Canadian Heritage

Canadian Heritage

July 31, 2009 10:05 ET

Government of Canada Renews Canada Music Fund and Increases Investment in Digital and International Market Development

MONTREAL, QUEBEC--(Marketwire - July 31, 2009) - The Honourable James Moore, Minister of Canadian Heritage and Official Languages, today announced that the Government of Canada is further ensuring stability for the arts by renewing the Canada Music Fund with an annual investment of $27.6 million over five years.

Minister Moore also underscored that the government is changing the structure of the Canada Music Fund in order to reduce the administrative burden and increase the visibility of Canadian music on digital platforms and in international markets.

"The music industry generates billions of dollars' worth of economic activity every year. Our Government is proud to offer greater stability in these uncertain economic times by stabilizing resources dedicated to Canadian music, while helping maintain thousands of jobs," said Minister Moore.

"We are also ensuring that a wide variety of Canadian music is accessible on multiple platforms, increasing the reach of our artists both in Canada and abroad," added Minister Moore.

The Canada Music Fund is administered by the Department of Canadian Heritage in partnership with MUSICACTION, FACTOR, the SOCAN Foundation, and Library and Archives Canada.

"We are fortunate to have strong leadership and vision from our current government, which recognizes the importance of supporting sustainable business models and believes in the cultural component and how it weaves itself into the overall Canadian identity," said Heather Ostersag, President and CEO of FACTOR.

"As president of MUSICACTION and vice-president of Astral Media Radio, allow me to congratulate you, Mr. Minister, on the confidence you are displaying in the Canada Music Fund. This announcement is even more essential, as it comes at a time when the record industry's business model is being questioned," said Pierre Rodrigue, President of MUSICACTION.

"This funding is essential in allowing artists to continue to create and to ensure continuity in Canadian arts and culture," said musician Boom Desjardins. "Thank you to the Government of Canada for having confidence in your artists and believing in the Canadian music industry."

This announcement is part of a series of initiatives undertaken by the Government of Canada to ensure the financial stability and digital shift of Canada's arts and culture sector.

For more information, visit the following websites:

- Canada Music Fund:



- SOCAN Foundation:



The Canada Music Fund is the Government of Canada's main support program for Canadian music. Its objectives are to enhance Canadians' access to a wide range of Canadian music, increase the opportunities available for Canadian music artists and entrepreneurs, and ensure that Canadian music artists and entrepreneurs have the skills, know-how, and tools to succeed in a global and digital environment.

Main elements of today's announcement

- Sustained funding - The federal investment in the Canada Music Fund will be maintained at current levels, with $9.85 million per year in supplemental funding being extended through 2014-2015. The program will support the production and marketing of a wide range of music by emerging and established Canadian artists. The Fund's total budget will be $27.6 million annually.

- Streamlining - The number of components will be reduced from seven to five, with current support to Canadian Musical Diversity (CMD) and Support to Sector Associations being reallocated to the remaining components. This will result in the elimination of overlap in program delivery, a reduction of the administrative burden currently placed on a number of applicants, and better targeting of public funds to emerging priority activities.

- Reallocated funding - Funding from the CMD component will be redirected to priority activities as follows:

Digital market development ($900,000) - A portion of the reallocated funds will be targeted toward expanding markets for Canadian artists through digital distribution for the marketing and sale of music in Canada and abroad. This will support business-to-business initiatives, including projects that assist Canadian music entrepreneurs to connect with online music retailers.

International market development ($500,000) - The remaining reallocated funds will help Canadian artists enter new markets by connecting them with music buyers from around the world. Increased investment in international showcases will help Canadian artists book tours, sign with foreign labels, and obtain publishing deals, further diversifying their sources of revenue.

- Expanded eligibility - The Fund's eligibility will be expanded to industry players who are well positioned to assist artists in this time of change. Expanding eligibility to professionals, such as managers and digital distributors, will stimulate innovation and facilitate the development of business opportunities resulting from digital technologies.


- Implementation of the renewed funding and changes to the existing program structure will be done by April 1, 2010.

- Applicant guides for components administered by Canadian Heritage will be available well in advance of the 2010-2011 application deadlines.


The Canada Music Fund will enhance support to digital initiatives to encourage innovation and expand markets for Canadian music artists through digital platforms.

- Digital technologies transcend borders, open markets, and increase competition for music businesses. CD sales are declining as consumers turn to file sharing and social networking sites to discover, access, and consume music.

- In Canada, revenues from music sales have declined 42 percent since 2001. While digital sales recorded significant growth in that period, this increase does not compensate for declining physical sales. In 2008, digital downloads represented 18 percent of music sales in Canada, compared with 32 percent in the United States. (Source: International Federation of the Phonographic Industry, ADISQ)

- Music industry business models are changing. Businesses that were once largely concerned with sales of physical formats need to diversify their revenue streams (for instance, through live music and merchandising) and use digital models (including online stores, subscriptions, over-the-air mobile downloads, and streaming) to promote and sell their content.

- Promoting and selling music online is essential to open markets for Canadian music. Our music entrepreneurs and artists must ensure not only that their content is available digitally, but also that it is highly visible to aid its discovery among the wealth of content online. No less than 53 percent of Canadian Internet users reported in 2008 that they could not easily find music by Canadian artists online. (Source: Decima Research)

This news release is available on the Internet at under Media Room.

Contact Information

  • Office of the Minister of Canadian Heritage
    and Official Languages
    Deirdra McCracken - Director of Communications
    Canadian Heritage
    Media Relations