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Radio Sector > Radio Starmaker Fund


Radio Starmaker Fund

Radio Starmaker Fund


Fund proposal - Table of Contents

Introduction

Consultation Process

Part A – Governing Principles of the Fund

Eligibility Requirements

- Eligible Canadian Artists or Acts
- Eligible Applicants
- Eligible Initiatives
- Eligibility Criteria

How the Fund Will Work

Part B – Principles of Governance

Governance Structure

- Legal Structure
- Disbursement of Funds
- Administration Costs of Fund

- Accountability

Part C – Projected Fund Impact

Conclusion


List of Appendices

Appendix A CAB September 17, 1999, Status Report

Appendix B Fonds de commercialisation de la musique “Énoncé du consensus ADISQ-ACR”

Appendix C
Letters of support for Radio Starmaker Fund proposal from CRIA and CIRPA

Appendix D Radio Starmaker Fund Flowchart
(This document is not available on the website.)

Appendix E Schedule of Approved Transactions Contributing to the Radio Starmaker Fund

Appendix F Private Radio Ownership Transactions Pending Approval

Appendix G Radio Starmaker Fund Projected Budget and French:English Split [ Top ]

RADIO STARMAKER FUND

A PROPOSAL FROM THE
CANADIAN ASSOCIATION OF BROADCASTERS

INTRODUCTION

1. The Canadian Association of Broadcasters (CAB), as representative of the vast majority of private radio stations, is pleased to submit its proposal for a new English-language Canadian music marketing and promotion fund called the “Radio Starmaker Fund” (FUND).

2. The CAB is currently developing a proposal for a French-language Canadian music marketing and promotion fund. As soon as possible, the CAB will finalize its proposal for a fund to support marketing and promotion activities for French-language artists.

3. At the Commission's public hearing reviewing the policy framework for commercial radio, the CAB outlined its three-pronged radio industry strategy which included the following objectives:
  • The restructuring of the radio industry in a more cost-effective manner through a new multiple licence ownership (MLO) policy for commercial radio;
  • To establish and launch digital radio in Canada; and
  • To develop a strong supply of commercially playable Canadian music.

4. (Public Notice), entitled the “Commercial Radio Policy 1998” and the launch of commercial digital radio in Toronto, Montréal and Vancouver in 1999, we are now well under way with the first two components of the CAB's radio industry strategy. The establishment of the CAB's Radio Starmaker Fund is part of an overall strategy to achieve the third industrial goal of developing a strong supply of commercially playable music

5. It should be remembered that in the context of the commercial radio review hearing, the CAB had proposed, among other things, that the existing benefits test be replaced with a contribution to FACTOR, MusicAction and a new Canadian music marketing and promotion fund.

6. In its Public Notice, the Commission amended its benefits policy by requiring a minimum direct financial contribution to Canadian talent development of 6% of the value of transactions involving profitable radio undertakings with 3% of all future benefits being allocated to a new Canadian music marketing and promotion fund.

7. The Commission indicated that the purpose of the new Canadian music marketing and promotion fund would be to support co-operative activities by broadcasters and the music industry to market and promote Canadian music including new talent.

8. The radio industry's support for Canadian talent is long-standing. In 1962, Standard Broadcasting created the Canadian Talent Library, employing Canadian musicians to create over 275 Canadian content records for radio airplay. Then in 1963, the CAB/CAPAC (Canadian Association of Publishers, Authors and Composers) Committee was created as a joint venture to promote the interests of Canadian composers and lyricists of both pop and serious works.

9. The radio industry has continued to support Canadian musical talent with its numerous initiatives being brought into focus through the creation of FACTOR and MusicAction. To date broadcasters have contributed $18.5M to these initiatives. Other support provided by radio broadcasters comprise significant Canadian Talent Development (CTD) contributions including talent contests, CD compilations, scholarships and concert support.

