Canadian Musician

NEWS

Canada Outpaces Global Music Revenue Growth in 2015

April 12th, 2016

revenues_vs_users_2015According to Music Canada and the IFPI’s Global Music Report 2016, the global recorded music industry grew its revenue in 2015 by 3.2% and Canada outpaced the global average significantly with an 8.3% increase. For Canada, this revenue jump helps make up for a double digit loss in 2014. Globally, the record music industry had revenue of $15 billion USD in 2015.

According to the Global Music Report 2016, Canada’s growth was driven largely by growth in paid-for subscriptions to streaming services, such as Spotify and Google Play Music, and the arrival of Apple Music. As well, 2015 was a hallmark year for Canadian superstars in the international stage, with Canadians Justin Bieber, The Weeknd, and Drake each being among the top 10 selling artists in the world at four, nine, and 10, respectively.

Music Canada does warn, “Despite these positive results however, it is too early to confidently declare a reversal in trends, given that losses in 2012 (-2.9%), 2013 (-5.4%) and 2014 (-11.0%) followed immediately after the positive 2011 figures (+3.1%), which marked the first revenue growth in this century in Canada.”

Highlights of Canada’s 2015 Music Revenues:

– Digital revenues surge to 52% of total revenues (US$173.5 million), somewhat higher than the global share of 45%

– Premium streaming revenues explode in Canada, with a 151% increase (US$29.4m in 2015 v. US$11.85m in 2014), overtaking ad-supported streaming revenue, which only grew 32% (US$19.49m in 2015 v. US$14.76m in 2014)

– Physical revenues in Canada make up 35% of the market (US$ 118.9million), slightly lower than the global share of 39%

– Performance rights revenues are 11% in Canada compared to 14% globally

– Synchronization rights are 2% compared to 2% globally

Music Canada says in its preliminary announcement ahead of Thursday’s release of the full report, “In Canada, as in other countries around the world, a record volume of music is being consumed, yet artists and producers are not enjoying fair compensation, primarily because upload services like YouTube are not paying normal music licensing rates due to the misapplication of a legislative framework called “safe harbours”. This has created what is known as the “value gap”. Furthermore, the “value gap” has resulted in a distorted market, where premium services are forced to compete unfairly with other services that use copyrighted content to build their businesses, but do not pay fair rates.”

“In Canada, where premium streaming has had such a significant positive effect on our market in 2015, the “value gap”, where ad-supported services benefit from lower-than-normal licensing rates, causes immense concerns,” adds Graham Henderson, President & CEO of Music Canada. “We hope that legislators will work with the music community to address this market distortion and reduce the gap so that rights holders are compensated fairly for their work.”

Complete market information for Canada and all other national markets will be released on Thursday, April 14, 2016 by IFPI.

For more information, go to www.musiccanada.com.

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