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Tag archive: Value Gap (18)

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Music Canada welcomes Pablo Rodriguez as Minister of Heritage; thanks Mélanie Joly for leadership on policies affecting the music sector

Toronto, July 18, 2018: Music Canada welcomes incoming Minister of Canadian Heritage, the Hon. Pablo Rodriguez and thanks the Hon. Mélanie Joly for her efforts in this role following her appointment as Minister of Tourism, Official Languages and La Francophonie. Prime Minister Justin Trudeau announced the changes to his federal cabinet earlier today.

As Minister of Canadian Heritage, Rodriguez will be responsible for implementing the government’s plan to strengthen Canada’s cultural and creative industries, and will be tasked with managing the legislative, regulatory, and Cabinet processes to deliver on the government’s priorities.

“On behalf of Music Canada, I would like to congratulate the Hon. Pablo Rodriguez on his appointment as Minister of Canadian Heritage,” says Graham Henderson, President and CEO of Music Canada. “In this role, he has the opportunity to improve the livelihood of Canadian creators, by creating the conditions for a functioning marketplace where creators receive fair compensation for the use of their work. We look forward to working with Minister Rodriguez to continue to advance policies that support creators and the companies that invest in them.”

Music Canada also extends congratulations to the Hon. Mélanie Joly on her appointment as the Minister of Tourism, Official Languages and La Francophonie, and expresses appreciation for her leadership on key policies affecting Canada’s music sector, including the initiation of a process to reform the Copyright Board of Canada, the launch of the statutory review of the Copyright Act, and the #DigiCanCon consultations.

“During her tenure as Minister of Canadian Heritage, Mélanie Joly advanced key priorities to strengthen Canada’s creative industries and improve the livelihood of Canadian creators,” says Henderson. “Her efforts to improve the regulatory frameworks that affect creators, such as the Copyright Board and the Copyright Act, has begun a process to put creators at the heart of cultural policy. Thank you, Minister Joly, and best wishes in your new role.”

In the music sector, Music Canada has been the lead advocate for practical and forward-looking improvements to Canada’s marketplace, institutions, and legal framework. The most pressing issue for the music sector in Canada, and around the world, is the Value Gap. Defined as “the significant disparity between the value of creative content that is accessed and enjoyed by consumers, and the revenues that are returned to the people and businesses who create it,” the Value Gap threatens the future of Canadian culture by harming creators’ ability to make a living from their work.

Music Canada’s comprehensive report, The Value Gap: Its Origins, Impacts and a Made-in-Canada Approach, provides insights into how policymakers can reverse the Value Gap. The report recommends four steps that could be quickly implemented, and would help creators and harmonize Canadian policy with international standards:

  1. Remove the $1.25 Million Radio Royalty Exemption
  2. Amend the Definition of ‘Sound Recording’ in the Copyright Act
  3. Address the Effects of Safe Harbour Laws and Exceptions in Canada
  4. Private Copying: Renew Support for Music Creators

Each of these recommended changes removes an unfair subsidy, harmonizes the laws within our industries, and brings us to international standards. The report was presented to the Industry, Science and Technology committee as part of the Statutory Review of the Copyright Act, as well as the Canadian Heritage Committee in their study of Remuneration Models for Artists and Creative Industries, where it has been cited by members of the committee as well as several other industry groups appearing as witnesses before the committee.

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For more information:
Quentin Burgess, Music Canada
qburgess@musiccanada.com
+1 (647) 981-8410

About Music Canada
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. For more on Music Canada, please visit www.musiccanada.com

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Graham Henderson’s testimony at the Standing Committee on Industry, Science and Technology – Canadian Copyright Act review 2018

On June 12, Music Canada’s President and CEO, Graham Henderson, appeared before the Standing Committee on Industry, Science and Technology (INDU) to provide testimony during the five-year statutory review of the Canadian Copyright Act. Henderson appeared before Standing Committee on Canadian Heritage two weeks prior to provide testimony on remuneration models for artists and creative industries. Below is the full-text of Henderson’s remarks before the INDU Committee.

 

Good afternoon and thank you for the opportunity to testify to this committee on behalf of Music Canada.

This committee’s review of the Copyright Act comes at a critical time for Canada’s creators. It is a time when governments around the world are questioning whether the current digital marketplace is functioning fairly for the world’s creators.