10. Additional broadcaster initiatives include on-air interviews, local and coast-to-coast on-air tour promotions and more recently the formal recognition of new Canadian talent with the Canadian Radio Music Month in February of each year. The Canadian Radio Music Month culminates in the Canadian Radio Music Awards, which occurs each March in Toronto. Clearly, the radio industry continues to be a strong proponent of Canadian musical talent and a substantial component in any marketing strategy for the marketing and promotion of Canadian artists.

11. In keeping with commercial radio's long-standing objective of assisting Canadian talent from every region of Canada – the radio industry intends to publicize the creation of the FUND in every region of this country so that all eligible Canadian artists have an opportunity to access it. [ Top ]

CONSULTATION PROCESS

12. In the Public Notice, the Commission stated its expectation that the FUND be jointly administered by representatives of the broadcasting and recording industries. Accordingly, the CAB in co-operation with representatives of the recording industry, was requested to submit a proposal for the Commission's prior approval, detailing how the FUND will be administered and operated.

13. In keeping with the Commission's expectations, the CAB created a radio fund-working group, which had the mandate of conducting discussions with the music industry. The radio-working group was comprised of French-language broadcasters who commenced discussions with the French-language music industry and English-language broadcasters who began discussions with the English-language music industry.

14. As outlined in the CAB's September 17 1999 Status Report (copy enclosed as Appendix A), the consultations with the French-language music industry were conducted separately since the circumstances of the English- and French-language music industries differ significantly. A basic framework for a French-language marketing and promotion fund for the French-language music industry has been agreed to by l'Association de l'industrie du disque et du spectacle du Québec (ADISQ). A copy of the consensus document between l'ADISQ and the French-language broadcasters is enclosed as Appendix B. French-language broadcasters are continuing their discussions with the French-language music industry with a view to finalizing a fund proposal and creating the best solutions in response to the decline in the production and sales of French-language recordings.

15. The English-language industry discussions included a two-stage consultation process. The first stage included both formal and informal consultations with key industry stakeholders with the second-stage comprising a more formal consultation and negotiation process with the Canadian Independent Record Production Association (CIRPA) and the Canadian Recording Industry Association (CRIA).

16. As noted in the CAB's September 17, 1999 Status Report, the consultation process with the English-language music industry included meetings with representatives of Canadian independent labels, representatives from major labels, concert promoters, artists, artist managers and recording studio operators.

17. The consultation process with key English-language music industry stakeholders was based on the belief that in order to prepare a preliminary model for the FUND, it was essential to benefit from the expertise of individuals in the music industry with experience in all facets of the business that could be supported by the FUND. The overriding objective was to get the proposal right.

18. Consultations with key industry stakeholders from various regions of Canada were conducted in order to understand what marketing and promotion initiatives would best assist the development of Canadian artists, with a particular emphasis on those initiatives that would assist new and emerging talent with star potential.

19. In addition, it was essential that other industry initiatives, which could have a direct impact on the FUND, such as the review by the Department of Canadian Heritage of its Sound Recording Development Program announced in the spring of 1999, be considered in developing a proposal for the FUND.

20. Early in the consultation process, the CAB realized that it was imperative that the collaboration developed between broadcasters and the music industry continue beyond the creation of the FUND. As noted in the Commission's Public Notice “such co-operation [between broadcasting and music industries] could provide increased support to Canadian artists, and help ensure the continued success of the Canadian music industry and increase the supply of Canadian recordings.”

21. Therefore, in early summer 1999, the CAB proposed the establishment of a new alliance involving English-language broadcasters and a broad cross-section of the English-language music recording industry with the mandate of developing strategies to stimulate and promote Canadian music. The objectives of the new alliance would be to:
  • Provide an on-going forum for the radio and music industries to deal with issues of mutual interest;
  • Develop common focused strategies to launch and promote Canadian music and artists in order to ensure a reliable and increasing supply of Canadian records;
  • Develop strategies to increase the availability and promotion of Canadian music at the retail level; and,
  • Mobilize joint industry support for policy proposals that support and promote Canadian music.

