RADIO STARMAKER FUND #ANNUAL REPORT 2003–2004

ANNUAL REPORT

RADIO TABLE OF CONTENTS STARMAKER FUND

02. The Year in Review 03. Message from the Chair 04. Board of Directors and Staff | Mandate | 2003-2004 Overview 05. Application Evaluation | Applications Submitted vs. Applications Approved 06. Tracking Success | Grant Allocation by Type of Record Label 07. Grant Allocation by Genre 08. Funded Artists | Grant Allocation by Music Industry Association 09. Awards Won by Radio Starmaker Funded Artists | Sales Certifications 10. RSF Artist Radio Airplay 11. Allocation of Funding by Category | Grant Allocation by Province 12. Looking Ahead to 2005 13. – 17. Condensed Financial Statements 18. Appendix: Criteria for Qualifying

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ANNUAL REPORT

RADIO THE YEAR IN REVIEW STARMAKER FUND

In last year’s Radio Starmaker Fund annual report, we concluded by identifying three areas of priority for Fiscal 03/04. We are pleased to report significant progress in each:

• In regard to outreach, every region of the country has had a personal visit by Radio Starmaker Fund staff this year, and numerous meetings were held with artists, managers and labels at each visit. The music industry in regions outside of the major centers tends to be less developed, but a meaningful exchange of dialogue has ensured that even artists who do not currently qualify are aware of our core programme and know what is required as they build their careers. Furthermore, many artists from outlying regions have accessed RSF funds through our expanded funding initiatives, which have proven to not only be useful to our recipients, but a valuable component of our outreach strategy.

To ensure that our programme represents Canadian diversity, we created qualifying criteria for Canadian artists of aboriginal descent, and have had three approved applicants so far.

• We committed to developing policies in response to the increasing challenges facing the music industry. Recognising the importance of international markets, the RSF now supports international touring and showcasing, and some international marketing initiatives. We have lowered the criteria for jazz, classical, blues and urban music, and extended support to DVD projects, reflecting the new realities in the music industry.

• We have completed four audits of artist grant files. As expected, these audits revealed no problems; instead, they confirm that the RSF is well on track with its policies and procedures, and that our recipients have a clear understanding of the importance of detailed and accurate reporting. RADIO STARMAKER FUND 25 ADELAIDE STREET EAST, SUITE 1300, TORONTO, ONTARIO M5C 3A1 PHONE. 416.597.6622 FAX.416.597.2760 TOLL FREE 1.888.256.2211 WWW.RADIOSTARMAKERFUND.COM

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ANNUAL REPORT

RADIO MESSAGE FROM THE CHAIR STARMAKER FUND

As we conclude the Fiscal to be part of Canadian music industry support artists through music industry 03/04 year of the Radio success stories. Every year, we make associations, granting $232,500.00. Starmaker Fund, we operating improvements to our fund, And, of course, we continue to deliver complete yet another while never losing sight of our man- an exemplary level of financial rigour year in which the indus- date: to be driven by the needs of in all of our initiatives, confirmed in try we serve experienced artists, and to make a discernable dif- audit after audit. massive upheaval, but ference in the success of their careers. there are some glimmers The Radio Starmaker Fund is an excit- at the end of the tunnel. This year we have embarked on a new ing, effective and accountable initia- initiative to support artists for both tive that continues to demonstrate the In Canada, the aggregate downturn in touring and international marketing, valuable work that can be accom- sales over the past few years has not and this will continue to be a focus for plished when broadcasters and the discouraged innovative music entre- us in 2004/05. Our Board has recog- music industry work together. We are preneurs from starting a number of nised that Artists need direct support proud of our work, and are committed new independent labels, designed to to seek new audiences in foreign terri- to ensuring that we continue to deliv- challenge old business models and tories if they are going to succeed in er ongoing success in the coming year. exploit opportunities from creative their careers. We are pleased to pro- new models of their own making. vide some of this support. Canadian artists continue to take their place on world stages in every genre, Within our core funding programme, valued for their originality, creativity, we have awarded $2,733,835.07, to professionalism, and success. 49 artists, in all genres, from coast to Chuck McCoy coast. Furthermore, we have expanded Executive Chair, At the RSF, we are once again thrilled our highly successful programme to Radio Starmaker Fund

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ANNUAL REPORT

BOARD OF DIRECTORS AND STAFF RADIO MANDATE | 2003–2004 OVERVIEW STARMAKER FUND

For the period from September 1st, 2003 to August 31st, 2004, MANDATE the Radio Starmaker Fund board of directors was comprised of: The mandate of the Radio Starmaker Fund is to make a substantial and discernable difference to the CHAIR Rob Farina careers of Canadian musical recording artists through artist driven marketing assistance, and to support the Programme Director, Chuck McCoy Canadian independent music infrastructure. Vice President & General Manager, CHUM Limited Rogers Broadcasting Limited Jian Ghomeshi Created by the Canadian Radio-television and Telecommunications Commission’s Radio Policy Review VICE-CHAIR President, of 1998, the Radio Starmaker Fund has completed its third full year of operation. Alexander Mair Wonderboy Entertainment Inc. President, French language artists are supported by Fonds RadioStar, although Radio Starmaker Fund supports Bob Harris MHL Communications Operations Manager Montreal, non-French language and instrumental projects originating from Quebec. TREASURER Standard Radio Inc. Lisa Zbitnew Sander Shalinsky 2003-2004 OVERVIEW: President, Barrister and Solicitor, BMG Canada Inc. I Sheppard Shalinsky Brown Committed $2,733,835.07 to 49 Canadian artists through our core programme SECRETARY Dean Sinclair I Assisted 106 artists to attend industry events in a number of regions through our support to Lyle (Chip) Sutherland General Manager, Barrister and Solicitor, associations programme ( $232,500.00, tracked as “miscellaneous funding”) CORUS Entertainment Inc. Patterson Palmer I Approved management mentorship pilot programme to increase the number of qualified artist DIRECTORS STAFF: managers in Canada Ed Bonner EXECUTIVE DIRECTOR V.P. Marketing, Catharine Saxberg I Expanded core programme to include international support for both touring and marketing Somerset Entertainment OPERATIONS MANAGER I Updated our qualifying criteria in every category, and created a new qualifying category for artists Rachel Oldfield of aboriginal descent

