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Canada Outpaces Global Music Revenue Growth in 2015 but Outlook Remains Cautious

The global music community celebrates a return to revenue positive in 2015 with a 3.2% growth of industry revenues to US$ 15 billion, while Canada more than doubles this upswing with an 8.3% increase, helping to make up for a double digit loss in 2014.

Driven by a strong release schedule and explosive growth in premium subscription services, largely the result of new entrants in the Canadian market, 2015 finished as an exceptional year for the Canadian music industry. In fact, three of the top ten global recording artists in 2015 were Canadian: Justin Bieber at number four, Drake at number nine and The Weeknd rounding out the top ten.

Despite these positive results however, it is too early to confidently declare a reversal in trends, given that losses in 2012 (-2.9%), 2013 (-5.4%) and 2014 (-11.0%) followed immediately after the positive 2011 figures (+3.1%), which marked the first revenue growth in this century in Canada.

Complete global figures and analysis were released today in IFPI’s Global Music Report 2016.

Highlights of Canada’s 2015 Music Revenues:

  • Digital revenues surge to 52% of total revenues (US$173.5 million), somewhat higher than the global share of 45%
  • Premium streaming revenues explode in Canada, with a 151% increase (US$29.4m in 2015 v. US$11.85m in 2014), overtaking ad-supported streaming revenue, which only grew 32% (US$19.49m in 2015 v. US$14.76m in 2014)
  • Physical revenues in Canada make up 35% of the market (US$ 118.9million), slightly lower than the global share of 39%
  • Performance rights revenues are 11% in Canada compared to 14% globally
  • Synchronization rights are 2% compared to 2% globally

In Canada, as in other countries around the world, a record volume of music is being consumed, yet artists and producers are not enjoying fair compensation, primarily because upload services like YouTube are not paying normal music licensing rates due to the misapplication of a legislative framework called “safe harbours”. This has created what is known as the “value gap”. Furthermore, the “value gap” has resulted in a distorted market, where premium services are forced to compete unfairly with other services that use copyrighted content to build their businesses, but do not pay fair rates.

“In Canada, where premium streaming has had such a significant positive effect on our market in 2015, the “value gap”, where ad-supported services benefit from lower-than-normal licensing rates, causes immense concerns,” says Graham Henderson, President & CEO of Music Canada. “We hope that legislators will work with the music community to address this market distortion and reduce the gap so that rights holders are compensated fairly for their work.”

Complete market information for Canada and all other national markets will be released on Thursday, April 14, 2016 by IFPI.

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Music Canada Proud to Support 45th Annual JUNO Awards

MC-juno2016rev

Music Canada is proud to return as the sponsor of the Album of the Year Award at the 45th Annual JUNO Awards.

“Music Canada is proud to work alongside record labels who invest in great Canadian talent by helping them create an album, develop as artists, and build a passionate fan base. This kind of support gives Canadian artists what it takes to not only break into the international market – but as we saw in 2015 – rule it,” says Graham Henderson, President of Music Canada.

“A strong music industry positions us well on the global stage, builds our brand, and draws the world to our borders through music tourism. A vibrant music sector contributes economically, socially and culturally to local communities and the country at large. There is an incredible depth and diversity for music in Canada – it’s one of our greatest exports.”

This year’s nominees for Album of the Year are:

  • Drake – If You’re Reading This It’s Too Late
  • Jean Leloup – A Paradis City
  • Justin Bieber – Purpose
  • Shawn Mendes – Handwritten
  • The Weeknd – Beauty Behind the Madness

The Album of the Year Award will be presented at The 2016 JUNO Awards Broadcast on CTV at The Scotiabank Saddledome in Calgary on Sunday, April 3.

 

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Premier Clark announces new $15M BC Music Fund

Today we thank Premier Clark and the Government of British Columbia on their announcement to dedicate a $15 million grant to support the creation of a BC Music Fund as part of a comprehensive strategy to protect and promote the province’s music industry.

“This is an historic day for the province,” says Graham Henderson, President & CEO of Music Canada. “The creation of a BC Music Fund as part of a fulsome strategy to strengthen the province’s music industry, will enhance BC’s competitiveness as a location for the production and presentation of music. The BC Music Fund will help music businesses produce, distribute, promote, and stage the province’s emerging and well-known artists. It will allow the province to retain its deep inventory of talented music professionals, and create new opportunities for jobs and investment, contributing to a more diversified economy.”

