Good afternoon, ladies and gentlemen.
On behalf of Stingray Digital Group Inc., I would like to begin by thanking you for the invitation to participate in the discussions on the review of the Copyright Act, particularly with respect to music, the industry in which Stingray operates.
Founded in 2017, Stingray is a Canadian company headquartered in Montreal and currently employs 340 people in Canada. We distribute our services not only in Canada, but also abroad to approximately 400 million subscribers or households in 156 countries. We also serve 12,000 commercial clients in 78,000 locations.
For fiscal year 2018, approximately 47% of Stingray’s revenue comes from Canada. The more successful Stingray is abroad, the more Canadian artists benefit from the visibility abroad.
Stingray’s portfolio of services in Canada includes an audio music service called Stingray Music, which includes 2,000 channels dedicated to approximately 100 musical genres. Our services also include videos on demand, music videos, karaoke, concerts and a dozen linear audiovisual channels such as Stingray Classica, Stingray Festival 4K, Stingray Ambiance, and so on.
Our services are available on multiple digital platforms and through devices such as cable or satellite television, the Internet, mobile apps, video game consoles, in-flight or on-train entertainment systems, connected cars, WiFi systems such as Sonos, and so on.
More than 100 music experts from around the world are responsible for programming Stingray's various services and channels. This is one of the differences between Stingray and a number of other music service providers, which normally use algorithms to select the content they offer. Stingray's channel programming is also adapted to local markets and demographics.
Out of necessity, Stingray is also a technology company. Managing a large portfolio of digital assets and delivering the content across multiple platforms and markets requires Stingray to remain at the forefront of technology. The Stingray Group therefore invests several million dollars a year in research and development in order to remain competitive and retain its clients.
Stingray is committed to encouraging Canadian talent and artists, and it participates actively in the development and promotion of Canadian content. During the last broadcast year, Stingray spent approximately $379,000 in Canadian content development initiatives, which include payments to Factor, Musicaction and the Community Radio Fund of Canada, but also awards at music events and festivals, artists' performance fees, workshops, educational sessions, etc.
In addition to such CCD initiatives, after Stingray's IPO in 2015, the CRTC approved the change in ownership and effective control of Stingray, but it required that Stingray pay tangible benefits corresponding to $5.5 million over a period of seven years. In addition to these regulatory obligations, Stingray also contributes voluntarily in many other ways to promote and develop Canadian artists.
Very recently, Stingray partnered with ADISQ to create a new music video channel made available through television operators in Canada, named PalmarèsADISQ by Stingray. Pursuant to Stingray's desire to invest in young talent, a portion of the profits generated by the channel will be invested in local music video production through existing third party funds like RadioStar.
Through this initiative, Stingray will finance the production of music videos broadcast on its channels, but it will also help develop the careers of up-and-coming Canadian and Quebec directors and artists. Each year, Stingray also gives certain amounts to events or partners involved with the development and promotion of Canadian talent. For example, Stingray has been a regular sponsor of panels at les Rencontres de l'ADISQ and other similar events.
Stingray also produces the PausePlay series, which consists of exclusive interviews and intimate performances of popular and emerging artists recorded live to promote their new albums or tours.
Such recordings are made available by Stingray on social media platforms and channels to offer important exposure for those artists. We also have a Stingray blog where we have editorial coverage on album reviews, concert reviews, etc.
With respect to the review of the Copyright Act, we respectfully submit that the Copyright Act should remain as is at this time. We do not believe that any amendments are necessary. We believe that the current Copyright Act establishes the right balance between the rights holders and users such as Stingray.
Thank you.