Rebecca's Thoughts

The Canadian music industry is considered an aspect of Canadian culture and is therefore protected by the federal government as to preserve and maintain the “Canadian identity.” This preservation is done through a scheme of protectionist policies set forth by the federal government and its arms-length administrative tribunal the Canadian Radio-television and Telecommunications Commission (CRTC). The CRTC is mandated under Canada’s Broadcasting Act (1991) and regulates telecommunications and broadcasting in the country. The Broadcasting Act took over from the Canadian Radio Broadcasting Act of 1932 which both nationalized radio in the country and also placed a 40% limit on foreign programs allowed to enter the country. One way the Act engages in the regulation of broadcasting is through ensuring “each element of the system must contribute to the creation and presentation of Canadian programming.[1]” This is done through a wide range of measures including, quotas, tax breaks and subsidies. These measures are meant to perpetuate and facilitate Canadian culture through wanting to foster Canadian sovereignty and cultural achievements.[2] Another reason to protecting Canadian cultural products is the fear of American popular culture displacing Canadian artists and oversaturating the markets.[3] The United States is both the largest music market in the world [4] and arguably one of the most dominated forces in western popular culture. Some fear that Canada’s relatively small population and the fact the almost 80% of Canadians live on or close to the Canada-U.S. border makes Canadian art especially vulnerable to the onslaught of America popular culture products.[5] 

Although the CRTC and other government agencies presented measures to cover all aspects of popular culture including music, television, movies, books, and traditional art, this paper will only cover the Canadian music industry and the rules and regulations pertaining to it. This paper will only look at the English speaking portion of the Canadian music industry, as the province of Quebec has its own rules and regulations in addition to one provided by the CRTC to further protect Quebecois and French-Canadian culture.  It is also worth noting French speaking guidelines for CRTC regulations have more nuances, and differ noticeably, from the English guidelines.

To fully understand the effects of these measures of protectionist policy this paper will look at a brief history of the Canadian music industry. Additionally, this paper will also look at the Canadian identity and how it pertains to protectionism, and concluding with the monetary impact of the Canadian music industry.

This paper will mark the beginning of the Canadian music industry in 1730, as this year saw the start of the urbanization and consolidation of music in Canada. Although a lot could be written about the importance of traditional, and orally transmitted music in Canada it is difficult to fully determine its impact and how it affected the rules and regulation of music in the country. Another thing to note in pre-1730s music is the fact most of the “popular” music was of religious decent -predominantly Catholic and Jesuit- and was observed more out of obligation to the Catholic church and less out of leisure.

The 1730’s to about 1850 saw what this paper will consider the first wave of music in the country. This wave saw large class divisions in what people listened to. On one end you had wealthy people attending concerts for Bach and Mozart. This was also the time where operas and orchestras became popular places where wealthy people could go and see live music. At this point there was a clear distinction between what was considered “high art” and “low art” and what fit into the categories was determined along socioeconomic lines. Operas, orchestral music, Bach, and Mozart were all considered “high art” for their appeal to wealth, extravagance, skill, and intellect. This was further perpetuated through the high costs of musical instruments, sheet music, and music publishing. The average person in 1730’s Canada could not afford to witness “high art” let alone music lessons. “Low art” or art for the common, working people was often relegated to bars, and other drinking establishments. The 1840-50’s saw a large influx of Irish and Scottish immigrant to Canada, and with them came fiddles, flutes, mandolins, and guitars. This made things like “drinking music,” Celtic music, barn dances, and jamborees common for everyday folk, and working class people.   

1850 to 1900 saw the second wave of music in Canada. What is often considered the Victorian era, saw the rise of the middle class and a greater accessibility of music. 1844 saw the opening of the first music store in the country. The store opened in Toronto, and this made music available in a direct-to-consumer model.[6] People no longer had to order music directly from the company in Europe. All a person had to do now was go to a store and buy what was popular. This wave also saw a rise in the affordability of pianos as well as music education. Music classes started appearing in compulsory education and middle class families could now afford to send their children to music lessons. Conservatories and philharmonics/orchestras started popping up across Canada. This was prompted and supported through confederacy and the rise in train travel.

