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Posts by Quentin Burgess (205)

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Music Canada’s Graham Henderson discusses the shutdown of The Pirate Bay on CBC’s Metro Morning

Yesterday, Music Canada President Graham Henderson appeared on CBC Metro Morning to discuss the recent shutdown of The Pirate Bay, and how to restore respect for creators’ work.

When asked why the Pirate Bay remained in operation despite legal threats for so long, Henderson replied, “I think it’s one of the realities of our digital environment, that if you are persistent, and you want to operate outside the law, there are ways to do it. And very clearly that’s what the Pirate Bay has been doing for these past years. But it also reflects an almost insatiable demand for music.”

“The site was popular, because music is popular,” said Henderson. “What we’ve seen for the past 14 years is an entirely avoidable, inappropriate loss of value for creators. I think it’s fair to say that musicians and creators in general today are worse off than they were in 1999 – was that the plan? I don’t think that was the plan, and in fact, I would suggest to you that there was an implicit promise that came from the intermediaries, that came from everybody, that creators were going to be okay – and they’re not, and I think we can thank The Pirate Bay for a lot of the reason for that.”

Host Matt Galloway asked why, with the emergence of licensed digital music options, “what still drives some people to a site like the Pirate Bay?”

“It’s not even a really good experience, we have to remember that,” said Henderson. “It’s free, but the contrast would be a service like Spotify, which is $10 a month. I think people are gradually migrating to legal – I think once they experience legal services, for example, there was a brand new high-def service named TIDAL launched here last week – once they experience these services, they realize there is a phenomenal customer experience there.”

“Intellectually, people understand that illegally downloading is like stealing,” said Galloway. “And yet they still do it – how do you convince them to make that intellectual leap, that downloading is no different than going and taking something from a store?”

“I think that a lot of people have lost the connection with the recording artist; I think we have to restore that respect for the creative process, restore the respect for the creator,” said Henderson. “I also think we need to acknowledge the elephant in the room: creators are not doing as well as it was suggested they’re doing – in fact, they’re worse off. I think when people realize that the direct consequence of their actions is to impoverish the musicians they love, then maybe we’ll move in the right direction.”

“Do you think people care if Taylor Swift doesn’t get more money because they are getting it for free?”, asked Galloway.

“I don’t think everyone does, because I think people can be quite selfish in terms of the way they behave – but it’s not about Taylor Swift – that’s an easy thing to say, but what’s happening is we’re seeing an unprecedented shift of wealth,” said Henderson. “It’s moving from creators to the hands of billionaires and trillionaires – that’s where it’s going, into the hands of intermediaries. Lost in this – Taylor Swift is doing fine. It’s like the 1% problem – more and more wealth, concentrated in fewer and fewer hands, and the middle-class in the music environment: wiped out. We have more hobbyists than professional musicians. And I think it’s been very convenient in the past to think, ‘I’m doing this because rich artists are fine anyway.’”

The full interview is available on Metro Morning’s website, and is embedded below:

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High fidelity streaming service TIDAL launches in Canada

CTIDAL_WebPlayer_MyMusicanadian audiophiles have a new option to get their fix of high-fidelity music: TIDAL, which offers streaming music in lossless quality (FLAC/ALAC 44.1kHZ / 16 bit – 1441 hbps), announced the launch of their service in Canada yesterday.

The service features a library of more than 25 million licensed songs, including catalogs of Sony Music Entertainment, Universal Music Group, and Warner Music Group, as well as a host of independent labels, plus more than 75,000 music videos.

The service is available via the web browser at http://listen.tidalhifi.com/, via apps on iPhone, iPad, Android, and can also be installed on PC and Mac computers. TIDAL is also available on home audio network players like BlueSound, Simple Audio, Auralic, and Squeezebox.

TIDAL features editorial content from music journalists, with articles, interviews, and playlists posted regularly at http://read.tidalhifi.com/.