22. Both CIRPA and CRIA have indicated their interest in participating in this alliance. The CAB along with CIRPA and CRIA will now proceed with the formal establishment of the alliance which will be called the Canadian Radio and Music Alliance (CARMA). CARMA will likely begin its activities early in the year 2000.

23. In the late summer of 1999, the CAB developed specific proposals for the English-language initiatives of the FUND through a number of face-to-face meetings involving CIRPA, CRIA and other music industry stakeholders. These proposals were based on the extensive consultations that had already taken place.

24. The consultation process was both challenging and collaborative and the radio and music recording industries were in complete agreement on what should constitute the basic objectives of the FUND.

25. Both CIRPA and CRIA were given a final opportunity to review the contents of the CAB's proposal for the Radio Starmaker Fund. The comments of CIRPA and CRIA have been incorporated into the final version of the Radio Starmaker Fund proposal. Enclosed as Appendix C are letters of support from both CIRPA and CRIA.

26. The CAB's proposal for the FUND has been structured into three parts:

  • Part A includes the governing principles of the FUND as well as the eligibility requirements and also details how the FUND will actually work[1];
  • Part B includes the principles of governance and the structure of the FUND Board; and,
  • Part C includes an estimate of the projected funding impact (i.e. approximate number of initiatives that could be funded over the next 8-10 years). [ Top ]

PART A

GOVERNING PRINCIPLES OF THE FUND

27. The FUND will operate with a limited amount of monies that will be available over the next 8-10 years. [2] For this reason, it was decided not to create an endowment fund but rather it was determined that the FUND's revenues should be spent as they are received. In addition, the music industry is currently facing significant new challenges and its greatest need is access to the FUND monies over the next several years. These essential facts form the foundation of the governing principles of the FUND.

28. The two governing principles of the FUND are:
  • The FUND should make a substantial and discernable difference to the careers of the Canadian artists who benefit from it; and,
  • The monies provided by the FUND must be incremental to existing investments being made for the promotion and marketing of Canadian artists.

29. The governing principles of the FUND will ensure that the following objectives are met:
  • The FUND is comprised exclusively of private broadcaster monies. Although its creation is in keeping with many public policy objectives, its main purpose is to create new Canadian stars and commercially playable Canadian content. In order to sustain the distinct objectives of this private sector fund, it is essential that its activities be kept separate and apart from any public funding activities. In addition, all funding should be clearly complementary to any public funding activities;

  • The FUND will support a variety of marketing and promotion initiatives in addition to those presently funded by FACTOR and other private/public or public structures that provide support for Canadian artists. This FUND constitutes a distinct and separate opportunity to access monies in accordance with the objectives and eligibility requirements of the FUND. It is recognized that Canadian artists supported by FACTOR for a marketing and promotion initiative also supported by the FUND would only be eligible to access FUND monies where the initiative remains truly complementary and constitutes a clear, distinct and quantifiable benefit to the initiative already supported by FACTOR [3];

  • In order to ensure that monies are incremental to existing investments being made for marketing and promotion initiatives, the FUND will only support initiatives with significant out-of-pocket investments from an eligible applicant as detailed in the proposed marketing plan approved by the FUND;

  • The FUND will, therefore, support the following categories of Canadian artists that have the potential of becoming the next generation of Canadian stars;

a) emerging Canadian artists from every region of Canada at the beginning of their careers who demonstrate star potential through significant investments from a record label; and,

b) Canadian artists from every region of Canada beyond the initial stages of their career who demonstrate their potential through a track record or are supported through significant investments from a record label.

