|
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 ]
|
