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Tag archive: Value Gap (26)

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IFPI’s Global Music Report 2019 illustrates streaming’s continued rise in Canada and around the globe

IFPI’s anticipated annual State of the Industry” report is now available and paints a picture of an industry transformed by evolving listening trends and emerging markets. Overall, the global music industry experienced its fourth year of consecutive growth, with an increase of 9.7% in 2018. Much of that growth across the globe is attributed to streaming, which increased by 34% and accounted for almost half of global revenue at 47%.

Streaming accounted for 60% of recorded music revenues in Canada in 2018, and increased in trade value by 31.9% from USD $200.7 million in 2017 to USD $264.8 million in 2018. Of that streaming revenue, USD $211.8 million came from subscription audio streams, USD $26.78 million came from ad-supported audio streams, and USD $26.21 million came from video streams. After streaming, the next leading sources of recorded music revenues are “other digital” at 15%, physical sales at 15% and performance rights and synch at 11%.

The reports also list five key elements to fostering fair marketplaces so music continues to thrive. Those elements are:

  • Music’s value must be recognized;
  • Copyright frameworks must be clear and provide legal certainty;
  • Rights holders must be free to decide who can use their music and how;
  • Music must be licensed on fair terms, and;
  • Adequate tools must be available to prevent music from being made available illegally.

Securing sustainable growth for today’s digital music industry will be the topic of focus this Friday in Geneva, as Music Canada and IFPI present ‘An Industry Transformed’ during the convening of the Standing Committee on Copyright and Related Rights (SCCR) by the World Intellectual Property Organization (WIPO).

The top digital single of 2018 in Canada was “God’s Plan” by Drake, who was awarded IFPI’s 2018 Global Artist of the Year Award in February of 2019, becoming the only artist to ever win the award twice. The top digital single worldwide in 2018 was “Havana” by Camila Cabello (feat. Young Thug) with “God’s Plan” in the number two position. The top album of 2018 in Canada was Drake’s Scorpion, and globally was The Greatest Showman (OST) by Cast of ‘The Greatest Showman.’

IFPI’s Global Music Report 2019: State of the Industry is available for download on IFPI’s website.

 

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Music Canada and IFPI to present ‘An industry transformed: securing sustainable growth for today’s digital music industry’ in Geneva

On Friday, April 5 in Geneva, Switzerland, Music Canada and IFPI will co-present an event titled ‘An industry transformed: securing sustainable growth for today’s digital music industry.’ The event will take place during a gathering of the Standing Committee on Copyright and Related Rights (SCCR) convened by the World Intellectual Property Organization (WIPO). An industry transformed will feature the following speakers:

  • Larry S. Miller – Clinical Associate Professor and Director, Music Business Program, NYU Steinhardt School of Culture, Education, and Human Development
  • Graham Henderson – President and CEO, Music Canada
  • Miranda Mulholland – Musician, President of Roaring Girl Records, and Music Festival Founder

SCCR delegates will be presented with key global and regional data from the IFPI Global Music Report (which will be published globally during the week of the SCCR), insights into the partnerships between record companies and artists, and some key challenges to ensuring the sustainable and balanced development of digital music markets around the world.

Next, Graham Henderson will share highlights from Music Canada’s upcoming report on the discrepancy between the value of music accessed by consumers and the revenues returned to the artists and businesses who create it. The report outlines how Canada’s music community has overcome initial skepticism regarding the existence of this discrepancy, known as the Value Gap, and its causes. It examines the key arguments and evidence that have led to widespread acknowledgement of the discrepancy in Canada, and presents a road map to help build a stronger music ecosystem for artists and labels around the world.

Musician, label owner, and music festival founder Miranda Mulholland will close out the event with remarks explaining how weak copyright legislation has impaired her career. She will also reflect on the value of record labels in the modern music marketplace, and will demonstrate how artists can help establish a sustainable and functioning marketplace, outlining her own journey as an artist advocate.

Mulholland will then 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.

 

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Music Canada welcomes 2019 Federal Budget, looks forward to concluding Copyright Act review to address the Value Gap

March 19, 2019, Toronto: Today in the House of Commons Minister of Finance Bill Morneau tabled the 2019 Federal Budget. Titled Investing in the Middle Class, the Budget is focused on improving affordability and employment opportunities through various measures including skills training and affordable housing initiatives.

