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Music Canada voted onto IFPI’s Main Board


Graham Henderson, President & CEO of Music Canada

Graham Henderson, President & CEO of Music Canada, has been voted onto the Main Board of IFPI, the organization that represents the recording industry worldwide. This marks the first time a representative from Canada has held a position on the Main Board. In addition, Music Canada now has a seat on IFPI’s ILC (International Legal Committee), a group of leading legal experts from IFPI and its member organizations.

IFPI (International Federation for the Phonographic Industry) represents the interests of the recording industry worldwide. IFPI’s mission is to promote the value of recorded music, campaign for record producer rights and expand the commercial uses of recorded music in all its member markets. Its membership comprises around 1,300 major and independent music companies in 62 countries.

The Main Board provides direction and guidance from leading global organizations, markets and music companies to steer IFPI’s priorities. Currently, the Main Board is comprised of representatives from major and independent labels, as well as regional and national trade associations.

“I am honoured that Music Canada will have the opportunity to represent Canada’s music labels on an international level,” says Graham Henderson. “As the music industry continues to adapt alongside new technology, I am proud that Music Canada will be able to collaborate with international colleagues on issues of crucial importance to artists and rights holders worldwide.”

According to Canada’s Department of Heritage, Canada is the third largest exporter of musical talent in the world.


Canadian music companies successfully settle legal action against isoHunt

MC smallIFPI Small


Vancouver, 25 July 2016:  Canadian and international music companies have settled litigation against isoHunt Web Technologies Inc. (“isoHunt”) and its founder Gary Fung (“Fung”) with the entering of orders by consent against isoHunt and Fung.  The settlement ends a lawsuit filed in 2010 alleging substantial copyright infringement of music on the isoHunt site, as well as an opposing action filed by isoHunt and Fung.

isoHunt and Fung agreed to a court order finding them liable for infringing the music companies’ rights in their recordings, which were made available for BitTorrent file-sharing through isoHunt’s websites. Fung and isoHunt further agreed not to be associated with any service that makes the music companies’ recordings available without authorization, including by BitTorrent or any other file-sharing technology.

“Music companies in Canada stand shoulder-to-shoulder in the fight against illegitimate sites that distribute massive volumes of creative works without compensation to creators,” said Graham Henderson, President & CEO of Music Canada. “Thousands of Canadian creators, our creative industries, and their employees are directly harmed by these activities. This settlement is a step forward towards providing consumers with a marketplace in which legitimate online music services can thrive.”

isoHunt was one of the largest unauthorized BitTorrent sites in the world, offering access to a vast array of music and films for instant download by millions of users. It operated out of Vancouver with worldwide reach.

“Courts all over the world have confirmed that websites such as isoHunt infringe rights”, said Frances Moore, Chief Executive Officer of IFPI. “Artists, creators and record companies pay a heavy price for that infringement, in lost revenues, lost jobs and lost investment. This settlement sends a strong message that anyone who builds a business by encouraging and enabling copyright infringement faces legal consequences for these actions.”

A timeline of legal activities involving isoHunt:

  • 2008 – isoHunt files a petition in British Columbia Supreme Court against Canadian music companies, seeking to have its BitTorrent file-sharing site declared legal under the Canadian Copyright Act;
  • 2009 – The British Columbia Supreme Court rejects isoHunt’s application, and grants the Canadian music companies’ application to have the petition proceed by way of an action or full trial. isoHunt files such an action;
  • 2009 – A US federal district court finds isoHunt liable for copyright infringement in a case brought by the Motion Picture Association of America (MPAA), citing unchallenged evidence that 95% of the files traded through isoHunt’s sites were likely infringing;
  • 2010 – Two dozen Canadian and international music companies file a lawsuit against isoHunt and Fung in British Columbia Supreme Court, alleging massive copyright infringement and seeking damages;
  • 2012 – The Canadian government passes The Copyright Modernization Act (Bill C-11), which ensures that businesses that enable infringement can be held liable for the activities they facilitate. In public statements, government representatives identify isoHunt as the type of “enabler” that the law is intended to target;
  • 2013 – A US federal court of appeals unanimously upholds the US district court’s decision;
  • 2013 – isoHunt and Fung agree to halt all operations worldwide and are deemed liable for a judgment of US$110 million in the US proceedings;
  • 2016 – by way of a consent order filed in the Canadian proceedings in British Columbia Supreme Court, isoHunt and Fung are liable for CAD$55 million in damages and an additional CAD$10 million in punitive damages.  isoHunt and Fung further agree not to be associated with any service that makes the music companies’ recordings available without authorization.