  • The FUND will provide significant funding for a fewer number of initiatives rather than be spread thinly among a larger number of initiatives where there will be no substantial or discernable impact on the promotion and development of the Canadian artists in question;

  • The FUND will focus on the promotion and development of Canadian artists through the most cost-effective means. As noted earlier, the radio industry is a significant contributor to the development of Canadian musical talent and will be sole contributor to the FUND. Both CIRPA and CRIA have agreed that radio advertising is one of the most effective means of promoting Canadian talent. In this context, marketing plans filed with the FUND will need to reflect the significant involvement of radio stations in the promotion and development of Canadian artists. Radio advertising will, therefore, be an eligible component of any proposed marketing plan;

  • Funding will be on a matching funds basis and will be provided in increments for approved marketing and promotion plans once the marketing plans are actually implemented;

  • Administrative expenses for the FUND should be kept to a minimum; and,

  • The decision-making of the FUND should utilize a transparent and fair process.

30. It is important to note that the FUND will not support Canadian artists who have already achieved star status such as Alanis Morissette and Céline Dion. The board of the FUND will determine which artists will be ineligible.

31. As noted earlier, one of the objectives of the FUND is to keep administrative costs to a minimum. In keeping with this objective, it is essential that the approval process for applications submitted to the FUND be facilitated through objective guidelines which would permit a quasi-automatic approval process for applicants that meet the FUND's eligibility requirements.

32. Finally, the FUND will provide key funding for the next 8-10 years after which it will likely have exhausted its resources (i.e. the FUND is non-renewable). [ Top ]

ELIGIBILITY REQUIREMENTS

A) ELIGIBLE CANADIAN ARTISTS OR ACTS

33. The following Canadian artists or acts would be eligible for funding:
  • Canadian artists or acts with a track record as defined by the Board of Directors of the FUND [4] who are releasing a new CD that is supported with significant investments by their record labels [5] ; and,

  • New emerging Canadian artists or acts demonstrating the beginning of a track record (as defined) [6] and who are supported by their record labels with significant investments (as defined).

34. The Board of Directors of the FUND will also determine which artists and acts are not eligible to receive funding. These will include artists who do not meet the minimum established criteria. Ineligible artists and acts will also include those artists or acts that exceed the upper limits set by the Board of the Directors of the FUND in order to be eligible to receive funding. [7] [ Top ]

B) ELIGIBLE APPLICANTS

35. The following will constitute eligible fund applicants in relation to or on behalf of eligible Canadian artists or acts:
  • Canadian independent recording labels;
  • Canadian artist management;
  • Music publisher; and,
  • Multi-party initiatives which include the participation of at least one Canadian independent record label.

36. Canadian artists signed to a major label can access the FUND through either the Canadian artist management; music publisher or a multi-party initiative if they meet the FUND's eligibility requirements.

37. Today, a significant number of Canadian artists and songwriters are developed and promoted by a music publisher before they actually sign a record deal. It is estimated that artists developed in this fashion have sold in excess of 2 million albums and have generated $20M for the music industry. The process for developing a Canadian artist varies from case to case but ranges from shopping demos to acting like a “virtual label” or as artist management. Given that music publishers play an important role in the development of new and emerging Canadian artists they have been included in the list of eligible applicants. [ Top]

C) ELIGIBLE INITIATIVES

38. The following are the eligible initiatives under the FUND:
  • Marketing and promotion initiatives associated with an eligible Canadian music recording [8] from eligible applicants for eligible Canadian artists or acts;

  • Tour support associated with an eligible Canadian music recording, Canadian artist or act from eligible applicants; and,

  • Multi-party marketing and promotion initiatives associated with one or more eligible Canadian music recordings from at least one eligible applicant for one or more eligible Canadian artists or acts.