I Completed our first round of artist and label audits

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ANNUAL REPORT

RADIO APPLICATION EVALUATION STARMAKER FUND

Applications to the Radio Starmaker Fund are evaluated on four major criteria:

I The track record of the artist I The amount of money invested by the applicant and his/her agents I The quality of the marketing plan, both the proposed RSF portion, and the portion to which the applicant has committed SUCCESS FACT: through their significant investment I The amount of money the Radio Starmaker Fund has available for the round BLACKIE & THE RODEO KINGS In order to qualify for the Radio Starmaker Fund, artists need to reach prescribed sales levels by genre and demonstrate (ROUND #6) a financial commitment to the marketing of their recorded project (see appendix for application criteria). Furthermore, the artist must be a Canadian citizen or landed immigrant, a resident of Canada, and the ownership of the master tapes Bark, through True North Records, was picked must reside with a Canadian company. up for U.S distribution by Rounder Records of Cambridge, Mass. First single was the highest We continue to fund artists from every genre of music and from every region of the country, regardless of whether they debut of its week (#28) on the Americana chart. produce music appropriate for airplay by private broadcasters. “We received funding from Starmaker for Blackie and the Rodeo Kings and we’ve been able to APPLICATIONS SUBMITTED VS. APPLICATIONS APPROVED use that money to build their profile...” says

I NUMBER OF APPLICATIONS SUBMITTED HAS INCREASED BY 35% FROM 2002-2003 True North Records president Bernie Finkelstein I PERCENTAGE OF APPLICATIONS APPROVED HAS INCREASED BY 8.43% FROM 2002-2003 “As a consequence, we have a small hit record with them now, they ended up on the Juno Awards # OF QUALIFYING APPLICATIONS SUBMITTED # OF APPLICATIONS APPROVED % show, and they have a top 15 rock single.”

TOTAL FISCAL YEAR 2003-2004 65 61 93.85%

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ANNUAL REPORT

TRACKING SUCCESS | GRANT ALLOCATION RADIO BY TYPE OF RECORD LABEL STARMAKER FUND

It is challenging to demonstrate cause and effect between Radio Starmaker Fund grants and artist success for two reasons: 1) our funding is only one component of a very complex picture, that includes everything from access to distribution channels to changing musical tastes 2) the lack of universally accepted statistical benchmarks for the Canadian music industry, against which we could track individual performance. Given the overall decline in music sales in Canada, up to date benchmarks become that much more important; sales on a project that might have been unimpressive five years ago may be a real accomplishment today, and it is important to manage expectations in a declining market. However, despite the challenges in tracking success, it is essential that the RSF continually monitors our investments to the best of our ability. We are fortunate in that we approve approximately 60-70 projects a year, a number that is small SUCCESS FACT: enough to allow us to focus on qualitative results, if not quantitative ones, as we demonstrate in the case studies through- HAWKSLEY WORKMAN out this report. Our quantitative analysis allows us to track primarily the percentages of dollars allocated to major label artists vs. independent ones, expenditures by genre, by province and by category. (ROUND #8)

Perhaps even more important than tracking success is our ability to stay in tune with the needs of Canadian artists and Lover/Fighter was ranked #47 in the Top 150 labels and ensure that our programs reflect their ongoing challenges. Our new international initiatives are a direct result albums of the year in Rolling Stone’s France edition, of our effort to be responsive to the overwhelming demand expressed by artists and the independent label community to and was followed with highly successful tour dates have assistance in foreign territories. in Belgium, Denmark, Norway, France, Switzerland, Holland, Ireland, the U.K. and Berlin.