Despite these successful legal actions, piracy remains a significant problem for the music industry. IFPI estimates that 20 per cent of all fixed line internet users worldwide regularly access services offering infringing music. A recent report by the Digital Citizens Alliance demonstrates that one in three piracy sites contains malware, which could result in identity theft, stolen banking information, or exposure to hackers.

̶   Ends  ̶

For more information:

Quentin Burgess, Music Canada

+1 (416) 967-7272 x106


Adrian Strain, Director of Communications, IFPI

+44 (0)20 7878 7935



Notes for editors:

About Music Canada

Music Canada is a non-profit trade organization that represents the major record companies in Canada, namely 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.

About IFPI

IFPI is the organisation that promotes the interests of the international recording industry worldwide. Its membership comprises some 1,300 major and independent companies in 61 countries. It also has affiliated industry associations in 57 countries.  IFPI’s mission is to promote the value of recorded music, campaign for record producer rights and expand the commercial uses of recorded music in all its member markets.



Ben Purkiss Design wins Gold at 2016 Muse Creative Awards for ‘Mastering of a Music City’ report

Congratulations to Ben Purkiss Design, who won Gold in the Muse Creative Awards’ Annual Report category for his design of Music Canada & IFPI’s The Mastering of a Music City report. The announcement was made this past weekend by the Muse Creative Awards, which is an international competition for creative professionals who “inspire through concept, writing or design, whether through traditional or electronic media.” The 2016 Awards featured more than 1,200 submissions from 33 countries around the world.Gold Award Site Big

Purkiss designed the cover art, layout, and infographics for The Mastering of a Music City from scratch, creating a cohesive look for the 100+ page report. The report presents a roadmap to help local authorities, businesses, community groups, and the creative sector capitalize on the potential of music to build, grow and strengthen their cities.

“I had the incredible opportunity to work with IFPI and Music Canada on their publication Mastering of a Music City: Key Elements, Effective Strategies and Why It’s Worth Pursuing,” said Purkiss. “IFPI and Music Canada are those clients every designer dreams about; they EXPECT you to push your creative boundaries. It’s a very challenging, yet incredible experience that I am very grateful to have had.

“When I started the initial research ‘phase’ of this project, I looked for inspiration wherever I could find it; from movie intros, online ads and the far reaching depths of online portfolios,” he continued. “I wanted to create a visual masterpiece that challenged who I was as a designer and my abilities to use the software I work with every day. It certainly did not disappoint.

“I quickly discovered what was to be my main source of inspiration – clouds. Clouds are ever changing and evolving – they can hide something beautiful, or in this case, elements within a design. I took that idea to create layer upon layer of design elements – mixing colours and objects to create the overall visual cues. This was unbelievably challenging yet incredibly rewarding.”

The stunning design is a big part of the reason that the report has been so well received around the world, said Amy Terrill, Music Canada’s Executive Vice President, and lead author of the report. Since its release in June 2015, The Mastering of a Music City has been cited by an array of cities around the globe, including Sheffield, United Kingdom, Sydney, Australia, and Bogota, Columbia. To date, more than 800 printed reports have been distributed at more than thirty presentations to conferences and business association meetings in locations such as Pemberton, British Columbia, Columbus, Ohio, Aarhus, Denmark, and Brighton, United Kingdom.

“Winning a Muse Award was completely unexpected for me,” said Purkiss. “I don’t think it has fully sunk in yet, but it’s a gratifying experience knowing my work is truly recognized and rewarded.  I’ve never given myself much credit (let’s face it, most people are their own worst critics) but this is really showing that hard work can, and does, pay off – especially when you are given creative liberties from clients like IFPI and Music Canada who value the work of all artists.”