39. No funding will be provided for the production of music recordings or music videos.

40. During the consultation process both CIRPA and CRIA acknowledged that radio advertising is one of the most effective means of promoting Canadian talent. Accordingly, radio advertising will, therefore, be an eligible component for any proposed marketing plan.[ Top ]

D) ELIGIBILITY CRITERIA

41. Initiatives that will be eligible for funding will need to meet the following criteria:
  • Single track of an eligible Canadian music recording released in advance of a CD which constitutes an eligible Canadian music recording where the master is effectively owned and controlled by a Canadian; or

  • A CD where a majority of the tracks on the CD constitute Canadian content in accordance with the Commission's MAPL criteria and where the master is effectively owned and controlled by a Canadian for all Canadian tracks; and,

  • A national distribution contract for the Canadian market has been signed for the eligible single track Canadian music recording or the eligible Canadian CD with any entity distributing music in Canada that is recognized by FACTOR as a legitimate distribution entity. [ Top ]

HOW THE FUND WILL WORK

42. The following describes how an applicant will access monies from the FUND:
  • The eligibility requirements for the FUND will be formally established by the board and then will be widely circulated and publicized throughout the industry and all regions of the country;

  • An applicant will need to determine whether the proposed marketing and promotion initiative for which funding is sought meets all the eligibility requirements of the FUND;

  • Once an application is received, the Executive Director of the FUND (a description of this position is provided at paragraph 54 of Part B) will review the proposal to ensure that all eligibility requirements are met. If the application does not meet the first screening it will be returned with reasons explaining why the proposal does not meet the eligibility requirements. If an application does meet the initial screening process, the proposal will then be considered by a selected panel of knowledgeable individuals (this process is described at paragraph 55 of Part B);

  • Where the proposal falls within the eligibility requirements, an eligible applicant will be required to provide a detailed marketing plan for the music recording that demonstrates a significant investment is being made. In addition, the marketing plan must unequivocally demonstrate that FUND monies are incremental to the monies that would normally be spent for marketing and promotion purposes by the applicant. In order to ensure that monies are incremental, the applicant will need to provide evidence that the investment being made equals or exceeds industry standards for a similar artist or act and that FUND monies will, therefore, represent an incremental investment for the artist or act;

  • For multi-party initiatives, a detailed marketing plan for the marketing and promotion of at least one or more eligible Canadian music recording which demonstrates unequivocally that funding is incremental to the monies being spent by the multi-parties for marketing and promotion purposes. Again evidence of the incremental nature of the funding will need to be provided;

  • Detailed marketing plans whether from an individual eligible applicant or for multi-party initiatives must also demonstrate that the marketing initiatives follow industry norms and are cost effective by providing the greatest exposure for artists or acts;

43. It is important to note that no portion of funding provided by the FUND can be recouped by the applicant from artists' royalties. The board will be required to develop mechanisms to ensure that artists are not required to repay any amount from their royalties for any amount of monies flowing from the FUND. Where an applicant attempts to recoup FUND monies from artists' royalties, the applicant will not be eligible for funding under the FUND for a period of time to be determined by the board. [ Top ]

PART B

PRINCIPLES OF GOVERNANCE

44. The governance structure of the FUND has been developed on the basis of two fundamental principles as follows:
  • The governance structure must achieve effective representation from both the broadcasting and music recording industries; and,
  • The governance structure must achieve a high level of transparency.

45. These principles of governance were developed to meet the objective stated by the Commission in its Public Notice, namely, that the FUND be jointly administered by representatives of the broadcasting and music recording industries. In addition, the principles of governance meet the CAB objective stated in its letter to the Commission dated April 30, 1999 that “...it would be inappropriate to essentially designate the industry that will be the major recipient of support from the Canadian Music Marketing and Promotion Fund to control the Board.”

46. In creating the governance structure for the board of the FUND it was essential to ensure that board members not be in a position to benefit from their board status, nor should they be in a position to change or create eligibility requirements solely for their benefit.

47. Moreover, the board structure needed to have an appropriate degree of independence, efficiency (i.e. low administration costs) and accountability.

48. Given that the FUND is privately funded and that radio broadcasters will not be direct beneficiaries of FUND monies, radio broadcasters should have their key stakeholder position recognized in the governance structure.

49. Finally, transparency will also be achieved through clear and objective eligibility requirements.[ Top ]

GOVERNANCE STRUCTURE

50. The board will have a maximum of 10 members. The board representation will be as follows:
  • 4 broadcaster representatives;
  • 3 CIRPA representatives;
  • 1 CRIA representative; and,
  • 2 independent representatives with an understanding of the radio and music recording sector or some other relevant expertise.

