Interim Update

June 2017

OMDC Industry Profiles receive a full update once per year. The interim update summarizes key changes approximately six months after the profile’s release.

a Statistics Canada. Table 361-0034 – Sound recording and music publishing, summary statistics, every 2 years (dollars unless otherwise noted), CANSIM (database). (accessed: June 20, 2017)

b PwC, PwC Entertainment and Media Outlook 2017-2021, June 2017; Kevin Ritchie, “Sunrise Records’ HMV Takeover,” Now, March 22, 2017.

c Press Release, “2017-18 Changes to Program Guidelines & Business Policies,” FACTOR, March 31, 2017.

d IFPI, Global Music Report 2017 State of the Industry, April 2017.

Introduction

The Canadian music industry includes a wide range of artists and entrepreneurs who create, write, produce, publish, and distribute original music. The industry includes musicians, songwriters, record labels, managers, agents, concert promoters, and music publishers. The market in Canada is dominated by the large foreign-owned record and publishing companies but has a strong independent sector comprising mainly small- to medium-sized companies whose lines of business range from artist development to publishing, managing, and touring. The vast majority of Canadian content is commercially released by Canadian-owned and controlled independent music companies.

Ontario’s music industry produces a number of critically acclaimed and best-selling artists, labels, and events:

Industry Size and Economic Impact

The following information on revenue, employment, and the consumer market should be considered a snapshot of activity in the industry based on the best available information.

Employment and wages

Sound Recording and Music Publishing in Canada, operating revenues by industry sub-category, 2013

Sound Recording and Music Publishing in Canada, operating revenues by industry sub-category, 2013 (in millions of US dollars) Source: Stats Can, 2013  Record production and integrated record production and distribution: 476.1; Music publishers: 192.2;  So

Revenues and related figures

Consumer market

Canadian Music Market Revenues, by component, 2015-2020

Canadian Music Market Revenues, by component, 2015-2020 (in millions of dollars $US) Digital music downloading: 2015- 204.24; 2016- 190.369; 2017- 173.951; 2018- 155.993; 2019- 138.594; 2020- 120.367; Digital music streaming: 2015- 46.425; 2016- 63.984; 2

Trends and Issues

This section provides information on industry growth rates, trends, and burgeoning issues for the Canadian music industry.

Growth rate and industry trends

Global and domestic issues

Government support65

Profile current as of December 16, 2016

Endnotes

1 Statistics Canada, Table 361-0034 – Sound recording and music publishing, summary statistics, every 2 years (dollars unless otherwise noted), CANSIM (database). (accessed: 2016-12-02). Live music revenues are reported under the Statistics Canada product “Performing Arts” and music revenues cannot currently be disassociated from other performing arts such as opera, theatre and dance. Moreover, music is included in the “Promoters (presents) of performing arts, sports and similar events” dataset, but cannot be extracted.

2 ibid.

3 ibid.

4 Music Canada, Economic Impact Analysis of the Sound Recording Industry in Canada, April 12, 2012. p.21

5 ibid.

6 ibid.

7 Canadian Independent Music Association, Sound Analysis: An examination of the Canadian Independent Music Industry, February 2013. p.40

8 Music Canada, Live Music Measures Up: An Economic Impact Analysis of Live Music in Ontario, December 2015, p.27

9 Statistics Canada, Table 361-0064.

10 ibid

11 Statistics Canada, Table 361-0034.

12 ibid.

13 Statistics Canada, Sound recording and music publishing, 2013. Published on 2015-08-12. (accessed on 2016-12-02).

14 Statistics Canada, Table 387-0013, Culture and sport indicators by domain and sub-domain, by province and territory, industry perspective, annual (dollars unless otherwise noted). CANSIM (database). (accessed 2016-12-02).

15 ibid.

16 Statistics Canada, Table 361-0062, Sound recording and music publishing, royalties and rights, every 2 years (dollars x 1,000,000). CANSIM (database). (accessed:2016-12-02).

17 ibid.

