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Tag archive: Value Gap (31)

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Mind the (Value) Gap – Miranda Mulholland and Music Canada’s Graham Henderson appear on the Musonomics podcast

On the latest episode of the popular podcast Musonomics, Music Canada President and CEO Graham Henderson, along with Miranda Mulholland, artist, label owner, festival founder and Chair of Music Canada’s Advisory Council, spoke with host Larry Miller about some of the major issues affecting the music industry today.

Musonomics is a twice-monthly podcast about the business of the music and culture industries. Hosted by Larry Miller and produced with support from the NYU Steinhardt Music Business Program, the program uses data, music and interviews with newsmakers and analysts to provide insight into what’s happening now — and what’s coming next in the world of music and beyond. 

In the podcast, Miller explores data contained in IFPI’s recent ‘Music Listening 2019’ report, which provides a comprehensive overview of music consumption trends from around the world. As Miller notes, global music listening continues to rise, with respondents reporting their listening habits being up to 18 hours per week. Engagement with audio streaming services also remains strong, with 64% of all respondents using a streaming service in the past month. 

Troublingly, the report also highlights the growing scale of listening via user-upload services – the greatest contributor to the Value Gap. Indeed, 77% of respondents reported using YouTube for music listening in the last music; globally, on-demand consumption via video streaming totalled 47%, dwarfing paid and ad-supported audio streaming services. The episode, entitled Mind the (Value) Gap, explores this very issue – a phenomenon that IFPI has called the biggest threat to the future sustainability of the music industry. 

During the episode, Henderson touches on the origin of the issue, describing the Value Gap as the result of a failure of legislation to keep pace with the changes in technology. The impact of this phenomenon has created a widening gulf between the growing revenues that platforms and user-upload services like YouTube gain from the existence of music on their services, and the value returned to the artists and labels who created and developed this creative content.

Henderson also outlines how outdated exemptions such as broad safe-harbour laws have prevented copyright creators and owners from being able to ensure that their work is not being commercialized without their consent by digital and online services. Indeed, as Mulholland vividly describes during the episode, no group has been as adversely affected by the Value Gap as artists.

Mulholland goes on to speak about the realities of working as an artist working within a framework where it is almost impossible to obtain fair remuneration for the monetization of one’s work on online platforms such as YouTube. She outlines how exemptions within Canadian copyright legislation has created this system: where musicians are effectively subsidizing technology companies, while – at the same time – receiving royalty payouts that are too meagre to subsist on alone.

To hear the rest of this fascinating discussion, you can find the episode on Apple Podcasts, SoundCloud, and other major podcasting services. 

Larry Miller will also be delivering a keynote address at Music Canada’s 2019 Symposium, taking place on Wednesday October 23rd. In his address, Miller will share insights from his 2019 report, Same Heart. New Beat. How Record Labels Amplify Talent in the Modern Music Marketplace, which examines the partnerships between record companies and artists. In particular, it outlines the evolution of label efforts to discover and market musical artists; how marketing plans differ and enhance opportunities for artists in a streaming world; the increasing role of data in label strategies; approaches undertaken by labels to build artist branding, and more. Miller will also reconnect with Mulholland and Henderson in a fireside chat following his keynote. 

 

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IFPI releases ‘Music Listening 2019’ report, providing a comprehensive look at rising music engagement in Canada and around the globe

Today, IFPI, the organization representing recorded music worldwide, released Music Listening 2019, a comprehensive overview of music consumption trends from around the world. The report examines the ways in which music consumers aged 16 – 64 engage with recorded music across 21 countries. 

The report illustrates the growth of music listening around the world. Globally, music listening is up, with respondents typically spending 18 hours per week listening to music, up from 17.8 hours in 2018. This equates to approximately 2.6 hours per day, the equivalent of listening to 52 three-minute songs per day. 

Source: IFPI Music Listening 2019

This global surge in music listening is driven by fans’ love of music – more than 54% of respondents say they “love” or are “fanatical” about music. Canadians are among the world leaders in terms of passion for music – 59% of Canadians say they are music lovers or music fanatics, which is above the global average and the fourth-highest in the world. 

“This year’s report tells an exciting story of how fans are increasingly engaging with music,” said Frances Moore, chief executive of IFPI. “At a time when multiple forms of media vie for fans’ attention, they are not only choosing to spend more of their time listening to – and engaging with – music but they are doing so in increasingly diverse ways.” 