Premier Christy Clark announced the $15 million grant as part of the launch of Music Canada’s report, BC’s Music Sector: From Adversity to Opportunity, at Vancouver’s Warehouse Studios. The event also included remarks by Michael Bublé, Jon Garson, President & CEO of the BC Chamber of Commerce and Scott Johnson, Chair of Music BC.

“B.C. is one of Canada’s leading centres for music with talented musicians in every corner of the province,” says Premier Clark. “Our record labels, recording studios, concert venues and music festivals draw people from all over the province, the country and the world. Music develops culture, promotes talent and diversifies our strong and growing economy.”

BC’s Music Sector: From Adversity to Opportunity was prepared by Music Canada after interviews and consultations with more than 100 individuals in BC’s music sector, the broader business community, municipal and provincial governments, provincial agencies, and community leaders.

The report highlights British Columbia’s wealth of music talent and the factors that have put these assets at risk. The report encourages decisive action on the part of the provincial government, municipalities, and music stakeholders to put BC’s music sector firmly back on the map and secure the benefits it can generate.

“The landscape and culture in BC has always been a huge catalyst in my creative process,” says Ryan Guldemond of Mother Mother who performed at the event. “It’s where we came together as a band, and where we’ve cultivated our creative community. There is an incredible wealth of talent here, and until now, the resources and infrastructure haven’t been able to properly support and elevate the art that is constantly being created. It’s incredibly heartening to see the powers that be sit up and take notice of the cultural and economic benefit the BC music industry provides for our province. Dedicating more resources to this sector will have a lasting positive impact on our cultural landscape.”

BC’s Music Sector: From Adversity to Opportunity is available at https://musiccanada.com/resources/research/bcs-music-sector-from-adversity-to-opportunity.

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First-ever study of live music in Ontario is released

Live - Newsletter Banner - 800x457 for Mailchimp - RGBToday, Music Canada releases the first comprehensive study of the live music industry in Ontario. Live Music Measures Up: An Economic Impact Analysis of Live Music in Ontario provides critical data and information that will help guide decision-making within the sector, in government and other allied stakeholders.

“This report provides a comprehensive picture of the benefits live music brings to Ontario. In fact, it only enhances our understanding of data collected in our 2012 economic impact study, and cements what we know about Ontario as a powerhouse for the music industry. It shows that a vibrant music scene drives value in many important ways, including job creation, tourism development, brand building and artistic growth. With the new data from this study, we now have the necessary benchmarks to measure and support its growth. Live Music Measures Up allows us to look at live music through a new lens, and to better understand how critical it is to the entire music ecosystem.” says Graham Henderson, President of Music Canada.

Erin Benjamin, Executive Director of Music Canada Live, participated in today’s launch. “Measuring Live Music represents an historic, timely and monumental opportunity; one which will enable us to entrench the true value of the live music economy in the minds of our stakeholders, government and audiences alike. It’s inspiring to see the sector organize, work together and build on the momentum we can all feel – here in the Province and around the world – the kind that will help guarantee live music takes its rightful place as one of Ontario’s greatest natural resources,” says Benjamin.

Prior to this study, there existed no comprehensive data set on Ontario’s live music industry. Music Canada engaged Nordicity to complete the profile, which they did after conducting interviews and surveys of artist managers, promoters, agents, music venues, and festivals in the province. The study was completed in partnership with Ontario’s Ministry of Tourism, Culture and Sport, and with the financial support of the Ontario Media Development Corporation through the Ontario Music Fund.

In 2012, Music Canada studied the economic impact of the sound recording industry in Canada utilizing 2010 Statistics Canada data. The new data collected for Live Music Measures Up provides a more fulsome and detailed look at the live music sector in Ontario. A more comprehensive data set is necessary to understanding where the live music sector is, has been, and will be in the future. This report will provide necessary benchmarks to understand and support the sector’s future growth.

The economic profile is organized into four key areas: revenue, audience, economic impact, and future outlook. The key takeaways are as follows:

  • Revenue: Live music companies in Ontario generated $628 million in revenue from live music activities in 2013 as well as profits of $144 million. Artist management revenue from Canadian artists totalled $34 million in 2013, 54 percent of all artist management revenue, and Canadian artists generated $75 million in ticket sales.
  • Audience: In 2013, 558 festivals across Ontario sold a total of 15.7 million tickets, representing 7 million unique visitors. Ontario’s 616 venues have a combined capacity of 3.6 million. The 775 promoters operating in the province in 2013 promoted 81,600 shows, which sold a combined total of 5.4 million tickets.
  • Economic Impact: The total economic impact of live music in Ontario’s economy is $1.2 billion. Live music companies in Ontario were responsible for $484 million in total expenditure in 2013 and contributed $432.4 million in taxes to all levels of government combined. The economic impact of live music companies includes 10,500 full-time equivalent jobs, and tourism activity accounts for an additional 9,520.
  • Future Outlook: Survey respondents reported that access to tax credits and other forms of government funding, along with the availability of local Canadian talent, were the factors that most positively impacted their company growth. And 83 percent of live music companies in the province expect revenue growth within the next two years.