The third wave begins around 1900 and goes to about 1940. This wave saw the introduction of music at home. 1904 saw the rise of the Columbia Phonograph Company in Canada, and five years later in 1909 Berliner Gram-o-phone Company started producing and selling gramophones in the country. People no longer had to leave their houses if they wanted to listen to music. This idea was further established through the introduction of the first electric record player hitting the markets in 1926. The Great Depression did temporarily hinder people’s ability to listen to these new technologies as they were often costly and only those very wealthy could afford to buy these record players. Instead, people had to venture back out to cafes and bars where jukeboxes became a permanent and popular fixture.[7] Sales of gramophones, record players, and records did make a recovery after the World War II, with the introduction of vinyl disks and smaller players.

World War I brought forth a wave of new technologies. One such technology was the radio. 1920 saw the introduction of Montreal’s XWA (now CFCF), the first radio programme station in the country.  Three years later Canadian National Railway (CNR) developed a cross country network of radio stations for people onboard their trains. CNR Radio inaugurated many programs later adopted by Canadian Broadcasting Corporation (CBC) most famously Hockey Night in Canada.[8] CNR radio’s network model was the inspiration for cross country radio stations.[9]  In 1928 about 52,500 radio sets were sold in Canada, and despite the Great Depression hitting Canadian’s bank accounts, the number of radios sold by 1931 had jumped to 173,200.[10] 1936 also saw the formation of the CBC.

This third wave of music in Canada also saw the beginning of royalties for Canadian musicians. In 1925 the Canadian Preforming Rights Society (CPRS) -now known as SOCAN- was formed, and was granted the authority under the Copywrite Act to licence and copywrite members music, allowing musicians to collect royalties from radio networks, advertisement firms, and television networks who included music in their movie/TV shows.[11]   

The last wave of music in Canada that will be covered in this paper is from 1940 to 2000. This wave saw widespread growth in the Canadian music industry both in regard to new music/artists but also technologies. This era also saw a focus on the idea of “Canadian identity” and how the government and other industries could project this identity abroad. This was done through the introduction of the Massey Commission and the subsequent report in 1949. Additionally, the CRTC was created in 1968 after the ratification of the Broadcasting Act. This helped pave the way for long-term growth, and legitimized Canadian artists and content both domestically and internationally. This was especially relevant as the decade between 1950 – 1960 saw the rapid expansion of American cultural markets and Canada’s attempt to stay relevant. This wave also saw the national recognition of Canadian musicians in the form of the Gold Leaf Awards (now known as the Juno Awards) in 1964 and the Canadian Country Music Awards in 1976. Despite the growth and the attempted facilitation of Canadian music by the government and other agencies many successful artists felt pressured to move to America and look south when it came to establishing a long lasting career.

World War II was a rough period for the Canadian music industry, but the period after and the emergence of Canadian record labels, and Canadian artists abroad helped recover the industry and take it further than before. This wave saw the emergence of new technologies like cassette tapes, Walkmans, and other Japanese imported electronics that made listening to music affordable, and transportable. This became especially prevalent in the 1990’s and the creation of CDs, which were cheaper to manufacture and purchase.  

The need for these protectionist policies is rooted in the want and need to “protect the Canadian identity,” but many question its existence and what makes up the Canadian identity. Historica Canada, a partially government funded organization, is tasked with teaching people about Canada’s languages, history, culture, and identity. Its definition and discussion of “what is the Canadian identity” clocks in at about 2200 words and covers everything from Canada’s history, language, Indigenous populations, French Canada, multiculturalism, and the Canadian Charter of Rights and Freedoms.[12] In a 2003 report by the Centre for Research and Information on Canada, A New Canada: An Identity Shaped by Diversity, polled Canadians on what they were proud of and asked what they saw as being the Canadian identity. People said that they were proud and identified Canadian culture through its diversity and multiculturalism.[13] 71% of participants said, “the fact that people from different cultural groups in Canada get along and live in peace,” 62% said they were proud of the Canadian Charter of Rights and Freedoms, and 54% said that they were proud of Canada’s diversity.[14] The study also gave anecdotes about Canada that people had to rank on a scale of 0 to 10 on whether or not they identified or were proud with the statement. Some of the highest rated statements were “the vastness and beauty of the land” (88% very proud), “when the United Nations ranks Canada as the best country in the world in which to live” (82% very proud), and “Canada’s participation in peacekeeping activities around the world” (70% very proud). Some other statements worth noting are “Canadian Olympic hockey team victories” (63% very proud) and “the success of Canadian musicians or actors or artists” (53% very proud).[15]