18 Statistics Canada, Table 361-0065, Sound recording and music publishing, sales based on format of musical recordings, every 2 years (dollars x 1,000,000). CANSIM (database). (accessed: 2016-12-1).

19 ibid.

20 Music Canada, “Canada Outpaces Global Music Revenue Growth in 2015 but Outlook Remains Cautious”, accessed at http://www.musiccanada.com/news/canada-outpaces-global-music-revenue-growth-in-2015-but-outlook-remains-cautious/ on 2016-12-12.

21 PricewaterhouseCoopers (PwC), Global Entertainment and Media Outlook, 2016-2020, Canada country data, music segment data, June 8, 2016.

22 ibid

23 CIMA, Sound Analysis: An examination of the Canadian Independent Music Industry, February 2013, p. iv.

24 Worldwide Independent Network (WIN), Worldwide Independent Market Report: The Global Economic & Cultural Contribution of Independent Music, June 3, 2016. p.14

25 ibid, p.40-42

26 Music Canada, Live Music Measures Up: An Economic Impact Analysis of Live Music in Ontario, December 2015, p.5

27 Nielsen Canada, “Nielsen Releases 2016 Mid-Year Canada Music Report”, accessed at http://www.nielsen.com/ca/en/press-room/2016/nielsen-releases-2016-mid-year-canada-music-report.html, July 7, 2016, accessed on 2016-12-12.

28 ibid.

29 ibid.

30 Nielsen Canada, Nielsen Music 360 Canada Report: Highlights, July 2016, p.6

31 International Federation of the Phonographic Industry (IFPI), Music Consumer Insight Report 2016, September 13 2016. p. 5

32 ibid, p. 6

33 Nielsen Canada, Nielsen Music 360 Canada Report: Highlights, July 2016, p.6

34 ibid, p.7

35 IFPI, Music Consumer Insight Report 2016, September 13 2016, p.11

36 ibid, p.12

37 ibid, p.12

38 PwC, Global Entertainment and Media Outlook, 2016-2020, Music segment. June 8, 2016.

39 ibid.

40 ibid.

41 PwC, Global Entertainment and Media Outlook, 2016-2020, Canada segment data, Music segment data, June 8, 2016.

42 PwC, Global Entertainment and Media Outlook, 2016-2020, Canada segment data, Music segment data, June 8, 2016.

43 ibid.

44 IFPI, Global Music Report: Music Consumption Exploding Worldwide, April 12, 2016. p. 4

45 ibid

46 ibid.

47 Nielsen Canada, Nielsen Music 360 Canada Report: Highlights, July 2016, p.4

48 Ibid

49 ibid, p.5

50 ibid

51 CIMA, Music in Motion: An Analysis of Exporting Canadian Independent Music, November 28, 2016. p.29

52 ibid

53 ibid.

54 ibid., p.13

55 OMDC, Research Funded by OMDC

56 CIMA, Over the Border and into the Clubs: Canada’s Music Industry and the U.S. Market, April 18, 2016. p.6

57 Karen Bliss, “Canada officially extends copyright term to 70 years,” Billboard, June 25, 2015.

58 Society of Composers and Music Publishers of Canada (SOCAN), “SOCAN Welcomes the Tabling of Private Member Bill C-299”, June 17, 2016.

59 Music Canada, “What was said: Senators Call for Urgent Review of Canada’s Copyright Board”, December 1, 2016.

60 IFPI, Global Music Report: Music Consumption Exploding Worldwide, April 12, 2016, p.8

61 ibid., p.22

62 ibid., p.23

63 Music Canada, “The Mastering of a Music City”, June 5, 2015

64 Music Canada, “Music Cities Toolkit”, September 20, 2016

65 The information included in this section is an overview of some of the government assistance to the music industry. This is not intended to be a comprehensive list of government assistance available.

66 FACTOR administers funds from the federal government, as well as from Canada’s private radio broadcasters’ contributions towards Canadian Content development. The Radio Starmaker Fund was established by the Canadian Association of Broadcasters, and is funded by contributions from Canadian private radio broadcasters.