The report builds on Music Canada’s previous findings from the 2017 report, The Value Gap: Its Origins, Impacts and a Made-in-Canada Approach, which first identified the existence of a gap in value of creative content and the revenues returned to the artists who create it. A broken copyright framework, ill-adapted to the challenges of the digital age, is now generally recognized as the cause of the Value Gap.
“The origins of the Value Gap can be found more than 20 years ago. It was the dawning of the digital marketplace, and countries around the world struggled to reinterpret copyright laws that were designed for an analog age,” says Graham Henderson, President and CEO of Music Canada. “They wanted to protect creators, but they also wanted to give a boost to young technological start-ups. Inevitably, perhaps understandably, mistakes were made.”
New economic evidence confirms that the Value Gap in Canada continues to grow, with staggering figures that show the discrepancy between what artists make and what they create:
$19.3 billion: the cumulative Canadian recorded music industry Value Gap over 20 years since 1997.
$1.6 billion: the music industry Value Gap in Canada in 2017 alone.
$82 million: the average annual increase in the music industry Value Gap in Canada between 1997 and 2017.
Supported by the data and the experiences of hardships that musicians currently face, Music Canada joins Parliament’s Heritage Committee in proposing solutions to improve Canada’s copyright framework to better ensure that creators are paid when their work is commercialized by others. From clarifying safe harbours, to addressing the responsibilities of user-upload services, to eliminating the commercial radio royalty exemption and clarifying the definition of “sound recordings”, to creating a temporary fund for private copying, these recommendations would ensure fair compensation for artists and reduce the Value Gap.
“Canadian artists deserve a sustainable and working marketplace for their work,” says artist and record label owner Miranda Mulholland, who also serves as Chair of Music Canada’s Advisory Council. “Artists have been speaking up about the need to close the Value Gap, and our industry speaks in a unified voice on this issue. We need to end broad safe harbours and stop subsidizing billionaires who are commercializing the work of others without fair compensation. This report lays out the steps to fix our broken copyright framework and restore fairness to the creators of music.”
“Closing the Value Gap definitively sets out the economic evidence surrounding the size and growth of the Value Gap and provides clear, achievable recommendations to fix it,” Henderson adds. “The report draws focus to the main cause of the Value Gap in Canada: broad safe harbour laws in the Copyright Act. Two Parliamentary Committees in Canada have recommended reviewing Canada’s safe harbour laws. Now is the time to rebalance the ledger and restore fairness to the marketplace for creators.”
Music Canada is a non-profit trade organization that represents the major record companies in Canada: Sony Music Entertainment Canada, Universal Music Canada and Warner Music Canada. Music Canada also works with some of the leading independent record labels and distributors, recording studios, live music venues, concert promoters, managers and artists in the promotion and development of the music cluster.
Veteran indie rock outfit Death Cab for Cutie returned to Toronto last week for a show at Echo Beach in support of their 2018 album Thank You for Today. Prior to their set, Warner Music Canada surprised Ben Gibbard, Nick Harmer, and Jason McGerr with Platinum plaques for their fifth studio album Plans, which was the band’s first album to receive Canadian Gold status in 2006. Plans was certified Platinum earlier in 2019 along with the singles “I Will Follow You Into The Dark” and “Soul Meets Body,” which was certified Gold.
Music Canada is also pleased to welcome Julie Dabrusin, Member of Parliament for Toronto-Danforth and Chair of the Standing Committee on Canadian Heritage, for a fireside chat about the action that Music Canada is taking on a variety of fronts including diversity and inclusion.
The event description reads:
In his return to the Economic Club, Music Canada President and CEO Graham Henderson will be releasing Music Canada’s latest report, Closing the Value Gap: How to Fix Safe Harbours and Save the Creative Middle Class.
This new report follows up on Music Canada’s 2017 groundbreaking report, The Value Gap: Its Origins, Impacts and a Made-in-Canada Approach. Since that report, two Parliamentary Committees have reviewed the Copyright Act, governments around the world are identifying the Value Gap and its risk to creative industries, and creators are speaking up to ensure that they are remunerated fairly when their works are commercialized by others.
Following a speech unveiling the report, Graham Henderson will also discuss the action Music Canada is taking on a variety of fronts including diversity and inclusion to ensure that Music Canada is a leader and agent of change with respect to business and social issues impacting the music community both domestically and internationally.