The Muse Creative Awards is administered by International Awards Associate Inc., and judged by a panel of internationally-recognized creative professionals. The panelists identified “the most innovative and creative concepts, the strongest executions, and the highest quality in messaging,” said an MCA release.

Photos of Ben’s design are available on his Behance page, and the full report is available for download in our Resources section.


‘Value gap’ growing, according to new UK figures

New figures released yesterday at Canadian Music Week by the BPI – the record labels’ organization that promotes British music – highlight the growing “Value Gap” that exists between consumption of music in the UK and the amount that record labels and artists receive in revenues from video streaming platforms.

Geoff Taylor, BPI Chief Executive, told delegates that the number of people streaming music in the UK doubled in 2015, resulting in a 70 per cent increase in payments from services such as Spotify and Apple to record labels, helping to propel the market to overall growth.

However, while UK streams of music videos almost doubled during the same 12 month period, the revenues paid to labels for those streams flat-lined, rising by less than half of one per cent. This disparity neatly encapsulates the market distortion characterised by the IFPI as the “Value Gap”.

Taylor added: “The rising flow of royalties that should be nurturing artists and labels has slowed to a trickle, as platforms that rely on safe harbours use consumer demand for our music to grow their own businesses at the expense of creators.”

Frances Moore, CEO, IFPI, gave the keynote speech on the ‘State of the Global Music Industry’ in which she referred to the findings of IFPI’s recently released Global Music Report, which showed that the music industry grew in 2015 for the first time in almost two decades, with digital revenues overtaking physical revenues for the first time.

Addressing the conference, Moore said: “We are at an extraordinary moment in our global business. Music is being consumed at unprecedented levels. Measurable growth is being achieved for the first time in nearly two decades.

“Yet the job of turning around the global music industry is really only just beginning and the scale of the anomaly to be fixed is huge. Music is driving economic activity and digital commerce. Yet, in terms of the value being returned to its creators and investors, music is massively undervalued.”

Cary Sherman, Chairman and CEO, RIAA, said: “DMCA reform has become an international phenomenon. Thousands of artists, dozens of music organizations and managers are speaking out and it’s beginning to make a difference. The fundamental unfairness of our existing laws, the stature of artists and power of music, is breaking through like never before.”

Graham Henderson, President and CEO, Music Canada, said: “The value gap is a striking example of how wealth has shifted from those who create content – our artists and their partners – to the large companies that build their platforms on that content. Creators are worse off today than they were when digital came into their lives. This is disturbing and was avoidable. Policy makers now have the opportunity to rebalance the framework in such a way that creators are fairly compensated.”

Dan Rosen, Chief Executive, ARIA, said: “The local Australian music business has done a great job in embracing new digital platforms, giving fans unprecedented access to the music they love. However, we need to ensure that the policy environment reflects the true value that music provides to digital services and allow money to flow back to the artists and labels to sustain a healthy ecosystem of creativity.”


Vinyl sales soar as industry prepares for Record Store Day 2016


For nearly a decade, the third Saturday in April has become an unofficial holiday for vinyl collectors and music enthusiasts across the globe.

On Saturday, April 16, 2016, eager crate diggers will once again set their alarms early in anticipation of Record Store Day, a music community celebration which aims to gather artists, customers, and staff to celebrate the unique culture of a record store and the special role these independently owned stores play in their communities. Each year, limited edition vinyl and CD titles are made available exclusively for the event. with many of the stores also running special sales throughout the day.

In Canada, an appetite for high-quality sound, artwork and a tangible product has lead to soaring vinyl sales. In 2015, vinyl posted its tenth consecutive year of sales growth, and experienced its biggest overall vinyl sales total in the SoundScan era, with a sales increase of 30% over 2014.

According to IFPI’s 2016 Global Music Report, Canada ranks #5 in top global vinyl sales, pushing 1.3 million units in 2015. Despite the sales surge, vinyl remains a niche portion of the physical market, which contributed 35% to Canada’s recorded music revenue in 2015 largely driven by CD sales. In 2015, digital revenue surged to 52% of Canada’s market share due to the rise in streaming service subscriptions. However, for labels and artists, the revenue generated from the sale of vinyl remains far greater than the revenue generated from free, ad-supported streaming services, due to what is known as the “value gap.”