TIDAL_iOS_iPhone_15 copy“We are big fans of Canadian music, and look forward to working even more closely with Canadian artists and the local music scene,” says TIDAL’s Head of Editorial Sveinung Rindal in a release. “Through collaborations with local magazines and music journalists we plan to showcase the best in Canadian music, such as our recently added Loscil and Ryan Hemsworth recommendations and the new EP from one of Canada’s iconic punk rock figures, Art Bergmann.”

To celebrate their expansion, TIDAL has created an all-Canadian playlist featuring a mix of “big guns” like Neil Young, Leonard Cohen, and Joni Mitchell, as well as “indie darlings” such as Arcade Fire, Broken Social Scene, and The New Pornographers.

The service is available now for a monthly subscription of $19.99, and is offering an introductory one-week free trial at for new customers.

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National Music Centre releases Fertile Ground, a new report exploring economic opportunities in Alberta’s music industry

Today, the National Music Centre (NMC) released Fertile Ground: Alberta Music Cities Initiative, a new report on Alberta’s music sector that outlines the economic benefits of a strong provincial music industry. The report identifies the unique opportunity for the development of Alberta’s music sector and provides four key recommendations for further growth.

The NMC commissioned Music Canada to author the report, which was supported by funding from the Scotlyn Foundation. In a release, NMC President and CEO Andrew Mosker said the report was inspired by Music Canada’s success in demonstrating the value of provincial and municipal live music strategies in Ontario.

“Graham and Paul Lessard with the Scotlyn Foundation approached us, eager to do something meaningful for Alberta’s music industry,” said Mosker. “I was very aware of the incredible work Music Canada had done in Ontario, and wondered if the same strategic business approach could work in Alberta.”

The report notes that Alberta is already home to a number of key music assets, and that a strategic initiative to develop the music cluster would create the opportunity for diversification of the Alberta economy.

“This report is about breaking music out of the cultural box, and into the general consciousness of Alberta’s economic leaders, demonstrating its value and ability to attract and retain creative talent, support tourism and inspire investment across a variety of economic sectors, thereby supporting efforts to diversify Alberta’s economy,” said Amy Terrill, VP of Public Affairs at Music Canada and author of the Fertile Ground report.

Music Canada and NMC consulted a variety of stakeholders across Alberta in researching the report, including Alberta Music, tourism agencies, arts and culture organizations, and Alberta Chambers of Commerce. The report found that a strategic music initiative would “closely align with the priorities of numerous agencies and commissions involved in economic development, tourism and related fields, suggesting that it will be well received throughout the province.”

The four key recommendations to government and other sector partners are:

  • Develop a comprehensive understating of the economic profile of Alberta’s music cluster, with regional breakouts for Calgary and Edmonton as well as other smaller cities as appropriate.
  • Position music as a key economic sector, a vehicle for the diversification of Alberta’s economy, and a tool that municipalities can use to stimulate economic growth, increase investment, retain youth, and drive tourism.
  • Develop and implement a strategic plan to build the business capacity of the music industry in Alberta.
  • Develop and implement a live music strategy for Alberta to improve the live music product offering in Alberta and generate increased music tourism.

To view the full Fertile Ground report, visit the NMC site at www.nmc.ca/amci.

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IFPI’s ‘Investing in Music’ report shows record labels invest US $4.3 Billion in A&R and marketing

Today, the IFPI, in association with WIN, have released Investing in Music, a new report that highlights the investment that record companies make in artists and repertoire (A&R) and marketing.

The report shows that record companies remain the primary investors in artists, investing 27% of their revenues in A&R and marketing, an increase from 26% in 2011. The report estimates that record companies worldwide have invested more than US$20 Billion in A&R and marketing over the past five years.

Investing in Music highlights the multi-billion dollar investment in artists made every year by major and independent record labels.  It is estimated that the investment in A&R and marketing over the last five years has totalled more than US$20 billion”, said Frances Moore, chief executive of IFPI. “That is an impressive measure of the qualities that define the music industry, and which give it its unique value.”

