The music industry in Canada is facing a severe crisis, with a federal subsidy program for musicians going 80% over budget due to pandemic lockdowns and plummeting album sales.
Blacklock's Reporter says according to a Department of Canadian Heritage report, the current economic context makes it impossible for most artists to make a living.
"The current economic context does not allow the majority of artists to make a living," the report stated. The Evaluation Of The Canada Music Fund 2019-2023 blamed COVID-19-era lockdowns of live performances, inflation, labor shortages, and a disastrous fall in album sales for the crisis.
The report revealed that cabinet budgeted $166.9 million for Music Fund grants from 2019 to 2023, but actual spending for the period was $301 million, an 80% increase.
"This significant discrepancy is due to the implementation of emergency measures in response to the pandemic."
With 35,428 applications for subsidies over the period, demand for funding is extremely high. The average approval rate was 59%. Live performances have become the main source of income for artists, accounting for nearly 75% of their revenue, compared to just one-third in the 1990s.
Album sales, once a staple of the music industry, have declined drastically. By 2021, album sales had fallen almost 74% compared to 2015. Streaming platforms pay artists a minimal amount based on the number of times their tracks are streamed.
Canadian artists have expressed their frustration with the situation. David Bussieres, founder of Montréal-based Regroupement des Artisans de la Musique, testified in 2018 that artists earn mere pennies from internet downloads. His 2014 hit Lumière earned him just $10.80 in royalties on Spotify, despite being played thousands of times.