“Music Canada welcomes the Government of Canada’s increased funding to the Canada Music Fund and Canada Arts Presentation Fund as part of today’s budget announcement, but there remains much work to be done to address the Value Gap hurting the music sector,” says Graham Henderson, President and CEO of Music Canada. “For labels and artists to be competitive and financially successful, they need a sustainable business framework.”

“Recently the United States and the European Union have taken steps to address the Value Gap. Canada has an opportunity to join the community of nations in protecting and fostering the careers of creators. During the Copyright Act review, the creative community was virtually unanimous in urging the government to repeal decades-old subsidies through which individual creators enrich billion dollar technology and broadcasting platforms,” Henderson stresses. “We sincerely look forward to working with the government to seize this opportunity while concluding the review of the Copyright Act.”

Musician, label owner, and music festival founder Miranda Mulholland emphasized the economic impact of the arts, and the need for urgent action to protect the careers of creators.

“As the government focuses on equipping Canadians with the skills to match today’s job market, the huge positive economic impact of the arts should never be underestimated,” says Mulholland. “Therefore we must also protect professions in music and the arts as viable career paths. The Copyright Act review provides a means to help Canadian music creators thrive in the modern marketplace, and I’m committed to working with the government to make that happen.”

The full Investing in the Middle Class Budget Plan 2019 is available on the Government of Canada website.

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For more information:
Corey Poole, Music Canada
cpoole@musiccanada.com
+1 (647) 808-7359


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.

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Playback 2018 panel: What can be done to help music creators who are living in the Value Gap?

On Tuesday, October 16, Music Canada hosted Playback 2018, our annual industry dialogue and celebration. Following an annual review from Music Canada Executive Vice President Amy Terrill, and a keynote from professor and author Debora Spar, Playback 2018 featured a panel discussion focused on what can be done to help music creators who are living in the Value Gap. The panel was moderated by Nam Kiwanuka, host and producer for TVO’s The Agenda and former Much Music VJ.

Joining Nam on the panel was:

  • Dr. George Barker – Visiting Fellow London School of Economics, and Honorary Associate Professor Australian National University, who has produced three studies on the Value Gap in Canada
  • Loreena McKennitt – Renowned Canadian musician, record label owner and long-time advocate for musicians’ rights
  • Maia Davies – Toronto/Montreal based songwriter, producer and performing artist, former founding member of Ladies of the Canyon, currently releasing solo recordings as MAÏA
  • Ian MacKay – President, Re:Sound Licensing Company, dedicated to obtaining fair compensation for artists and record companies for their performance rights

Dr. George Barker began the discussion outlining several key figures leading to the loss of revenues for the recording industry, while Ian MacKay spoke to the $1.25M commercial radio royalty exemption and the impact it has on Re:Sound’s performer and record label members. Loreena McKennitt and Maia Davies then provided insight into the struggles artists and label owners are facing as a result of the Value Gap, where, as Davies points out, even songwriting peers with writing credits for Drake’s albums can’t afford their rent.

Reflecting on how remuneration models for artists and labels have changed since she began her career before the advent of the internet, McKennitt said “I would say I’m luckier than most. Because I established it (her label) when I did, and reached success when I did and now I’m a kind of legacy artist and was able to sustain my career in the twilight of my career.” McKennitt continued, “But it’s very clear – I could never reach the height of my success were I to start up now.”

You can watch the full panel discussion below.

Select photos from the panel are posted below and a full Playback 2018 photo gallery can be viewed on Music Canada’s Facebook page.

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Playback 2018: Executive Vice President Amy Terrill recaps Music Canada’s accomplishments from the last 12 months

On October 16, 2018, at The Great Hall in Toronto, Music Canada hosted Playback 2018, our annual industry dialogue and celebration.

Close to 100 members of the Canadian music industry were in attendance, including representatives from record labels, awards programs, royalty collectives and funding institutions, as well as artists, journalists, politicians and other government representatives.

Universal Music Canada President Jeffrey Remedios opened the event with a reflection on the state of the industry before Music Canada Executive Vice President Amy Terrill recapped Music Canada’s major accomplishments and new initiatives from the last 12 months.

Those accomplishments include our work to close the Value Gap in Canada, the launch of Music Canada Cares and its first program, The Three Rs Music Program, exciting partnerships with other industry groups, and our latest research report, Keys to a Music City: Examining the Merits of Music Offices, Boards, and Night Mayors.

You can watch Terrill’s full presentation below.

Near the end of the presentation, Terrill gave the audience a sneak peek of a just-released video taking you behind the scenes of the production process of our Gold and Platinum award plaques.