The reality for music creators in Canada is that there are provisions in our own Copyright Act that are preventing them from receiving fair market value for their work.

I believe the best way that this committee can assist in creating a marketplace that is transparent and supports Canadian creators is by providing the government with straightforward, accessible solutions to address the Value Gap.

Music Canada produced a comprehensive report on the Value Gap in Canada which you will find in French and English in front of you.

We define the Value Gap as “the significant disparity between the value of creative content that is accessed and enjoyed by consumers,” this is enormous, “and the revenues that are returned to the people and businesses who create it,” – it’s tiny.

Today, more music is consumed than at any time in history. However, the remuneration for that content has not kept pace with the record levels of consumption. The same is true for digital video content, film and even journalism.

I was pleased to hear Minister Joly recognize this point earlier this year, when she stated:

“The benefits of the digital economy have not been shared equally. Too many creators, journalists, artists have been left behind.”

The origins of the Value Gap extend back to more than twenty 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.

They wanted to protect creators, but they also wanted to give a boost to young technological startups and inevitably, perhaps understandably, mistakes were made.

Around the world, lawmakers and policy analysts thought of the internet as a series of “dumb” pipes where your browsing habits were anonymous and the data travelling between sites was so vast it was unknowable. But twenty years later we know the internet is composed of the “smartest pipes” humankind has ever devised.  Your web habits are meticulously tracked and the metadata that they generate is collected, analyzed and sold every second of the day, mostly without our consent or knowledge.

While well-intentioned when they were created, the impact of these laws today is that wealth has been diverted from creators into the pockets of massive corporate entities, and what little is left over for creators is unfortunately concentrated into fewer and fewer hands. As a result, the creative middle class has virtually disappeared, and with it, numerous jobs, opportunities, and dreams.

There is no need to point fingers. No one planned for the creative middle class to suffer. The important thing at this juncture is to move forward purposefully and without delay to get the rules right. You should make absolutely certain that Canada’s Copyright Act ensures a creator’s right to be fairly remunerated when their work is commercialized by others.

The Value Gap is built on outdated safe harbour policies around the world. The announcement made last week by Ministers Bains and Joly that the Telecommunications Act and the Broadcasting Act will be reviewed, is an important step and in line with an international movement to find a solution to this problem. Safe harbours have been raised by other witnesses, and I hope that the committee will give significant consideration to addressing them.

But right now, the Copyright Act is exacerbating the Value Gap by effectively requiring creators to subsidize billion dollar technology companies.  Here are four steps that this committee could recommend. They could be immediately, quickly implemented, and would help creators and harmonize Canadian policy with international standards:

  1. Remove the $1.25 Million Radio Royalty Exemption
    Since 1997, commercial radio stations have been exempted from paying royalties on their first $1.25 million of advertising revenue. It amounts to an $8 million annual cross-industry subsidy paid by artists and their recording industry partners to large, vertically-integrated and highly profitable media companies. The cost to creators since inception…$150 million dollars. Internationally, no other country has a similar subsidy, and the exemption does not apply for songwriters and publishers – meaning that performers and record labels are the only rights holders who are singled out to subsidize the commercial radio industry. This is unjustified and should be eliminated.
  2. Amend the Definition of ‘Sound Recording’ in the Copyright Act
    The current definition of a “sound recording” in the Copyright Act excludes performers and record labels from receiving royalties for the use of their work in television and film soundtracks. This exception is unique to television and film soundtracks, and does not apply to composers, songwriters and music publishers. It is inequitable and unjustified, particularly in light of the profound role music plays in soundtracks, and it is costly to artists and record labels, who continue to subsidize those who exploit their recordings. The cost to creators? About $55 million dollars per year. The Act should be amended to remove this cross-subsidy.
  3. Amending the term of copyright for musical works
    The term of copyright protection in Canada for the authors of musical works is out of line with international norms. Under the Copyright Act, protection for musical works subsists for the duration of the author’s life plus a further period of 50 years, and that is out of line with international standards.
  4. Private Copying: Renew Support for Music Creators
    Years ago, a private copying levy had been created, originally intended to be technologically neutral. It has been limited by various decisions to media that are obsolete.  This important source of earned income for over 100,000 music creators is now in jeopardy unless the regime is updated. Music creators are asking for the creation of an interim four-year fund of $40 million dollars.