On Saturday May 11th, Music Canada held its fourth annual Music Cities Summit during Canadian Music Week. This year’s summit was hosted in partnership with the Music Policy Forum, and the event featured a plethora of local and international speakers who gathered to discuss issues regarding the value of music and its relationship to creative city-planning.
The morning kicked off with opening remarks from Music Canada’s Vice-President of Strategic Initiatives Sarah Hashem, as well as remarks from Ashlye Keaton of the Music Policy Forum.
Pictured here: Chris Campbell (Grant W. Martin Photography)
The keynote address was given by Chris Campbell, Director of Culture & Entertainment Tourism and Tourism London. Campbell spoke about the journey to get Canadian music’s biggest milestone to London, Ontario: the JUNO Awards.
As Chair of the JUNOs host committee, Campbell worked with a team to pitch London as the right home for the awards in 2019. He discussed how the city was a bit of an underdog in the selection process as it was much smaller than many of the cities that have hosted the JUNOs in the past. Campbell also outlined the steps the team took to successfully stage a series of live music events throughout JUNO Week across London.
Pictured here: Ana Bailão, Mirik Milan, Kate Becker (Grant W. Martin Photography)
Chris Campbell’s illuminating keynote presentation was followed by a fascinating conversation on theintersection between the nighttime economy and music strategies. This immersive discussion took place between Mirik Milan, the first Night Mayor of Amsterdam; Kate Becker, the former Director of the Seattle Office of Film + Music; and Toronto City Councillor Ana Bailão, who has long been a champion for locally based projects in the arts space.
The trio discussed the economic and social benefits of having a thriving night time economy, and Councillor Bailão emphasized how a city’s vibrancy is enhanced by having a strong community of artists and musicians living, working, and creating.
Pictured here: Dominique Grant, Charlie Wall-Andrews, Kanika Gupta, Amy Terrill (Grant W. Martin Photography)
The next session examined the topic of inclusivity and diversity in the context of a music city. Amy Terrill introduced the keynote video, given by Mark Roach of Recorded Music New Zealand. In the video, Roach spoke about the efforts taken by his city of Auckland to ensure that the Māori language and culture was given proper respect, and incorporated into their music strategy and policies.
The panel component of the session then commenced, moderated by Charlie Wall-Andrews. In addition to serving as the Executive Director of the SOCAN Foundation, Wall-Andrews was also selected as the Vice-Chair of Music Canada’s recently instituted Advisory Council. Joining her on stage was artist and creator Domanique Grant and Kanika Gupta, an artist and social innovator. The discussion ranged from steps organizers can take to ensure that their events are inclusionary in nature, to how cities can ensure the the foundation of their music strategies provide support for segments of the music community that may be traditionally underrepresented.
Participants in ‘the ‘Hypothetical’ session on DIY Music Spaces and the City
For many, the highlight of the Music Cities Summit was the session exploring the topic of DIY music spaces, and their relation to the cities they reside in. Inspired by an event hosted by Melbourne Music Week in 2018, this innovative session was based on a hypothetical scenario: in a fictional city, a beloved underground music venue has just been forced to close. The reaction on social media has been swift. A local artist posts on social media how disappointed they are – this is the venue they got their start at. A public backlash ensues. As the days pass, more information regarding how and why this venue shut down becomes available, making the situation even more complex.
The session was hosted by Darlene Tonelli, founder of Inter Alia law and member of Music Canada’s Advisory Council, who guided the room through this exercise as they collectively worked through the twists and turns of this social dilemma. The session featured a ‘panel,’ composed of key stakeholders including artists, DIY venue operators and promoters, City officials, music industry professionals, and fans. As the scenario developed, they were called upon to offer their insight and expertise, and describe their course of action at critical flashpoints of the scenario.
Session participants included: Ian Swain (Bonjay); Brian Wong (Gingy, ‘It’s not U It’s Me’); Said Yassin (‘It’s OK’); Kwende Kefentse (Memetic, City of Ottawa); April Aliermo (Hooded Fang, Phedre); Erin Benjamin (CLMA); Toronto City Councillor Joe Cressy; Cory Crossman (City of London’s Music Development Officer); Kate Becker (City of Seattle); Rod Jones (Director of Bylaw Enforcement, Municipal Licensing & Standards); Mark Garner (Downtown Yonge BIA); Errol Nazareth (CBC’s Big City, Small World); Tracy Jenkins (Lula Lounge); Shaun Bowring (Garrison, Baby G); Gavin Le Ber.