Following the annual review, Terrill invited Music Canada President and CEO Graham Henderson to the stage for a special announcement. Henderson shared preliminary results of Music Canada’s year-long, comprehensive governance review that Terrill had announced a year earlier at Playback 2017. To learn more about the changes resulting from the review, read our release.

Stay tuned for more video content from Playback 2018 in the coming days, including a keynote presentation from professor and author Debora Spar, and a ‘fireside chat’ between Recording Industry Association of America Chairman and CEO Cary Sherman and musician, label owner and festival founder, Miranda Mulholland.

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At Standing Committee on Canadian Heritage, Miranda Mulholland illustrates why urgent action to address the Value Gap is needed

Last Thursday, musician, label owner and music festival founder Miranda Mulholland appeared before the Standing Committee on Canadian Heritage’s study of remuneration models for artists and creative industries, where she shared her personal experience as an artist living in the Value Gap.

She began by making Committee members aware that although they may not recognize her, they had most certainly heard her play. “Over the last 19 years, I have played or sung on hundreds of recorded songs on over 50 records including many JUNO Award nominated or winning albums,” she said. “I have done film and television work – you can hear my fiddle playing on every episode of Republic of Doyle and in the film Maudie and on the Good Things Grow in Ontario jingle.”

Mulholland then stated that creators are storytellers and that the story she would tell them today had a beginning, a middle and that she hoped that she and the Committee members would write the end together.

After outlining how she got her start in music, becoming a fiddle player as the digital revolution took off, Mulholland spoke about the Value Gap, and what it has meant to her career.

Mulholland then referenced previous testimonies that the Committee has heard, from artists like Andrew Morrison of the JUNO-nominated group The Jerry Cans, and Music Canada President and CEO Graham Henderson, who both spoke of the disappearance of middle class artists.
Mulholland underscored this point, stating: “The musician middle class is gone – and even the ladder to get there is gone.”

In the middle of her dynamic and authentic presentation, Mulholland proposed four immediately actionable solutions that Committee members could recommend to help improve the framework, which are captured in the video embedded below.


Approaching the end of her story, Mulholland expressed hope that the Committee would help write the ending. Referencing the recent actions that lawmakers in Europe and the United States have taken to help close the Value Gap, Mulholland expressed hope that the Heritage and Industry Committees can work with artists like herself to fix the broken framework and update the laws to reflect artists’ day to day lives.

Her testimony was encapsulated by one of her closing remarks: “Artists have adapted and we need our laws to do the same.”

Mulholland’s dynamic and authentic presentation seemed to truly engage members of the Committee. Following her testimony, Pierre Breton, Member of Parliament for Shefford, Quebec, commented:

Wow, thank you for your excellent presentations. It’s really from the heart, and I would say that you are excellent at explaining the issues – so if there is anyone who had a hard time understanding the scope of the challenge that you’ve been living through, well, now they understand it. Thank you for your testimony – it was exceptional. These are very sensible recommendations in my opinion, and they could be implemented very quickly.

Martin Shields, Member of Parliament for Bow River, Alberta, said:

I think you’re passionate, I think you’re great – but I understand fairness, and what we have is an industry that needs fairness, and we need legislation changed.

During the question and answer portion of the hearing, Breton asked Mulholland which of the recommendations she offered could have a quick impact if enacted by government. Mulholland replied:

Each one would have an immediate effect. The first one, the radio royalty exemption, getting rid of that subsidy – and again, subsidizing – artists are subsidizing the big media conglomerates – that needs to stop. And if that ended, that money would be filtered through into artists pockets immediately.

Same with sound recording … I just played with Alan Doyle on a new kids show that he’s writing the music for… if this was enacted and the sound recording wording was changed, as soon as that is played, I will get paid for my work – so that would help me immediately.

The private copying – that would help immediately as well.

And having a term extension would help me value my work for longer, so I would be able to leverage that if I was talking to a publisher or a label about my catalog. So all four would help me right now.”

Anju Dhillon, Member of Parliament for Dorval — Lachine — LaSalle, asked Mulholland:

In many interviews you’ve done, I noticed that you’re talking about how the Copyright Act is not protecting creators and artists – what concrete changes would you like to see to the Copyright Act so that we can have more fairness and money can be distributed from the distributors to the creators?”

