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

Sooke makes call for regional fire dispatch

Some municipalities decide to take service off-Island

Esquimalt council green-lights first mass-timber building on Vancouver Island

Mayor appreciates 12-storey structure’s proximity to naval base, graving dock and Seaspan

Legal action against B.C. specualtion tax a last resort

Group of Arizona home owners feel they’ve been swept up in an attack on land speculators

Rock the Rink gives youth once-in-a-lifetime opportunity

Winning band will get to play a set at Rock the Shores

Greater Victoria School District adopts new dress code policy

Two years in the making, SD61 moves to more inclusionary guidelines

Parents call for change to health laws after Oak Bay teen’s death

Accidental overdose has Elliot Eurchuk’s parents seeking change to B.C Infants Act

B.C.’s living wage increase curbed due to MSP cuts, child care subsidy: report

Living wage varies between $16.51 in north central B.C. to $20.91 in Metro Vancouver

Amalgamation Yes hosting citizen’s assembly info meeting Wednesday at Vic High

Mayors of Victoria and Saanich will be on hand to give updates to residents

Doctor sees healing power in psychedelic plant as Peru investigates death of B.C. man

Peru’s attorney general has ordered the arrest of two suspects in the killing of 41-year-old Sebastian Woodroffe

Toronto police officer ‘gave himself the space and time’ in van attack

Footage shows officer standing up, turning off his siren and talking clearly to the suspect

$1.18 to $1.58 a litre: Are you paying the most for gas in B.C.?

Gas prices across B.C. vary, with lowest in Vernon and highest in – you guessed it – Metro Vancouver

Don’t let growth freaks have their way

Two of your paper’s recent front pages have featured major stories about… Continue reading

Greater Victoria wanted list for the week of April 24

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Inquest set 10 years after B.C. woman shot, left to die

Lisa Dudley, and her partner, Guthrie McKay were shot in their Mission home in September 2008

Most Read