Each of these changes removes an unfair subsidy, harmonizes the laws within our industries, and brings us to international standards, and they can be done simply and they can be done today.

This is an exciting time. As you review the Act, you have the opportunity to put creators at the heart of your policy making, ensuring that creators are paid every time their work is commercialized by others.

Thank you.

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Miranda Mulholland issues call to action at Banff World Media Festival

On June 11 at the Banff World Media Festival in Banff, Alberta, musician, label owner and music festival founder Miranda Mulholland presented a keynote address titled “Your content isn’t free – fixing the Value Gap.” Mulholland has become an internationally-recognized figure in artist rights advocacy, having just returned from Midem in Cannes, France, where she was the keynote speaker at an event presented jointly by Music Canada and the International Association of Entertainment Lawyers (IAEL). She also participated in panel discussion on North American copyright updates at Midem on June 7.

The Banff World Media Festival, now in its 39th year, brings together creators, producers, media moguls, and industry stakeholders to learn, build relationships, and tackle the biggest issues facing their industries. The festival features high profile speakers from media industries, pre-booked face-to-face meetings, and other networking and development opportunities.

In Mulholland’s keynote, she reflected on her path to speaking publicly on the challenges creators face and her experiences working with politicians and other decision makers. In her trademark style, she also issued a call to action, urging everyone, regardless of their position or affiliation, to take steps to help creators succeed in the digital marketplace. Many of these actions are detailed in an infographic available on Mulholland’s website.

Below are select passages from Mulholland’s keynote address.

All of us need to stay updated on all the ways artists can be compensated. This includes royalty opportunities, the differences between streaming platforms and how fans consume our art. Use your platform to advocate for change for creators. Create opportunities for others to speak – like this conference! and speak up yourself. This will help everyone, including you. We are all highly effective advocates. No one knows about our experiences as well as we do and sometimes making change is as easy as being very honest about how things really are.

 

The legal framework within which we are operating and trying to innovate was concocted in the 1990s. This is when I wore scrunchies. Governments haven’t meaningfully adapted their laws since then. I should have kept the scrunchie. The fashion has come back but the policies have left us far behind.

 

Minister Joly has herself concluded that “The benefits of the digital economy have not been shared equally. Too many creators, journalists, artists have been left behind, and there needs to be a better balance.” Imagine if the governments around the world had realized that in 2003? Where would we all be now? 

 

Much has changed since I first spoke to Minister Joly two years ago. I get the sense now that the Government is finally listening to us but we have to act with urgency. In Europe there is a very important vote going through in a few weeks – their stance on Safe Harbours could set a precedent for the rest of the world. If we, as creators, don’t speak up, pieces of important of legislation will be drafted without our consent.

 

None of us gave our informed consent about what was going to happen to our work, our businesses, our industries twenty years ago. We do however have the ability to inform policies moving forward.

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Artist advocacy takes centre stage at Midem 2018 during Value Gap event presented by Music Canada and IAEL

Entertainment lawyers have always played a crucial role in the success of their artist clients. But during Midem 2018, Miranda Mulholland urged them to take complimentary steps to empower artists and leverage their network to be connectors, helping to introduce, start discussions, and activate their artist clients.

Mulholland was the keynote speaker at a June 6 event hosted by Music Canada and the International Association of Entertainment Lawyers (IAEL) in Cannes, France. The Value Gap theme flowed through both this event and the launch of IAEL’s new book, Finding the Value in the Gap, later the same day.

Music Canada’s President and CEO Graham Henderson introduced Miranda and shared some opening remarks about Music Canada’s report The Value Gap: Its Origins, Impacts and a Made-In-Canada Approach and thoughts on the vital role of artist advocates.

Two representatives from IAEL, including President Jeff Liebenson and Anne-Marie Pecoraro, as well as Lodovico Benvenuti, Director of IFPI’s European Office, joined Mulholland for a panel discussion following her keynote.

In addition to discussing the IAEL’s brand new publication Finding the Value in the Gap, the international experts leading the charge to address the Value Gap in multiple territories discussed how artists have been instrumental in their campaigns, including a letter to European Commission President Jean-Claude Juncker. The letter was originally signed by more than 1,000 musicians and urges the Commission to address misapplied safe harbour provisions at the heart of the Value Gap to secure a sustainable and thriving music sector for Europe. Similarly, in Canada, more than 3,650 Canadian artists and creators have now signed the Focus On Creators letter to Heritage Minister Mélanie Joly calling on the government to put creators at the heart of future policy.