The report also reveals that more than 7,500 artists were signed to major labels’ rosters in 2013, with tens of thousands more signed to independent labels. One in five artists on a labels’ roster is a new signing, which illustrates that fresh talent is the lifeblood of the industry, says the IFPI.

“Most artists who want to make a career from their music still seek a recording deal,” said Alison Wenham, chair of WIN. “They want to be introduced to the best producers, sound engineers and session musicians in the business. They need financial support and professional help to develop marketing and promotional campaigns.”

The report shows that record companies invest a greater proportion of their global revenues into A&R than most other sectors do into research and development (R&D). The music industry’s investment of 16% of revenues in A&R exceeds the R&D investment of industries such as the pharmaceutical and biology (14.4%), software and computing (9.9%), or technology hardware and equipment (7.9%) sectors.

The report includes data from record companies around the world, and features case studies on Ed Sheeran, 5 Seconds of Summer, Lorde, MKTO, Negramaro, Nico & Vinz, Pharrell Williams, and Wei Li-An.

The full report is now available via the IFPI website.

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Ontario Music Fund creating ‘Snowball Effect’ for artist development at Warner Music Canada

Last week, Toronto-based singer/songwriter Scott Helman released his new music video for “Bungalow”, which was filmed on location in Scugog, Ontario and supported by the Ontario Media Development Corporation (OMDC)’s Ontario Music Fund. The video was shot over 2 days and featured a cast and crew of approximately 25 people.

Helman’s debut EP, Augusta, was released earlier this year on Warner Music Canada, and was also supported by the Ontario Music Fund. Through this support, the Ontario Music Fund is helping to launch the career of a new artist, said Warner Music Canada’s Chris Moncada, creating a “snowball effect” which will pay dividends for many years.

“The record and the videos trigger a cycle that sets many layers of employment opportunities into motion,” said Moncada. “The record and videos create the momentum for a tour, which creates a ripple effect. That ability to tour will provide activity for everyone from agents and promoters, to venue operators, sound technicians, bartenders, and parking lot attendants across Ontario. With Scott going on tour throughout the fall and into next year, this cycle is only beginning – it could move the needle for 18 to 24 months going forward”

Helman’s “Bungalow” is the latest video that Warner Music Canada’s artists have created with support from the Ontario Music Fund. Earlier this year, Canadian country artist Brett Kissel shot and filmed videos for “Tough People Do” and “Something You Just Don’t Forget” in Toronto. The songs are featured on Kissel’s 2013 album “Started With A Song”, and are the fourth and fifth videos borne out of the album. The first three videos were filmed in Nashville and Los Angeles, but the creation of the Ontario Music Fund helped make the case to move filming of the latter two videos to Ontario. Both of the videos featured a cast and crew of 15 to 20 people, working approximately 15 hours on each shoot.

The Fund also supported the creation of Mississauga punk rock band Billy Talent’s “Show Me The Way” video, which was filmed in Ontario and required approximately 15 full day crew.

“The Ontario Music Fund helped facilitate these videos, which might have otherwise been shot in a different province or country” said Moncada. “It has a real trickle-down effect that helps support video production jobs in Ontario, creating a day’s work for everyone from the actors and techs, to the caterers and truck drivers, and beyond.”

In addition to the videos, Warner Music Canada has leveraged the Ontario Music Fund to further the careers of Canadian artists such as Measha Brueggergosman.

“With Measha Brueggergosman, the OMF was integral in the creation of her upcoming Christmas album” said Moncada. “She is a Canadian star with worldwide appeal, so we’re really excited to see the reception to this record as we move into the holiday shopping season.”

In addition to videos and domestic recording, Warner Music Canada has leveraged the Ontario Music Fund to further the international careers of Canadian artists such as Kitchener Ontario’s Courage My Love.

“With Courage My Love, the OMF allowed us to invest in expanded marketing and publicity in the U.S. while the band was on the Vans Warped Tour this past summer. This directly contributed to the band having some of the highest merchandise sales on the tour for developing acts,” said Moncada. “On the strength of the Warped Tour response, the band has booked a headlining tour of clubs across America.  After these shows the band will come back to Ontario to work on their next record – again, it’s that snowball effect.”

