Two-thirds of industry revenues now come from foreign sources, complete reversal in just a decade
TORONTO, April 8, 2018 /CNW Telbec/ - Access to new markets and exporting Canada's songs to the world is driving growth in the music publishing sector, a report released today shows.
The new report by the Canadian Music Publishers Association, Export Ready, Export Critical: Music Publishing in Canada, found that sales outside Canada have become a major driver of sector growth with two thirds of revenues coming from foreign sources. This marks a complete reversal of business activity in only a decade. The bottom-line impact of this shift has been significant, resulting in more than $120 million in revenue increase among Canadian Music Publisher Association members since 2005.
"Spearheaded by many small- and medium-sized companies, the sector is growing and expanding its reach, especially when it comes to making sure Canadian songs and songwriters are heard across the world," says Vince Degiorgio, chair of the board of directors of Canadian Music Publishers Association and owner of Cymba Music. He added that the report underscores how closely the industry's goals are aligned with the federal government's cultural and economic strategies identifying Canadian creative industries as a key innovative sector.
This comprehensive report is being released ahead of Canadian Heritage Minister Melanie Joly's Creative Industries Trade Mission to China, taking place from April 9 to 13.
The report notes that, even setting aside the specifics of the Canadian market, international trade simply makes sense in a world that is flat on a digital level. "One hit song in a foreign market, one television commercial in Australia, or one placement in a movie that is played all around the world, can make up two-thirds of a royalty statement. Why would music publishers not export," the study says.
The United States and Europe remain priority markets because of size, language, cultural affinities and strong copyright regimes, however China, India and Africa are important emerging markets.
Margaret McGuffin, Canadian Music Publishers Association executive director, says the $125 million investment announced under the Creative Canada policy for the country's first Creative Export Strategy must support music publishers if the industry is to continue and expand its global success. Eligibility for export funds remains a critical issue to address, especially given the high-risk nature of music publishing investments at home and abroad.
"We thank the government for acknowledging in the 2018 budget that 'exports are vital to the growth of our companies and economy. They help to turn small companies into big ones,'" McGuffin says.
The study comes at a rapidly changing time in the music sector, with revenue structures increasingly built around streaming and digital platforms. The continued success of Canada's music publishers will rely on copyright policy meeting these new challenges and funding programs that allow Canada's music publishers to innovate, invest in creators and compete globally.
Export Ready, Export Critical: Music Publishing in Canada is available at www.musicpublisher.ca.
ABOUT THE CANADIAN MUSIC PUBLISHERS ASSOCIATION
The Canadian Music Publishers Association represents music publishers by creating global business opportunities and promoting our members' interests and those of their songwriting partners through advocacy, communication and education.
SOURCE Canadian Music Publishers Association
For further information: Margaret McGuffin, Executive Director, Canadian Music Publishers Association, 416.926.1966 ext. 282, email@example.com