The report presents a profile of music lovers, who listen to more music per week, and to listen on a greater variety of services and platforms. 

Consumers’ embrace of music streaming services is growing across all demographics, with the highest rate of growth for the use of streaming services coming from the 35 – 64 age group. 54% of that demographic reported using a music streaming service in the past month, an increase of 8% from 2018. 

Overall, 89% of respondents listen to music using an on-demand streaming service. The biggest reasons consumers enjoy these services include access to large catalogues of music, and the convenience of listening. 

Source: IFPI Music Listening 2019

The report also shows that copyright infringement remains a threat to the music ecosystem. 27% of respondents used copyright infringement as a way to listen to or obtain music in the past month. The most prevalent form of music piracy is illegal stream ripping services, which were used to access music by 23% of respondents. 

“The report also highlights that the availability of music through unlicensed methods, or copyright infringement, remains a real threat to the music ecosystem,” continued Moore. “Practices such as stream ripping are still prevalent and return nothing to those who create and invest in music. We continue to coordinate world-wide action to address this.”

Source: Closing the Value Gap: How to Fix Safe Harbours and Save the Creative Middle Class, Music Canada, 2019

The report also illustrates the scale of music listening via video services. Globally, 47% of on-demand streaming consumption is via video streaming, ahead of paid audio streaming (37%) and free audio streaming (15%). 77% of respondents said they used YouTube for music in the past month. 

This trend is concerning, as user-upload services like YouTube pay significantly lower royalty rates compared with other music streaming services.  This has a significant impact on artists’ and other rights holders’ incomes: plays on Spotify or Apple Music put dramatically more money in their pockets than the same number of plays on YouTube. The average annual revenue to rights holders per user is estimated by IFPI at under US$1 on YouTube, while on Spotify the comparative figure is US$20. 

Source: Closing the Value Gap: How to Fix Safe Harbours and Save the Creative Middle Class, Music Canada, 2019

The biggest cause of this discrepancy in royalty rates are provisions in Canada’s Copyright Act known as “safe harbours” that ad-supported user-upload services like YouTube claim as shelter from liability of responsibility for illegal activity. As examined in our recent report, Closing the Value Gap: How to Fix Safe Harbours and Save the Creative Middle Class, the prevalence of services such as YouTube depresses not only consumer demand for paid subscription services (that better compensate artists and other rights holders by orders of magnitude) but also royalties paid by those services. These effects are the result of substitution possibilities, such as when a service like YouTube, which profits enormously through the subsidy enabled by overly broad safe harbours, provides a free alternative to paid services.

This is why Music Canada supports the recommendations of the Standing Committee on Canadian Heritage’s ground-breaking Shifting Paradigms report, which recommends to the government a series of actions that would help artists and the creative industries. The report tackles numerous weaknesses in Canada’s Copyright Act, identifying elements which have failed to keep pace with technology and the digital marketplace for music. Among its key recommendations which will bolster a functioning marketplace for creative works, the report recommends addressing Canada’s broad safe harbour laws, eliminating or narrowing exemptions from the Act that prevent creators from being fairly compensated, combating modern forms of piracy (like stream ripping) and strengthening the enforcement of Canada’s copyright laws.

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Music Canada’s Graham Henderson to address the Economic Club of Canada on ‘Closing the Value Gap’

On Wednesday, June 26th, Music Canada President and CEO Graham Henderson will deliver a keynote address at the Economic Club of Canada on Closing the Value Gap: How to Fix Safe Harbours & Save the Creative Middle Class.

Music Canada is also pleased to welcome Julie Dabrusin, Member of Parliament for Toronto-Danforth and Chair of the Standing Committee on Canadian Heritage, for a fireside chat about the action that Music Canada is taking on a variety of fronts including diversity and inclusion.

The event description reads: 

In his return to the Economic Club, Music Canada President and CEO Graham Henderson will be releasing Music Canada’s latest report, Closing the Value Gap: How to Fix Safe Harbours and Save the Creative Middle Class.

This new report follows up on Music Canada’s 2017 groundbreaking report, The Value Gap: Its Origins, Impacts and a Made-in-Canada Approach. Since that report, two Parliamentary Committees have reviewed the Copyright Act, governments around the world are identifying the Value Gap and its risk to creative industries, and creators are speaking up to ensure that they are remunerated fairly when their works are commercialized by others.  

Following a speech unveiling the report, Graham Henderson will also discuss the action Music Canada is taking on a variety of fronts including diversity and inclusion to ensure that Music Canada is a leader and agent of change with respect to business and social issues impacting the music community both domestically and internationally.

