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2012-2013 Annual Report

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2012-2013 Annual Report fondsradiostar.com 2012-2013 ANNUAL REPORT Noir et Pan 382U Noir et 30C 100Y SUMMARY 2 FINANCIAL PARTNERS 3 BOARD OF DIRECTORS FUND MANAGEMENT AND RADIO PARTNERS 4 PRESIDENT’S MESSAGE 5 FONDS RADIOStar Backgrounder Objectives 6 ABOUT THE PROGRAM 7 AWARDS 8 CERTIFICATIONS 9 FINANCIAL RESULTS Financial Resources Administration Fees Commitments Disbursements and Residual Balance of Funding Commitments Disbursements by Expenses 11 EVALUATION OF RESULTS Supporting New Artists Regional Allocations 2012-2013 Approved Projects Funding by Music Category 15 2012-2013 FINANCIAL STATEMENTS VERSION FRANÇAISE DISPONIBLE SUR WWW.FONDSRADIOSTAR.COM FINANCIAL PARTNERS Thanks to the 25 private broadcasters, in 2012-2013 FONDS RADIOSTAR has: Accompanied 71 projects from different 56 artists; Financially contributed to development of said artists careers to the amount of $2,212,012; Supported 37 Canadian businesses in their marketing efforts; Accompagnied 1 collective project. 2 | FONDS RADIOSTAR 2012-2013 ANNUAL REPORT BOARD OF DIRECTORS, FUND MANAGEMENT AND RADIO PARTNERS The Board of Directors is made up of 10 voting members and two observers. They consist of four broadcaster representatives appointed by The Canadian Association of Broadcasters (CAB), four industry representatives appointed by ADISQ and two individuals with knowledge of the Canadian recording industry. BOARD OF DIRECTORS President François Bissoondoyal Recordings Director, Spectra Musique Vice-President Martin Tremblay Operations and Programming Director, NRJ 94.3 and Rouge FM Bell Media Tresearer Sandy Boutin President, Simone Records Secretary Raymond Du Berger President, Disques Artic Director Philippe Archambault Communications Manager, Audiogram Director Guy Brouillard Music Director, CKOI Cogeco Director David Dufresne President, Bandzoogle Director Sylvain Langlois President, PineMedia Director Lilianne Randall Music Director, Réseau Rythme FM Cogeco Director Marilou Robert Assistant Content Director, NRJ 94.3 Bell Media Observer Solange Drouin Vice-President of Public Affairs and General Manager ADISQ Observer Pierre-Louis Smith Consultant Media Regulations FUND MANAGEMENT Executive Management Louise Chenail Controller Nicole Rouabah Program Director and Regulation Thomas Jolicoeur Coordinator Jacinthe Roy Communications Officer Martine Bourassa Project Manager Gwenaëlle Sartre Chief Analyst Jérôme Tremblay Analysts Doris Aguilar Philippe Berthiaume Independant Auditor Monique Beaulieu CPA, CGA PARTNERS Acadia Broadcasting Muskoka-Perry Sound Broadcasting Andy Mcnabb My Broadcasting Corporation Attraction Radio Mz Media Bell Media Newcap Cogeco Diffusion Northern Lights Entertainment Corus Entertainment Northwoods Broadcasting Evanov Communications Radio Diffusion Sorel-Tracy Golden West Broadcasting Radio Sept-Îles Groupe Stingray Digital RNC Media Harvard Broadcasting Rogers Broadcasting Jim Pattison Group Sonème Larche Communications Vista Radio Leclerc Communication 3 | FONDS RADIOSTAR 2012-2013 ANNUAL REPORT PRESIDENT’S MESSAGE Last August 31 marked the close of Fonds RadioStar’s 12th financial year. As always, we remained true to our fundamental purpose of supporting the music careers of Canada’s French-language artists. This year, this support manifested itself primarily through the funding of 71 album marketing projects, elevating the number of applications we’ve approved since inception to 672. We also supported the second phase of a collective initiative we started in 2012 aimed at providing our applicants, i.e. the record labels, a range of tools to help them enhance the strategies they employ to market French-language music albums. Strategies that must rely on innovation and creativity like never before to reach an increasingly fragmented consumership that obtains its music from a growing number of sources and is exposed to more and more musical products of unparalleled quality from all over the world. And it’s all because of the multiple ways in which we can reach our audience via the web, including the surge of advertising and transactional platforms we can tap into, not to mention the host of other advances being triggered by the latest technological developments. The relentless progress of digital tools, and especially their growing use by the public, means that simply having a presence on the web is no longer enough. You now have to be proactive and constantly interface with web users. Essentially, you have to be 100% interactive! Despite this proliferation and the web’s constant evolution, the results of our 12th financial year confirm that the recording industry is embracing 2.0 solutions in an effort to adapt their business models to the new realities of the marketplace. For one, on