MAJOR LABELS INDIE LABELS QUASI-INDIE MISC. FUNDING TOTAL

TOTAL APPROVED FUNDING FOR FISCAL YEAR $807,986.00 $1,724,999.07 $200,850.00 $232,500.00 $2,966,335.07

% OF TOTAL APPROVED FUNDING 27.24% 58.15% 6.77% 7.84% 100%

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ANNUAL REPORT

RADIO ARTIST PROFILE: FEFE DOBSON STARMAKER FUND

To date, Fefe Dobson has had four singles released in Canada France and Germany where “Everything” has been released as in support of her debut platinum selling album, which was the first single. released December 2003. Fefe has graced the airwaves with singles in the Top 20 at rock radio and modern rock, as well as In the press, Fefe has had major coverage at every major daily Top 10 at hot AC and CHR formats. Fefe has also had great sup- in the country and this year has been on the cover of Verve, port from MuchMusic, Musique Plus, YTV and MTV on both sides Access, Fashion 18, and Chart magazines. Fefe also appeared of the border. in ads for Got Milk, Tommy Hilfiger, Def Jam University, Sunglasses Hut and most recently, Xbox Canada, the sponsor of In October 2003, prior to her album release, Fefe made her first her first full national tour. Universal Music Canada made a huge performance debut on MuchMusic, performed on Edge 102 investment in Fefe, but Radio Starmaker funds have been very Casby Awards, and sold out her first headlining hometown show important in helping to promote both her album and Canadian at the Reverb in Toronto. She has spent a great deal of time tour, with radio advertising, television campaigns in both English working the US market, not only doing countless shows and pro- and French, as well as online promotions. motions, but appearing on Jay Leno, Ellen Degeneres, Sharon Osbourne and numerous appearances on MTV’s TRL Live. Fefe A non album track “If You Walk Away” appears on the recently also appeared on NBC’s “American Dreams” season finale as released Disney soundtrack for the Kate Hudson film “Raising Tina Turner, performing “River Deep, Mountain High”. Fefe has Helen”. The newest single “Don’t Go (Girls and Boys)” has been been invited back to appear in another episode of “American added to the original version of the album and is performing Dreams” in the forthcoming season. extremely well at Muchmusic, Musique Plus and CHR radio.

The European market has not been ignored; Fefe opened for Justin Timberlake in the U.K. in January 2004, and has since IVAR HAMILTON returned to Europe for promotional appearances in the UK, SENIOR MARKETING DIRECTOR, UNIVERSAL MUSIC CANADA

ANNUAL REPORT

RADIO GRANT ALLOCATION BY GENRE STARMAKER FUND

NUMBER OF NUMBER OF GENRE TOTALS % APPROVED APPROVED APPLICATIONS ARTISTS

ROCK $708,531.00 23.89% 11 9 POP $559,865.00 18.87% 8 7 URBAN $303,455.00 10.23% 6 4 AC $101,500.00 3.42% 3 2 COUNTRY $137,763.25 4.65% 5 4 FOLK $223,162.00 7.52% 6 5 WORLD $330,408.25 11.14% 7 7 SIGNIFICANT DECREASE IN: ROCK FROM 2002-2003 BLUES $0.00 0.00% 0 0 (23.89% THIS YEAR VS. 47.93% IN 2002-2003) CLASSICAL $151,607.50 5.11% 5 5 INCREASES IN: JAZZ $74,650.00 2.52% 2 2 URBAN (10.23% THIS YEAR VS. 4.38% 2002-2003), ELECTRONIC $18,507.00 0.62% 1 1 COUNTRY (4.65% THIS YEAR VS. 1.57% 2002-2003), WORLD (11.14% THIS YEAR VS. 2.63% 2002-2003), $206,886.07 6.97% 3 ABORIGINAL 3 THERE WAS NO ABORIGINAL CATEGORY IN 2002-2003 MISC. $150,000.00 5.06% 4 0

TOTAL $2,966,335.07 100% 61* 49

*NUMBER OF APPROVED APPLICATIONS FOR FISCAL YEAR INCLUDES 13 MISCELLANEOUS FUNDING APPLICATIONS RADIO STARMAKER FUND ANNUAL REPORT 2003-2004 .07

ANNUAL REPORT

RADIO FUNDED ARTISTS |GRANT ALLOCATION BY MUSIC INDUSTRY ASSOCIATION STARMAKER FUND

ROUND 8 ROUND 9 ROUND 10 ROUND 11

HOLLY COLE SWOLLEN MEMBERS PILATE THORNLEY DAVID USHER BUCK 65 RYAN MALCOLM CORAL EGAN HAWKSLEY WORKMAN NATALIE MACMASTER SARAH HARMER LHASA DE SELA CRUSH HAWKSLEY WORKMAN YANNICK NEZET-SEGUIN FRANCESCA GAGNON DANIEL TAYLOR ALAIN LEFEVRE SHAYE PAVLO SUM 41 KID KOALA JACKSOUL BARNARD AND BROHM INTAKTO JIMMY RANKIN JASON MCCOY RON KORB OH SUSANNA GOB TAIMA JORANE JIMMY RANKIN FLORENT VOLLANT BUCK 65 DOC WALKER QUARTETTO GELATO METRIC GLENGARRY BHOYS THE BILLS SUZIE LEBLANC DELERIUM ALEXISONFIRE BEVERLEY MAHOOD BRUCE COCKBURN JANE BUNNETT FEFE DOBSON SUCCESS FACT:

SARAH HARMER RECIPIENT EVENT CITY/PROVINCE (ROUND #11)

CANADIAN COUNTRY MUSIC ASSOCIATION (CCMA) EDMONTON, ALBERTA All Of Our Names sold 20,000 copies in Canada URBAN MUSIC ASSOCIATION OF CANADA (UMAC) TORONTO, ONTARIO in the first three weeks, and almost 10,000 in the WESTERN CANADIAN MUSIC ALLIANCE (WCMA) CALGARY, ALBERTA United States in the same time period. CANADIAN ACADEMY OF RECORDING ARTS AND SCIENCES (CARAS) WINNIPEG, MANITOBA

