Mr. Chair and honourable members of the committee, thank you for having us here today.
Here are a few artists' names: Jessie Reyez, The Weeknd, Tanya Tagaq, Feist, Patrick Watson, Jeremy Dutcher, George Canyon, Cadence Weapon, Blue Rodeo. They're just a few names you may recognize. They come from different genres and different parts of the country, but they all have been recipients, either directly or through the music companies they work with, of early career investments through the Foundation Assisting Canadian Talent on Recordings, otherwise known as FACTOR, the private non-profit organization that administers funds from Canada's private radio broadcasters and the Department of Canadian Heritage's Canada music fund, which is why we're here today.
Over the last five years, FACTOR has supported over 6,500 artists. These investments have been nothing but a groundbreaking, industry-building cultural success story, and it's all about to unravel. With plummeting radio revenue, if the Canada music fund does not receive a promised increase, FACTOR is at risk of seeing its annual operating budget cut in half over the next two years.
If that happens, companies will close. Those that don't will shed staff and release fewer artists. This will result in fewer shows across the country, harming an already precarious live music sector, affecting local economies and reducing revenues to government. Perhaps most significantly, the future Daniel Caesars, Aysanabees, Serena Ryders and The Beaches may go undeveloped and unnoticed.
Our sector already faces major challenges with the constant disruption due to new technology, changing consumer behaviour, the impacts of AI and the continued effects of the pandemic on the live sector, as well as market imbalances due to decades of global corporate consolidation of the music industry. Investing in FACTOR and Musicaction by the Canada music fund is the critical tool that has enabled the Canadian independent music sector to survive and thrive against such strong headwinds. This is what we've all built together, and this is what we are at risk of losing if the promised modest increased investment to the Canada music fund is not fulfilled in budget 2024.
Thank you.