If Canadians identify with diversity and multiculturalism than that is what these protectionist policies are trying to preserve, right? Not necessarily, despite Canada being a diverse country, the Canadian music scene is not overly diverse, both in regard to gender equality[16] and racial equality.[17] A study is currently being conduced by Music Canada to research equity, diversity and inclusion in Canada’s music industry. The study is still in the survey stage and there is not information available yet, but the goal of the study is to “identify diversity and inclusion gaps within the music industry and gain a deeper understanding of the challenges and barriers to success of diverse artists, creators and music professionals in the Canadian music industry.[18]”

On 8 April 1949, under the appointment of Prime Minister Louis St-Laurent, the Massy report was set out to look at the status of arts, letters, and science in the country. To determine what had to be improved, the commission led by Vincent Massey held 114 public meetings across the country and heard from about 1,200 witnesses.[19] The commission reported that Canada’s “vast distances, a scattered population, our youth as a nation, [and] easy dependence on a huge and generous neighbour” challenged Canadian culture and cultural products.[20] The report warned that Canada’s culture was in an anaemic state, and that “[i]f modern nations were marshalled in the order of the importance which they assign to those things with which this inquiry is concerned, Canada would be found far from the vanguard; she would even be near the end of the procession.[21]” The report concluded by saying that Canada faced “influences from across the border as pervasive as they are friendly,” further warning that “the very present danger of permanent dependence [on American culture].[22]” The reports recommended increased government funding to universities, building a national art gallery, the creation of The National Library of Canada (now Library and Archives Canada), and the establishment of  a “Canada Council for the Encouragement of the Arts, Letters, Humanities and Social Sciences.[23]” The government at the time was happy to give more money to universities but was very skeptical about the creation of a council. Then Prime Minister St-Laurent was worried about the political image and fallout on making decisions strictly based on culture, allegedly being quite spiteful about “funding ballet dancers.[24]” It was not until 1957 that the government under St-Laurent created the Canadian Council for the Arts to “foster and promote the study and enjoyment of, and the production of works in, the arts.” The council was charged with giving scholarships to universities for those wanting to pursues the arts in addition to promoting Canadian music, drama and ballet by underwriting tours, commissioning music for events of national importance and establishing awards for promising young artists.[25]

The CRTC, under the powers of the aforementioned Broadcasting Act, use a variety of policies to keep Canadian music competitive in domestic markets and to keep and maintain the Canadian identity and culture. This is done through the facilitation of Canadian Content or CANCON. In order for a musician, band, or musical group to be considered CANCON, their music/songs must meet 2 of 4 actions in the MAPL system. The CRTC defines the MAPL system as:[26]

Music – The music must be preformed entirely by a Canadian  

Artist – The music, and/or lyrics are preformed principally by a Canadian

Performance – The musical selection consists of a performance that is: preformed wholly in Canada or recorded wholly in Canada and broadcasted live in Canada.

Lyrics – The lyrics are written entirely by a Canadian.