CANADIAN SONGWRITERS HALL OF FAME (CSHF) TORONTO, ONTARIO

EAST COAST MUSIC ASSOCIATION (ECMA) CAPE BRETON, NOVA SCOTIA

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ANNUAL REPORT

RADIO ARTIST PROFILE: ALEXISONFIRE STARMAKER FUND

Two year old Canadian screamcore band Alexisonfire is enjoy- “Watch Out!” was released in the United States June 29, ing an impressive mainstream breakthrough on its home turf. Australia in July, Japan in October and the U.K. and Germany in November. In the past year, Alexisonfire has toured Canada The indie band’s sophomore album, “Watch Out!”, released twice and the United States four times, working alongside Billy June 8th in Canada, debuted on the country’s album chart at Talent, GWAR, Juliana Theory, Godsmack and Glassjaw. Number 6, selling 6,580 copies in the first week. As of this writ- Manager Greg Below recalls being immediately taken by ing it has scanned over 24,000, making it 11 straight weeks on Alexisonfire’s live show. “Onstage, they give 120%”, he says. the top 200 and sold over 35,000. These numbers represent a “Each member has the potential of being their own star.” significant leap for the band from its self-titled 2002 debut, which peaked at number 127 and eventually sold over 30,000 After a stop over across the pond at legendary Leeds and units in Canada. Reading Festivals, the band will be making another trek across The strong chart debut astonished the band. “We had high Canada with Canada’s own Moneen and U.S. Based Hopesfall expectations, but not that high,” singer/guitarist Dallas Green September 14th thru October 10th. admits. “We didn’t think we would scan almost 7,000 copies. We didn’t have a new video. This was [the result of] word-of- mouth and tv commercials.” The Radio Starmaker Fund helped GREG BELOW, DISTORT ENTERTAINMENT underwrite the cost of the television advertising, publicity costs, With thanks to some radio advertising, web development and a street level pos- LARRY LEBLANC, BILLBOARD MAGAZINE tering campaign.

ANNUAL REPORT

RADIO AWARDS WON BY RADIO STARMAKER STARMAKER FUNDED ARTISTS |SALES CERTIFICATIONS FUND

AWARDS WON BY RADIO STARMAKER FUNDED ARTISTS

MMVA’S: WCMA’S: BEST INDEPENDENT VIDEO PILATE “Into Your Hideout” OUTSTANDING ALBUM (INDEPENDENT) VIDEOFACT AWARD ALEXISONFIRE “Counterparts & Number Them” THE CORB LUND BAND “Five Dollar Bill” SALES CERTIFICATIONS OUTSTANDING RAP/HIP HOP RECORDING NOVEMBER 03: JUNO’S: SWOLLEN MEMBERS “Monsters in the Closet” RYAN MALCOLM SINGLE “SOMETHING MORE” ALBUM OF THE YEAR SAM ROBERTS “We Were Born in a Flame“ OUTSTANDING ROOTS RECORDING QUINTUPLE PLATINUM ARTIST OF THE YEAR SAM ROBERTS THE BILL HILLY BAND “All Day Everyday” ROCK ALBUM OF THE YEAR VIDEO OF THE YEAR SWOLLEN MEMBERS “Breath” DECEMBER 03: SAM ROBERTS “We Were Born in a Flame“ SAM ROBERTS “WE WERE BORN IN A FLAME” VOCAL JAZZ ALBUM OF THE YEAR HOLLY COLE “Shade” CANADIAN INDEPENDENT MUSIC AWARDS: ALTERNATIVE ALBUM OF THE YEAR BUCK 65 “Talkin’ Honky Blues” FAVOURITE SOLO ARTIST BIF NAKED PLATINUM

CCMA’S: CANADIAN RADIO MUSIC AWARDS: JANUARY 04: INDEPENDENT GROUP OF THE YEAR DOC WALKER BEST NEW SOLO ARTIST (CHR) FEFE DOBSON RYAN MALCOLM “HOME” INDEPENDENT SONG OF THE YEAR BEST NEW GROUP OR SOLO ARTIST (MAINSTREAM AC) PLATINUM “ROCKET GIRL” Recorded by Doc Walker, Written by Jason McCoy SHAYE MARCH 04: ECMA’s: NATIONAL JAZZ AWARDS: FEFE DOBSON “FEFE DOBSON” SOCAN SONGWRITER OF THE YEAR COMPOSER OF THE YEAR, MUSICIAN OF THE YEAR PLATINUM JIMMY RANKIN for “Midnight Angel” MOLLY JOHNSON FEMALE ARTIST OF THE YEAR NATALIE MACMASTER JULY 04: SINGLE OF THE YEAR CRUSH “Crush” SOCAN AWARDS: LHASA “THE LIVING ROAD” URBAN RECORDING OF THE YEAR BUCK 65 “Square” URBAN MUSIC AWARD SHAWN DESMAN “Get Ready” GOLD

