Music Industry

Update – Response on Netflix/Internet Tax

From my local Member of Parliament, Karen McCrimmon (Dated June 13th, 2018) :

“Hello Rob,

Thank you for taking the time to share your ideas with me.

Our government understands the importance of supporting our artists and creators. We also know that the way Canadians access content is changing. That’s why we have made historic investments of $3.2 billion, to support our artists and creators. It’s also why we will be modernizing our laws and programs to better support our artists in the digital era.

Netflix’s investment is a part of the transition. It secures 5 years of investments for our creators, as we modernize our laws and programs.

We, as a government have decided not to introduce a Netflix tax because we don’t want to raises taxes on the middle class, we want to lower them. We will always look at ways to strike the balance between a fair tax system and the investments we need in our culture, but in doing so, we’re not going to be raising taxes on the middle class through an internet broadband tax.

I will share your ideas with my fellow colleagues, including the Minister of Finance, Bill Morneau.

Thank your again for your engagement as a constituent.

Kind regards,

Karen”

I had suggested that if taxes on streaming services are absolutely necessary that they consider forwarding a portion of the federal taxes collected from these services to Canadian Content initiatives, instead of introducing an independent levy for that purpose.

As i’ve mentioned in a previous entry, these services will be taxed on New Years Day in Quebec and the Canadian Radio & Telecommunication Commission had made a proposal of their on in regards to levy to fund Canadian Content.

The publics views have been made clear by a February 2017 poll conducted by Innovative Research Group earlier in 2017. But I had thought to send my opinion and suggestions to my local MP and Heritage Minister Melanie Joly in response to the CRTC’s recent proposal.

If you wish to contact your local Member of Parliament on this issue, you can do so via the MP database by clicking here.

I will of course update this blog if the situation changes.

Thank you.

Global Music Report Released

The International Federation of the Phonographic Industry released their global music report last Thursday and sales have gone up by 8.1% because of streaming, which had become more popular;Streaming revenues grew by 41% worldwide.

Click here for a link to the official IFPI blog entry on the “State Of The Industry” report.

Did You Miss Record Store Day?

Some of the participating retailers could still have some items on sale for the weekend. And deals can also be found at Amazon.ca, Amazon.com, Barnes & Noble, Booksamillion.com and Records By Mail.

Apple Ending Music Downloads?

Since mid-March there have been rumours that Apple may be ending music downloads on March 31st, 2019 to promote their Music Streaming services. But contradictory statements have been issued so I don’t personally believe Apple would shut down such a lucrative service.

Yes, the streaming service has become quite popular with iPhone users and streaming accounted for 65% of the music sales in 2017 according to the Recording Industry Association of America. But digital downloads still accounted for 15% of these sales last year, regardless of their 25% reduction in sales from the previous year and iTunes retains a good percentage of these sales.

I support artists by buying music and music video downloads from iTunes, Google Play and CD Baby because artists generally get more royalties from these download services than their streaming counterpart, although it should be noted that SOCAN did confirm a hike in streaming royalties in their 2016 annual report.

I don’t own an iPhone and I am not interested in owning one, preferring to listen to my music on an older Sony digital music player instead of draining my Sony Xperia smartphone’s battery to listen to music. And iTunes has been my primary source of music since Puretracks closed, on both the Windows and Apple operating systems, so i’m hoping they will continue the service because I am not that interested in streaming services.

Although I have installed Spotify and several other streaming services on my desktop and tablets, the vast majority of the music I listen to was copied off compact discs and I don’t want to need an internet connection to play my music.

I’m not willing to pay extra to listen to music I already paid for and I occasionally visit areas with little to no internet access so paid streaming is not the best option for me.

I guess we’ll see what they’re planning my March 31st, 2019 and I will definitely contact them with my concerns if they ever choose to bow out of music downloads.

Great News From RIAA

The Recording Industry Association of America has compiled its data for 2017 and sales are up by 16.5%, driven by the heightened sale of vinyl records, music downloads and streaming service subscriptions.

The actual report can be found here (in PDF) and additional commentary on this growth in sales can be found on Medium.

Radio-Canada to Destroy 151,000 CDs!

It appears that the Montreal offices of Radio-Canada will be destroying over 151,000 compact discs from their library to save space according to Radio-Canada International.

These recordings will be copied to a digital format by 2019, just before the french public broadcaster’s move to a new smaller building in 2020. And only around 56,000 compact discs from their extensive collection will be offered to cultural or educational organizations.

When asked why all of the recordings could not be sold or given away, a spokeswoman for Radio-Canada stated it would have been too expensive and time consuming to confirm what rights were involved, although one has to wonder about this excuse because of the early 2012 sale of Calgary’s CBC music archive to The Inner Sleeve, a Calgary Record store in March 2012.

The Canadian Broadcasting Corporation sold 27,000 LPs and 35,000 CDs in that transaction and several other archives were closed since early 2012 because these were basically duplicates of the archive in Toronto.

Of the 650,000 compact discs contained at these archives in 2012, only 140,000 were “unique to one particular library” according to Exclaim. And some archivists and audiophiles are concerned about the potential loss of rare recordings in the process.

It’s a shame they couldn’t have simply forwarded Cancon recordings to Library and Archives Canada in Ottawa. But according to the CBC and Radio-Canada these were cost cutting measures…

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