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RADIO STARMAKER FUND ANNUAL REPORT 2005#–2006

ANNUAL REPORT

RADIO TABLE OF CONTENTS STARMAKER #FUND

02. Message from the Chair 03. Board of Directors and Staff | Mandate 04. Application Evaluation | Applications Submitted vs. Applications Approved 05. Tracking Success | Grant Allocation by Type of 06. Radio Starmaker Funded Artists 07. Sales Certifications 08. Grant Allocation by Province | Grant Allocation by Genre 09. Grant Allocation by Music Industry Association 10. Awards Won by Radio Starmaker Funded Artists 11. Allocation of Funding by Category 12. – 16. Condensed Financial Statements 17. Appendix: Criteria for Qualifying

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RADIO MESSAGE FROM THE CHAIR STARMAKER #FUND

This year has been one of reflection for • 77% of the total funding requested was approved We continue to maintain the highest standards of the Radio Starmaker Fund. We had the accountability to our stakeholders and the industry at opportunity to review our history from • The “funding per record” breakdown (based on the top large. Our audit process once again shows complete the inception of the fund and present an 22 funded RSF artists) is approximately $2 per record. compliance with our funding rules and regulations and overview to the CRTC during its radio With average marketing costs per hovering in we appreciate the efforts made by our applicants to review proceedings in May 2006. the range of $3 per record this means we are making maintain this track record. We are all looking forward to This was a valuable exercise for us and we a substantial contribution while at the same time working further to provide this ongoing broadcaster found a number of things to be proud of: maintaining a reasonable and incremental amount of commitment to recording artists in . supplementary funding • 91% of all qualifying applications submitted were approved • 52% of the RSF approved funding was provided to emerging artists for their 1st (30%) and 2nd (22%) • 83% of the artists funded by the RSF have received records significant charted airplay in Canada This year we have also seen the benefits of our three year • The breakdown of the funding approved was as follows: capital fund model. By maintaining a systematic and • CIRPA Labels: 35% thoughtful budget model we can assure the music indus- • Independent Artists: 35% try of continued support at effective funding levels. This Chuck McCoy • Major Labels: 25% funding model will be further developed this year as we Executive Chair, • Music Associations: 5% adapt to the policy decisions of the CRTC in its review of Radio Starmaker Fund radio.

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RADIO BOARD OF DIRECTORS AND STAFF| STARMAKER MANDATE #FUND

FOR THE PERIOD FROM SEPTEMBER 1, 2005 TO AUGUST 31, 2006, THE RADIO STARMAKER FUND MANDATE BOARD OF DIRECTORS WAS COMPRISED OF: The mandate of the Radio Starmaker Fund is to CHAIR DIRECTORS STAFF: make a substantial and discernable difference to Chuck McCoy Rob Farina EXECUTIVE DIRECTOR Executive Vice President Vice President, Program Development Chip Sutherland the careers of Canadian musical recording artists Programming and Marketing CHUM Limited through artist driven marketing assistance, and Rogers Radio Toronto, Ontario MANAGER, to support the Canadian independent music Toronto, Ontario FINANCE AND ADMINISTRATION Rachel Oldfield infrastructure. VICE-CHAIR President, Wonderboy Entertainment Inc. Toronto, Ontario Brian Chater MANAGER, Created by the Canadian Radio-television and President, Avenue Road Music Group Bob Harris PROGRAMS AND APPLICATIONS Telecommunications Commission’s Radio Policy Toronto, Ontario Jerry Leibowitz Operations Manager Review of 1998, the Radio Starmaker Fund has Vice-President Rock Programming TREASURER completed its fifth full year of operation. Andy McLean Standard Radio Inc. Managing Director, NXNE , French language artists are supported by Fonds Toronto, Ontario Blair Bartrem Program Director RadioStar, although Radio Starmaker Fund SECRETARY Steve Kane Q107, Corus Entertainment Inc. supports non-French language and instrumental President, Warner Music Canada Toronto, Ontario projects originating from Quebec. Toronto, Ontario Sander Shalinsky Sheppard Shalinsky Brown, Barristers & Solicitors Toronto, Ontario RJ Guha President, Kindling Music/Matrix Entertainment Toronto, Ontario

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RADIO APPLICATION EVALUATION |APPLICATIONS STARMAKER SUBMITTED VS. APPLICATIONS APPROVED #FUND