There are four special cases that can also qualify a piece of music as Canadian content but the one that will be covered in this paper is a piece of music preformed live or recorded after September 1, 1991, that

“In addition to meeting the criterion for either artist or production, a Canadian who has collaborated with a non-Canadian receives at least half of the credit for both music and lyrics – according to the records of a recognized performing rights society, such as SOCAN (Canada) or Broadcast Music Inc. (BMI), American Society of Composers, Authors and Publishers (ASCAP) and SESAC (United States)[27]”

This was to accommodate Canadian singer Bryan Adams’ album Waking Up the Neighbours. It did not qualify as CANCON despite every song being co-written and sung by Adams. To add insult to injury many non-Canadians were producing music that was being considered CANCON at the time. This included Nazareth’s (Scottish) cover of Joni Mitchell’s (Canadian) “This Flight Tonight,” Bonnie Raitt’s (American) cover of Shirley Eikhard’s (Canadian) song “Something to Talk About,” and Rod Stewart’s (British) cover of Marc Jordan’s (Canadian) “Rhythm of My Heart.”[28] The MAPL system is used as a quota system requiring licenced radio broadcasters to play 40% CANCON between 6am – 6pm.  

The other two policies used by the CRTC that will be covered in this paper are tax breaks and subsidies. Tax breaks and subsidies are given to individual artists or companies that produce, or help produce CANCON. Additionally, companies are also given subsidies to advertise CANCON in international markets to help promote Canadian musicians abroad. This year (2021) the federal government committed about 70 million dollars to the Canadian Music Fund, the Foundation Assisting Canadian Talent on Recording, and Fondation Musicaction (Quebec/Francophone market).[29] The amount of money given to these organization was higher than previous years allowing these foundations to help revive the music industry after COVID-19 and as the Canadian Heritage Minister Steven Guilbeault said,

“To ensure that our favourite songs will soon be heard again out loud, and that our stories will travel again across this great country and abroad, our government is immediately making available the necessary funds to revive music performances. The resilience of Canadian arts and culture communities is tremendous, and it is our duty to support it.”

The government plays a major role in funding the arts in Canada. This happens on both a provincial and federal level, with various levels of government committing money to the industry, both during and before the COVID-19 pandemic. The 2021 federal budget has the federal government committing $1.9 billion to help support the arts, culture, heritage, and sport

 sectors.[30]

            In 2019 (preCOVID-19) Canadian independent music contributed about $601 million dollars to Canada’s GDP.[31]  The province of Ontario has the largest contribution to the countries music industry. In 2018 it generated $384.2 million in provincial GDP. This was up 4.2% from 2017.[32] Despite COVID-19 Canadian recording revenues grew in 2020 by 8.1% almost a full percentage higher than growth observed in America.[33] Canada was the 8^th largest music market in the world in 2020 according to IFPI Global Music Report. That report said the top selling single of last year was The Weeknd’s song “Blinding Light” which is considered CANCON. The Weeknd’s album After Hours was also the second highest selling, all format, album in 2020. It is also worth noting that out of the top ten best selling artists of 2020, three of them were Canadian (Drake, Justin Bieber, and The Weeknd), although not all of their songs/albums qualify as CANCON.

            Its hard to say that all the success of the Canadian music industry can be directly drawn back to these policies, but they did play a major role in legitimizing and popularizing Canadian music. Before the implementation of the quota system Canadian music was seen as being an inferior product compared to American and British music. This notion continued until the 1970s and the popularization of top 40 AM radio stations. During this time Canadian music was being played alongside foreign, more popular music, and people were unable to distinguish the difference between what was Canadian and what was not. This helped Canadian artists gain a foothold in the domestic market and helped present their music on a national level. This was aided further when radio stations transitioned from the AM dial to FM. This transition saw the creation of more niche and genre stations, further aiding in the integration of Canadian music. Without the CRTC’s quota system this would not have happened. Playing Canadian music on the radio also made it more accessible to people outside of “music hubs” like Toronto, Montreal, and later Vancouver.

            Despite all the good things these regulations have done, there are many opponents and some downsides to them. The first is, as previously mentioned, the idea that many Canadian artists are producing music not considered CANCON. As once a Canadian artist makes it big in international markets, and the more popular they get, the harder it is for them to comply with the MAPL and CANCON systems. Another complaint is that the quota system does not help new and emerging artists, but rather supports and props up the same handful of already successful ones.[34] Another issue with the current regulations is that they are out-of-date and not compatible or equipped to handle online music streaming. Radio and physical record sales are dying[35] and the majority of people domestically and internationally get their music from streaming services. The Broadcasting Act is currently being reviewed by the House of Commons (under Bill C-10), with amendments being proposed to include digital streaming services like Spotify and YouTube.

