Canadians Helping Canadians: Our Music World
We have all heard the word “monopoly” used for individuals such as Bill Gates and Microsoft, and it seems these days Clear Channel has cornered the market in radio (while Murdoch continues to try his hand at controlling the news wires Ed.). The Canadian government regulates radio play 35% of their playlists go to Canadian artists (written by a Canadian or recorded by a Canadian) leaving the rest to out-of-towners. Canada has distributed their station ownership to four separate companies to avoid that curse word, “monopoly.” This may sound a bit twisted to us but the concept makes a lot of sense when you step back and think about it.
Canada is still dominated by the major record labels such as Warner, Sony, EMI, Universal and BMG. Their Canadian branches are said to be more than distributors of the latest artist’s hits. Traditionally, the smaller labels have maintained a lineup of local up-and-coming artists signing and promoting in Canada. Although most of the major labels have maintained a Canadian presence, EMI seems to be the leader in signed Canadian acts in the US. Revenues from Canadian artists that they have signed directly or through Virgin and Nettwerk account for 20-25% of their revenue.
The major labels are still feeling the affects of digital downloading, with loses of CD sales said to be down 20% over the past three years. This has, in turn, led to drops in the numbers of domestic acts signed and developed. The reduction in major labels signing independents has opened the door for indie labels (V2, Koch, TVT, Rounder, Epitaph, and others) to pick up these artists. They are enjoying being at the top of the pack when it comes to new cutting-edge artists and they’re making plenty of money for themselves. The biggest success story so far was made by the indie label MapleMusic Recordings. During the past few years, they’ve signed and launched the careers of pop-rocker Sam Roberts and singer/songwriter Kathleen Edwards, now a country singer in the US.
Canadian radio play can be said to resemble the US, but also be dramatically different. Each station is regulated by organizations such as The Radio Marketing Bureau of Canada and BBM Canada (Bureau of Broadcast Measurement). These organizations recently put out a list of standard formats designed to target specific audiences. The list included Adult Contemporary, Classic/Mainstream Rock, Modern/Alternative Rock, Urban, Mainstream Top 40/Contemporary Hit Radio, Country, Jazz, Gold/Oldies and Classical.
The Canadian radio market is far less monopolistic than the Clear Channel-dominated US. Government involvement, in the form of a regulatory agency, has largely been carried out by the Canadian Radio-Television and Telecommunications Commission (CRTC). The CRTC rules the airwaves. It hands out broadcast licenses, polices the terms of those licenses, and lays down the law on questions of media ownership.
The biggest impact of the CRTC has had on the Canadian music industry has been their content regulations (CanCon). These regulations were introduced in 1971 and marked a new beginning in domestic record and radio business. Under these regulations, broadcasters had to agree to play a minimum level of music labeled Canadian content. In 1999, they raised the figure from 30 to 35%, angering the opposition of the CanCon. This level had to be maintained at all times. It was instituted to curb the stations that were cramming their Canadian quota into off-peak hours.
If you are interested in learning more about the Canadian government and it’s regulations on the music and radio industry, there are some websites you can check out:
