In Canada: Battle Over Streaming Tax Heats Up as Music Canada Enters the Ring

Music Canada has applied to intervene in a key Canadian music policy battle.

The organization, which advocates for the major labels in Canada, is seeking leave to intervene in the legal challenge over the Canadian Radio-television and Telecommunications Commission’s (CRTC’s) 2024 decision that major streaming services must pay into Canadian content funds as part of the implementation of the Online Streaming Act.

The mandate specifies that foreign-owned services with more than $25 million in annual revenue contribute 5% of that revenue to funding bodies like FACTOR and Musicaction and an in-development Indigenous Music Fund.

That decision has become a major battle in the Canadian music industry. Organizations like the Canadian Independent Music Association (CIMA) and the Indigenous Music Office have welcomed it. Others, like the Digital Media Association (DIMA), which represents the major streamers, have been fiercely critical of what they call the “streaming tax.”

In December, the Federal Court of Appeal paused the mandated payments until an appeal of the decision is heard this year.

Now, Music Canada is wading into the legal challenge, aiming to speak to what it calls the potential harms the regulation may cause to existing investments made by streaming companies in the country.

“Specifically, we are asking the court to consider music streaming services’ direct investments in Canada among qualifying contributions,” reads a statement from Music Canada. “We are concerned that the CRTC’s base contributions decision risks harming ongoing and direct investments in the Canadian music streaming market and Canadian and Indigenous artists.”

Music Canada points out that streaming services have dedicated teams in Canada, investing in programs and initiatives that support Canadian and Indigenous musicians.

“In setting the 5% levy, the CRTC did not take into account or recognize any of the investments made by music streaming services in Canada,” they write.

However, in a previous interview with Billboard Canada, CIMA president Andrew Cash argued that the investments streamers currently make aren’t comparable to the career development enabled by Canadian organizations like FACTOR and Musicaction.

“Over the last five years, FACTOR has supported over 6,500 artists across the country,” he said, pointing to artists like Charlotte Cardin and The Weeknd as just two musicians who received key early investment from FACTOR.

Music Canada also takes issue with the fact that a portion of the base contributions will be used for a news fund that isn’t specifically related to music. (Specifically, 1.5% of the 5% contributions are mandated for “a new temporary fund supporting local news production by commercial radio stations outside of the designated markets.”)

“While support for news is a laudable goal, it should not come at the expense of artists who are already trying to compete in a highly competitive, global music marketplace,” Music Canada’s statement reads.

Read more here. – Rosie Long Decter

More Than 150 Canadian Musicians Sign Open Letter Against Conservative Leader Pierre Poilievre Ahead of Canadian Election

Canadian musicians are making their election choices known.

More than 150 musicians have signed a new letter from Music Votes Canada that aims to stop conservative leader Pierre Poilievre from winning the federal election on Monday (April 28).

“An Open Letter to Canadians: Why We Must Stop Pierre Poilievre from Becoming Prime Minister” features major signatories like Allison Russell, Dan Mangan, Raffi, Torquil Campbell (Stars), Haley Blais, Charlotte Cornfield and Damian Abraham (F—ed Up).

Also signing on was The Weather Station, who last week, upon returning home from a tour through the U.S., published an impassioned plea for Canadians to stay engaged in the election.

“Music comes from a place of deep love, and as musicians, we want to use the power of music to help bring our country together in this time of poly crises,” the letter reads.

Canadians are at a crossroads, the letter continued, stating that the “federal election on April 28th is possibly the most important in our country’s history.” It goes on to argue that Poilievre’s platform runs counter to “Canada’s core values” such as public services, climate action and inclusive democracy.

“His agenda echoes Donald Trump’s playbook: sowing division, empowering the wealthy, and weakening institutions that unite us,” it reads.

The letter highlights several parts of the Conservative campaign that are particularly concerning for musicians: Poilievre’s threats to public broadcaster CBC; his commitments to expanding fossil fuel production amidst the climate crisis; and rhetoric that is “fostering division instead of unity” when it comes to marginalized communities.

The letter calls for leaders to ensure that every Canadian has a safe, affordable home; to tackle the climate crisis; to tax corporate profits; and to support arts and culture in Canada through a 1% commitment of the federal budget to the arts.