            Whether or not people like the CRTC, the quota system, or cultural protectionist policies, it is hard to deny its longevity and prevalence in Canadian culture. Despite the lack of a unanimous and cohesive concept of what Canadian culture is, there is still something enduring about a Canadian song or artist making it big internationally. It is also hard to deny the impact of CANCON internationally and the growing presence of Canadian artists abroad and it will be interesting to see CANCON grow in the future.

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[1] “Programming Made by Canadians: Understanding Industry Responsibilities,” Canadian Radio-television and Telecommunications Commission (CRTC) (Government of Canada, June 15, 2016), https://crtc.gc.ca/eng/cancon/c_system.htm.

[2] Andrew M. Carlson, “The Country Music Television Dispute: An Illustration of the Tensions between Canadian Cultural Protectionism and American Entertainment Exports,” Minnesota Journal of International Law, 1997, https://scholarship.law.umn.edu/mjil/105/.

[3] Ibid

[4] “IFPI Global Music Report 2021,” IFPI GLOBAL MUSIC REPORT 2021, 2021, https://gmr2021.ifpi.org/.

[5] Andrew M. Carlson, “The Country Music Television Dispute: An Illustration of the Tensions between Canadian Cultural Protectionism and American Entertainment Exports,” Minnesota Journal of International Law, 1997, https://scholarship.law.umn.edu/mjil/105/.

[6] Helmut Kallmann, “Music History,” The Canadian Encyclopedia ( Historica Canada, March 4, 2015), https://www.thecanadianencyclopedia.ca/en/article/music-history.

[7] “Virtual Gramophone: Canadian Historical Sound Recordings,” Library and Archives Canada, November 4, 2020, https://www.bac-lac.gc.ca/eng/discover/films-videos-sound-recordings/virtual-gramophone/Pages/virtual-gramophone.aspx.

[8] Albert Tucker, “Canadian National Railway (CN),” The Canadian Encyclopedia (Historica Canada, October 24, 2017), https://www.thecanadianencyclopedia.ca/en/article/canadian-national-railways.

[9] “Early Commercial Radio Broadcasting in Canada, 1918-1932 National Historic Event,” Early Commercial Radio Broadcasting in Canada, 1918-1932 National Historic Event – History and culture (Government of Canada Parks Canada Agency, November 10, 2021), https://www.pc.gc.ca/en/culture/clmhc-hsmbc/res/information-backgrounder/diffusion-radio-broadcasting.

[10] Ibid.

[11] Chris Hibbard, “A Brief History of Canadian Music,” The Lethbridge Alberta Beat: Arts and Entertainment Magazine, July 2, 2010, http://www.labeat.ca/index.php?option=com_content&view=article&id=738%3Aa-brief-history-of-canadian-music&catid=74%3Athe-world-as-we-know-it&Itemid=64.

[12] Historica Canada does much of its education through “The Canadian Encyclopedia” its in house encyclopedia edited and written historians, educators, researchers, and organizations to provide accurate information about Canada. They define the Canadian Identity through two sections of their website “Canadian Identity and Language” and “Canadian Identity.”     

Charles Blattberg, “Canadian Identity and Language,” The Canadian Encyclopedia (Historica Canada, December 23, 19AD), https://thecanadianencyclopedia.ca/en/article/canadian-identity-and-language.

Charles Blattberg, “Canadian Identity,” The Canadian Encyclopedia (Historica Canada, December 4, 2019), https://www.thecanadianencyclopedia.ca/en/article/canadian-identity.

[13] Andrew Parkin and Matthew Medelsohn, “A New Canada: An Identity Shaped by Diversity,” Carleton University Libary (Centre for Research and Information on Canada, October 2003), https://library.carleton.ca/sites/default/files/find/data/surveys/pdf_files/cric-gmnc-03-not_000.pdf.

