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BILLBOARD CANADA FYI
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Barry Roden
Erin Benjamin, CLMA President & CEO
Touring
Canadian Live Music Association Releases The First-Ever Economic Impact Assessment of Live Music in Canada
Hear and Now by the CLMA emphasizes the industry as a key contributor to the Canadian economy, with $10.92 billion in GDP impact. But, at the same time, the industry is facing some major challenges.
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A new report by the Canadian Live Music Association (CLMA) reveals that live music contributes billions to the Canadian economy.
That's $10.92 billion in GDP during 2023 alone to be precise Hear and Now: Understanding the economic power and potential of Canada's live music industry is the first-ever economic impact assessment of Canada’s live music industry, identifying the significance of live music in Canada at the same time as it emphasizes major challenges.
The study, which is led by research firm Nordicity and commissioned by the CLMA, notes that these numbers have been achieved largely without a dedicated policy fiscal framework incentivizing live music. "$10.92B in combined impact from live music and tourism spending… without trying."
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Live music in Canada also produced $3.73 billion in tax dollars and generated more than 101,640 jobs, contributing $5.84 billion in labour income, the report finds.
Erin Benjamin, CLMA President & CEO, emphasizes that these numbers show the importance of supporting music venues.
"More live music activity — an increase in live music activity at every rung of the venue ladder — will mean more folks spending their income in that space. It generates the tax revenue, it generates the labour income," she told Billboard Canada at a press launch for the study at Allied Music Centre in Toronto today (Jan. 30). "Live music is the vehicle that stimulates that kind of economic activity."
The study's authors compare those numbers to other industries that receive a lot more national conversation, like Canada's fisheries, which generate 32,500 jobs and contributes approximately $2.6 billion to GDP, and the automotive industry, generating approximately 125,000 direct jobs and contributing approximately $14 billion to GDP.
The study identifies major strengths in Canada's live music industry, highlighting adaptability — as demonstrated during the COVID-19 pandemic — a strong sense of community, and a healthy ecosystem of organizations supporting professional development.
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Live music also contributes significantly to city building and placemaking, increasing quality of life for residents beyond industry members. The report spotlights Hamilton and Montreal as two cities where music activity has been a boon to the city culture.
When Canada's music industry thrives, it's thanks to a diversity of genres and talent, the report notes. According to results from an industry survey conducted for the report, more than half of music company owners and leaders surveyed identify as women. Roughly a third of company owners and leaders identify as members of the 2SLGBTQ+ community.
Those numbers are not always as strong for IBPOC industry members (Indigenous, Black, People of Colour) the study finds, who are more frequently represented in artist roles, but often under-represented when it comes to business ownership and entrepreneurship.
The study also finds that IBPOC industry members are more likely to hold additional jobs outside the live music industry. Those findings build on the recent report by ADVANCE, which identified a lack of funding and mentorship for Black industry members as a key barrier in the industry.
Music Venue Shortages & Income Challenges
Though the Canadian live industry is a big part of the country's economy, it faces serious challenges.
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Hear and Now highlights that global live music events in 2024 didn't live up to projected performances, including at major North American festivals like Coachella.
"Cancelled tours and festivals due to lower ticket sales, rising costs, and environmental impacts has led to overall industry decline," authors write, "high prices for top acts are exhausting fan budgets leaving less for mid-range artists." Audiences are becoming more choosy about which events to attend, buying single-day festival tickets instead of full passes and devoting budgets to big-ticket artists.
In Canada, venues are closing down. Toronto saw roughly 15% of venues close permanently during 2020-2021 alone. A venue shortage especially impacts emerging artists, who need a venue ladder — a scale of increasingly-large venues they can work up to — as they grow their career. "The critical shortage of small and mid-sized venues restricts access to local live music," the report states.
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Benjamin tells Billboard Canada that on a policy level, she would love to see more support for the sustainability and growth of small venues. "The first few rungs on the venue ladder are the most vulnerable. We want to make sure we're not losing our incubator spaces and our discovery spaces." She mentions CLMA's pilot initiative with FACTOR Canada, the Promoters Program, which supports companies presenting live music in Canada. She hopes to see the program made permanent.
Musicians and industry members are also facing increasingly tough conditions when it comes to making a living. The report estimates that in 2023, the average salary for a full-time employee in the Canadian live music industry was around $31,000 — putting music industry workers below the poverty line. 52% of respondents to CLMA's survey selected "professional wages" as a top challenge.
The report notes that while just over half of music companies in Canada expect to see growth in 2024 year-end revenues, that isn't translating into expanded hiring practices or operations. Any extra revenues are likely going towards pricey operational costs.
Artists, meanwhile, are receiving the smallest piece of the pie when it comes to live music revenue. Just 1% of revenues go towards talent, while venues and festivals take in 71%. As cost of living skyrockets in key music markets like Toronto and Vancouver, professionals face the tough decision of whether to stay in the industry, while emerging artists never get their start.
Other challenges in the report include environmental sustainability concerns as well as digital shifts and the rise of AI. Hear and Now issues nine calls to action, ranging from improving compensation and working conditions, to supporting risk-taking and innovative business models and promotional strategies, to addressing systemic barriers facing marginalized communities.
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The number one call to action, though, is to protect venues — "the lifeline of the industry."
"When we can make sure that our venues are able to take risks on emerging artists and present discovery acts," Benjamin says, "it ultimately pays it all forward."
More Significant Statistics
- Canada is home to more than 3,750 (and counting) venues, music festivals and events, promoters, rehearsal spaces, managers and agents, live music production companies, equipment rental companies, support organizations, cultural festivals, showcases, and award shows
- Canada sees roughly 50 shows per day across the country
- Live music venues in Canada have an estimated average maximum capacity of 238 people for seated shows, and 252 for standing shows
- Live music shows have an average fill rate of approximately 64%
- Considering the venue capacities cited above, the average seated live music show in Canada attracts an estimated 152 attendees, and the average standing show approximately 160 attendees
- Nearly half (47%) of festivals, events, and award shows hosted less than 10,000 people in 2023, and more than one-third (35%) hosted between 10,000 and 50,000.
- Live music operations contributed approximately 3.3% of Canada’s culture and sport GDP impact
- Music tourism spending has an estimated total GDP impact of $8.92 billion
- 54% of companies, organizations, and artists relied on public grants to subsidize at least part of their revenue in 2023
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