After a networking lunch, the afternoon kicked off with an engaging panel that explored the topic of music incubators and co-working spaces. Moderated by Sarah Hashem – Music Canada’s Vice President, Strategic Initiatives – the session featured input from some fantastic panelists: Chris Corless, Founding Partner at Toronto’s Signal Creative Community; Toni Morgan, founder of the Beat Academy; and Mustafa El Amin, founder and Executive Director of MyStand Mentorship and NorthBlock Entertainment.
The conversation highlighted how creative incubators and hubs can help artists gain access to resources and support that they otherwise might not have the opportunity to. The panelists went on outline the various ways that new models of co-working can help level the playing field for creators – particularly young and emerging artists and producers.
The next session examined how to effectively build a coalition when developing a music city. A keynote presentation was given by Erin Benjamin, the CEO of the Canadian Live Music Association, and took a deeper look at the organization’s successful first five years. The session then moved into a panel discussion, moderated by Michael Bracy of the Music Policy Forum. Participants included Katherine Carleton, Executive Director of Orchestras Canada; Cody Cowan, founder and Executive Director or Red River Cultural District in Austin; and Katie Tuten, co-founder of Chicago music venue The Hideout.
This year, the Music Cities Summit also featured two exciting ‘Masterclass’ sessions. These interactive, discussion-based seminars allowed the speakers to interact directly with participants in the room, often answering questions and offering direct advice based on their extensive experience in the music city world.
The first Masterclass was entitled ‘Strategy Development – Back to Basics’. Leading this in-depth conversation were four practitioners in this space: Mike Tanner, Toronto’s Music Sector Development Officer; Jarrett Martinaeu, Cultural Planner from the City of Vancouver; the City of Ottawa’s Kwende Kefentse; and Maryann Lombardi, Chief Creative Economy Officer at the DC Office of Cable, Film, Music and Entertainment.
The second Masterclass featured cutting-edge research from two major players in the music city field. Amsterdam’s Mirik Milan – who spoke about the research being conducted at Creative Footprint, a global civic initiative that measures and indexes creative space – and Peter Schwarz of Sound Music Cities, who took the attendees through his organization’s work implementing their Austin Music Census method in Pittsburgh, Charlotte, Seattle, and Washington, DC.
Pictured here: Ashlye Keaton, Leah Ross, Chris Campbell, MP Michael Barrett (Grant W. Martin Photography)
The last session of the day was a spotlight on the impact and benefits of music tourism for a city. The panel was moderated by Ashlye Keaton (the Ella Project; Music Policy Forum), and featured opening remarks by MP Michael Barrett (Leeds-Grenville-Thousand Islands and Rideau Lakes). MP Barrett also participated in the panel discussion, alongside London’s Chris Campbell and Leah Ross, the Executive Director of the non-profit Birthplace of Country Music.
The panel explored questions related to how a city can make sure its music tourism is authentic to the city, has an economic impact, balances the needs of residents, and – ultimately – benefits the artists who help drive this attraction.
The day ended with a post-summit reception at the co-working space Signal Creative Community, hosted by the City of Toronto. Mayor John Tory also attended and provided some insightful remarks highlighting the benefits of municipal support for music, touching on some of the recent exciting achievements in Toronto.
Columbus, Ohio’s Twenty One Pilots made their triumphant return to Toronto last week on their Bandito Tour in support of the 2018 album Trench, the follow-up to 4x Platinum 2015 album Blurryface. Prior to the highly anticipated sold out show at Scotiabank Arena, Warner Music Canada surprised the band with Gold plaques for Trench and its singles “Chlorine,” “Jumpsuit,” and “My Blood.”
Yesterday, the Standing Committee on Industry, Science and Technology tabled its report, entitled Statutory Review of the Copyright Act, which now concludes the review of the Copyright Act undertaken by that Committee and the Standing Committee on Canadian Heritage.
Yesterday’s report from the Industry Committee includes important recommendations to narrow the radio royalty exemption, review safe harbour provisions, extend the term of copyright for musical works and review the private copying regime.
These recommendations, together with the recommendations made in the report from the Heritage Committee on artist and creative sector remuneration, have set the stage for legislative change which will help restore Canada’s middle class of artists and close the Value Gap for the broader cultural industries.
“It is unfortunate that the Industry Committee chose not to take into account the May 15th report from the Heritage Committee or the testimony from creators that contributed to the Heritage Report,” says Music Canada President and CEO Graham Henderson.“If they had, they would have found the Heritage Committee’s Shifting Paradigms report provides clear answers to their outstanding questions.”