The examples from Warner Music Canada illustrate that through targeted support, the Ontario Music Fund is driving activity in Ontario studios, production houses, and music companies, as well as increasing opportunities for Canadian artists to build their careers in Ontario, Canada, and internationally. For more information on the Ontario Music Fund, see the overview on the OMDC website.

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‘The Gift Of Music: Stories of Music Therapy’ documentary screening across Canada

The Canadian Music Therapy Trust Fund has announced a series of screenings of The Gift Of Music: Stories of Music Therapy, taking place across Canada this month. The documentary portrays the incredible ways that music therapy touches the lives of people of all ages and abilities across Canada. In the film, viewers see how a young man overcomes many challenges to make music his career, meet a newborn without sight who learns to engage her other senses, and are touched by a dying man who is able to record a beautiful love song for his wife. A trailer for the film is available at http://vimeo.com/21257314, and embedded below.

Music Canada is proud to sponsor the venue rentals for the screenings, happening in eight cities across Canada.

The screenings are as follows:

  • Montreal (Nov 8), 3pm:  Concordia University, Open House/Donation at door – 1515 St-Catherine St W, EV Atrium Room 1.615
  • Vancouver (Nov 23), 2PM: Langara College 100 W 49th Ave, Lecture Theatre A122a
  • Peterborough (Nov 24), 7PM: Market Hall Performing Arts Centre. Donations at door – 140 Charlotte St
  • Halifax (Nov 24), 7PM: Dalhousie University, Rowe Building, Room 1014
  • Calgary (Nov 25), 7PM: Plaza Theatre, 1133 Kensington Road NW
  • Toronto (Nov 27), 7PM: Palmerston Library, 560 Palmerston Ave, Director Scott Rondeau will be present.
  • Edmonton (Nov 28), 7PM: Stanley A Milner Library – Edmonton Room, 7 Sir Winston Churchill Square
  • St. John’s (Nov 28), 7PM: Memorial University, 230 Elizabeth Ave, Suncor Room

For tickets or more information, visit the Canadian Music Therapy Trust Fund site. All proceeds from ticket sales will go to expanding music therapy initiatives and pioneering new programs across Canada.

 Gift of Music Sponsors

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Music Canada Receives Tourism Toronto’s President’s Award

Yesterday, in front of an audience of tourism leaders from Toronto, Mississauga and Brampton, Music Canada’s Graham Henderson accepted Tourism Toronto’s President’s Award for an organization outside tourism that makes a significant contribution to tourism.

Music Canada was chosen in recognition of driving the agenda relating to live music, said David Whitaker, President and Chief Executive Officer of Tourism Toronto.

Since Music Canada began work on this initiative, the province has launched a Live Music Strategy and a live music portal, the City of Toronto has established a music advisory board, music development officer and has signed a music city alliance with Austin, Texas.  Other cities around the province, including Hamilton, London, Kitchener and Peterborough have also established music strategies.

“We’re honoured to receive this award from Tourism Toronto which has been a supportive partner in our efforts to highlight the power of music tourism.  Our music scene is perhaps the most diverse in the world and promoting it not only helps the tourism community, but also will ultimately create more opportunities for artists and musicians who rely so heavily on live performance .” says Graham Henderson.

Previous recipients of the President’s Award include Maple Leaf Sports and Entertainment (for developments at Air Canada Centre and Maple Leaf Square), Ryerson University (for the Ryerson Image Centre), Scotiabank (for Toronto Caribbean Carnival and Nuit Blanche), CTV (for its “My Toronto Is…” campaign), David Peterson and the Pan Am Bid Team, and Kuwabara Payne McKenna Blumberg Architects (for developments such as TIFF Bell Lightbox and Royal Conservatory/Koerner Concert Hall.)

