Giving Credit Where Credit is Due: An Examination of Music Financing In Canada with A View To Revealing The Need for a Federal Music Tax Credit

Introduction

In the era of globalization and homogenization, Canadian culture is more important than ever. Technology and globally intertwined economies are having a shrinking effect on the world and our culture is what allows us to keep our identity as a country. Few would challenge that our most prolific and tangible cultural offerings transpire through the arts. Canadian painters, writers, filmmakers and musicians supply our cultural voice both within and beyond our borders. In particular, the Canadian music industry plays a vital role in disseminating diverse cultural offerings from across the country. Such a feat however, is not accomplished without a great deal of commitment and investment by those who write, produce, record and distribute this music. In a time when the music business has been hit harder by technological and marketplace changes than arguably any other cultural industry, the county must commit to fostering the future success of Canadian music.

Looking at the state of music financing in Canada, we will examine the importance of effective tax law and policy in bolstering this cultural industry. Specifically, we will address the need for a unique federal tax credit to provide the support necessary for Canadian music creators to compete both at home and in the international market. Through an assessment of the music credit system in Ontario as well as alternative finance options such as grants and individual deductions, it will become clear that a federal tax credit presents the best prospects for the future of music in Canada.

And Then there were 3: EMI Record Label and Publishing To Go to Universal and Sony

Vivendi owned Universal Music Group, the largest music company in the world, announced today that they signed a deal with Citigroup to purchase the recorded music division of EMI for $1.9 billion. Although the news is already circulating, it is also expected that Citigroup will officially announce later today that they have sold EMI Music Publishing to Sony for $2.2 billion. In a statement, Vivendi CEO Jean-Bernard Lévy said: “We are very proud to welcome EMI into the Vivendi family. We all respect the labels within EMI as well as the artists and employees who contribute to its success. They will find within our Group a safe, long-term home, headquartered in Europe.”

This is the most recent development in what has been a trend of amalgamation and acquisition in the music industry over the past number of years. By the end of the 1980s, the top major labels were Sony, Warner, PolyGram, BMG, EMI and MCA. By 1999 Universal Music Group became the largest label in the world having formed out of the Seagram purchase of MCA and PolyGram. Under this umbrella, Island Records merged with Def Jam and Mercury, while Geffen, MCA, and A&M merged and Interscope was acquired. In recent years the industry had been controlled for the most part by “the big four” major labels consisting Universal, EMI, Warner and after 2004’s merger, Sony/BMG. After today’s news, it seems that number has fallen to three.

Juno Awards Adds New Category: Metal/Hard Music Album of the Year

As Canada’s Juno Awards return to Ottawa next April, for the first time since 2003, fans may notice something new. The Canadian Academy for Recording Arts and Sciences (CARAS) announced on Wednesday that they have added a new category to the award show. For the first time ever, an award will be handed out to the Metal/Hard Music Album of the year.

In their press release, CARAS explained that,

“This new category is an award to honour artistic achievement, technical proficiency and overall excellence in the Canadian recording industry, without regard to album sales or chart position. Eligible albums include metal, metalcore, hardcore, heavy rock, thrash metal, death metal and their respective sub- genres including (but not limited to) nu-metal, power metal, grindcore, extreme metal, industrial metal, viking metal, folk metal, doom metal, gothic metal, speed metal, and sludge metal.”

While many of these genres may be foreign to the masses, there is no doubt that metal fans will rejoice at having this new award included as part of the show. Following the inclusion of a an Electronic Album award last year, this latest addition brings the number of categories for next year’s ceremonies up to 41.

Check out the CARAS press release here:  CARAS Press Release

Harmony and Dis-Chord: An Examination of Technology-Driven Transformations in the Music Industry with A View to Gauging Copyright Balance in Canada

Originally written on April 6, 2011

Introduction

Perhaps the most prevalent issue surrounding music today is how we consume it. The manner in which we have enjoyed music has changed constantly throughout history and it is currently in the midst of one of its most drastic transformations. The digital age has altered everything from the way we record music to the way we promote it, discover it, and listen to it. In a time when everything is at one’s fingertips in a manner of seconds via the Internet, music is no different and in recent years this has turned the industry on its head. At the heart of this technology-driven transformation there exists a contentious, and at times volatile, debate surrounding the matter of intellectual property. More specifically, copyright has been the focus of recent discussion as the Canadian Government and courts seek to strike an appropriate balance between the interests of rights owners and the interests of consumers of music.

the history of rock n’ roll: the beginnings (1950-1962)

In 1947 Wynonie Harris recorded “Good Rockin Tonight”. In 1950 Leo Fender released the first mass-produced, solid-body electric guitar enabling guitarists to play louder hornlike solos. In 1951 Todd Storz and Bill Stewart turned around Nebraska-based radio station KOWH by establishing the Top 40 format. In 1952 Alan Freed hosted the “Coronation Ball” and in 1953 Elvis Presley walked into the Memphis Recording Service. Many argue over when exactly rock n’ roll was born but there are definitive people and events that were irrefutably crucial to its development.