“We look forward to working with the Government to reform the Copyright Act as soon as possible to ensure the framework allows creators to be fairly remunerated for their work when it’s commercialized by others.”
Music Canada and CONNECT Music Licensing invite artists to share their insights and experiences in a new national survey that focuses on artists’ business needs in an ever-changing music economy.
The two Canadian music organizations have partnered to conduct research in response to changing trends in the music ecosystem in which artists increasingly operate as business owners, often referred to as “artist-preneurs.” The project kicked off earlier this spring with an environmental scan conducted through a series of focus groups with artists and industry leaders.
Survey findings will be used to guide the design and delivery of a pilot artist entrepreneur program later this year.
Canadian artist entrepreneurs at any stage of their career are invited to complete this shortsurvey which is available in both official languages, until June 21, 2019. Participants will be able to opt in for a chance to win a Long & McQuade gift card valued at $25.
For any inquiries, please contact Sarah Hashem, VP Strategic Initiatives at Music Canada, at firstname.lastname@example.org.
Music Canada et CONNECT Music Licensing lancent une étude de marché nationale pour les artistes entrepreneurs
Music Canada et CONNECT Music Licensing invitent les artistes à partager leurs points de vue et leurs expériences dans le cadre d’un nouveau sondage national axé sur les besoins commerciaux des artistes dans une économie musicale en évolution constante.
Les deux organisations musicales canadiennes se sont associées pour mener des recherches en réponse aux tendances changeantes de l’écosystème musical dans lequel les artistes fonctionnent de plus en plus en tant que propriétaires d’entreprises. Le projet a démarré plus tôt ce printemps avec une analyse de l’environnementréalisée grâce à la tenue d’une série de groupes de discussion avec des artistes et des leaders de l’industrie.
Les résultats du sondage serviront à orienter la conception et la réalisation d’un programme pilote d’artistes entrepreneurs plus tard cette année.
Où qu’ils en soient dans leur carrière, les artistes canadiens sont invités à remplir ce court sondage qui sera disponible dans les deux langues officielles jusqu’au 21 juin 2019. Les participants pourront s’inscrire pour courir la chance de gagner une carte-cadeau Long & McQuade d’une valeur de 25 $.
Today, the term “Value Gap” – the disparity between the value of creative content accessed by consumers and the revenues returned to the people and businesses who create it – is an integral part of the lexicon in discussions of copyright law and creative content. And there is growing sentiment around the world that the time has come to correct the flaws underlying it. At this event, presented by Music Canada and the International Association of Entertainment Lawyers (IAEL), Music Canada President and CEO Graham Henderson will share highlights from an upcoming report that examines the developing recognition of the Value Gap and why policymakers should act with a sense of urgency to address it.
Music Canada’s 2017 report, The Value Gap: Its Origins, Impacts and a Made-in-Canada Approach, played a foundational role in shifting views on the Value Gap. Since its publication two years ago, a great deal has occurred to advance understanding of the issue. This includes new economic analysis that has definitively evaluated the size of the Value Gap and identified its sources, and Parliamentary hearings in Canada in which the Value Gap dominated the proceedings and where numerous stakeholders presented an overwhelming body of evidence demonstrating its impacts.
Henderson will summarize key insights from the upcoming report, including how record labels continue to play a vitally important role in the music ecosystem through their investments in A&R and marketing, and their commitment to licensing new and innovative digital music services. He will also describe how a lack of transparency on the part of user-upload services like YouTube, as to how much copyright content they exploit and how much compensation is paid to creators, makes it harder to address the Value Gap. The detrimental impact of this lack of transparency is further exacerbated by a broken copyright framework caused by overly broad and ill-defined safe harbours, which have allowed these platforms to commercialize music for massive profits, while passing a mere pittance onto creators.
The voices of artists have been central to validating the Value Gap and illuminating its detrimental effects. One artist in particular, Canadian musician and record label owner Miranda Mulholland, has played a key role. With great clarity and passion, Mulholland has persuasively conveyed how exemptions in out-of-date copyright legislation have impaired her career, and how artists can play a central role in establishing a sustainable and functioning marketplace.
In her return to MIDEM, Mulholland will recap her path to advocacy. She will outline how fellow creators can help establish a sustainable and functioning marketplace, describing her own journey as an artist advocate. Mulholland will also take the stage with Andrew Penner, her musical partner in the band Harrow Fair, to perform their unique blend of folk, country and garage rock music.
