Good afternoon. I am president of the Canadian Independent Music Association. Joining me today is Shauna de Cartier, owner of Toronto-based record label and management company, Six Shooter Records, and the current chair of my organization's board of directors.
Thank you very much for the opportunity to speak to you today.
Each and every one of you plays an important role in the success of the Canadian music industry, and for that we sincerely thank you. We would be remiss if we did not also thank the federal government for not only renewing the Canada Music Fund but also renewing it essentially in perpetuity. It certainly sends a strong signal to the business community that such support will be there for the years to come, a particularly important point considering the three- to five-year planning window of our music companies.
It is important to understand that the Canadian music industry is not homogenous. It is a community of Canadian-owned small businesses, half of which are sole proprietors, in which the top 10% earn more than $500,000 annually. These are the entrepreneurs and artists who work hard every day earning a living doing what they are passionate about.
My organization is the not-for-profit national trade organization representing the English language Canadian-owned sector of the independent music industry, whose primary mandate is advocating for, supporting, and promoting the business of music, both domestically and around the world. We have over 220 members located in every province plus one territory. Together, our members directly employ almost 2,200 people and collectively represent more than 5,100 artists. CIMA's membership is involved in every aspect of the music and music-related industries, including record labels, producers, managers, and others professionally involved in the sound recording and music video industries.
In the aggregate, the domestic English language music sector truly punches above its weight, annually contributing at least $303 million to Canada's GDP and employing more than 13,000 people. An important economic indicator for any industry is the measure of its intensity ratio, or how much of its economic activity sticks to the Canadian economy. According to CIMA's research, for every $10 million of revenues earned the independent industry adds $8.2 million to the Canadian economy, an 82% return.
From a tax perspective alone, Canada's federal and provincial governments annually receive a healthy rate of return from the Canadian-owned music sector. In 2011, English language independents paid $93.2 million in taxes to the provincial and federal governments. On average, for every dollar of public support it received through programs like the Canada Music Fund the music industry generated $1.22 in taxes across Canada to the net benefit of our governments.