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ANNUAL REPORT

RADIO RSF ARTIST RADIO AIRPLAY SEPTEMBER 1, 2003–AUGUST 31, 2004 STARMAKER FUND

SONG ARTIST AUD (00) DETECTS SONG ARTIST AUD (00) DETECTS

OVER MY HEAD (BETTER OFF DEAD) SUM 41 511848 3771 BUTTERFLY JIMMY RANKIN 73301 823 ANGER AS BEAUTY HAWKSLEY WORKMAN 447099 5114 ALMOST SARAH HARMER 819377 8439 MORNING BOUND TRAIN JIMMY RANKIN 690699 9129 HAPPY BABY SHAYE 2433425 21105 WE WILL STILL NEED A SONG HAWKSLEY WORKMAN 815315 9791 ON AND ON SHAYE 103709 1472 TIME OF OUR LIVES DAVID USHER 880359 9400 EVERYTHING FEFE DOBSON 899740 9400 THE SHOW IS FREE DOC WALKER 1033303 13150 SHADY DAY JACKSOUL 628635 5842 AFTER ALL DELERIUM 408270 4871 TAKE ME AWAY FEFE DOBSON 1173473 13595 RUN FOR IT DELERIUM 513171 3149 STAR OF ALL THE PLANETS RYAN MALCOLM 850959 9924 SURFACING DAVID USHER 283108 3285 SOMETHING MORE RYAN MALCOLM 1359937 11811 GET UP DOC WALKER 651502 9437 INTO YOUR HIDEOUT PILATE 1077132 13475 CALIFORNIA DREAMER JIMMY RANKIN 169338 2919 MELT INTO THE WALLS PILATE 252897 3224 NORTH DAKOTA BOY DOC WALKER 452073 6335 STILL JASON MCCOY 799399 10889 TRULY DELERIUM 331092 1709 STILL BELIEVE IN LOVE JACKSOUL 2188417 19591 JUSTIFIED (ONE MORE REASON) CRUSH 16739 203 YOU MADE THIS FOOL BECOME A MAN RYAN MALCOLM 65674 980 WATCH THIS SWOLLEN MEMBERS 658830 8778 BEAUTY SHAYE 414599 3859 BACK WHERE I’VE STAYED CHOCLAIR 227274 1921 DON’T GO (GIRLS & BOYS) FEFE DOBSON 784094 8397 SKYLINE CHOCLAIR 159847 2852 I FEEL A SIN COMIN’ ON JASON MCCOY 579401 7545 ALL I NEED IN THE WORLD IS YOU CHOCLAIR 178705 2725 COMBAT BABY METRIC 114285 646 GIVE UP THE GRUDGE GOB 842090 8110 SO FAR SO GOOD THORNLEY 836564 9438 OH ELLIN GOB 159552 2507 THE FIRST DAY (YOU WAKE UP ALONE) BEVERLEY MAHOOD 562333 8926 SMOKE BABY HAWKSLEY WORKMAN 58358 772 COME AGAIN THORNLEY 136504 1811

SOURCE: BROADCAST DATA SERVICES TOTAL SPINS – ALL FORMATS RADIO STARMAKER FUND ANNUAL REPORT 2003-2004 .10

ANNUAL REPORT

RADIO ARTIST PROFILE: TAIMA STARMAKER FUND

Taima launched their album, “Taima”, in February and immedi- Also, they played the Riddu Riddu Festival in Northern Norway, ately achieved impressive sales results, selling more than 5,000 the Smithsonian Institute in New York, the Regina Folk Festival in units in their first week of release. As of this writing, sales are over Saskatchewan, and in the south of France at Les Deferlantes de 15,000 in Canada. The album was released in June on Fullspin Cap Breton festival this year. Music/Proper Distribution in the UK. In Quebec, Taima signed a major concert production deal with Taima’s album generated high profile media attention, starting Equipe Spectra and premiered a concert at the famous with a twenty minute feature produced by the CBC/SRC for the International Montreal Jazz Festival, as part of a prestigious National/Le Point. This feature was broadcast on the French net- series called “Chants d’Amerique”, alongside Lhasa and Zachary work on the day of release, two weeks later in English Canada, Richard. and showed Taima musician Elisapie Isaac at the Sundance Festival, at concert performances, in her northern village of The Radio Starmaker Fund helped Taima present a showcase in Salluit, Nunavik, and as the subject of an indepth interview. In Toronto that attracted key players in the Toronto market and addition, the international music trade magazine, “Billboard”, helped the band accept Glastonbury’s Festival invitation by assist- also featured Taima in its March 27th issue, and Elisapie Isaac ing with costs. The Fund also supported our promotional efforts, was named Personality of the Week for March 14th, 2004 by the which have helped Taima get airplay in Nunavut and Nunavik. major French daily, La Presse. With RSF support, we could make sure that we did not neglect this very important part of Taima’s public: the Inuit communities. The band was invited to play in the world’s most prestigious music festival last June, the famous Glastonbury Festival in the U.K. They performed three shows, sharing stages with such artists as NICOLE BOUCHARD Paul McCartney, the Black Eyed Peas, Oasis and Bonnie Raitt. FOULESPINMUSIQUE

ANNUAL REPORT

RADIO ALLOCATION OF FUNDING BY CATEGORY STARMAKER & GRANT ALLOCATION BY PROVINCE FUND

TOTAL APPROVED % OF TOTAL APPROVED NUMBER OF NUMBER OF CATEGORY PROVINCE TOTALS % APPROVED APPROVED FUNDING FUNDING BY CATEGORY APPLICATIONS ARTISTS