OBAA AwardPhoto Credit: Grant W Martin Photography

 

Thank you to our many partners in the promotion of music tourism for sharing their regards on Twitter:

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Boots and Hearts Music Festival announces move to Barrie area

The Boots and Hearts Music Festival has announced that their 2015 festival will move to a new home at Burl’s Creek Event Grounds in Oro-Medonte, Ontario. The festival will take place August 6th – 9th, and Florida Georgia Line has already been announced as one of the headline performances.

The move to Burl’s Creek will allow Boots and Hearts to expand capacity and camping grounds, said Shannon McNevan, executive director of festival promoter Republic Live. “We needed to expand our camping and our festival. That was our biggest complaint from fans, is that we didn’t have enough,” said McNevan. “The newly renovated grounds at Burl’s Creek will allow us to offer way more camping and add to the amazing #Bootslife community onsite,” he added.

Burl’s Creek was recently sold to the majority shareholder of Republic Live, which is good for the region, said Tourism Barrie executive director Kathleen Trainor. “We are thrilled to learn that Burl’s Creek has been sold to a concert promoter,” said Trainor. “The Wynne government is investing heavily into making Ontario the music capital of Canada and having a major concert venue in the region is good for Barrie. Molson Park’s concerts brought millions of dollars in revenue into Barrie every summer and now we can have a whole new generation of music lovers coming into the region for music festivals.”

The success and impact of Boots and Hearts is a testament to the opportunity provided by live music. Last year’s festival had an economic impact of approximately $17 million in the Bowmanville area, drawing approximately 35,000 country music fans to the region over three days.

Music Canada has promoted the value of music tourism to regions and municipalities throughout Ontario, and identified music tourism as one of five critical areas for development in our Next Big Bang report. Noting that music tourism and marketing offer rewarding opportunities for economic growth and brand development at the provincial, regional and city levels, the report considers how we can harness the power of live music as an economic asset by developing a comprehensive music tourism strategy.

Music Canada’s Graham Henderson will speak on the opportunities for music tourism next month at the 2014 Ontario Tourism Summit, in a keynote presentation entitled Ontario’s Music Tourism Pitch.

OntarioLiveMusic.ca, Ontario’s live music portal, will also be on-site at the Ontario Tourism Summit, showcasing the comprehensive live music listings to hundreds of tourism professionals from across the province.

The Boots and Hearts experience is on display in the festival’s 2014 After Movie, embedded below. For tickets or more information, visit http://bootsandhearts.com/.

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What last night’s municipal election results mean for music sector development in Ontario

Last night, voters across Ontario went to the polls to vote in municipal elections, determining new leadership in Toronto, Mississauga, Hamilton, Brampton, London, Windsor, and more.

In Toronto, residents elected John Tory to be the city’s 65th mayor. Music Canada has congratulated Mayor-Elect Tory, and we look forward to working with him and the newly elected council to continue to develop Toronto’s music sector. Many of the returning councillors have demonstrated a deep understanding of the value of music in Toronto and have supported efforts to promote and stimulate this important sector.

Early in his election campaign, Tory announced plans to support the growth of the music industry in Toronto. His plan is made up of three main points:

  1. Support the creation of a stand-alone Music Office: one stop shop to get things moving
  2. Work with the live music community to attract more music tourists to Toronto
  3. Work with the Music Community to Create a Plan for a more active Outdoor Festival Schedule

Tory reiterated his plans for the music sector in our music policy survey, stating that Toronto’s “Music Office will be established within the Economic Development department and will open in 2015” and adding “the importance of the music community and the broader creative sector cannot be understated.”

In his acceptance speech, Tory spoke of the need to tackle unemployment for youth in Toronto, and spoke of plans to work with business partners to foster opportunities for young people. Music can help. Our Next Big Bang report recommends municipalities work with their music communities in order to support local music scenes, and leverage them to attract music tourists, attract and retain creative workers, and attract businesses from all sectors of the economy. A 2009 report on the future of tourism in Ontario found that tourism is the single largest employer of young people in the province, and our Accelerating Toronto’s Music Industry Growth, Leveraging Best Practices from Austin, Texas report applies specific best practices to Toronto.