“Live music is a powerful force, and we thank Music Canada for their leadership in helping to quantify the extraordinary work of the sector,” adds Benjamin.

Download the full report here.

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Music Canada Applauds Supreme Court of Canada’s Decision in CBC v. SODRAC

Music Canada welcomes the Supreme Court’s decision today in the CBC v. SODRAC case which reaffirms that a copy of a recording has value for which creators must be fairly compensated.

The Supreme Court has determined that broadcasters must pay royalties on reproductions of audiovisual works – in this case known as incidental or ephemeral copies, which are used in the preparation of broadcasts – because they add value to the final product. The decision also ensures that Canada meets its international treaty obligations in this area. The Court further determined that rights holders are free to license their rights as they see fit, in this case, separately licensing television producers and broadcasters. And the Court noted that the principle of “technological neutrality” entitles copyright holders to larger royalties where the use of technology enables greater value to be obtained from use of a copyrighted work.

“Today’s decision by our highest Court is an affirmation for Canada’s creative middle class,” says Graham Henderson, President & CEO of Music Canada. “The creative community should have access to a fair and functioning market that rewards them based on demand for their work. This is critical for Canadian artists whose livelihoods depend on earning fair compensation from their profession and for the companies that invest in them and their careers.”

Today’s Supreme Court decision confirms years of precedents that support the growth and development of the music industry. The ruling rejects the argument that when a rights holder exercises one right, all other rights disappear. While the Supreme Court has decided to remit the matter to the Copyright Board to revalue SODRAC’s tariff, the Supreme Court has made it very clear that the judicial system will not be used to subvert clear statutory rights.

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The first economic impact analysis of live music in Ontario to be released in November

The live music industry in Ontario is thriving, and continues to position itself as a growing industry relative to the wider music industry. It has wide reaching economic benefits, and is a major source of income for artists at all stages of their careers. At a time of increased investment and international success, the industry is seeking to take the next steps to develop its capacity, increase growth, and effectively harness its strengths. It is in this spirit, that we’re excited to announce the forthcoming economic profile of live music companies operating in Ontario.

As some of our long-time readers may remember, in 2014, Music Canada – with the support of the Government of Ontario’s Ontario Music Fund – asked Nordicity to develop a profile and conduct an economic impact analysis of the live music industry in Ontario. This study is the first of its kind in the province. Through this survey, we have been able to create a profile that identifies the strengths, weaknesses, opportunities and threats facing this community, while also providing it with a critical tool that will assist individual and cooperative efforts to grow the industry.

We asked the music community to stand up and be counted. Nordicity conducted research and interviews with artist managers, promoters, agents, music venues, and festivals from across the province to explore and better understand the revenue, audience, and economic impact of the sector. It is with this research that the study hopes to identify new lines of business, new jurisdictions, factors to facilitate growth, and potential or existing barriers to growth.

“We can’t wait to share – for the first time – data that attests to the growing success of Ontario’s live music industry. Live music contributes to the livelihoods of so many Ontarians – from promoters, to artist managers, to hotels and restaurants. Venues and festivals of all sizes and in all contexts, in communities large and small, provide critical opportunities for artists to develop and benefit from live performance.  And in turn, the depth of our live music offering fuels tourism in Ontario  Our soon-to-be-released report will put numbers behind these statements while also identifying opportunities for further growth,” said Music Canada’s VP Public Affairs Amy Terrill.

Stay tuned for a release of the full report in November.

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Music Canada Welcomes New Federal Government

Yesterday Canadians voted for change and elected a new federal government. Music Canada congratulates Prime Minister-designate Justin Trudeau, and we look forward to working with him and the newly elected government to rebalance the copyright regime and ensure the business needs of the music sector are met.