PRINT ADVERTISING 284,266.00 9.58% ONTARIO $1,754,730.57 59.16% 36 28 RADIO ADVERTISING 551,859.75 18.61% NEWFOUNDLAND $0.00 0.00% 0 0 T.V. ADVERTISING 561,711.00 18.94% NOVA SCOTIA $325,520.00 10.97% 6 4 SHOWCASING 53,881.14 1.82% P. E . I . $25,000.00 0.84% 1 0 INDEPENDENT PROMOTIONS 142,345.25 4.80% INDEPENDENT PUBLICITY 91,355.08 3.08% NEW BRUNSWICK $0.00 0.00% 0 0 CONTESTS 96,050.00 3.24% QUEBEC $604,314.50 20.37% 12 12 POSTERING 208,580.00 7.03% MANITOBA $14,290.00 0.48% 1 1 RETAIL PROMOTIONS 119,318.00 4.02% SASKATCHEWAN $0.00 0.00% 0 0 PROMO TOURS 59,290.00 2.00% ALBERTA $15,000.00 0.51% 1 0 TV AWARDS 0.00 0.00% TV SHOWS 30,000.00 1.01% BRITISH COLUMBIA $227,480.00 7.67% 4 4 WEB INITIATIVES 107,704.00 3.63% NUNAVUT $0.00 0.00% 0 0 INTERNATIONAL TOURING* 90,000.00 3.03% N.W.T. $0.00 0.00% 0 0 INTERNATIONAL SHOWCASING* 55,150.00 1.86% YUKON $0.00 0.00% 0 0 TOUR MUSICIANS 66,860.00 2.25% TOUR PRODUCTION 56,712.50 1.91% TOUR CREW 78,363.80 2.64% TOTAL $2,966,335.07 100.00% 61* 49 REHEARSAL SPACE RENTAL 9,888.00 0.33% TOUR BUS 38,500.55 1.30% *NUMBER OF APPROVED APPLICATIONS FOR FISCAL YEAR INCLUDES 13 MISCELLANEOUS FUNDING APPLICATIONS OPENING ACT TOUR SUBSIDY 32,000.00 1.08% There are significant regional increases in: OTHER 0.00 0.00% QUEBEC (20.37% THIS YEAR VS. 9.05% IN 2002-2003), ONTARIO (59.16% THIS YEAR VS. 41.04% IN 2002-2003), MISCELLANEOUS FUNDING 232,500.00 7.84% NOVA SCOTIA (10.97% THIS YEAR VS. 7.58% IN 2002-2003) And decreases in: TOTAL $2,966,335.07 100.00% BRITISH COLUMBIA (7.67% THIS YEAR VS. 33.08% IN 2002-2003), ALBERTA (0.51% THIS YEAR VS. 3.77% 2002-2003)

* NEW CATEGORIES THIS YEAR RADIO STARMAKER FUND ANNUAL REPORT 2003-2004 .11

ANNUAL REPORT

RADIO LOOKING AHEAD TO 2005 STARMAKER FUND

As we embark on the new fiscal, our overall theme is POLICY REFINEMENT to effectively integrate the significant changes the fund This year we have instituted two new significant pro- has undergone throughout this year. We are focusing grammes, and our goals going forward into 2005 will be: our efforts on our ongoing priorities: For our pilot management policy, to execute the first RESPONSIVENESS round of applications, track the results, monitor the The potential recipient base for the Radio Starmaker Fund impact both internally and for the industry, decide if we is anything but static, and therefore ongoing outreach is will extend the programme, and if so, with or without SUCCESS FACT: essential. We have found that our artist travel grants, modifications although relatively modest in comparison to our core programmes, not only benefit artists by facilitating travel, Refine our new international touring and marketing GOB & SWOLLEN MEMBERS but are very effective in raising the awareness level of the programmes with the input of our users to ensure that (ROUND #1 & 7, ROUND #2, 3, 5, & 6) fund, our programmes and our operating philosophy. they meet their needs as our artists expand their markets “I think the RSF is, along with the radio marketing ACCOUNTABILITY fund that FACTOR had, responsible for breaking Our artist audit process started this past year. As we go both Gob and the Swollen Members for us. It forward we will increase the number of audits done next allowed us to basically be on a level playing field year, and integrate the learning to continually improve with the majors and spend the money on radio our operating procedures. ads...” – RIC ARBOIT, NETTWERK RECORDS

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ANNUAL REPORT

RADIO ARTIST PROFILE: BUCK 65 STARMAKER FUND

Buck 65 has been one of Canada’s lesser known success stories standing, repeating the fact that Buck 65 is an artist to watch. this year. On October 8th, 2002, Warner Music Canada Because of the great press and touring success, we negotiated a released “Square”, Buck 65’s fourth full length release and first on deal with V2 Records in the United States to release a compila- Warner. Our objective was to use this release as a marketing tool tion of songs, a “best of”, for September 2004. internationally, as well as a vehicle to further our working rela- tionship with Buck 65 and his manager. As a result, we were able With the help of the Radio Starmaker Fund, we were able to to secure releases in thirteen international territories including maintain a presence in marketing and touring internationally that France, the United Kingdom, Germany and Australia. “Square” would not have been possible otherwise. The Radio Starmaker proved to be an amazing introduction for the press and retail Fund allowed Buck 65 to tour Australia and the major European groups globally. The reviews were great and everybody was festivals this past summer. Without that help, we would not have looking forward to the next release. been able to reinforce what had been started.

On September 16th, 2003, we released Buck 65’s current release, “Talkin’ Honky Blues”. The ground was set and we were able to simultaneously release in the UK, France, Germany, STEVE BLAIR Australia and many other territories. The press has been out- DIRECTOR A&R, WARNER MUSIC CANADA, LTD.