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

I The track record of the artist SUCCESS FACT: DIVINE BROWN

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 through their significant investment I The amount of money the Radio Starmaker Fund has available for the round The Radio Starmaker Fund was In order to qualify for the Radio Starmaker Fund, artists are required to reach prescribed sales levels by genre and demonstrate key in helping us achieve gold a financial commitment to the marketing of their recorded project (see appendix for application criteria). For a detailed status in Canada on Divine description of our criteria please visit our website at www.radiostarmakerfund.com. Furthermore, the artist must be a Canadian Brown's self-titled release. The citizen or landed immigrant, a resident of Canada and the ownership of the master tapes must reside with a Canadian company. funding we received for print, radio and television advertising We continue to fund artists from a wide variety of musical genres and from every region of the country. allowed us to push a button at holiday gift buying time that was definitely instrumental in driving sales for us. Additional funding for her Canadian APPLICATIONS SUBMITTED VS. APPLICATIONS APPROVED Living showcase helped maximize her profile at that time in addition to building a beneficial relationship for # OF QUALIFYING APPLICATIONS SUBMITTED # OF APPLICATIONS APPROVED % all parties involved.

DONNA LIDSTER TOTAL FISCAL YEAR 2005-2006 119 102 85.71% VICE-PRESIDENT OF MARKETING UNIVERSAL ISLAND DEF JAM CANADA

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

Our Program Manager, Jerry Leibowitz, has made it part of his job to maintain ongoing communication SUCCESS FACT: with the music industry and our applicants to keep track of our success stories. This provides a significant “qualitative insight” into the impact we are having. Throughout this report there are samples of the feedback we have been receiving in the Artist Profiles. It is very encouraging on all fronts. Clearly the Radio Starmaker Fund is providing artists with the incremental funding they need to maintain and increase their Radio Starmaker funding has momentum in the marketplace, both here and abroad. played a huge role in the mar- keting impact Stony Plain Our International Touring program continues to be a significant success and receives consistently high praise from our applicants. We are thrilled to see so many Starmaker artists making a mark on the international Records has been able to stage and we are proud of the opportunity we have to contribute to this success. achieve for Corb Lund’s “Hair In My Eyes Like A Highland Steer” which has recently been certi- fied gold in Canada. We tar- geted a broad spectrum of marketing strategies includ- GRANT ALLOCATION BY TYPE OF RECORD LABEL ing retail programs, print and radio advertising cam- paigns, promotional tools, tour support, publicity and radio promotion that we were able to deliver with MAJOR LABELS INDIE LABELS QUASI-INDIE MISC. FUNDING TOTAL Starmaker’s financial assistance.

TOTAL APPROVED FUNDING FOR FISCAL YEAR $435,728.53 $2,073,339.06 $534,864.00 $302,700.02 $3,346,631.61 KATYA LOREE % OF TOTAL APPROVED FUNDING 13.02% 61.96% 15.98% 9.04% 100% ACCOUNTS MANAGER

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RADIO ARTIST PROFILE: CITY AND COLOUR STARMAKER #FUND

City and Colour features ’s very own . necessary exposure and attention needed to take it to the forefront With the release of “Sometimes”, City and Colour has experi- of the Canadian music scene. By providing enced greater success than ever anticipated. Only four months with the funding to develop creative marketing strategies in all after its release, “Sometimes” reached CRIA Gold certification in areas of the media, including print, television, radio and the web, Canada, has one of the year’s biggest multi-format radio hits with the Radio Starmaker Fund has played a prominent role in the suc- “” playing on ROCK and CHR stations across cess of “Sometimes”. the nation and a video for the track that continues to receive heavy rotation at MuchMusic. With sold out shows in both Canada and The Radio Starmaker Fund’s significant contribution to City and the UK, City and Colour has received praise from press across the Colour has also provided Dine Alone with the ability to utilize an globe and has been the recipient of a MuchMusic Video Award independent radio promoter and independent publicity company for “People’s Choice Favourite Canadian Artist,” and was named to help aid in the growth of this project. With all this essential sup- “Solo Artist of the Year” at the Indies (Canadian Independent port, it speaks volumes that City and Colour’s debut single “Save Music Awards) during Canadian Music Week. Your Scissors” continues to receive strong support from radio and is enjoying further chart ascent more than eight months after its Although City and Colour has been a major priority for Dine introduction. Alone Records, being an independent label leaves little opportu- nity to develop large scale promotional campaigns to infiltrate all the necessary markets across Canada. With the added support of JEN CYMEK & CRISTINA FERNANDES the Radio Starmaker Fund, City and Colour was able to get the LISTEN HARDER PUBLICITY PHOTO: CINDY FREY