51. The board members will be nominated in the following manner:
  • Broadcasters will nominate their representatives:
  • CIRPA will nominate its representatives;
  • CRIA will nominate its representative; and,
  • Broadcasters and the music recording industry will jointly agree on the nomination of the 2 independent representatives.

52. There will be a board Chair and vice-Chair. The board Chair will be a broadcaster and will have a second and casting vote in the event of a tie vote. The first board Chair will be nominated by the CAB. The vice-Chair will be a CIRPA representative nominated by CIRPA.

53. The vote required to make any changes to the By-laws or to make any significant changes to the governing principles or principles of governance would require approval by 75% of the board (i.e. approval from 8 out of the 10 members would be required).

54. The board, once established, would select an Executive Director who would have the responsibility for the day-to-day operations and management of the FUND.

55. The board, once established, would select a pool (15 to 20) of knowledgeable individuals who will have the responsibility of selecting the applications that will be funded (details on the exact manner of disbursing funds is provided below). [ Top ]

LEGAL STRUCTURE

56. The FUND will be incorporated as a non-profit corporation under the Canada Corporations Act.

57. The following details the essential components of the corporate structure:
  • The minimum number of Directors will be 10;
  • The quorum required for a meeting will be 7 Directors and at least 8 Directors must approve changes to By-laws or to make any significant change to board structure or governing principles;
  • The board will be required to meet at least once a year at which time the board will be required to appoint an auditor who will audit financial statements and report on financial statements at the annual meeting;
  • The By-laws of the corporation will include governing principles, principles of governance, eligibility requirements, governance structure and all relevant definitions that will be defined by the board [9]. [ Top ]

DISBURSEMENT OF FUNDS

58. Once the Commission approves a transfer transaction to which benefits apply, the CAB will receive the funds in trust. After receipt of the monies, the CAB will then disburse the monies. It should be noted that the CAB will have no further involvement in the administration of the FUND other than to effect the initial allocation of funds in the following manner:
  • For English-language transactions, 80% of the benefits will be directed to the English-language FUND and 20% of the benefits will be directed to the French-language FUND; and,
  • For French-language transactions, 80% of the benefits will be directed to the French-language FUND and 20% of the benefits will be directed to the English-language FUND.

59. As noted earlier, applicants are prohibited from recouping any portion of funding received from the FUND through artists' royalties.

60. All costs associated with the legal establishment of the FUND and all capital and other expenses associated with the establishment of the FUND office will be paid with FUND monies.

61. As described earlier, applications for funding will be filed with the FUND. The Executive Director will review all applications to determine whether they meet the eligibility requirements. Where an application does not meet eligibility requirements it will be returned with an explanation as to why it does not meet the eligibility requirements.

62. Where an application does meet the eligibility requirements as determined by the Executive Director, a teleconference will be convened on a regular basis (in accordance with board policies) to determine which of the applications meeting the eligibility requirements should receive funding. The Executive Director will select a panel of 4-5 individuals from the list of knowledgeable individuals selected by the board in order to choose the applications to be funded during the teleconference. The Executive Director will be responsible for providing the panel selected with all documentation and support in order to complete the selection process. [ Top ]

ADMINISTRATION COSTS OF FUND

63. A maximum of 10% of the total monies that are expected to flow to the FUND over the next 8-10 years would be directed to administrative costs.

