Liberals look to strike the right note in changes to Canada Music Fund

$24-million Canada Music Fund hasn’t seen a boost in funding for a decade

The federal government is expected to make long-sought changes next year to a fund aimed at helping Canada’s music industry, about two years after officials first recommended improvements to Heritage Minister Melanie Joly.

The $24-million Canada Music Fund hasn’t seen a boost in funding for a decade, and is facing ever more requests for funding as the digital revolution transforms the industry’s landscape.

Although the 2018 budget made no mention of it, the Liberal government has been telling insiders that it will enrich the fund, although by how much isn’t clear. It also plans to change how the money is distributed, in light of fading sales and the growth of streaming services like Spotify and Apple Music.

Industry officials, speaking on condition of anonymity in order to discuss private conversations, say federal officials have suggested that changes to the Canada Music Fund will be part of next year’s budget, the last before the 2019 federal election.

Joly’s office has yet to respond to questions posed earlier this week.

Money through the fund is aimed at helping Canadian companies involved in recording, promoting, and distributing music at home and abroad, and helps mitigate a key financial issue in the industry: access to capital.

“The industry by and large tends not to be able to get traditional bank loans for their product because it’s rather ethereal — it’s a song. It’s not furniture or a car,” said Stuart Johnson, president of the Canadian Independent Music Association.

For years, record sales were among the criteria used to determine grant values, but that has become less helpful as physical unit sales decline and consumers turn more to getting their music over the internet.

Briefing material created by Canadian Heritage officials in late 2016 noted that at the time, streaming revenues in Canada had nearly tripled over the previous two years, accounting for 17 per cent of recorded music revenues. That trend has shown no signs of abating.

However, it seemed Canadian artists weren’t getting a lot of attention on streaming platforms: Canadian artists represented only about 10 per cent of all music streams in Canada, well below the 35 per cent of airtime they receive on radio as part of content requirements, the documents noted. Streaming services were “diminishing the once-powerful impact” of Canadian content regulations, they said.

The documents suggest a need for funding to help local artists compete online, particularly in a Francophone market “now faced with predominantly English-language international streaming services”; break into new markets overseas; and earn more money each time their songs are streamed.

“Thus, building audiences will be the principal focus of an optimal funding program for Canadian music while other tools in the music policy tool kit will further address remuneration issues,” a January presentation said.

The Canadian Press obtained copies of the documents under the Access to Information Act.

A presentation on the fund subtitled “recommendation to minister” and dated March 2017, the same month the Liberals delivered that year’s budget, outlined a modernized plan for the music fund, including new funding streams and possible public reaction. All proposed changes were redacted by officials, citing rules that prevent the disclosure of advice to cabinet.

The government has said little about any forthcoming changes, but what does seem clear is that a modernized fund would be flexible enough to respond to shifting market forces, Johnson said.

However, a flexible program will falter without fresh funding, he warned.

“We’re cautioning (Canadian) Heritage — and they’re listening — that if there is no new money in the system, then stretching that elastic band further may break it.”

Margaret McGuffin, executive director of the Canadian Music Publishers Association, said her group is looking forward to seeing the details of the modernization of the Canada Music Fund, particularly as it pertains to helping export music to new markets.

“To be able to access funding beyond the criteria that’s currently in place would allow them to continue what they’re already doing in growing and exporting songs to the world,” McGuffin said.

Jordan Press, The Canadian Press


@ashwadhwani
ashley.wadhwani@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Vancouver Island pharmacist suspended for giving drugs with human placenta

RCMP had samples of the seized substances tested by Health Canada

Motor vehicle incident on Mount Washington road involving a motorcycle

Emergency personnel were called out to the scene of a motor vehicle… Continue reading

Bylaw rescinded after vacation rental owners express concerns

Concerns included a lack of consultation

Get ready for a week of sunshine across Vancouver Island

Environment Canada is forecasting temperatures in the high teens all this week

B.C. students send books to displaced students of Hornby Island school fire

Maple Ridge elementary school teacher says students learned about acts of kindness

Video: Flyers new mascot ‘Gritty’ a bearded, googly-eyed terror

The Philadelphia Flyers unveiled their new mascot Monday, and as one would expect of the team that gave us the “Broad Street Bullies,” he’s far from cuddly.

Seattle one step closer to NHL after arena plan approved

Seattle City Council unanimously approved plans for a privately funded $700 million renovation of KeyArena

Harvest Moon to light up B.C. skies with an ‘autumn hue’

It’s the first moon after the autumn equinox

Hockey league gets $1.4M for assistance program after Humboldt Broncos crash

Program will help players, families, coaches and volunteers after the shock of the deadly crash

Canada has removed six out of 900 asylum seekers already facing U.S. deportation

Ottawa had said the ‘overwhelming majority’ had been removed

Appeal pipeline decision but consult Indigenous communities, Scheer says

The federal appeals court halted the Trans Mountain expansion last month

B.C. electric vehicle subsidy fund drains faster than expected

Province adds another $10 million to incentive fund

Wendy Morin running for seat on Courtenay council

Over 100 people braved torrential rain for Wendy Morin’s campaign launch at… Continue reading

Most Read