While vinyl’s resurgence is excellent news for labels and artists, the few remaining North American pressing plants are struggling to keep up with the demand as aging equipment can lead to unforeseen delays for new releases. In 2015, Canada Boy Vinyl in Calgary, AB, opened its doors and is currently listed as the only vinyl pressing plant in Canada.

In Toronto, ON, a new startup aims to fix the issue of plant delays and their backlog of orders. Viryl Technologies, who will join Alan Cross on a panel for a free Record Store Day Music-Technology Meet Up, has developed their prototype “The Warmtone”, which uses digital technology to press up to three records per minute, an increase from the industry standard 35 seconds per unit.

Regardless of production delays, over 150 stores across Canada will participate in Record Store Day, stocked with thousands of new and vintage titles ready to be spun. The full list of participating Canadian record stores can be found at Record Store Day Canada’s website.


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.


Three Canadian artists included in IFPI’s Top 10 Global Recording Artists 2015 list


International music trade body IFPI has announced their list of 2015’s top global recording artists, and Canadian artists Justin Bieber, Drake, and The Weeknd make up three of the top 10 positions. The multi-Platinum Canadian artists dominated Billboard’s US Hot 100, and charts worldwide, in 2015 with hits like “What Do You Mean?”, “Hotline Bling”, and “I Can’t Feel My Face”. In Canada, Drake’s album If You’re Reading This It’s Too Late and The Weeknd’s Beauty Behind The Madness were certified Platinum, while Justin Bieber’s Purpose was certified Triple Platinum.

UK singer/songwriter Adele was announced as the recipient of 2015’s Global Recording Artist of the Year award, following the success of her chart-topping third album 25. The album’s lead single, “Hello”, was number 1 in more than 30 countries worldwide and has been certified 6X Platinum in Canada since its release. 25 was officially certified Diamond in Canada, selling over 800,000 copies since its November 2015 release.

Adele is the third recipient of the award, which reflects an artist’s worldwide popularity across physical formats, downloads and on-demand streams. Last year’s winner Taylor Swift lands at #3 in 2015, while 2013 winners One Direction move to #5.

The full top 10 list can be viewed below and visit IFPI’s release for more information about the award.


1 Adele
2 Ed Sheeran
3 Taylor Swift
4 Justin Bieber
5 One Direction
6 Coldplay
7 Maroon 5
8 Sam Smith
9 Drake
10 The Weeknd

“New Music Fridays” Go Live as Albums and Singles Switch Over to Global Release Day

From Friday July 10th, new music releases will be made available for fans to enjoy on the same day across the world, as the switchover is made to “New Music Fridays”.

Until now, tracks and albums have been released on different days of the week in different countries – from Mondays in markets such as France and the UK, through Tuesdays in the US and Canada and to Fridays in markets such as Australia and Germany.

The change means that fans can now get new music on the same day worldwide rather than having to wait for their own national release day. It replaces the patchwork of national release days which meant fans were frustrated and unable to access music in their own country when it was legally available elsewhere.

The switchover to “New Music Fridays” is being implemented by labels, retailers and artists internationally and will establish an aligned global release day in more than 45 countries.

Frances Moore, chief executive of IFPI, said: “The switch to New Music Fridays is about getting new music to fans at the time they most want to enjoy it, whether in physical stores or online. It’s also an opportunity to recreate excitement around the release of music – the message is “Think Friday, Think New Music.”

Fans, industry professionals and anyone else looking for information on the switch to a Friday release day can visit which has all the details of the changes taking place.


The first “New Music Friday” worldwide

There are several albums being released on the first “New Music Friday” including Years & Years’ Communion (Polydor), Owl City’s Mobile Orchestra (Republic), Little Boots’ Working Girl (Repeat Records), R5’s Sometime Last Night (Disney), Veruca Salt’s Ghost Notes (El Camino) and Kidz Bop’s Kidz Bop 29 (Razor & Tie).

Singles releases in key markets include Little Mix’s Black Magic (Syco) and Nick Jonas’ Chains (Island) in the UK and Taio Cruz’s Do What You Like (Island).