FINANCIAL RESULTS

RADIO FINANCIAL HIGHLIGHTS STARMAKER FISCAL YEAR 2003–2004 FUND

The accompanying condensed financial statements provide an overview of the Fund’s operations and are derived from the complete financial statements of Radio Starmaker Fund as at August 31, 2004 and for the year then ended on which our auditors, PricewaterhouseCoopers LLP, have expressed an opinion without reservation in their report dated November 5, 2004.

These condensed financial statements do not contain all the disclosures required by Canadian generally accepted accounting principles. Complete financial statements are available on request from Radio Starmaker Fund.

RADIO STARMAKER FUND ANNUAL REPORT 2003-2004 .13

FINANCIAL RESULTS

RADIO STARMAKER FUND CONDENSED STATEMENT OF FINANCIAL POSITION AS AT AUGUST 31, 2004 RADIO 2004 STARMAKER

ADMINISTRATION CAPITAL ASSET GRANT FUND TOTAL FUND FUND FUND

ASSETS $ $ $ $

CURRENT ASSETS CASH 77,074 – 831,363 908,437 SHORT-TERM INVESTMENTS – – 3,267,958 3,267,958 PREPAID EXPENSES 11,375 – – 11,375

88,449 – 4,099,321 4,187,770

INTERNALLY RESTRICTED INVESTMENTS 300,000 – – 300,000 CAPITAL ASSETS – NET – 10,941 – 10,941

388,449 10,941 4,099,321 4,498,711

LIABILITIES

CURRENT LIABILITIES GRANT LIABILITY – – 2,433,423 2,433,423 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 39,070 – – 39,070

39,070 – 2,433,423 2,472,493

FUND BALANCES INVESTED IN CAPITAL ASSETS – 10,941 – 10,941 RESTRICTED 300,000 – 1,665,898 1,965,898 – UNRESTRICTED 49,379 – 49,379 349,379 10,941 1,665,898 2,026,218

388,449 10,941 4,099,321 4,498,711

RADIO STARMAKER FUND ANNUAL REPORT 2003-2004 .14

FINANCIAL RESULTS

RADIO STARMAKER FUND CONDENSED STATEMENT OF FINANCIAL POSITION...CONTINUED AS AT AUGUST 31, 2004 RADIO 2003 STARMAKER

ADMINISTRATION CAPITAL ASSET GRANT FUND TOTAL FUND FUND FUND

ASSETS $ $ $ $

CURRENT ASSETS CASH 351,034 – 2,874,011 3,225,045 SHORT-TERM INVESTMENTS – – 2,020,078 2,020,078 ACCOUNTS RECEIVABLE – – 270 270 PREPAID EXPENSES 7,137 – – 7,137

358,171 – 4,894,359 5,252,530

CAPITAL ASSETS – NET – 14,069 – 14,069

358,171 14,069 4,894,359 5,266,599

LIABILITIES

CURRENT LIABILITIES GRANT LIABILITY – – 2,114,726 2,114,726 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 10,143 – – 10,143

10,143 – 2,114,726 2,124,869

FUND BALANCES INVESTED IN CAPITAL ASSETS – 14,069 – 14,069 RESTRICTED – – 2,779,633 2,779,633 UNRESTRICTED 348,028 – – 348,028

348,028 14,069 2,779,633 3,141,730

358,171 14,069 4,894,359 5,266,599

RADIO STARMAKER FUND ANNUAL REPORT 2003-2004 .15

FINANCIAL RESULTS

RADIO STARMAKER FUND CONDENSED STATEMENT RADIO OF OPERATIONS AND CHANGES IN FUND BALANCES... CONTINUED FOR THE YEAR ENDED AUGUST 31, 2004 STARMAKER FUND RESTRICTED FUNDS 2004

CAPITAL ASSET GRANT FUND TOTAL FUND

REVENUES $ $ $

CONTRIBUTIONS – 1,731,819 1,731,819 INTEREST – 61,451 61,451

– 1,793,270 1,793,270

EXPENSES AND LOSSES

GRANTS, NET OF EXPIRING AMOUNTS – 2,431,683 2,431,683 AMORTIZATION AND OTHER 5,092 322 5,414

5,092 2,432,005 2,437,097

DEFICIENCY OF REVENUES OVER EXPENSES (5,092) (638,735) (643,827)

FUND BALANCES – BEGINNING OF YEAR 14,069 2,779,633 2,793,702

INTERFUND TRANSFERS 1,964 (475,000) (473,036)

FUND BALANCES – END OF YEAR 10,941 1,665,898 1,676,839

RADIO STARMAKER FUND ANNUAL REPORT 2003-2004 .16

FINANCIAL RESULTS

RADIO STARMAKER FUND CONDENSED STATEMENT RADIO OF OPERATIONS AND CHANGES IN FUND BALANCES... CONTINUED FOR THE YEAR ENDED AUGUST 31, 2004 STARMAKER FUND RESTRICTED FUNDS 2003

CAPITAL ASSET GRANT FUND TOTAL FUND

REVENUES $ $ $

CONTRIBUTIONS –5,281,7595,281,759 INTEREST –51,34051,340

–5,333,0995,333,099

EXPENSES AND LOSSES

GRANTS, NET OF EXPIRING AMOUNTS –2,234,2552,234,255 AMORTIZATION AND OTHER 7,606 444 8,050

7,606 2,234,699 2,242,305

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES (7,606) 3,098,400 3,090,794