ANNUAL REPORT

RADIO RADIO STARMAKER FUNDED ARTISTS STARMAKER #FUND

RD. ARTIST APPROVED RD. ARTIST APPROVED RD. ARTIST APPROVED RD. ARTIST APPROVED

` 16 BEDOUIN SOUNDCLASH $39,097.00 17 ANGEL FORREST $41,500.00 18 ALAIN LEFEVRE $38,540.00 19 ADAM GREGORY $38,000.00

16 $13,500.00 17 BEDOUIN SOUNDCLASH $19,059.00 18 AMANDA WILKINSON $20,228.00 19 ALEXISONFIRE $85,078.00

16 $72,953.20 17 BROKEN SOCIAL SCENE $56,500.00 18 CORB LUND $52,500.00 19 BUCK 65 $10,000.00

16 CORB LUND $58,699.00 17 CITY AND COLOUR $48,494.00 18 DANKO JONES $46,990.00 19 CARL HENRY $31,022.00

16 DANIEL TAYLOR $11,905.13 17 CUFF THE DUKE $15,346.40 18 & THE JAZZ WIZARDS $12,752.30 19 CORB LUND $32,536.50

16 DIVINE BROWN $75,022.00 17 HEDLEY $82,793.00 18 $24,000.00 19 HEDLEY $35,151.00

16 FEIST $6,000.00 17 JOHN LANDRY $4,000.00 18 JONAS $66,790.58 19 ISLANDS $63,432.17

16 JOEL PLASKETT $5,000.00 17 JOHNNY REID $20,408.00 18 & EL TORPEDO $5,000.00 19 JOHN LANDRY $1,100.00

16 JULLY BLACK $73,700.00 17 $54,622.00 18 MENTAKE $41,080.38 19 MARTHA WAINWRIGHT $12,500.00

16 LUKE DOUCET $15,500.00 17 K'NAAN $12,500.00 18 METRIC $101,800.00 19 MOBILE $99,300.00

16 METRIC $124,107.32 17 LES VOIX HUMAINES $3,000.00 18 PILATE $60,875.65 19 ROXANNE POTVIN $27,883.00

16 MOKA ONLY $44,500.00 17 LUKE DOUCET $3,600.00 18 $78,853.33 19 BAND $104,456.00

16 PAVLO $16,000.00 17 MARTHA WAINWRIGHT $42,000.00 18 $22,500.00 19 SOPHIE MILMAN $32,633.75

16 ROBERT MICHAELS $36,736.38 17 MASSARI $81,900.00 18 SLOAN $19,500.00 19 STARS $32,000.00

16 STARS $15,000.00 17 MELISSA O'NEIL $56,550.00 18 SOPHIE MILMAN $46,286.20 19 $42,500.00

16 $61,460.00 17 METRIC $58,717.72 18 STABILO $69,200.00

16 $39,241.00 17 MICHEL CUSSON $38,520.00 18 SUSIE ARIOLI BAND $23,750.00

16 THE SALADS $17,000.00 17 SARAH HARMER $53,550.00 18 THE NEW PORNOGRAPHERS $33,000.00

16 THE TREWS $75,714.00 17 THE NEW PORNOGRAPHERS $35,000.00 18 THE SALADS $37,740.00

17 THE WAKING EYES $6,332.58

17 THEORY OF A DEADMAN $59,425.00

INCLUDES FUNDING APPROVED FOR DOMESTIC MARKETING, INTERNATIONAL MARKETING AND INTERNATIONAL TOURING/SHOWCASING PROGRAMS

RADIO STARMAKER FUND ANNUAL REPORT 2005-2006 .06

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RADIO ARTIST PROFILE: JULLY BLACK STARMAKER #FUND

Jully Black is no stranger to the Canadian music scene. Though coveted opening slot on the cross-Canada Black Eyed Peas tour. her debut album "This Is Me" was released in the summer of This tour camaraderie subsequently lead the Black Eyed Peas to 2005, Jully has been blazing a trail since the late '90s. She won ask Jully to join them on-stage at the CFL's Grey Cup in a in 1997 for Best Rap Recording for "What It and was the beginning of a working relationship that Takes", was nominated in the same category in 1998 for "Money still continues today. We were also able to support her appear- Jane" and again in 2003 for Best R&B / Soul Song for "You ances and subsequent singles with much needed radio, TV and Changed". outdoor advertising. RSF has allowed us the freedom to be cre- ative and to support Jully to the fullest. June 21, 2005 marked the release of Jully Black's