Toronto has made great strides in the development of its music sector in recent years; notably with the hiring of a music sector development officer last month, the creation of the Toronto Music Industry Advisory Council last December, and the partnership with Austin, Texas in the world’s first Music City Alliance, signed in October 2013. Tory’s plans to create a stand-alone Music Office will continue this momentum by reducing red tape and stimulating greater activity in the music community.

 

Elsewhere in the province, a number of strong candidates who have been strong advocates for the music sector were elected as well:

Congratulations to Berry Vrbanovic, who was elected mayor of Kitchener last night, building on his 20-year experience as a city councillor. As a councillor, Vrbanovic championed music as an economic driver and a vital contributor to local culture. Vrbanovic represented Kitchener at last summer’s Music Cities Exchange panel, which was hosted by Music Canada, 4479, and NXNE, and featured public and private representatives from six cities that are working proactively to develop their local music sectors.

Vrbanovic promoted the development of Kitchener’s arts and creative sectors as part of his platform, calling for further development of Kitchener’s Music Works program by creating a film and music officer position and pursuing provincial funding to develop a music resource centre. Vrbanovic also states his support for the continued development of the live music scene in Kitchener’s downtown entertainment district, and intent to work with Waterloo Region Tourism to develop tourism promotion opportunities.

 

Congratulations to Jeff Leiper, who was elected councillor in Ottawa’s Kitchissippi ward. In his recent role as Vice President, Strategic Communications, Research and Policy at the Information and Communications Technology Council (ICTC), Leiper was instrumental in the development of the Music – A Catalyst For Technology Hubs And Innovative Talent report, which was supported by Music Canada and released last year. The report found that support from all levels of government for music education and scenes can help foster a talented tech workforce. Music education, the report finds, helps bridge gaps between technical know-how and critical soft skills, while the presence of music scenes in cities can help attract and retain skilled workers.

Leiper has also promoted music tourism and the development of Ottawa’s music sector as part of his platform, campaigning on the creation of a Music Office in Canada’s capital city. “As a researcher, I’ve taken a look at the economic benefits of focusing on music performance in a city – specifically using great music scenes as a way to attract tech workers,” wrote Leiper in June.

 

Several other cities have implemented or explored ways to build and capitalize on their music sector for greater economic benefits, including Windsor, London, Hamilton, St. Catharines, and Peterborough. Music Canada looks forward to working with municipal leaders throughout the province to help them advance their communities through music.

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Tariff 8 Q & A

On May 16, 2014, the Copyright Board of Canada issued its decision setting rates for Re:Sound’s Tariff 8 – Non-Interactive & Semi-Interactive Webcasts, 2009-2012.  Tariff 8 sets the royalty rates that music streaming services must pay to Re:Sound to play sound recordings.  Tariff 8 does not apply to the use of musical compositions, which are subject to separate tariffs administered by Society of Composers, Authors and Music Publishers of Canada (SOCAN) and CMRRA/SODRAC (CSI).

Since the Board’s decision, 78 music industry associations and labels, led by Music Canada, CIMA, ADISQ and Canadian Council of Music Industry Associations (CCMIA), have joined together to form “I Stand for Music”, a coalition that continues to raise public awareness about the disastrous effects of the Tariff 8 ruling.  For those who are interested in exploring the issue further, here are some questions and answers to help you dig deeper.

 

QUESTION How does the Tariff 8 decision “impoverish” artists? Isn’t Tariff 8 just one revenue source for artists? Don’t artists benefit from royalties they receive from a number of copyright collectives?
ANSWER For these types of services (Songza, CBC Music etc.) Tariff 8 income is the only guaranteed source of income for an artist (performer). It is only in cases where the performer is also the composer that additional royalties may come from CMRRA/SODRAC (CSI) or SOCAN.The reality in the market is that sales of CDs and even downloads are declining, while music streaming is on the rise.   That’s why it is so important that artists are fairly compensated for their work in the context of web-based services.