FUND BALANCES – BEGINNING OF YEAR 14,881 359,664 374,545

INTERFUND TRANSFERS 6,794 (678,431) (671,637)

FUND BALANCES – END OF YEAR 14,069 2,779,633 2,793,702

RADIO STARMAKER FUND ANNUAL REPORT 2003-2004 .17

ANNUAL REPORT

RADIO ARTIST PROFILE: DOC WALKER STARMAKER FUND

"This is country music for people who don't even like country Doc Walker earned a Juno nomination for the third straight year, music! It's the grassroots music of the Canadian prairies, with and kicked off the Juno Gala Dinner and Awards Show in a fresh modern twist." – HOUSE AND HOME MAGAZINE Edmonton. They are nominated for five major CCMA awards (second most of all acts) including the prestigious Fan's Choice This has been a banner year for Doc Walker, and the Radio Entertainer of the Year Award by the Canadian Country Music Starmaker Fund has played a significant role in the band's devel- Association, along with Shania Twain, Terri Clark and Jason opment. Doc Walker's strategy has always been to build in our McCoy. home country first and then tackle the U.S. and other internation- al markets when ready, and we have made important progress Funds from the RSF assisted our efforts with promotions in mar- this year. kets where we we’re still building our fan base, such as the Maritimes. These preliminary marketing and touring efforts have In Canada, as of mid July we had shipped over 12,000 copies of opened doors for the band to return to perform in more markets "Everyone Aboard", and the band has toured from B. C. to Nova in these regions, in larger venues. Scotia, selling out hard ticket shows in many markets including Vancouver and Halifax. They performed a hometown concert in Internationally, the band is negotiating releases in Australia and Winnipeg at the Burton Cummings Theater this past February for the United Kingdom, and has performed showcases in Los 1,200 ticket buyers. The first single, "The Show is Free", was Top Angeles and Nashville, in addition to a television taping in Ten within four weeks, a record on the BDS charts for a group. Orlando, and an upcoming concert date in Chicago. "Get Up", the follow up single, went Top 5 and the most recent single "North Dakota Boy" is headed in the same direction. Videos for all three singles have been "#1 most requested", and RON KITCHENER heavily played in countdown shows. MANAGER, DOC WALKER

ANNUAL REPORT

RADIO APPENDIX: STARMAKER CRITERIA FOR QUALIFYING FUND

Applicants must have sold a qualifying number of units on a previous or current release, determined by their genre.

I The artist, their label or agent, must invest (“Significant Investment”) the dollar amounts below by genre in third party, non-recoupable marketing costs.

I Ownership of the masters must reside with a Canadian company, and the royalties must flow through a Canadian company.

I The artist must be a Canadian citizen or landed immigrant, and resident of Canada.

SUCCESS FACT: GENRE UNITS SOLD SIGNIFICANT INVESTMENT THE CORB LUND BAND (ROUND #8) POP/ROCK/AC 15,000 MAJOR LABEL $75,000 10,000 INDIE LABEL $25,000 Performance fees and off stage merchandise sales COUNTRY/FOLK/URBAN/ 7,500 MAJOR LABEL $20,000 have more than doubled for The Corb Lund Band ELECTRONICA /DRUMS N BASS 5,000 INDIE LABEL $10,000 since June 2003. Signed an international licensing agreement with Vital Entertainment Solutions for

WORLD/JAZZ/CLASSICAL/BLUES 2,500 MAJOR LABEL $20,000 Australia and New Zealand. 2,500 INDIE LABEL $10,000

ABORIGINAL 2,500 MAJOR/INDIE LABEL $7,500

RADIO STARMAKER FUND ANNUAL REPORT 2003-2004 .18

ANNUAL REPORT

RADIO ARTIST PROFILE: PILATE STARMAKER FUND

“Be the first to say you believe in Pilate or get left in the dust when MuchMusic and MuchMoreMusic, while the video for “Melt” also ran this foursome explodes.” – CANADIAN MUSIC NETWORK in heavy rotation, and went to the top of the MuchMoreMusic chart. “Hideout” won the MuchMusic Video award for best independent Pilate has been working steadily and ascending relentlessly since sign- video, and the same video was nominated for a Juno. ing to MapleMusic Recordings in 2003. Their debut release on Maple, “Caught by the Window”, (September 2003) has shipped The support from the Radio Starmaker Fund has given us two things: over 32,000 units as of this writing, and has been on the SoundScan comfort and acceleration.... comfort in the sense that we can strate- Top 200 chart for 26 weeks. The band has been touring steadily gize and execute an effective marketing plan for the full year, know- across Canada since the album’s release, beginning with a support ing that between our significant investment and the RSF’s support we slot on tour with the Dears, and graduating to headlining concert ven- have the financial resources we need, and acceleration, in that the ini- ues and 500-1000 seat clubs. tiatives we executed with the RSF’s help in the early part of the year gave us the boost we needed to get to our current sales level. The first single, “Into Your Hideout” is still on the rock radio charts nearly one year after its release peaked at number 3. The second sin- gle, “Melt into the Walls,” is currently charting at rock and hot AC KIM COOKE radio with over 250 plays. The video for “Hideout” charted Top 3 at GENERAL MANAGER, MAPLEMUSIC RECORDINGS

GRAPHIC DESIGN:COOLAIDE DESIGN, TORONTO