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

The Fraser Institute in a nutshell

Editor, The Times: The Fraser Institute! Oh the Fraser Institute! In the… Continue reading

North Thompson Fish and Game Club hold open house

The North Thompson Fish and Game Club Society’s (NTF&G) Open House at… Continue reading

Clearwater Fire Department adds building to facility

The building, bought from Wells Gray Search and Rescue, will be used for different types of training

Back in Time

50 YEARS AGO: Residents of Vavenby gathered at the Centennial Park for… Continue reading

Pipeline protesters move ‘tiny house’ camp north after leader’s arrest

Kanahus Manuel says on Facebook group has moved to the work camp at Blue River

BC Games: Dance, spoken-word highlights at Opening Ceremony in Cowichan

Hundreds of athletes and thousands of volunteers, coaches, parents and officials

B.C. city wants pot punted from farmland

Concerned about conversion from growing food to making marijuana

World’s translators push back on forcing Trump interpreter to testify

Democrats had asked translator to testify about Trump’s lengthy conversation with Putin in Helsinki

No decision on B.C. school stabbing suspect’s mental fitness for trial

The BC Review Board could not determine whether Gabriel Klein, 21, is fit to stand trial

Canadian government threatens to retaliate if Trump imposes auto tariffs

U.S president had suggested that auto imports pose a national security risk to the U.S.

Wildfire evacuation order forces bride to search for new wedding venue

Fitzpatrick Family Vineyards is under an order due to the Mount Eneas wildfire south of Peachland

Recent online kitten abuse video raises serious social media questions

UBC and UFV profs weigh in on the subject of online sharing, shaming, and our digital landscape

UPDATED: ICBC fights back against claims that it’s ‘ripping off’ B.C. RV drivers

Canadian Taxpayers Federation is urging the provincial government to open up ICBC to competition

Summerland issues State of Local Emergency in response to wildfire

Two homes under evacuation order; evacuation alert remains in place as result of wildfire

Most Read