MONTRÉAL, July 31, 2009 - The Honourable James Moore, Minister of Canadian Heritage and Official Languages, today announced that the Government of Canada is further ensuring stability for the arts by renewing the Canada Music Fund with an annual investment of $27.6 million over five years.
Minister Moore also underscored that the government is changing the structure of the Canada Music Fund in order to reduce the administrative burden and increase the visibility of Canadian music on digital platforms and in international markets.
"The music industry generates billions of dollars' worth of economic activity every year. Our Government is proud to offer greater stability in these uncertain economic times by stabilizing resources dedicated to Canadian music, while helping maintain thousands of jobs," said Minister Moore.
"We are also ensuring that a wide variety of Canadian music is accessible on multiple platforms, increasing the reach of our artists both in Canada and abroad," added Minister Moore.
The Canada Music Fund is administered by the Department of Canadian Heritage in partnership with MUSICACTION, FACTOR, the SOCAN Foundation, and Library and Archives Canada.
"We are fortunate to have strong leadership and vision from our current government, which recognizes the importance of supporting sustainable business models and believes in the cultural component and how it weaves itself into the overall Canadian identity," said Heather Ostersag, President and CEO of FACTOR.
"As president of MUSICACTION and vice-president of Astral Media Radio, allow me to congratulate you, Mr. Minister, on the confidence you are displaying in the Canada Music Fund. This announcement is even more essential, as it comes at a time when the record industry's business model is being questioned," said Pierre Rodrigue, President of MUSICACTION.
"This funding is essential in allowing artists to continue to create and to ensure continuity in Canadian arts and culture," said musician Boom Desjardins. "Thank you to the Government of Canada for having confidence in your artists and believing in the Canadian music industry."
This announcement is part of a series of initiatives undertaken by the Government of Canada to ensure the financial stability and digital shift of Canada's arts and culture sector.
For more information, visit the following websites:
Information:
Deirdra McCracken
Director of Communications
Office of the Minister of Canadian Heritage and Official Languages
819-997-7788
deirdra.mccracken@pch.gc.ca
Media Relations
Canadian Heritage
819-994-9101
1-866-569-6155
The Canada Music Fund is the Government of Canada's main support program for Canadian music. Its objectives are to enhance Canadians' access to a wide range of Canadian music, increase the opportunities available for Canadian music artists and entrepreneurs, and ensure that Canadian music artists and entrepreneurs have the skills, know-how, and tools to succeed in a global and digital environment.
The Canada Music Fund will enhance support to digital initiatives to encourage innovation and expand markets for Canadian music artists through digital platforms.
- Digital technologies transcend borders, open markets, and increase competition for music businesses. CD sales are declining as consumers turn to file sharing and social networking sites to discover, access, and consume music.
- In Canada, revenues from music sales have declined 42 percent since 2001. While digital sales recorded significant growth in that period, this increase does not compensate for declining physical sales. In 2008, digital downloads represented 18 percent of music sales in Canada, compared with 32 percent in the United States. (Source: International Federation of the Phonographic Industry, ADISQ)
- Music industry business models are changing. Businesses that were once largely concerned with sales of physical formats need to diversify their revenue streams (for instance, through live music and merchandising) and use digital models (including online stores, subscriptions, over-the-air mobile downloads, and streaming) to promote and sell their content.
- Promoting and selling music online is essential to open markets for Canadian music. Our music entrepreneurs and artists must ensure not only that their content is available digitally, but also that it is highly visible to aid its discovery among the wealth of content online. No less than 53 percent of Canadian Internet users reported in 2008 that they could not easily find music by Canadian artists online. (Source: Decima Research)