The event runs from 11:30am to 1:30pm at the Fairmont Royal York Hotel in Toronto. To purchase tickets, please visit the Economic Club of Canada’s website.

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Music Canada statement on the release of the Standing Committee on Industry, Science and Technology Report

Yesterday, the Standing Committee on Industry, Science and Technology tabled its report, entitled Statutory Review of the Copyright Act, which now concludes the review of the Copyright Act undertaken by that Committee and the Standing Committee on Canadian Heritage.

Yesterday’s report from the Industry Committee includes important recommendations to narrow the radio royalty exemption, review safe harbour provisions, extend the term of copyright for musical works and review the private copying regime.

These recommendations, together with the recommendations made in the report from the Heritage Committee on artist and creative sector remuneration, have set the stage for legislative change which will help restore Canada’s middle class of artists and close the Value Gap for the broader cultural industries.

“It is unfortunate that the Industry Committee chose not to take into account the May 15th report from the Heritage Committee or the testimony from creators that contributed to the Heritage Report,” says Music Canada President and CEO Graham Henderson.“If they had, they would have found the Heritage Committee’s Shifting Paradigms report provides clear answers to their outstanding questions.”

“We look forward to working with the Government to reform the Copyright Act as soon as possible to ensure the framework allows creators to be fairly remunerated for their work when it’s commercialized by others.”

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Music Canada Celebrates Ground-Breaking Parliamentary Report on Copyright Act Reform

The Standing Committee on Canadian Heritage has released its report on the Copyright Act, making important and timely recommendations to address the growing Value Gap in Canada’s creative industries. The report, titled Shifting Paradigms, is now available on Parliament’s website.

The report, based on testimony from dozens of creators and representatives from Canada’s creative industries as well as broadcasters, digital services, and other key commercial users and distributors, tackles numerous weaknesses in Canada’s Copyright Act, identifying elements which have failed to keep pace with technology and the digital marketplace for music. Among its key recommendations which will bolster a functioning marketplace for creative works, the report recommended addressing Canada’s broad safe harbour laws, eliminating or narrowing exemptions from the Act that prevent creators from being fairly compensated, combating modern forms of piracy (like stream ripping) and strengthening the enforcement of Canada’s copyright laws.

“I applaud the Members of the Committee for listening to the voices of artists and the businesses who support music and for taking these critical first steps toward addressing the Value Gap in Canada,” said Music Canada President and CEO Graham Henderson.

“The Committee’s report provides a series of thoughtful and concrete recommendations to address the underlying causes of the Value Gap. Many of the recommendations will significantly and immediately improve the lives of artists and our industry.”

The report’s recommendations on music specifically call for ending what amounts to a subsidy paid by Canadian artists and labels to Canada’s largest broadcasters. It recommends limiting the Radio Royalty Exemption to only community and/or independent stations.  

The report also calls for amending the definition of “sound recording” in the Copyright Act so that recordings used in television programs and films would be eligible for public performance remuneration.

Miranda Mulholland, a professional musician, record label owner, and Chair of Music Canada’s Advisory Council, spoke to the Committee about how addressing the Radio Royalty Exemption and amending the definition of “sound recording” to end these subsidies paid by artists would make an immediate improvement in the livelihood of creators.

“The changes recommended by the Heritage Committee in this report are the first step in ensuring artists receive fair remuneration for their work,” said Mulholland. “The changes would end the unfair subsidies that artists have been paying large broadcasting corporations, and mean more creators can earn a sustainable living from their music. I thank the members of the Committee for hearing the concerns of artists, and making strong recommendations to close the Value Gap in Canada.”

“As a working musician, I am glad to see the Heritage Committee has given such careful consideration to improving the copyright framework supporting the music industry in Canada. The recommendations in this report would go a long way in restoring the musician’s middle class,” said Eon Sinclair, a JUNO Award-winning bassist, entrepreneur, philanthropist and a founding member of the Canadian band Bedouin Soundclash. Sinclair is also a member of the Music Canada Advisory Council.

“Today’s report moves Canada into a leadership role in the international effort to close the Value Gap and address the harm being done to creators everywhere by overly broad safe harbour laws,” added Henderson.

“In order for these recommendations to make an impact on the music community, they must become law,” continued Henderson. “Music Canada looks forward to working with the Government to reform the Copyright Act as soon as possible to reflect the Committee’s recommendations.”

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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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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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