Evidence of meeting #22 for Canadian Heritage in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was funding.
A recording is available from Parliament.
12:45 p.m.
Conservative
12:45 p.m.
Richard Hornsby Director of Music, University of New Brunswick, Music NB
Yes, I can. Thank you very much.
Because of the shorter time, I'll default to Jean since he's present, and if there's time I can add a few comments.
12:45 p.m.
Executive Director, Music NB
Thank you, Mr. Chair.
I'm Jean Surette. I'm the executive director for Music NB. Music NB is a bilingual provincial music industry association, a MIA as we call them, providing a support network for musicians and music businesses involved in the creation and promotion of music within the province of New Brunswick.
MNB's primary responsibility is to represent the interests of its members, but also to foster the New Brunswick music industry. Through our professional development program, we reach out to all corners of our province to deliver information and training about career development, industry resources, and funding programs. Through our events we provide showcasing and networking opportunities in bringing music creators and buyers together. We have over 300 members and reach over 2,000 subscribers through our weekly newsletters.
With regard to the Canada Music Fund, MNB wants to thank the Government of Canada and Heritage Canada for giving it the opportunity to speak about the challenges the music industry faces in our province. We also want to congratulate Heritage Canada for renewing the funding of the Canada Music Fund. This fund has helped to make Canada a leader in the musical world.
From one ocean to the other, several associations in the music industry have greatly benefited from the collective initiative programs administered by FACTOR and Musicaction and originating with Heritage Canada. MNB encourages Heritage Canada to recognize the work done by these associations to provide key development programs for artists' careers.
The Collective Initiatives program has helped Music NB directly in tangible ways. First there is education of artists and music industry professionals through career development programming on topics such as online and social media marketing, domestic and international touring, music licensing for film, television, video, video games and commercials, and funding program information and much more.
It also has helped us develop in New Brunswick a music industry Web platform to promote and help market artists and music businesses in the province while serving as a centralized provincial music industry resource for the media and the public. This is a platform that will be launched in 2014.
It also helps us with funding export marketing initiatives for our music industry conference, Music NB Week.
A provincial perspective. Like many places in Canada, New Brunswick has a large portion of its territory that is rural. A great many artists and industry workers work from these locations. Our urban centres have well-established organizations, cultural infrastructures, and a highly creative and innovative pool of artists and creators. Having said this, New Brunswick lacks experienced industry professionals to support and foster the careers of artists and music businesses.
Our challenge lies in being able to create ties between geographically and culturally diverse communities, delivering training and information to our industry while continuing community outreach and the promotion of N.B. music culture through our events.
As for exports to other markets, one of the main reasons artists relocate is often to take advantage of export and touring opportunities. MNB has been slowly developing international export strategies for the past several years and we're focusing on the eastern United States, since they're our neighbours. Our main hurdle is accessing significant funding for both inbound and outbound activities.
So we'd like to propose some things. These are: funding programs with a focus on artist development on a grassroots level; funding programs with a focus on industry development and mentorship, so we can grow our industry and support our artists; and funding programs for international export activity as well. The delivery of some components can be through digital platforms, promotion, and marketing as well. MIAs could access funding through the Canadian Council of Music Industry Associations, which we are part of and which is a national body.
As for expected results now, artists will have better tools. They will have access to more resources to develop their careers on national or international stages. There will be more support and training for the artists, industry professionals and businesses as well as the retention of many industry workers in the province, which will help to solve the problem we are facing currently. Moreover, there will be an increase in international exports, greater engagement from the public for the artists and the industry in general, and naturally, more revenue will be generated.
Our recommendations include the following. First, the current funding for collective initiatives through FACTOR and Musicaction should be maintained.
More funding should be invested in artist development and industry development in all markets across the country. The provincial MIAs are best positioned to develop their respective industries at a grassroots level while leveraging local funding.
There should be funding for export initiatives outside of what FACTOR and Musicaction are currently administering.
The MIAs and their collective body, the CCMIA, could have the capacity to deliver such programs to their respective constituents.
I would like to thank you for giving MNB the opportunity to provide comments and suggestions on the review of the Canadian music industry to the House of Commons Standing Committee on Canadian Heritage. If anyone has questions or wants any information, we'd be happy to answer.
Thank you.
12:50 p.m.
Conservative
The Chair Conservative Gord Brown
Thank you very much.
We're going to go to Winnipeg, Manitoba, via video conference. From Manitoba Music we have Stephen Carroll, who is a board member.
You have the floor, sir.
12:50 p.m.
Stephen Carroll Board Member, Manitoba Music
Hello everyone. I'm here representing Manitoba Music. I'm here in lieu of Sara Stasiuk, our executive director, who is away at an international conference presently.
Manitoba Music is also an MIA, a music industry association, and we represent Manitobans working in the field. The organization has over 750 members, representing 1,200 individuals working in music in Manitoba. Of our membership, we have about 80% who are artists; 20% are service providers, such as labels or agents; and 95% of the businesses we support through our programming are working in microenterprise, that is, companies with three employees or less. Entrepreneurship is our focus, as the industry association and as a provincially recognized sector council.