Guests at the Midem event included influential Canadian and international delegates, as well as members of the legal community, media outlets and European leaders in addressing the Value Gap.

You can watch the full keynote and panel discussion below.

Below is a selection of photos from the event and more information on Finding the Value in the Gap will be available on the IAEL website.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Graham Henderson’s testimony at the Standing Committee on Canadian Heritage’s study of Remuneration Models for Artists and Creative Industries

Earlier today Music Canada’s President and CEO, Graham Henderson, appeared before the Standing Committee on Canadian Heritage to provide testimony on remuneration models for artists and creative industries as part of the Copyright Act review. Below is the full-text of Henderson’s remarks.

 

My name is Graham Henderson, and I am the President and CEO of Music Canada. We are a passionate advocate for music and those who create it.

I am very pleased to see the Heritage Committee studying remuneration models for artists and creative industries. This is an aspect of the music industry ecosystem that I, and Music Canada, have for years been working to modernize. Creating a functioning marketplace where creators receive fair compensation for the use of their works forms the bedrock of our mission.

But the reality for Canadian music creators is there are provisions in our own Copyright Act that prevent them from receiving fair market value for their work.

I believe the best way that this committee can assist in creating a marketplace that is transparent and supports Canadian creators is by providing the government with straightforward, accessible solutions to address the Value Gap.

Music Canada produced a comprehensive report on the Value Gap in Canada which you will find in French and English in front of you.

We define the Value Gap as “the significant disparity between the value of creative content that is accessed and enjoyed by consumers, and the revenues that are returned to the people and businesses who create it.”

Today, more music is consumed than at any time in history. However, the remuneration for that content has not kept pace with the record levels of consumption.

I was pleased to hear Minister Joly recognize this point earlier this year, when she stated:

“The benefits of the digital economy have not been shared equally. Too many creators, journalists, artists have been left behind.”

The origins of the Value Gap extend back more than two decades to a time when countries around the world, including Canada, began adapting and interpreting laws created in another era to protect common carrier telephone companies in the then-dawning digital marketplace.

Around the world those laws understood the internet as a series of “dumb” pipes where your browsing habits were anonymous and the data travelling between sites was so vast it was unknowable. But twenty years later we know the Internet is composed of the “smartest pipes” humankind has ever made.  Your web habits are meticulously tracked and the metadata that it generates is collected, analyzed and sold every second of everyday.

While well-intentioned when they were created, the impact of these laws today is that wealth has been diverted from creators into the pockets of massive digital intermediaries, and what little is left over for creators is concentrated into fewer and fewer hands. As a result, the creative middle class is disappearing, if it hasn’t disappeared already, and with it, numerous jobs and opportunities.

There is no need to point fingers. No one planned for the creative middle class to suffer. The important thing at this juncture is to move forward purposefully and without delay to get the rules right. You should make absolutely certain that Canada’s Copyright Act ensures a creator’s right to be fairly remunerated when their work is commercialized by others.

The foundation of the Value Gap is outdated safe harbour policies and exceptions – all around the world. A safe harbour, by the way, is a way to limit the liability of an intermediary and allow music to be consumed without payment. I know that Ministers Joly and Bains are working on this issue and having conversations with their international counterparts to find a solution to this problem.

But here in Canada, there are particular laws that exacerbate the Value Gap by effectively requiring individual creators to subsidize billion dollar commercial technology companies.  Here are four steps that this committee could recommend immediately that would help creators immediately and harmonize Canadian policy with international standards:

  1. Remove the $1.25 Million Radio Royalty Exemption
    Since 1997, commercial radio stations have been exempted from paying royalties on their first $1.25 million in advertising revenue. It amounts to an $8 million annual cross-industry subsidy paid by artists and their recording industry partners to large, vertically-integrated and highly profitable media companies. Internationally, no other country has a similar subsidy, and the exemption does not apply for songwriter and publisher royalties – meaning that performers and record labels are the only rights holders whose royalties are used to subsidize the commercial radio industry. The exemption is unjustified and should be eliminated.
  2. Amend the Definition of ‘Sound Recording’ in the Copyright Act
    The current definition of a “sound recording” in the Copyright Act excludes performers and record labels from receiving royalties for the use of their work in television and film soundtracks. This exception is unique to television and film soundtracks, and does not apply to composers, songwriters and music publishers. It is inequitable and unjustified, particularly in light of the profound role music plays in soundtracks, and it is costly to artists and record labels, who continue to subsidize those who exploit their recordings to the tune of $55 million per year. The Act should be amended to remove this cross-subsidy.
  3. Amending the term of copyright for musical works
    The term of copyright protection in Canada for the authors of musical works is out of line with international copyright norms. Under the Copyright Act, protection for musical works subsists for the duration of the author’s life plus a further period of 50 years. By contrast, the majority of Canada’s largest trading partners recognize longer copyright terms for musical works, and a general standard of the life of the author plus 70 years has emerged. I note that a vice-chair of this committee, Mr. Van Loan, introduced a Private Members bill on this issue and we thank you for your support.
  4. Private Copying: Renew Support for Music Creators
    The private copying levy, originally intended to be technologically neutral, has been limited by various decisions to media that are effectively obsolete.  This important source of earned income for over 100,000 music creators is now in jeopardy unless the regime is updated. Music creators are asking for the creation of an interim four-year fund of $40 million per year. This will ensure that music creators continue to receive fair compensation for private copies made until a more permanent, long-term solution can be enacted.

Each of these changes removes an unfair subsidy, harmonizes the laws within our industries and brings us to international standards, and they can be done today.

As the creative community anxiously awaited this review of the Copyright Act, an organization called Focus On Creators sent Minister Joly a letter that has now been signed by more than 3,650 Canadian creators.  In that letter, the creators discussed their concerns with the Value Gap and how the Value Gap is causing the middle-class artist to disappear in Canada. The creators’ letter concludes with a message I hope you will take to heart, “We know you understand the cultural significance of our work; we hope you also see its value and crucial place in Canada’s economy. We ask that you put creators at the heart of future policy.”

Thank you.

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Global Music Report 2018 shows industry experiencing growth from subscription streaming, but Value Gap needs to be addressed for long term sustainability

IFPI today released its anticipated 2018 Global Music Report, providing a state-of-the-industry guide to the top global markets and highlighting industry-wide trends.

While Canada dropped from the sixth to seventh largest music market in the world, the domestic music industry can be encouraged by marked growth in subscription audio streaming, which grew in trade value from USD $95.34 million in 2016 to USD $160.9 million in 2017. This trend has contributed to the first three consecutive years of growth following 15 years of revenue decline.

In Canada, ad-supported streaming declined slightly in 2017, representing USD $16.24 million in trade value, compared to USD $16.59 million in 2016. Video streams represented USD $23.32 million in trade value in 2017, rising from USD $21.56 million in 2016. The total trade value for all types of streaming rose from USD $133.5 million in 2016 to USD $200.4 million in 2017, a 50% increase. This is similar to the global trend where overall streaming revenues grew by 41.1%.

“I’m encouraged by the consecutive years of growth we’re witnessing. But as streaming continues its rise, it’s more important than ever that this business model supports the people making the music,” says Graham Henderson, President and CEO of Music Canada.

“There are still regulations and cross-subsidies in place, in Canada and around the world, intended to get tech companies off the ground,” says Henderson. “These companies, like Google and Facebook, are now some of the world’s wealthiest and have unprecedented control over content online. Music Canada produced a comprehensive report on the Value Gap in Canada, and more than 3,600 Canadian creators have signed the Focus On Creators letter to the Canadian government asking for legislative help. Any future legislation, including the current Copyright Act review, needs to keep the well-being and future of Canadian creators top of mind.”

Frances Moore, Chief Executive of IFPI, also pointed to addressing the Value Gap as a top priority.

“The industry is on a positive path of recovery but it’s very clear that the race is far from won.” Moore explained in an IFPI release. “Record companies are continuing in their efforts to put the industry back onto a stable path and, to that end, we are continuing our campaign to fix the value gap. This is not just essential for music to thrive in today’s global market, but to create the right – fair – environment for it to do so in the future.”

Music Canada’s 2017 report, The Value Gap: Its Origins, Impacts and a Made-In-Canada Approach, proposes a range of practical, forward-looking solutions tailored to Canada’s marketplace, institutions and legal framework.