We are pleased that the Liberal government has committed to taking a leadership role to initiate preliminary consultations for the 2017 Copyright Review. The Liberal government’s Copyright Review promises to give full consideration to the views of artists and creators. This is an opportunity to ensure that copyright legislation works for the 21st century.

Importantly, the Liberal government recognizes the significant challenges that creators face with the current Copyright Board structure. They have said that the current 2-3 year wait time for decisions is unacceptable due to its negative impact on people’s ability to earn a living. Music Canada has been a strong advocate for Copyright Board reform, and we look forward to partnering with our new government to find some real solutions to the problems that creators in Canada continue to face.

We look forward to speaking with the new government further on these issues, and about the recommendations of the Standing Committee on Canadian Heritage study of the Music Industry. You can read more about the Liberal government’s plan for Canadian arts & culture on their website.

Music Canada is a non-profit trade organization that represents the major record companies in Canada. We also partner with a diverse cross-section of the music industry to promote and develop the business framework for music right across Canada. These partners include some of Canada’s leading independent record labels and distributors, recording studios, live music venues, concert promoters, managers and artists. Music Canada has undertaken groundbreaking research on the music sector and is a trusted source, a passionate advocate and we provide a respected forum for discussion of issues relating to music.

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Canada’s Walk Of Fame Announces 2015 Inductees

Diamond-certified recording artist Michael Bublé was among the list of 2015 Canada’s Walk Of Fame inductees announced today at the Royal York Hotel in Toronto, ON. Along with Bublé, the 2015 inductees include actors Wendy Crewson and Lorne Greene, author Lawrence Hill, athlete Silken Laumann and Hockey Night In Canada broadcasters Don Cherry and Ron MacLean.

Also honoured at this year’s ceremony will be 17-year-old singer-songwriter and multi-platinum recording artist Shawn Mendes, who will receive this year’s Allan Slaight Honour, which recognizes young, inspirational Canadians who have achieved international success in the music industry.

“Our mission at Canada’s Walk of Fame is simple – to celebrate Canadian excellence, and to inspire the next generation,” said Melanie Hurley, CEO of Canada’s Walk of Fame. “This year’s inductees truly represent this mission, and the legacy they are creating for Canada is something we should all be proud of.”

Tickets for inductees ceremony on November 7, 2015 at Toronto’s Sony Centre are on-sale now. The televised special will air nationally on Global December 17 at 8pm ET/PT.

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Music Canada’s 2015 Annual General Meeting

Music Canada was thrilled to welcome many of our members, friends, and industry partners to our 2015 Annual General Meeting, held on September 24, 2015, at the Lula Lounge in Toronto.

Among the program highlights, the AGM featured a conversation with Toronto Mayor John Tory and Music Canada President & CEO Graham Henderson. Entitled ‘Toronto’s Music City – View from the Top’, the discussion centred on Toronto’s role and reputation as a Music City, and how the City, community, and local music industry can continue to foster this reputation.

John Tory - Graham Henderson

Video: Toronto’s Music City – View from the Top: in conversation with Mayor John Tory

For more on Tory’s remarks, visit our blog.

Next, Henderson delivered the Year-In-Review, which underlined the importance of collaboration and partnership within our industry.

After noting the growth in Canada’s digital music market, helped by the launch of new streaming entrants in the market, Henderson highlighted the Ontario Music Fund, which was made permanent in Ontario’s most recent budget bill. “Thank you Premier Wynne and Minister Coteau for seeing the economic value in Ontario’s booming music sector,” said Henderson. The success of the Ontario Music Fund has sparked interest across the country, explained Henderson, pointing to the Fertile Ground report commissioned by the National Music Centre and completed by Music Canada last fall, which provides recommendations for leveraging the potential of Alberta’s music sector. Henderson then announced that Music Canada is undertaking a study on British Columbia to make similar recommendations to their provincial government.

At the federal level, Henderson noted a major win in the budget bill with term extension for sound recordings. Noting that these recordings would otherwise fall into the public domain during the artists’ lifetime, the unprecedented success on term extension brought Canada in line with international standards.

Henderson also congratulated the Unison Benevolent Fund on reaching their $1 million fundraising target this year, making the fund operational. Music Canada is proud as an organization, along with our label members, for the role we played in investing $250,000 for the fund. Henderson then recognized our matching partner, Slaight Music.

Graham Speaking

Video: 2015 Year In Review

Continuing on the Music Cities theme, the AGM featured a panel entitled ‘Music City Strategies from the Ground Up’ with three panelists from across Canada who shared insight to the strategies and programs they are using to grow the music sector in their home regions.