Training and professional development is a big part of what we do to support sustainable careers in music in Manitoba. In an increasingly complex and changeable business environment, we provide an essential service to our membership. Our provincial government, along with Western Economic Diversification, supports us for trade, that is, music export activity and capacity building of our Manitoba-based companies. We serve as a foundation for the development of a diverse membership and their enterprises.
Manitoba Music works, on a daily basis, directly with the local industry here, building capacity and increasing knowledge to achieve success. Our most recent economic impact study has found that over 4,200 individuals earn an income working in music in Manitoba, and that our industry contributes $71.3 million to Manitoba's GDP. Our industry generated an estimated $25 million to provincial and federal taxes, in 2011.
Manitoba Music would like to thank the Government of Canada for the renewal of the Canada Music Fund. The renewal of the funding will serve to grow the capacity of the music industry and increase our success and competitiveness in international markets. Through the funding we receive from FACTOR, we run the Music Works program.
Music Works is a training program that presents over 30 professional development events in Winnipeg and other select locations in Manitoba. The program sees 550 to 600 participants involved in 1,500 hours of total training. We also access FACTOR funding in support of export marketing ventures, such as international export showcase events, for which we leverage matching funds from provincial sources.
Above this, our membership directly accesses FACTOR and Musicaction programs, which they use to help support their business ventures, examples of which are album recording, album marketing, and tour showcase support. We'd like to note, with pride, that Manitobans routinely punch above their weight in competitive juries and application processes. We attribute this in part to our strong music industry association, which provides training and resources to understand context and to present professional business plans.
Manitoba would like to put forth that provincial music industry associations are growing in importance. The music industry is now completely transformed from the business models it used 10 years ago. In the past decade, distribution systems have moved from physical sales to streaming subscriptions. With these changes, the business has become even more complex, with multitudes of royalties and overlapping rights associated with Internet-based broadcasting and distribution.
The MIAs are filling the gap of artist managers in some cases, in delivering knowledge and training, so that artists entrepreneurs can maximize their revenues and increase profitability. Going forward, we would like to see the continued strengthening of the MIAs. Our regional capacity to work one on one with nascent artists and entrepreneurs is vital to a healthy national music industry.
A significant portion of the Canadian music industry is based in Toronto. Now, with the increased support being offered to Ontario companies—the Ontario Music Fund—our role to nurture and grow western Canadian companies has become even more critical. Regional representation, training in a changing age, and the development of the next wave of entrepreneurs to become the industry of the future, are our focus.
We would like to see continued support of the programs that we in our membership access.
On behalf of Manitoba Music, I'd like to thank the committee for their time and wish them all the best with their research.
Thank you.
12:55 p.m.
Conservative
The Chair Conservative Gord Brown
Thank you very much.
As it sits right now we only have three minutes for questions.
Ms. Mathyssen.
May 8th, 2014 / 12:55 p.m.
NDP
Irene Mathyssen NDP London—Fanshawe, ON
Mr. Chair, could we have unanimous consent to extend the meeting so that each party could have at least one round of questioning?
12:55 p.m.
Conservative
The Chair Conservative Gord Brown
Is there unanimous consent to extend the meeting for about 12 minutes? No?
Sorry, there's no consent.
We have three minutes left in the meeting. I'm bound by our rules to go to a seven-minute round for the government side, but it'll be only three minutes.
12:55 p.m.
Conservative
Paul Calandra Conservative Oak Ridges—Markham, ON
Madam, you had more to say. Do you want to complete your statement?
12:55 p.m.
President, Mo'fat Management
Thank you. I appreciate it.
Briefly, I would like to touch on private copies.
I think that the first measure would be very easy to apply. If the government could at least harmonize the private copy regime and update it in order to integrate iPods, smart phones and audio platforms, that would be an important step. This would bring a lot of income back to artists and producers.
There is also the exemption planned in section 68.1 of the Copyright Act to allow broadcasters to avoid the obligation of paying royalties on the first slice of $1.25 million of annual income. I do not understand that exemption. Whereas the music industry's income is on the decline, broadcasters' income has been constantly increasing since 1996. Why give them an additional exemption? This is income that could go directly to creators and the government would not have to invest a penny. Those are two solutions that are easy to consider.
I would like to conclude by paying tribute to the work of Musicaction and the transparency of the way the funding is done. It is always pleasant to be able to determine where and to whom public funding goes. That deserves to be mentioned and commended.
Thank you.
12:55 p.m.
Conservative
The Chair Conservative Gord Brown
Thank you.
We're out of time.
I want to thank our witnesses for coming today. I do apologize on behalf of the committee for the shortened meeting. With that in mind, if you wish, we would be happy to hear from you in writing. We are wrapping up hearing from witnesses for our study in the next week or so, so we would appreciate any other input you might have.
On that note, the meeting is adjourned.