 

QUESTION Isn’t it unfair to assert that artists will make less than 10% of their international counterparts such as in the U.S. because of Tariff 8? Aren’t there many additional fees available to artists in Canada that are not available in the United States?
ANSWER In a comparison of the rates payable for the same rights for the same activities (non-interactive and semi-interactive streaming of sound recordings) the rates certified for Canada are less than 10% of those payable internationally.

 

QUESTION Doesn’t it stand to reason that Tariff 8 would be lower than the U.S. equivalent since the Canadian repertoire during that period was about half as large as the U.S. one?
ANSWER Even were the rates certified by the Canadian Copyright Board doubled they would still be less than 20% of international rates for the same rights. But even more to the point: Re:Sound negotiated commercial deals with digital services doing business in Canada during the period. These agreements indicate precisely the marketplace value of the rights in question in Canada. The negotiated rates were submitted to the Board to demonstrate what the rates are and ought to be in Canada. The Tariff 8 rate represents about 10% of the Canadian marketplace rates.

 

QUESTION Isn’t internet streaming just like radio?   Doesn’t it make sense that the Board certified a rate for music streaming based on the commercial radio rate?In fact, shouldn’t a spin on the radio be considered more economically valuable than a “stream” by one consumer, since a spin may reach hundreds of thousands of listeners simultaneously?
ANSWER Comparing broadcast radio spins to digital service streams is comparing apples to oranges. Setting streaming rates based on the rates payable for over-the-air commercial radio broadcasts ignores the much greater value streaming services derive from recorded music. Streaming services offer a variety of genres and sub-genres of music not available on radio, which can be customized to individual preferences and accessible anywhere at any time through mobile devices. With their ability to substitute for, and cannibalize music sales, streaming services are far more comparable to on-demand streaming and download services than terrestrial radio.

 

QUESTION Isn’t it true that the Board’s decision will pave the way for new online music services to enter the Canadian market and result in more choices for consumers?
ANSWER There are many reasons why digital services may or may not have entered the Canadian market including uncertainty regarding rates. Given the extreme discrepancy between the Tariff 8 rate and international standards, and knowing it applies to a period of time that has already ended and that it may be years before the rate for the current period is known, the Copyright Board decision does not erase the uncertainty that has clouded the Canadian market.

 

QUESTION Doesn’t the Copyright Board’s Tariff 8 decision simply establish that the relative values of the rights of creators and their publishers on the one hand (“authors’ rights”), and of the record companies and performers on the other hand (“neighboring rights”), are generally equal and should be treated as such?
ANSWER The Copyright Board rejected marketplace rates, throwing out years of precedential agreement and North American precedents. They did this because the “authors’ rights”, i.e. SOCAN rates, were so low they conflicted with marketplace rates freely negotiated in Canada (and equivalent to those in the U.S. and around the world) for artists and the music companies that invest in their careers. If the Board were to certify Re:Sound’s suggested rates for Tariff 8 royalties, they would have to raise SOCAN rates by 90%. Since they were not prepared to address the issue of low SOCAN rates, they devalued the rights of record companies and performers to bring everyone down to the lowest common denominator.

 

QUESTION As online streaming services become more established, build their paid subscriber bases and generate more ad revenue from free subscriptions, doesn’t it make sense that compensation to rights holders would increase as the economics metrics for their businesses improve?
ANSWER The Tariff 8 rate places such a low value to a stream in Canada it may very well have an impact on the international standard as music companies in other jurisdictions argue that they should pay 90% less for content. This race to the bottom will only further devalue music. Even as the digital services companies become more economically viable, it does not stand to reason that devaluing the streams will lead to fair compensation for rights holders later. Tariff 8 was an opportunity to certify that music in Canada has the same value as music in the United States and elsewhere around the world. Even royalty rates in the United States – which are 90% higher – are hotly contested as musicians, including songwriters, fight for fairer compensation. With Tariff 8 rates set at 10% of a standard that is already considered to be far too low, it will make it even harder for Canadian musicians to make a living and to thrive internationally while digital music companies continue to grow and flourish.

 

 

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