A worldwide switchover

“New Music Fridays” will be established in more than 45 recorded music markets worldwide.. Of these, 11 countries already release music on Fridays, while the others will switch the day that new albums and singles become available.

The switch to global “New Music Fridays” has been overseen by an international steering group made up of the following organisations:

  • IFPI, representing some 1,300 record labels worldwide;
  • WIN-Impala, representing independent record labels worldwide;
  • FIM, representing musicians’ unions and associations globally;
  • Featured Artists Coalition representing UK performers;
  • Entertainment Retailers Association (ERA) (UK);
  • Music Biz (US).


Consumer research

Independent research suggests that music fans wanted new music to be available at the start of the weekend. Consumer research by TNS across seven markets[1] shows Friday and Saturday as the preferred days for new music release among consumers who expressed an opinion. More than two-thirds of those with a preference (68%) chose Friday or Saturday.


Charts move into line

The move to New Music Fridays will also lead to many countries making changes to their charts as well. Public music charts in most countries reflect a week’s sales, so changing the release day to Friday means changing the chart week as well. For example, in the UK the BBC will launch its first Friday chart show, having moved it from Sundays, and in France the TV station D17 will be moving its weekly featuring the latest charts from Tuesday to Friday.


Statements on Global Release Day

Kim Bayley, chief executive, Entertainment Retailers Association:

“Retailers and digital services are the ultimate link in the chain between artists and music fans. Having a single worldwide release day reduces customer confusion about when new music is available and focuses everyone’s attention on new releases. Retailers are working hard to implement the change to Fridays and ensure that the advent of New Music Friday is a success.”


James Donio, president, Music Business Association (Music Biz)
“The Music Business Association (Music Biz) is committed to working with our members and industry partners in the United States to make a smooth and successful transition to New Music Fridays.”

Frances Moore, Chief Executive of IFPI
“The switch to New Music Fridays is about getting new music to fans at the time they most want to enjoy it, whether that be in physical stores or online. It’s also an opportunity to recreate excitement around the release of music – the message is “Think Friday, Think New Music. The global release day also helps artists, labels and retailers by limiting the time between releases in different countries and thus narrowing the gap on piracy. The move made today has been a great example of cross-sector cooperation, involving labels, artists, retailers and others across more than 45 markets.”


Paul Pacifico, chief executive, Featured Artists Coalition (FAC)
“The FAC welcomes any initiative that brings artists and fans closer together and the Global Release Day does just that, making sure that all fans, wherever they are in the world, can get legal access to new tracks as soon as they are released. Making Global Release Day Friday brings the additional excitement of launching major new releases in the run-up to the weekend.”


John Smith, president, International Federation of Musicians (FIM)
“FIM fully supports the move to New Music Fridays.  Our industry, our membership and our audiences are increasingly global, and a move to a global release Friday offers an exciting opportunity to release music at a time when people most want to listen to and buy it.”

[1] January 2015 – TNS survey of 7251 consumers across seven markets: Brazil, France, Italy, Malaysia, Spain, Sweden and USA. 4201 consumers expressed an opinion/ preference for a release day.



‘Music Cities’ Report Sets Out Roadmap To Economic Growth

Cannes, France, June 5, 2015: Recording industry groups IFPI and Music Canada have today released a new report that sets out how cities worldwide can take simple steps to help develop their music economies.

The Mastering of a Music City was launched at Midem, the world’s largest music industry conference.

The report provides a simple checklist to help local authorities, businesses, community groups and the creative sector capitalise on the potential of music to build, grow and strengthen their cities.

It cites examples from 22 cities from all continents to explain what a music city is, why it is beneficial, and – critically – the most effective strategies and policies that can be implemented to nurture active music hubs.

Graham Henderson, President and CEO, Music Canada, says: “A vibrant music sector delivers an extensive array of social, cultural and economic benefits to its community; from job creation and retention to city identity and music tourism, to social cohesion, music can play an essential role.”  

