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

Okanagan Wildfires: The latest on wildfires and evacuations

A Saturday morning look at the major wildfires impact the Okanagan and Similkameen.

Revelstoke Art Gallery hosts exhibition in honour of Pat Wells

Barbara Maye Special to the Review Stone Carving and Revelstoke have a… Continue reading

Wildfires in Mt. Revelstoke National Park not currently a threat to people or assets

Since the lightning storm on Tuesday there have been three fires on… Continue reading

UPDATE: Revelstoke RCMP looking for information on missing person John Cunliffe

The Revelstoke Royal Canadian Mounted Police Detachment is continuing to ask for… Continue reading

UPDATED: Mount Eneas fire grows to 1,374 hectares

Regional District Okanagan-Similkameen issues evac alerts for properties in Area F.

Victoria woman recounts driving past wildfire near Peachland

Jenna Smith compared the fire to an apocalypse movie

Race walker breaks 18-year-old BC Games record

Zone 6 athlete Olivia Lundman crossed finish line with ease, to loud cheers in Cowichan

PHOTO GALLERY: BC Games Day 2

A brief look at action from the 2018 BC Summer Games in the Cowichan Valley

Wildfire near Keremeos still burning at 255 hectares

The Placer Mountain wildfire is still active

Sheryl Crow hits West Kelowna for Mission Hill Winery concert

Songstress seems struck by the natural beauty of the Okanagan

2017 wildfires give B.C. mom chance to say thank you to officer who saved her son

An unlikely encounter in the rural community of Likely, near Williams Lake

UPDATED: Kinder Morgan pipeline protesters defy eviction order

Demonstrators at Camp Cloud in Burnaby say they won’t leave, but will meet with city officials

B.C. tent city camper arrested for taking coins from fountain

The man, who built a shelter at a Saanich park, says homeless people are unfairly targeted

Ex-Raptor DeMar DeRozan says goodbye to Toronto on Instagram

The guard was traded to the San Antonio Spurs earlier this week for Kawhi Leonard and Danny Green

Most Read