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#EveryStage: Why copyright is so crucial for Canada’s music sector and an important part of Music Canada’s advocacy efforts

Leading up to the 47th annual JUNO Awards, Music Canada is highlighting the ways in which our advocacy supports Canadian artists at every stage of their careers. So far, we have profiled our work regarding music education and Music Cities. In this week’s edition, we highlight our advocacy efforts regarding copyright, which is crucial for all artists.

Copyright effectively underpins the entire music ecosystem – it is copyright that allows creators to sell and license their music in today’s wide array of platforms, and it is copyright that protects the investment that artists and labels make in their career.  As the Canadian Intellectual Property Office outlines in the video below, copyright allows creators to control how their work is used and allows them to monetize their work when it is used.

Music Canada represents Canada’s recording industry to government and public agencies on many different fronts, including how laws, regulations and policies affect music creators. Federally, copyright advocacy is a big part of that role. In addition, Music Canada plays an important role as a collaborator with artists and other industry organizations in the Canadian music and cultural industries to advocate for the creation of a functioning marketplace where creators are paid fairly every time their work is used. Music Canada is a thought-leader on the importance of strong support for creators in the Copyright Act, particularly in highlighting the real-world effects it has on artists and their livelihoods. Reforming Canada’s Copyright Act to ensure that creators are paid when their work is commercialized by others is our top priority.

Currently, the biggest challenge for the music industry in Canada and around the world is known as the Value Gap. The Value Gap is defined as the significant disparity between the value of creative content that is accessed and enjoyed by consumers, and the revenues that are returned to the people and businesses who create it.

At the heart of the Value Gap for music is misapplied and outdated “safe harbour” provisions in copyright law, which result in creators having to forego copyright royalty payments to which they should be entitled, and amount to a system of subsidies to other industries.

Music Canada’s recent report, The Value Gap: Its Origins, Impacts and a Made-in-Canada Approach, examines the Value Gap and its causes, and demonstrates how it impacts artists, businesses and our nation’s cultural foundations, with a particular focus on music. The report includes recommended steps that Canada’s federal government can take today to address the inequities that artists face due to the Value Gap.

In addition to our Value Gap research, Music Canada has been a lead advocate for reforming the Copyright Board. This is another priority for the music sector, as the rates set by the Board directly impact the value of music and the amount that artists and labels receive for their music and investments. Music Canada is calling on the federal government to reform the Board so that tariff rates are set faster, more efficiently and more predictably – all in the name of royalties that better reflect the true value of music in a functioning music marketplace.

As part of Music Canada’s advocacy on Board reform, we have participated in the Senate hearings on the Copyright Board, the government consultation on reforming the Board, and the Standing Committee on Canadian Heritage’s Review of the Canadian Music Industry, each time appearing as a key stakeholder in favour of full and meaningful reforms. Music Canada’s Graham Henderson also raised the issue in a recent Policy Options op-ed, and in a speech before the Economic Club of Canada citing the need for reform of the Copyright Board as a key priority for government.

Next week, as JUNO Week kicks off in Vancouver, we’ll conclude our #EveryStage series by profiling Music Canada’s efforts to celebrate success in Canada’s music sector, including our Gold/Platinum program and partnerships with the JUNOS and other awards that celebrate Canadian music.

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Leading Canadian copyright lawyer says “support for Canada’s content creators is imperative” in Globe and Mail op-ed

Barry Sookman, one of Canada’s leading copyright lawyers, wrote an op-ed published in The Globe and Mail on January 18, addressing two of the major challenges facing the cultural industries in Canada: pirate streaming and the Value Gap. The piece was later posted in its full, unedited length on Sookman’s personal website.

Sookman says that “our outdated legal frameworks” are a significant contributing cause of these challenges. He references Music Canada’s 2017 report The Value Gap: Its Origins, Impacts and a Made-In-Canada Approach, which shows that “the market value of music in Canada is still a fraction of what it once was, and equitable remuneration for access to music remains elusive.”

The report defines the Value Gap as the “significant disparity between the value of creative content that is accessed and enjoyed by consumers, and the revenues that are returned to the people and businesses who create it.”

As Sookman points out, the Value Gap is not only a problem for music creators. He says that most of Canada’s leading cultural industries are also affected, including journalism, television and film.

