Good morning, ladies and gentlemen.
On behalf of the 200 member companies of the Association québécoise de l'industrie du disque, du spectacle et de la vidéo, ADISQ, I'd like to thank you for having us here to speak with you today.
My name is Paré, and I'm the executive director. Here with me is my colleague Simon Claus, the director of public affairs, and my counterpart from the Canadian Independent Music Association, Mr. Andrew Cash, the president and chief executive officer, who will also have a few words to say.
We are here today because the entire independent music industry is currently in an extremely worrisome situation. The proliferation of platforms has completely transformed how we discover and listen to music. As consumers, we have millions of songs at our fingertips. And yet, our artists have to compete against major international stars with vast marketing and promotional resources. Connecting with audiences has never been so difficult.
The entertainment industry is in the same boat. Since the pandemic, consumer habits have changed. People are buying tickets at the last minute. Economic circumstances have forced many households to reduce their spending on culture. Added to that is the labour shortage in a sector that was already having trouble recruiting staff. This has been undermining our companies' ability to invest and take risks. Hardest hit are original francophone productions by emerging artists and artists working in niche markets.
In 2018‑19, a $10 million increase had been awarded over a period of five years by the Canada Music Fund, the CMF, to meet industry needs. It's important to point out that this was not emergency pandemic-related assistance. After that, the Liberal Party, during an election campaign, made a commitment to increase the annual contribution to the Canada Music Fund to $50 million by 2024‑25, to meet the industry's financial requirements and to make its funding more predictable.
It's worth noting that the Canada Music Fund contributions are broken down as follows: 60% goes to the anglophone market, through FACTOR, and 40% to the francophone market, through Musicaction. In view of declining revenue, Musicaction has already had to make significant cutbacks to its programs. That, in fact, is why we are here today. The music sector needs a level of support that can address the problems it is currently facing.
To ensure enhanced and more stable funding, we are requesting a $60 million increase in annual contributions to the Canada Music Fund. This request is based on a commitment in the 2021 Liberal platform to increase the annual contribution, and it also factors in inflation, labour shortages, and the unique circumstances specific to live entertainment. This support would keep companies competitive at a time where financial margins are tightening, and would enable their artists to develop long-term careers and stand out from the foreign competition.
I'm giving the floor to Mr. Cash now.