the basis of album sales according to musical category and overall career album sales, a record number of projects benefitted from funding this year since we revamped the program in 2007-2008 – a 37% increase over the combined average of the five previous years. Among these projects, including the budgets earmarked for image production, generally at the core of digital advertising strategies, overall web related funding reached an all-time high, accounting for over 26% of spending for approved projects. Web related funding was eclipsed only by live show funding, albeit marginally, which represented a larger slice of project expenses. Finally, during the course of current year we’ve just entered, the fund will be receiving significantly higher revenues from recent transactions in the radio broadcasting industry. These will not only assure us greater resources so we may continue to fulfill our primary mission for a longer period, but they will also make it possible to begin the process of rethinking and reevaluating our funding orientations right away — a process that will continue to honour the objective of ensuring that the tools developed and rolled out for the benefit of our applicants are always in lockstep with the pace of their needs as they evolve. As this is my first year at the helm of the Board, I would like to thank all the members and the entire fund management team for their passion and drive, and for their commitment to supporting the careers of our local artists, and by extension, the consolidation of our wonderful industry. François Bissoondoyal President 4 | FONDS RADIOSTAR 2012-2013 ANNUAL REPORT FONDS RADIOSTAR BACKGROUNDER In 1998, the CRTC authorized as part of its Policy on Commercial Radio (Public Notice CRTC 1998-41) the establishment of a new Canadian music marketing and promotion fund, toward which would be allocated 3% of the transaction value of radio broadcasting acquisitions. In November 2000, the CRTC approved a CAB and ADISQ joint proposal outlining the Fonds RadioStar’s terms and structure. In December 2006, the aforementioned allocation was renewed under the CRTC’s new Policy on Commercial Radio. The Fonds RadioStar began operating in August 2001, and it has since been supporting by way of financial assistance the marketing of French-language sound recordings in Canada. From the outset, the fund has been managed by the Fondation MUSICACTION, under the direction of the Fonds RadioStar Board of Directors. The fund’s program and rules, which are completely separate from those of MUSICACTION, are managed independently. OBJECTIVES • The purpose of the fund is to promote Canadian French-language music, referring requests for projects in a language other than French as well as instrumental music projects to the Radio Starmaker Fund. • The fund’s goal is to supply private radio broadcasters with quality, diversified French-language music. • Funding is reserved for national marketing endeavours, i.e. aimed at the Canadian market. • Designed primarily for emerging artists, the fund is intended “to advance the careers of Canada’s rising stars producing popular Canadian content.” • Funding is allocated to Canadian owned and controlled record labels, with the exception of Canadian artists residing outside Québec, who are entitled to receive funding directly. • Fonds RadioStar funding must constitute additional support, designed to complement existing funding from record labels as well as various public and private sources earmarked for the initial marketing phases. 5 | FONDS RADIOSTAR 2012-2013 ANNUAL REPORT ABOUT THE PROGRAM The main qualifying criterion of the Fonds is the achievement of a minimal Soundscan sales threshold. It is established according to the musical category and the number of albums in the artist’s career, the required threshold for a first album is less than it is for a second one. This criterion gives the insurance of a previous investment made by the applicant and of the real success potential of the project. The initial help is limited to $60,000 by project of which $10,000 is solely reserved for live shows. An access to an additional maximal amount of $20,000, of which $5,000 is for shows, is also given according to the reaching of sales threshold, enhanced for a second phase. In accordance to the support of emerging artists, those who have sold more than 300,000 copies in their career are not eligible. Also, the Fonds RadioStar being intended in priority for developing artists, the total given aid can not exceed $30,000 if the artist who is the object of the application has already obtained a platinum record (80,000 copies sold in Canada for an album) in his/her career. A Collective Promotion component was added in 2012 to support French-language music sectoral projects capable of benefitting the fund’s overall users.
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