[14] Ibid, 10

[15] Ibid, 11

[16] David Friend, “Canada’s Music Industry Still Trying to Understand Equal Representation,” Toronto (CTV News, May 17, 2018), https://toronto.ctvnews.ca/canada-s-music-industry-still-trying-to-understand-equal-representation-1.3934930.

[17] Jon Hernandez and Bal Brach, “Does Canada’s Music Scene Lack Diversity? | CBC News,” CBCnews (CBC/Radio Canada, August 27, 2016), https://www.cbc.ca/news/canada/british-columbia/does-canada-s-music-scene-lack-diversity-musicians-and-industry-weigh-in-1.3735825.

[18] “Music Canada Launches Research Study on Equity, Diversity and Inclusion in Canada’s Music Industry, in Collaboration with Ryerson’s Diversity Institute,” Music Canada, May 17, 2021, https://musiccanada.com/news/music-canada-launches-research-study-on-equity-diversity-and-inclusion-in-canadas-music-industry-in-collaboration-with-ryersons-diversity-institute/.

[19] J.D.M. Stewart and Kallmann Helmut, “Massey Commission,” The Canadian Encyclopedia (Historica Canada, November 12, 2019), https://www.thecanadianencyclopedia.ca/en/article/massey-commission-emc#.

[20] Ibid.

[21] Ibid.

[22] Ibid.

[23] J.D.M. Stewart and Kallmann Helmut, “Massey Commission,” The Canadian Encyclopedia (Historica Canada, November 12, 2019), https://www.thecanadianencyclopedia.ca/en/article/massey-commission-emc#.

[24] Ibid.

[25] Ibid.

[26] “The MAPL System – Defining a Canadian Song,” Canadian Radio-television and Telecommunications Commission (CRTC) (Government of Canada, August 10, 2009), https://crtc.gc.ca/eng/info_sht/r1.htm.

[27] “The MAPL System – Defining a Canadian Song,” Canadian Radio-television and Telecommunications Commission (CRTC) (Government of Canada, August 10, 2009), https://crtc.gc.ca/eng/info_sht/r1.htm.

[28] Andrew Fleming, “Archives: Bryan Adams Takes on the CRTC,” Vancouver Is Awesome, January 13, 2015, https://www.vancouverisawesome.com/courier-archive/news/archives-bryan-adams-takes-on-the-crtc-2991999.

[29] Canadian Heritage, “Government of Canada Investments of $70 Million to Support Canada’s Artists and Live Music Sector,” Canada.ca (Government of Canada, August 6, 2021), https://www.canada.ca/en/canadian-heritage/news/2021/08/government-of-canada-investments-of-70-million-to-support-canadas-artists-and-live-music-sector.html.

[30] Canadian Heritage, “Government of Canada Investments of $70 Million to Support Canada’s Artists and Live Music Sector,” Canada.ca (Government of Canada, August 6, 2021), https://www.canada.ca/en/canadian-heritage/news/2021/08/government-of-canada-investments-of-70-million-to-support-canadas-artists-and-live-music-sector.html.

[31] “The Impact of Covid-19 on Canadian Independent Music,” Canadian Independent Music Association, December 7, 2020, https://cimamusic.ca/uploads/ck/files/cima_impact_of_covid_on_indie_music_final_2020_12_07.pdf.

[32] “Industry Profile – Music,” Ontario Creates, 2021, https://ontariocreates.ca/research/industry-profile/ip-music#footnote-27.

[33] “IFPI Global Music Report 2021,” International Federation of the Phonographic Industry, 2021, https://www.ifpi.org/wp-content/uploads/2020/03/GMR2021_STATE_OF_THE_INDUSTRY.pdf.

[34] “Broadcasting Notice of Consultation CRTC 2020-374,” Canadian Radio-television and Telecommunications Commission (CRTC) / Government of Canada (Intervention of the Canadian Association of Broadcasters, July 9, 2021), https://crtc.gc.ca/eng/archive/2020/2020-374.htm.

[35] “IFPI Global Music Report 2021,” International Federation of the Phonographic Industry, 2021, https://www.ifpi.org/wp-content/uploads/2020/03/GMR2021_STATE_OF_THE_INDUSTRY.pdf.