Moderated by Amy Terrill, Music Canada’s VP of Public Affairs, the panel featured:

  • Andrew Vincent, a singer-songwriter, researcher, and creative consultant from Ottawa, ON. He is the co-author of Connecting Ottawa Music, an Ontario Music Fund-supported project profiling Ottawa’s music industries that was released in Spring 2015. He is currently serving as the interim Executive Director of the newly formed Ottawa Music Industry Coalition, a not-for-profit dedicated to promoting growth in the city’s music industries.
  • Mark Garner, Executive Director for the Downtown Yonge Business Improvement Area in downtown Toronto. Over the past decade he has increasingly focused on the revitalization and development of urban downtowns, playing an integral role in catalyzing on economics, neighbourhoods, social innovation and incubators. The DYBIA boasts a Music Strategy that looks at the deep history of music in downtown Toronto, programming His ideas and approach have been acknowledged by numerous awards and by being emulated in other communities.
  • Thom Bennett, a professional musician/producer/recordist/instructor based in Edmonton.  He performs regularly around Western Canada and beyond with a plethora of artists including A/B trio, MIXTAPE, Ann Vriend, Jesse Peters and dozens of other artists. When not maintaining his busy gigging schedule he splits his time between producing and engineering records for local artists at Sanctuary Studios, session studio work, accompaniment work, teaching and composing music.  Thom has created the ELM (Edmonton Live Music) Initiative involving with the support and help of key stakeholders in government and the music industry in Edmonton.  Its aim is to reinvigorate Edmonton’s live music scene through an innovative economic stimulus plan that involves the Alberta Gaming and Liquor Commission.

Music Cities panel

Video: ‘Music City Strategies from the Ground Up’ panel

Following the panel, Henderson introduced a new tradition at the Music Canada AGM with the creation of the President’s Award, which recognizes an organization or individual outside the music industry that has had a significant impact on the music industry. The inaugural recipient of the award was Mark Garner of the Downtown Yonge BIA, which has created an action plan to stimulate music performance, creation, education and celebration in the downtown core of the city. Their music strategy builds on the rich music history in downtown Yonge in order to create an environment where music can succeed now and in the future.

For more on the President’s Award, visit our blog.

To close out the day, Warner Music Canada President Steve Kane introduced Modern Space, a five-piece Toronto-based band that recently signed with Warner Music Canada. The band delivered a high energy performance of songs from their upcoming debut EP.

Modern Space

For more photos from the Annual General Meeting, visit our photo album on Facebook.

We were thrilled to welcome many of Music Canada’s members, friends, and industry partners to our 2015 Annual General…

Posted by Music Canada on Thursday, September 24, 2015

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Mark Garner, Executive Director of the Downtown Yonge BIA, receives first ever Music Canada President’s Award

“It is pretty obvious when someone from outside of our community has a deep passion for music and the people who make it.”

And with that, Music Canada President & CEO, Graham Henderson, awarded Mark Garner, Executive Director of the Downtown Yonge BIA the first ever Music Canada President’s Award for his outstanding contribution to Toronto’s music scene.

President's Award - Mark Garner

Inspired by a similar award bestowed on Music Canada by Tourism Toronto in 2014, the award recognizes an organization or individual outside of the music industry that has an impact on the music industry.

Under Garner’s leadership, the DYBIA has created an action plan to stimulate music performance, creation, education and celebration in the downtown core of the city. Their music strategy builds on the rich music history in downtown Yonge in order to create an environment where music can succeed now and in the future.

“I’m encouraged every day by the teams and everybody around us…we’re not experts in the music industry…there’s a lot of people to thank that are connecting the dots for us. Everybody around us that is showing us how we can be that execution agent and supporting us in our efforts,” said Garner. “So this really a thank you for all of you, to thank you for the continued support and ongoing mentorship that we get from you on a day-to-day basis as we navigate this beast to help deliver the Music City vision on behalf of Toronto.”

Specifically, the Downtown Yonge BIA Music Strategy includes:

  • An integrated urban experience that allows visitors to pay homage to Yonge Street’s music legends through walking tours, historical plaques and neon sign installations;
  • Activation of public spaces including parks, squares and laneways with live performance events like Play the Parks, a series of concerts held in the summer; and,
  • A focus on education and incubation, beginning with an artist manager incubation program but building towards a multi-level, multi-disciplinary music incubator.

Video of the presentation is now available on Youtube, and is embedded below.

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