Mulholland replied that right now, she and her creator colleagues are subsidizing billionaires. She told Dhilllon, “the subsidies need to stop – so that would be the radio royalty exemption… it was supposed to be temporary, and it needs to be removed… We just want to have a functioning marketplace.

Following the hearing, Committee members enthusiastically thanked and congratulated Mulholland for her concise and moving testimony.

(l-r) Members of Parliament Randy Boissonnault, Julie Dabrusin, Anju Dhillon and Pierre Breton with Miranda Mulholland

 


Full video of the September 20, 2018, Standing Committee on Canadian Heritage hearing is available on the House of Commons website.

 

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Unanimous U.S. Senate support for Music Modernization Act is further evidence Canada must act to close the Value Gap

Music Canada joins our American counterparts in applauding the United States Senate following its unanimous passage of the Music Modernization Act (MMA) yesterday evening. The MMA, which was broadly supported by music organizations across the United States, is a comprehensive bill that includes the CLASSICS Act, legislation that guarantees artists and labels who recorded music before 1972 a federal right to be paid for those recordings when played by digital radio outlets.

The U.S. music community was united in its support of the MMA, with organizations such as the Recording Industry Association of America, the National Music Publishers Association, ASCAP, SoundExchange, musicFIRST, and the Recording Academy advocating strongly for the bipartisan bill. Thousands of artists spoke up in support of the legislation, including Roseanne Cash and Dionne Warwick, who advocated for the bill in the House of Representatives; Smokey Robinson, who testified at the U.S. Senate; and Maren Morris and Adam Levine, who were vocal supporters of the bill on social media.

“We congratulate all of the artists and advocates who spoke up so passionately in support of the Music Modernization Act. As we saw with the European Parliament vote, governments are listening to creators and recognizing the need to update the legislation that affects their careers,” says Graham Henderson, President and CEO of Music Canada.

“In the past week, we have seen overwhelming support for this type of legislation from Canada’s two largest trading partners, further underlining the need for Canada to follow through with meaningful reforms,” adds Henderson. “Our government has heard from creators – the Value Gap is an urgent issue that must be addressed. It’s now time for our government to seize the opportunity and close the Value Gap in Canada.”

Music Canada has been the leading advocate for addressing the Value Gap in Canada. Our 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.

Music Canada is encouraged by the progress made in the U.S. and EU, and remains committed to continuing to work with the government of Canada to close the Value Gap here at home.

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Landslide European Copyright Directive vote is a call to action for legislators globally to fix the Value Gap

Music Canada joins our European counterparts in applauding the European Parliament for today’s historic vote on the European Copyright Directive. The vote is a vital step towards ensuring Europe’s creators are paid fairly when their work is consumed online, and provides a strong example for other governments to follow to support their own creators.

“Congratulations to the European Parliament on today’s historic vote to create a framework for creativity to flourish in the digital marketplace. We also need to acknowledge the incredible impact of creator voices to this campaign – thank you to all of the artists who spoke up with such passion and honesty,” says Graham Henderson, President and CEO of Music Canada.

“Today’s landslide vote is a call to action for governments around the world – We must all act with urgency. The Value Gap is a global issue of critical importance to the current and future health of creators and the creative industries. Here in Canada, our Heritage and Industry’s committees have heard loud and clear from creators that the Value Gap threatens Canadian culture and needs to be fixed. These committees have done excellent work so far and they must seize this opportunity. Let’s close the Value Gap NOW!”

In 2017 Music Canada released The Value Gap: Its Origins, Impacts and a Made-in-Canada Approach. The first-of-its-kind report describes 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.” To protect the livelihoods of creators, businesses and cultures, creators and creative groups around the globe have been urging governments to enact legislative changes to ensure creators receive fair compensation for the use of their works.

The European vote comes as the Canadian government is conducting its own review of the Copyright Act. Numerous stakeholders have raised the Value Gap as a key issue at the Standing Committee for Industry, Science and Technology, as well as the Standing Committee on Canadian Heritage’s study on Remuneration Models for Artists and Creative Industries. Additionally, through Focus On Creators, more than 3,700 creators have signed a letter urging the government to place creators at the heart of our country’s cultural policy.

A release from Innovation, Science and Economic Development Canada states that a “well-functioning copyright framework should enable Canada’s creators to take full advantage of the opportunities presented by digital technology, provide a supportive environment for business and investment, and position creators for success in a competitive marketplace.”

Music Canada is committed to continuing to work with the government of Canada throughout the review process to close the Value Gap here at home.

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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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