“Communities of any size, anywhere in the world, can assess the extent to which they have the essential ingredients for a Music City, and deploy the strategies successfully used in the likes of Nashville, Melbourne, Toronto, Berlin and other renowned Music Cities, in order to enhance or grow theirs. These strategies don’t necessarily require heavy investment – addressing red tape and establishing dialogue between leaders in the music community and city officials are inexpensive ways to grow music’s contributions.”

The Mastering of a Music City has identified recommendations in seven strategic areas that are an effective means to grow and strengthen a city’s music economy:

  1. Music and musician-friendly policies, from licensing and liquor laws to parking and planning regulations to affordable housing and artist entrepreneur training.
  1. The creation of Music Offices to help musicians and music businesses navigate the broad range of government policies and regulations that impact music.
  1. The formulation of Music Advisory Boards to engage the broader music community in a collaborative way and to facilitate dialogue with city governments.
  1. Engaging the broader music community to ensure the people most affected by music policies are involved and informed.
  1. Access to spaces and places for artists to practice, record, and perform at every stage of their career.
  1. A focus on audience development, ensuring that there is an engaged and passionate audience for local musicians as well as international touring artists, now and into the future.
  1. Music tourism or the development of a Music City brand to leverage a thriving live music scene, rich music history, or large music festivals in order to reap the significant benefits associated with music.

In addition, multi-level government support for music, a broader city infrastructure conducive to the sector, music education programmes and efforts to highlight music history and identity are important.

Frances Moore, Chief Executive, IFPI, comments: “We’re delighted to be a partner in the Music Cities project, and we will work with our affiliates in 57 countries to spread the good work that Music Canada has been doing elsewhere in the world. They will be taking this report into City Halls worldwide, recognising that each place has different needs and priorities, but urging leaders to seize the common advantages offered by a growing music economy.

“We realise this will benefit the recording industry too, and that is the other reason we are co-sponsoring the report. Our job at IFPI is to improve the environment in which our member companies operate and this is one way that we can do that. Just imagine a world where you can go from country to country and find music cities in every one. That would be good for artists, good for record companies, good for city leaders and good for the wider public that just wants to enjoy great music.”

The Mastering of a Music City was produced after more than 40 interviews with music leaders, city and tourism officials, international focus groups and secondary research. It cites best practices and case studies from 22 cities. IFPI’s affiliated national groups will share the report globally to assist municipal leaders and other stakeholders to develop local music strategies.

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About IFPI:
IFPI is the organisation that promotes the interests of the international recording industry worldwide. Its membership comprises some 1,300 major and independent companies in 62 countries. It also has affiliated industry groups in 57 countries. IFPI’s mission is to promote the value of recorded music, campaign for record producer rights and expand the commercial uses of recorded music in all markets where its members operate.

About Music Canada:
Music Canada is a non-profit trade organization that represents the major record companies in Canada, namely 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.

For more information, contact:


Digital Music Report 2015 released by IFPI

Today, the IFPI released the Digital Music Report 2015, which provides an extensive overview of the global digital music sector, including international market figures, market trends, and worldwide bestsellers information. The report notes that globally, digital music revenues matched physical format sales for the first time in 2014. Digital revenues rose 6.9% to US $6.9 Billion, representing 46% of all global music sales and underlying the industry’s transition over recent years. Overall global revenues fell slightly (0.4%) in 2014, to US $14.97 Billion.

Digital-Music-Report-2015The IFPI says the Digital Music Report shows an industry in continued transition, with consumers embracing music streaming and subscription models. Subscription revenues rose sharply in 2014, growing by 39%, which offset an 8% decline in digital download sales to grow overall digital revenues to US$6.85 billion. The number of paying users of subscription services increased by 46.4%, to an estimated 41 million people worldwide. Subscription services are now a major part of the industry’s portfolio of businesses, making up 23% of the digital market and generating US$1.6 Billion in trade revenues.

“The recorded music business has always led the way for creative industries in the digital world,” said Frances Moore, chief executive of IFPI. “That leadership continues today as the music industry’s digital revolution continues through new phases, driven by the consumer’s desire for access to, rather than ownership of, music. It is a reflection of how much we have adapted that digital revenues today are, for the first time, on a par with physical. The headline statistics of 2014 speak for themselves, with overall revenues still largely flat, down by 0.4 per cent. Music companies are charting a path to sustainable year-on-year growth. That path was never going to be straight, but we are making great strides along it, embracing new models, licensing, investing and improving consumer choice.”