Outside of its anti-Poilievre position, Music Votes Canada doesn’t explicitly endorse any particular party or candidate in the letter. Instead, it concludes by calling on voters to support candidates who are best positioned to defeat the Conservative Party, endorsing resources such as Cooperate for Canada and Lead Now, which provide candidate and riding guides.

One major Canadian star has come out with a strong endorsement of a specific candidate: Neil Young, who is putting his support behind Prime Minister Mark Carney’s Liberals in a letter titled “I’m With You, Mr. Carney.”

Though Young now has dual citizenship with the U.S>, as he writes on his website, “I am a Canadian and always will be.” He goes on to reminisce about his childhood in Ontario and Manitoba and express gratitude for the platform he has built to speak truth to power.

“Canada is facing threats to its very existence, incredibly from people we thought were our friends,” Young writes. “They want our resources, they want our land, they want our fisheries, they want our water, they want our Arctic, maybe they want our souls. I know the U.S. president could use a soul.”

Addressing Carney directly, he writes, “I believe you are the person our country needs to lead us through this crazy situation and bring us out the other side as a stronger, smarter, more resilient Canada, our core values of caring and fairness and generosity intact, along with our souls.”

Read more here. – RLD

Nigerian Music Executives Ikenna Nwagboso and Camillo Doregos Launch Hi-Way 89 Entertainment in Canada

There’s a new music company bridging Canada and Africa.

Hi-Way 89 Entertainment is a new Canadian music company headquartered between Toronto and Calgary, founded by two Nigerian-Canadian music executives — Ikenna Nwagboso and Camillo Doregos — who both have deep experience in breaking African artists on the international stage.

The new company will focus on providing artist development and label services, concentrating on artists from both Canada and Africa. Its first signing is Canadian pop/R&B singer Chrissy Spratt, who on Friday (April 25) released a new single on the label, “In Too Deep,” with distribution through Vydia/gamma.

“We are a Canadian company and, with the tremendous success we’ve had exporting African music globally, we want to do the same thing in Canada, working with Canadian artists and showing the world the gem that is Canada, and the amount of talent here,” Nwagboso said in a statement. “We understand what it takes to develop global superstars and we have the knowledge, access, resources, contacts, and partnerships to make that happen.”

Nwagboso and Doregos are now based in Toronto and Calgary, respectively. Nwagboso previously co-founded African music company emPawa Africa in 2018, serving as global head of label services and partnerships before stepping down in January. In that role, he oversaw the signing and development of artists including GuiltyBeatz, Joeboy, Fave, King Promise, Minz, Xenia Manasseh, Nandy, Tekno and Nezsa.

Nwagboso also led emPawa Africa’s flagship initiatives: the emPawa 100 and emPawa 30 campaigns, which developed 130 emerging artists from across the continent. Nwagboso is also a co-founder of Exodus Music Group, home to artists Geo Baddoo (U.K.), Nezsa (Canada/Nigeria) and Zubi (Nigeria).

Doregos, previously a manager for Mr Eazi, is the founder of DC Talent Agency, the management company behind Nigerian music stars Pheelz and Kah-Lo and South African amapiano duo TxC. He also operates a booking agency, DC Talent Agency, that has secured festival appearances, live shows and brand deals for artists including Rema, Wizkid, Davido and Moliy.

Hi-Way 89 aims to “cast a wide net with our signings,” the company said, but the initial focus will be on acts from Canada and Africa. In addition to Spratt, the first round of signings includes Nigerian artist Siraheem and South African DJ Chelsea Sloan.

The new label has high hopes for Spratt. The Ottawa artist has made a major splash on Instagram and TikTok, with an audience now numbering more than 5.5 million followers between the two platforms. There, she has grabbed attention with covers of songs ranging from R&B to Latin, with her versions of Afrobeats hits like Kizz Daniel’s “Cough (Odo)” and Ckay’s “Love Nwantiti” especially connecting with listeners in Nigeria and earning endorsements from top Nigerian artists.

Spratt is now concentrating on original music, and Hi-Way 89 plans to release her debut EP this summer. “In Too Deep” was produced by Grammy Award winner Daramola (Danny Ocean, Kapo), while the EP will feature such collaborators as Nonso Amadi, Tems’ “Higher” producer Tejiri, and Canadian songwriting team Coleman Hell & La+ch. – Kerry Doole

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