John Milton Cage Jr.: Pioneering Electronic Music

To truly appreciate and understand the music of today it is helpful to have some recognition of where it originated. For every genre, style, and instrument there were those who pioneered or excelled at them and who have shaped the contemporary version that now exists. John Milton Cage Jr. is one of these pioneers.

His influence can be felt in almost every type of music from country to hip-hop to heavy metal. It was not just a style that he helped to create but rather a method, technique, and revolutionary approach to music that is his legacy. To understand what exactly his contributions are we must first look at the life of this multifaceted artist.

John Milton Cage Jr. was born in Los Angeles in 1912. It was in California where he apprenticed under his idols Henry Cowell and Arnold Schoenberg at The New School for Social Research and began his study of music. He experimented with percussion and non-traditional instruments where upon realizing that he lacked an ear for harmony, began using rhythm as the basis for his music. He then began creating his own new instruments such as the prepared piano whereby screws, strips of rubber, and other objects are placed between the strings in order to alter character of the sound. As well, in 1939 while at the Cornish School for the Arts he composed Imaginary Landscape No. 1 which used record players as instruments similar to the turntables of today.

new posts coming soon…

The past year has been a busy one. The first year of law school has left little time for Music Matters updates but new posts are on the way! Apologies for the delay. Stay tuned.

Metamorphosis of an Experience: Physical to Digital

Tearing off the plastic film, the click as the case swings open, the smell of the glossy booklet and the excitement as you close the deck of your stereo… I grew up in the era of CDs and I always loved the experience of getting that album you’d been waiting somewhere in the range of 2 to 4 years for. There was something to be said for the physical interaction involved with getting that new music. I would mark the day of release on my calendar and once I got it home I would pop in the disc and examine the artwork and liner notes as it played.

In 2009 this is a practice that most find arcane, overpriced and inconvenient. The Internet has changed the way we consume music (and everything else) and people have less patience for the models of days passed. Rather than waiting for the latest magazine spread featuring an interview and photos of your favourite artist you can do a Google image search while perusing their Twitter entries. Instead of heading out to the store on release day you can surf to the iTunes store or whatever free sharing site has managed to get a hold of leaked tracks early. At the very least you can visit the band’s Myspace page and hear the tracks they’ve chosen to exhibit.

Breaking New Ground: The Nine Inch Nails Approach To The Music Industry

It was big news when Nine Inch Nails mastermind Trent Reznor broke ties with long time label Interscope Records (owned by Universal Music Group) after the release of “Year Zero Remixed” in 2007. In an interview with the Australian newspaper The Herald Sun in May 2007, Reznor described his distaste for the major labels and their actions. He recounted how he had entered an HMV in Sydney only to find that his band’s new album was priced $10 to $15 more than most other releases. He told the paper that in a conversation with a label rep about the situation he was told, “basically it’s because we know you’ve got a core audience that’s gonna buy whatever we put out, so we can charge more for that. It’s the pop stuff we have to discount to get people buy it. True fans will pay whatever”.

Josh Freese Marketing Update

In a recent post (February 24, 2009) the unorthodox marketing initiative of artist Josh Freese was discussed in detail. The following is an e-mail sent directly from Josh Freese to Bob Lefsetz (famous for his career spent as an American entertainment lawyer/author of “The Lefsetz Letter”/majordomo of Sanctuary Music’s American division) that Lefsetz published in one of  his many “mailbag” posts on April 11, 2009. Here Freese discusses the results of his unique approach thus far:

From: Josh Freese
Subject: Checking in with an update.

Hi there Bob. How are ya?

So, I wanted to check in and give you an update on what’s been going on just after the first week or so of my records release. My label, “Outerscope Records” (that’s me, my girlfriend and our nanny when the kids are asleep) is proud to report that  I’ve sold about 150 of the $50 of the packages and all 25 of the $250 packages (those went in the first 24 hours.) In less than a week I have sold 4 of the $500, 2 of the $2,500, 2 of the $5,000, and the big old $20,000 package! No one has bought the $75,000 package yet but I’ve had someone fairly serious inquiries about it (still only “talk” at this point though.)