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CONNECT announces increased royalties for Canadian music labels

CONNECT Music Licensing has announced that an efficiency project undertaken with Re:Sound Music Licensing has resulted in increased royalty payments for Canadian rights holders.

Data improvement and other efficiencies have led to an increase of CAD$1.2 million annually for CONNECT’s members, who range in size from major record labels to artist-owned imprints.

Improvements in data streams provided by CONNECT’s members, and the creation of a single repertoire database have also freed up an additional CAD$1 million in accelerated royalty payments for labels and another CAD$1 million to the performers on recordings through Re:Sound’s member organizations ACTRA RACS, MROC and ARTISTI.

“The increased royalties are particularly notable as they result from our drive to improve royalty collection in line with international best practices, as opposed to adding revenues from a new music service or higher tariff award from the Copyright Board,” said Graham Henderson, President of CONNECT Music Licensing, in the release. “Organizations like CONNECT and Re:Sound exist only to serve rights holders, and today we have delivered on that promise.”

Royalty distributions, as a result of this project, will also happen faster on ongoing basis. Depending on the tariff, payout timelines have been accelerated by 1-6 months, a CONNECT rep told Billboard.

Reaction from Canada’s major labels acknowledged their contribution through data stream improvements:

Members of Canada’s music industry also shared the positive news:

Coverage of the increase in royalties for Canadian rights holders has also been featured in Canadian Musician and FYI Music News.

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