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Radio Sector > Radio Starmaker Fund > Appendix A

Appendix A

CAB September 17, 1999, Status Report

November 26, 1999


By telecopier: (819) 994-0218

September 17, 1999
Secretary General
Canadian Radio-television and
Telecommunications Commission
Ottawa, Ontario
K1A 0N2

Attn: Secretary General

Re: Canadian Music Marketing and Promotion Fund - Status Report

The Canadian Association of Broadcasters (CAB) hereby provides a status report to the Commission regarding the development of a proposal for the creation of a new Canadian Music Marketing and Promotion Fund (Fund). The CAB last reported to the Commission in April of this year. In its letter , the CAB indicated that it had conducted on-going informal consultations with both the French- and English-language music industries. In this regard, the CAB attached an Appendix to its letter which listed the meetings that had been held with a variety of stakeholders in the music industry.

Since that time, the CAB has continued its work to develop a comprehensive approach to addressing the issues affecting both the music and broadcasting industries. Recognizing that the circumstances within which French- and English-language music and radio industries differ significantly, the CAB has developed different but parallel strategies to move the Fund and related discussions forward.

A group of our French-language radio members have consulted with ADISQ and other music industry associations on a wide range of issues. Both broadcasters and music industry representatives are deeply concerned about the decline in the production and in the sales of French-language recordings and are discussing a range of possible solutions.

In English-speaking Canada, the CAB has continued its consultations on the Fund and other initiatives with the music industry. The CAB's April letter noted that Gary Slaight, as the Co-Chair of the CAB's Music Industry Task Force, had undertaken consultations with a wide range of people within the Canadian music industry. These included representatives of Canadian independent record and major labels, concert promoters, artists and artist managers and recording studio operators who met together in two structured sessions. In addition, Mr. Slaight held meetings with a number of Canadian independent record label executives.

Over the summer months, the CAB has pursued its consultations with the English-language music industry on the development of a new forum that would bring together all of the players in the music business to discuss common problems and possible

solutions in the broadest possible context. In this regard, Mr. Slaight held meetings with both Canadian independent record label representatives as well as representatives from most of the major labels and senior staff of both CIRPA and CRIA. At these meetings a

variety of topics were discussed, including the creation of the Fund. In July of this year, the Presidents of the CAB and CIRPA discussed by telephone and at a meeting held on July 19,1999, what should be the next steps to pursue the Fund and the creation of a forum for all industry players.

The above discussions led to a formal CAB - CIRPA meeting which was held on September 8th, 1999, in Toronto. The Fund was the main topic on the agenda and significant progress was made on identifying the issues that need to be resolved. Both associations have committed to continue their work on the Fund and other issues and expect to continue meeting and working together over the course of the next 6 weeks. The CAB expects to be in a position to present a Fund proposal to its membership at its Annual General membership to be held in late October. Shortly thereafter, the CAB would submit its proposal for Commission approval.

On the matter of the monies that are currently accruing to the Fund , the CAB obtains directly from the successful applicants information regarding the amount of money owing to the Fund and the manner of payment following each approved transaction. Attached to this letter is a table that outlines the monies committed to date as a result of approved transfers of ownership and the timing of the flow of monies to the Fund. It is evident from this table that little money is currently available and that there will not be any substantive amount in the Fund account until August 2000.

Given that funding will not be available in any significant amount until August 2000, the CAB believes that there is time to develop an approach to the Fund in co-operation with the music industry that will meet the Commission's objective of supporting marketing and promotion activities that will promote Canadian music, including new talent.


Michael McCabe
President & CEO

c.c: Jean-Pierre Blais, Acting Executive Director, Broadcasting
Nick Ketchum, Director, English and French Radio and Television
CAB Radio Board