Jeff Liebenson, President of the International Association of Entertainment Lawyers (IAEL), will conclude the event by previewing IAEL’s upcoming book, “Keeping it Honest: Transparency in the Entertainment Industry” ahead of its official launch following the session.
Graham Henderson – President and CEO, Music Canada Miranda Mulholland – Musician, President of Roaring Girl Records, and Music Festival Founder Jeff Liebenson, Liebenson Law, President of the International Association of Entertainment Lawyers (IAEL)
IFPI has launched a new website titled Powering the Music Ecosystem designed to showcase the role record labels play in today’s global music landscape as a leading investor in music, and partner and collaborator with artists.
Some of the key statistics referenced are the 33.8% of record company revenues that are invested back into music annually, and the USD $5.8 billion investment that record companies make into A&R and marketing annually.
The site emphasizes the flexibility artists have in collaborating with record companies within new partnership models, and charts one example of the various label teams that artists can work with to advance their career, such as A&R, creative, marketing & digital, sync & partnership, global distribution, and press & publicity.
The site also features several case studies on breakthrough artists like Camila Cabello, J Balvin, and Aya Nakamura, focused on how those artists collaborated with label teams to leverage their creativity and success on a global scale.
For more information, visit the full website and check out the infographic below.
L to R: Adrian Strong (President, DMD Ent./Co-President, Ultra Music Canada, Patrick Moxey (President & Founder, Ultra Music), Steve Greenberg (President, S-Curve Records), Adam Met (AJR), Jack Met (AJR), Ryan Met (AJR), Asim Awesome Awan (Co-President, Ultra Music Canada)
To celebrate the release of their latest album Neotheater, American indie pop band AJR played a sold out album release show in their hometown of New York City at The Bowery Ballroom. Prior to their set, Ultra Music Canada and DMD Entertainment presented the group with their first Canadian Gold Album Award plaque for their 2017 album The Click.
The breakthrough album features the band’s Canadian Platinum-certified hits “Weak” and “Burn The House Down,” as well as the Gold-certified “Sober Up” featuring Weezer frontman Rivers Cuomo.
We had an amazing dialogue about the future of #Ontario's #musicindustry at the studio today with our dynamic Minister of Tourism, Culture & Sport @MacLeodLisa, @Music_Canada @LastGangEnt @TicketmasterCA @miramulholland @loreena @warnercanada & @erin_benjamin. Thanks to all!
More excellent dialogue w/ some of our music industry leadership, 🙏 @MacLeodLisa for making time to listen, share + learn, + for your commitment to the sector. @Music_Canada @LastGangEnt @TicketmasterCA @metalworksLIVE @miramulholland @loreena @warnermusic @erin_benjamin
A productive roundtable with @MacLeodLisa who heard how gov. can create & sustain a healthy music ecosystem. Excited to continue working together as allies who recognize our cultural industries as an economic driver. Thank you @metalworksSOUND for hosting!
Congratulations to @lawyerlifepod for being named one of the Best Podcasts of 2019 by the Canadian Law Blog Awards! https://www.clawbies.ca/2019-clawbies-canadian-law-blog-awards/ We're fortunate to have co-host Darlene Tonelli of @inhouseallies as a member of our Advisory Council. #Clawbies2019
Blog: Miranda Mulholland named runner-up for the Globe and Mail’s Canadian Artist of 2019 https://musiccanada.com/news/miranda-mulholland-named-runner-up-for-the-globe-and-mails-canadian-artist-of-2019/
She’s released a critically acclaimed album; runs @MuskokaMusic festival; is a board member of Massey Hall; a tireless, globe-trotting activist; & now runner up to @MargaretAtwood as Artist Of the Year! @Music_Canada is very proud to have her chair our brilliant Advisory Council. https://twitter.com/miramulholland/status/1210954931286532097
so incredibly honoured to be a runner up (to @MargaretAtwood !!!!!!!) for artist of the year in @globeandmail! thanks to @MisterJohnDoyle for the lovely words and spotlighting my music as well as my advocacy! ❤️
#globeandmail #artistadvocacy #byappointmentorchance #whoohooo https://twitter.com/MisterJohnDoyle/status/1210937181809905664
Congratulations to @miramulholland on being named a runner-up for the @globeandmail's Canadian artist of 2019!
We are proud and grateful to have such a talented artist and strong advocate for creators as Chair of the Music Canada Advisory Council.