Key trends highlighted in the report includes the increased consumer engagement with licensed digital services, based on a new research study undertaken by Ipsos across 13 of the world’s leading music markets, including Canada. The Ipsos research found that the rise of streaming is driven in large part by young consumers, and that there is substantial untapped potential for growth in paid subscriptions.

The report also notes that bundling partnerships between telecom and digital music companies are becoming standard in markets across the globe, and are playing a significant role in the growth in emerging markets. The report notes that services are also increasingly tailoring their payment models to reach various segments of the market, citing MTV Trax, which offers users in the UK access to 100 songs for £1 per week, ranging to Deezer Elite, which specializes in high quality audio for $20 per month.

The report also addresses the “value gap” in the digital music market, noting the market distortion caused by the way some digital services circumvent normal music licensing rules. The IFPI illustrates this by comparing the share of revenue rightsholders derive from services like Spotify and Deezer to those derived from platforms like YouTube and Dailymotion. The report estimates that music subscription services have 41 million paying subscribers and more than 100 million “freemium” users globally, which generated US$1.6 Billion in rightsholder revenues in 2014. By comparison, YouTube alone has more than one billion monthly users and is considered one of the most popular access routes to music, and yet generated just US$641 million for rightsholders in the same time period.

“The value gap is a fundamental flaw in our industry’s landscape which sees digital platforms such as Dailymotion and YouTube taking advantage of exemptions from copyright laws that simply should not apply to them,” said the IFPI’s Frances Moore. “Laws that were designed to exempt passive hosting companies from liability in the early days of the internet – so-called ‘safe harbours’ – should never be allowed to exempt active digital music services from having to fairly negotiate licences with rights holders. There should be clarification of the application of ‘safe harbours’ to make it explicit that services that distribute and monetise music should not benefit from them.”

The Digital Music Report also covers plans for Global Release Day, which is the industry’s decision to synchronize the release schedule for all markets, allowing consumers to access new music on the same day worldwide. Beginning July 10, 2015, Friday will become the new release day, reducing the risk of piracy by shortening the release gap between markets, and providing new marketing opportunities for record labels over the weekend.

The report also examines music’s impact in the wider economy, with data illustrating the effect of record companies’ investment in artists. The recording industry invested US$4.3 billion in 2013, which, at more than 15% of industry revenues, is a larger share than other sectors like leisure (6.3%) and automobiles (4.2%). This investment is a catalyst for economic activity, said Max Lousada, chairman and CEO of Warner Music UK. “As an industry we make financial investments in our arts that have a ripple effect on the wider economy, whether that is driving new and innovative businesses or creating work for all the specialists that work to develop and sustain artists’ careers from producers, graphic designers and stylists to lawyers and accountants.”

The report looks at the role of music in driving tourism, citing the experience from Austin, Texas, and research from Toronto and the United Kingdom. Music is also a major driver of activity on social media, as the report notes that seven of the ten most-followed people on Twitter are musicians, and nine of the top ten most-watched YouTube videos are music related.

The report also profiles industry efforts to counter piracy, which continues to be a massive problem for the music industry. Research by Ipsos shows that most consumers recognize digital piracy is harmful and should be addressed by governments and intermediaries. 52% of respondents in Ipsos’ survey agreed that downloading or streaming without the copyright owner’s permission was theft. 53% of respondents agreed that licensed services should appear above pirate sites in search engine results, and 52% agreed that companies should not advertise on pirate sites. The report identifies major brands found to be continuing to advertise on egregious pirate sites, which drives revenue for the pirate site and advertisers, but while those who create the music involved receive nothing.

In the global charts, the soundtrack to the motion picture Frozen was the top-selling album internationally, while Pharrell Williams’ Happy was the top-selling digital single. Taylor Swift received the IFPI’s Global Recording Artist Award in 2014, as the most popular artist across formats ranging from CD sales to YouTube views.

To view the full report, visit


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