The Ontario Media Development Corporation (OMDC) has issued a voluminous 109-page economic analysis of the music industry with seven well honed recommendations that for many in the industry will be music to their ears if approved.
The economic development agency of the Ontario government has, over the past three years, made a significant capital investment in initiatives designed to expand sectors supporting the marketing, distribution, performance and creation of music within and outside of the province. With a shifting economic tide, away from auto and parts manufacturing to so-called smart industries and IP-based technolgies, the OMDC commissioned the Nordicity Group in consultation with music content/consultancy firm Cuto and music marketing agency FRUKT to provide a forward thinking Strategic Study for the Music Industry in Ontario.
Addressing the obvious, such as declines in physical sales, the trend toward digital deliveries, the gap in ROI as CD sales spiral down and lower-margin digital single sales increase–the document outlines a number of significant initiatives deemed necessary to transcend today and create a fertile industrial base for tomorrow.
Among the strategic recommendations:
Recognition by the Ontario government that the music industry plays a significant role in the IP economy of tomorrow, and that formal recognition be administered through the creation of a set of substantive measures that will assist and develop the province’s music industry.
Digital innovation is a cornerstone of the new marketplace and that measures be put in place to facilitate the development of made-in-Canada digital delivery systems that must provide rights protection and transparency in remunerating content providers.
A re-evaluation of definitions and program requirements that codify success in physical units sold, and instead shift the marketing support to endeavors that pursue multi-platform delivery opportunities.
The creation of a forum to thrash out consensus on a package of copyright protection and copyright reforms that can have the Ontario government’s backing when presented to Heritage and Industry in Ottawa.
The development of a Music Export office, initially spearheaded by Ontario but ultimately cost-shared with the federal government.
The development of a consensus-built strategic relationship with the national broadcaster to advance strategic goals vis a vis airplay, the distribution of music played and or performed by the network and better branding in the presentation of Canadian/Ontario music by the broadcaster.
That the provincial government be part of and supportive in any formal request for renewal of the federal Canadian Music Fund initiative that is due to expire next year.
Working with the music industry to create a comprehensive package of assets and developing an easily understood message to sell private capital markets on the advantages of IP-based businesses.
Re-examination of the Ontario Sound Recording Tax credit, with attention paid to maximizing the efficiency of credits and removing obstacles when merging or licensing output to multi-national corporations or entities based outside of the province.
The creation of an “adaptive” system of personal tax credit relief for artists in all stages of their careers.
Assistance in the area of Human Resources to attract and retain skill sets, particularly those in the digital arena, and to create linkage with educational institutions in the province so as to provide a future workforce that has the background tools to feed market needs.
The creation of a “MusicTank” to facilitate, harness and develop digital initiatives and innovation in the multi-platform arenas, with executive education programs and cross-industry collaborative networks tied to the brain trust initiative.
Those wishing can download the complete report in a pdf format by linking to the OMDC and scrolling to A Strategic Study For the Music Industry in Ontario