A coalition of author and publisher groups have documented the harm caused by the Value Gap to their sector, and in 2017 launched the I Value Canadian Stories campaign to urge Canadian lawmakers to “restore balance between the need to compensate our creators for educational copying and the need to promote access to quality content.” The campaign website notes that royalties to creators and publishers for copying of their works have declined by 80% since 2013.

Sookman concludes that, given the magnitude of this problem and the threat to Canada’s cultural industries, the issue, as well as practical solutions, “deserve the attention and support of Canadians.”

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Media Advisory: Where would Google be without creators and the distortion of copyright protections?

Toronto, Nov. 2, 2017: In a ground-breaking report, Music Canada, a national trade organization, documents the scale of harm being caused by the Value Gap – defined as the significant disparity between the value of creative content that is accessed, particularly through user upload content services like YouTube, and the revenues returned to the people and businesses who create it.

“This is the story you will not hear from Google,” says Graham Henderson, President and CEO of Music Canada.  “YouTube would never have emerged as the largest music service without distorting the use of safe harbour protections in copyright law that were created to protect ‘mere conduits’ or ‘dumb pipes.’  We now know that today’s digital platforms are the smartest pipes that have ever been imagined.”

Creators and governments around the world are taking notice, and taking action. In Canada, thousands of musicians, authors, poets, visual artists, playwrights and other members of the creative class, have urged the Canadian government to address the Value Gap in a campaign called Focus On Creators.

The Value Gap: Its Origins, Impacts and a Made-in-Canada Approach is available for download at https://musiccanada.com/resources/research/the-value-gap-report/.

Interviews are available at request.

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For more information please contact:

Corey Poole
Communications Coordinator
Music Canada
647-808-7359

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IFPI’s 2017 Connecting With Music report includes Canadian insights

Today, IFPI released Connecting With Music, its 2017 consumer insight report with information from 13 of the world’s leading music markets. The report was created with data commissioned from Ipsos Connect, and provides a snapshot of the way music fans around the globe are engaging with recorded music.

In 2017, Canada became the sixth largest recorded music market in the world, surpassing Australia, and Connecting With Music offers insight on how Canadian music fans’ listening habits compare with other markets and global figures.

Global trends highlighted in the report include:

Young people are highly engaged with licensed music, especially streaming

Globally, 85% of 13-15-year-olds are streaming music. In Canada, streaming is even more popular among young people, with 89% of 13-15-year-olds reporting streaming music via both audio and video services. 99% of Canadians aged 16-24 identified as licensed music consumers, similar to the global average of 98%.

Music fans engage with licensed music in multiple ways

In Canada, music fans on average access four different licensed ways of listening to music, which is the same as the global average. The four consumption models are: purchase of physical product or paid downloads, audio streaming services for music, video streaming services for music, and listening to music on broadcast or internet radio.

Almost all Canadian internet users (99%) reported listening to licensed music, which is slightly higher than the global average of 96%.

Generally, Canadians are a little less engaged in licensed audio streaming (39%) than the average of global music fans (45%), and 46% of Canadians reported having paid for music in the last six months, compared to 50% globally.

Listening via smartphones is increasing

Overall, Canadians are using smartphones to listen to music a little less than the global average. Globally, 90% of paid audio streamers are using a smartphone to listen, compared to 81% of Canadian respondents. That gap reduces when considering the listening habits of 16-24-year-olds, 84% of which listen via smartphones globally, compared to 81% of Canadians in the same age bracket.

Despite high engagement with licensed music, piracy is still a significant concern

While the percentage of Canadians accessing unlicensed music (33%) was lower than the global average (40%), piracy remains a significant concern in Canada, with 27% of Canadians reporting stream ripping versus the global average of 35%.

Stream ripping is considerably more prevalent among young people, with 43% of Canadians aged 16-24 reporting stream ripping, and a global average of 53% in the same age bracket.

Of those who reported downloading unlicensed music, 54% of global respondents reported also using Google to find it. That figure for Canadian respondents is 46%.

The Value Gap remains an issue

Though video streaming services like YouTube are the most popular form of on-demand music streaming, the revenue returned to music creators from plays on these services is much lower than other licensed music services. 86% of Canadian YouTube users, and 85% of global users reported using the service for music in the past month, translating globally to 1.3 billion users.

One quarter of Canadians surveyed said that they do not pay for a streaming subscription because “anything I want to listen to is on YouTube,” confirming that the Value Gap is very much an issue here in Canada.

 

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