, Minaj said she was boycotting the show in support of women’s rights, gay rights and freedom of expression.
Only a few years ago, concerts were banned in Saudi Arabia, where ultraconservative norms prevailed, and unmarried men and women were segregated in public spaces. That changed with the appointment of Saudi Crown Prince Mohammed bin Salman in 2017, who has introduced sweeping reforms to modernize the country, attract foreign investment and create jobs for youth.
MDLBEAST Soundstorm, the biggest music festival in the region, launched in the capital city of Riyadh in 2019, while its latest edition set to take place Dec. 1-3 with performances by DJ Khaled, Post Malone, Bruno Mars, Wizkid, David Guetta, Marshmello, Tiësto and Carl Cox, among others.
“It is truly remarkable to see the level of support and the pace of change within Saudi Arabia as it builds a strong music sector for all to participate in,” Pacifico said in a statement announcing his appointment. He called the opportunity to help further develop the market a “huge privilege” and said he was looking forward to working with colleagues to “build a vibrant, inclusive and effective music sector.”
It is not known if Pacifico will relocate from the U.K. to Saudi Arabia when he takes up his new post.
In August, Pacifico announced he was stepping down as CEO of AIM after six years at the head of the organization, which represents more than 1,000 independent labels, artists and music companies, including Beggars Group, Domino, Warp and Ninja Tune.
Pacifico’s term as CEO officially ended on Oct. 31, but he is continuing in the role until the end of the year when his successor takes over.
Key achievements from Pacifico’s two-term tenure include last year’s Music Climate Pact, an industrywide initiative to decarbonize the record business backed by all three major labels and dozens of indies.
Pacifico is an associate professor at Berklee College of Music in Valencia, Spain and is featured in Billboard’s 2022 International Power Players list. He spoke on behalf of the indie sector during last year’s U.K. Parliament probe into music streaming. And during Brexit negotiations and the COVID-19 pandemic, he petitioned the British government for greater support for independent musicians and music companies.
Prior to joining AIM in 2016, Pacifico served as CEO of the UK’s Featured Artist Coalition and founding president of the International Artist Organisation.
LONDON — For live music executives, Monday’s (Oct. 24) appointment of Rishi Sunak as Liz Truss’ successor as U.K.’s prime minister brings a sense of urgency as the sector struggles to recover to full health after the devastating impact of the pandemic.
They are calling for Sunak, who served in Boris Johnson’s government as Chancellor of the Exchequer and will become the U.K.’s first British-Asian prime minister, to swiftly cut the sales tax rate charged on U.K. ticket purchases from the current 20% VAT to 5%.
At the height of the pandemic, Sunak lowered VAT rates to 5% to try and help boost advance sales. The tax cut lasted for eight months, before rising to 12.5% last October and then returning to its pre-pandemic level of 20% on April 1.
Live execs say that cutting VAT back to 5% will encourage ticket sales at a time when many people in the U.K. are experiencing a drastic reduction in disposable income due to soaring food and energy prices. Last month, inflation hit a 40-year high of 10.1% in the United Kingdom.
Jon Collins, CEO of U.K. live music industry association LIVE, says he hopes Sunak’s experience in the Treasury office “leaves him well placed to recognize the economic stimulus that would follow” a reduction in VAT on ticket sales. “Safeguarding gigs, festivals and venues while encouraging additional activity will bring benefits to town and city centers across the U.K.,” says Collins.
An immediate priority for the new prime minister — who officially takes up his post on Tuesday, following a meeting with King Charles III — will be restoring confidence in the financial markets, following Truss’ disastrously brief reign.
Last month, the pound fell to a record low against the U.S. dollar in the aftermath of Kwasi Kwarteng’s Sept. 23 mini budget, which spooked investors with its unfunded tax cuts — something Sunak warned about when he unsuccessfully competed in an earlier Conservative Party leadership contest this summer. Truss sacked Kwarteng as Chancellor on Oct. 14, precipitating her downfall. Almost all the tax measures he introduced have since been scrapped.
Sunak, a former hedge fund partner who married the daughter of an Indian billionaire, won the prime minister role after Johnson announced on Sunday he would not be running for the position. On Monday, Sunak’s only other rival, Penny Mordaunt, pulled out of the contest shortly before votes from members of Parliament (MPs) were due to be announced.
The markets calmed Monday with sterling broadly unchanged against the dollar and government borrowing costs falling as the interest rate on bonds dropped to 3.8%. (The rate was 5.17% in late September.)
“There is no doubt we face a profound economic challenge,” Sunak, one of Westminster’s wealthiest politicians, said in a televised address. “We now need stability and unity, and I will make it my utmost priority to bring our party and our country together.”
Michael Kill CEO of The Night Time Industries Association (NTIA), which represents more than 1,400 U.K. nightclubs and venues, says he will judge the incoming prime minister on his “actions not words.”
Kill says he hoped Sunak can “can address the current instability, uncertainty and begin a journey to build back consumer confidence for nighttime economy and hospitality businesses.” He echoed live executives’ demands for a cut to VAT and called for an extension on business rates relief (taxes payable on business premises, such as record shops and music venues). “Independent businesses will not survive without it,” Kill says.