64. Given the manner in which benefits are distributed over the licence term and given the fact that there will one-time start-up costs associated with the establishment of the FUND, an average of the total benefits estimated to flow to the FUND over the next 8-10 years will be calculated and will be used as basis of determining the maximum amount that can be allocated for administration costs each year. [ Top ]

ACCOUNTABILITY

65. The FUND board will be required to provide the Commission with an annual report on the FUND's activities including details on all the disbursements and activities supported by the FUND. The first annual report would cover the period September 1, 2000 to August 31, 2001. Thereafter, the board would report on its activities for the period September 1 to August 31. [ Top]

PART C

PROJECTED FUNDING IMPACT

66. The CAB has enclosed as Appendix E a table describing all approved transactions to date for which benefits are payable. Also enclosed as Appendix F, is a table listing pending transactions for which benefits may be payable. Taking into account both approved and pending transactions, the CAB estimates that there will be approximately $17M of benefits flowing to the FUND over the next 8-10 years.

67. Taking into account the allocation of benefits for the English- and French-language transactions as well as the projected administration costs, the CAB estimates that approximately 25 English-language initiatives could be funded annually. A projected budget is enclosed as Appendix G. This relatively small number of funded initiatives is in keeping with the FUND's objective of making a discernable difference on a smaller number of marketing and promotion initiatives for Canadian artists. [ Top ]

CONCLUSION

68. The CAB proposal for the Radio Starmaker Fund will realize several public policy objectives. These include the promotion and development of new and emerging Canadian artists and the creation of a means to assist the Canadian recording sector in its efforts to create new Canadian musical stars.

69. Making a real and discernable difference is a key objective for the radio and music recording industries. The CAB believes that the enclosed proposal will meet all of the stated objectives which were developed in collaboration with both CIRPA and CRIA.

All of which is respectfully submitted on November 26, 1999. [ Top ]


Footnotes

[1] Enclosed as Appendix D is a flowchart providing an overview of each component of the FUND.

[2] For approved transactions as of November 26, 1999, total benefits payable to the FUND is $8.86M. See Appendix X E enclosed.

[3] FACTOR has programs that underwrite the production of demos, CDs, videos and other programs that support touring and other marketing activities. Applicants who have received FACTOR grants or other support for the production of recordings or videos would be eligible to receive FUND monies for any of the FUND's eligible initiatives. Where funding is sought for an initiative also supported by FACTOR, the applicant will need to demonstrate that the initiative is truly complementary and constitutes a clear, distinct and quantifiable benefit to the initiative already supported by FACTOR. The initiative must also be consistent with board policies that will be developed to ensure that the initiative is complementary to that supported by FACTOR. However, if an applicant receives support from FACTOR or other public/private or public structure for a tour, it would not be eligible for FUND support for the same tour. Similarly, if an applicant receives marketing support for a recording from FACTOR or other public/private or public structure, it would not be eligible for marketing support from the FUND for the same recording. However, where the applicant, for example, receives only marketing support for a recording from FACTOR or other public/private or public structure it would still be eligible to receive touring support from the FUND and where only tour support is received, then marketing support would still be available for the recording from the FUND.

[4] For example, the track record required to be eligible for funding could be the requirement to have sold at least 25,000 units for in the previous AC or Pop CD release; or ator a requirement to have sold least 10,000 units for in the previous country or urban CD release; or 5,000 units for the previous classical or jazz release. Lower sales levels than these accompanied by significant success on radio charts could also be considered.

[5] What constitutes a “significant investment” will be defined by the Board of Directors of the Fund. Essentially to meet the criterion an applicant will need to demonstrate that it is unequivocally investing a substantial amount in the promotion and marketing of a Canadian artist before receiving matching funds from the FUND.

[6] Note that the track record for a new emerging Canadian artist or act will be developed by Board of Directors – it could include, however, such things as a minimum amount of airplay or other success criteria.

[7] For example, Canadian artists or acts whose previous CD sold in excess of 125,000 units might be considered ineligible.

[8] Eligible Canadian recording is defined as a single track recording which constitutes Canadian content in accordance with the Commission's MAPL criteria or for a CD, where a majority of the recordings on the CD meet the Commission's MAPL criteria.

[9] For example, the board will need to further define what constitutes an acceptable track record for an eligible applicant. All definitions required for eligibility requirement purposes should be included in the corporation's By-laws. [ Top ]

 

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