solo debut album "This Is Me", through Universal Music Canada. The album Jully Black has helped shape the voice of the Canadian urban includes such standouts as "Sweat of Your Brow", which became music scene. The support she received from the Radio Starmaker a Top 10 CHR hit and exposed her to a whole new audience. Fund helped to raise her profile and opened a host of new doors. "Stay The Night" re-introduced her to her core audience and was She had the opportunity to host the Juno Awards' Gala Dinner in a veritable club hit, spawning several award-winning remixes. "I Halifax in 2006 and is now a regular on-air contributor to CTV's Traveled" (originally featured on 2003's Women & Song) re- eTalk Daily. She is currently in the studio, readying tracks for her entered the AC chart, hitting the top 30. highly anticipated sophomore offering.

The support we received from the Radio Starmaker Fund enabled DANIELLE BROWN Jully Black to take it to the next level. The tour support we MARKETING MANAGER, INTERSCOPE received helped her to go across the country, winning the highly UNIVERSAL MUSIC CANADA

ANNUAL REPORT

SALES CERTIFICATIONS RADIO STARMAKER #FUND THE TABLE BELOW SHOWS CERTIFICATIONS RECEIVED IN 2005/2006 BY ARTISTS FUNDED IN THE CURRENT FISCAL YEAR

DATE ARTIST ALBUM CERTIFICATION UNITS SUCCESS FACT: JOEL PLASKETT

SEPTEMBER 2005 HEDLEY "HEDLEY" GOLD 50,000

OCTOBER 2005 SUM 41 "CHUCK" 2 X PLATINUM 200,000 The Radio Starmaker Fund’s domestic marketing sup- port allowed MapleMusic Recordings to run television OCTOBER 2005 ALEXISONFIRE "ALEXISONFIRE" GOLD 50,000 spots for Joel’s “La De Da” release during the East OCTOBER 2005 FEIST "LET IT DIE" GOLD 50,000 Coast Music Awards and to mount a massive billboard DECEMBER 2005 THEORY OF A DEADMAN "GASOLINE" PLATINUM 100,000 in Halifax for the Junos. In DECEMBER 2005 BEDOUIN SOUNDCLASH "SOUNDING A MOSAIC" GOLD 50,000 addition, we were able to

JANUARY 2006 REX GOUDIE "UNDER THE " PLATINUM 100,000 place “La De Da” in nation-

JANUARY 2006 HEDLEY "HEDLEY" PLATINUM 100,000 al retail campaigns to secure price and positioning and to JANUARY 2006 THE TREWS "DEN OF THIEVES" GOLD 50,000 tour internationally with the "ALIVE" JANUARY 2006 MELISSA O'NEIL 4 X PLATINUM (SINGLE) 40,000 support of touring grants FEBRUARY 2006 THE ROAD HAMMERS "THE ROAD HAMMERS" GOLD 50,000 from the Radio Starmaker Fund. As a direct result of FEBRUARY 2006 METRIC "OLD WORLD UNDERGROUND" GOLD 50,000 his increased profile, this led to his first success at com-

MARCH 2006 MELISSA O'NEIL "MELISSA O'NEIL" GOLD 50,000 mercial radio (with “Nowhere With You” charting at Hot AC) and his first major music placement (with MARCH 2006 METRIC "" GOLD 50,000 “Nowhere With You” featured in a Zellers campaign). MARCH 2006 CITY & COLOUR "SOMETIMES" GOLD 50,000

JUNE 2006 SARAH HARMER "I'M A MOUNTAIN" GOLD 50,000 TARA LUFT DIRECTOR, NEW MEDIA AND MARKETING JULY 2006 DEATH FROM ABOVE 1979 "YOU'RE A WOMAN, I'M A MACHINE" GOLD 50,000 MAPLEMUSIC RECORDINGS/MAPLEMUSIC.COM AUGUST 2006 THE CORB LUND BAND "HAIR IN MY EYES LIKE A HIGHLAND STEER" GOLD 50,000

RADIO STARMAKER FUND ANNUAL REPORT 2005-2006 .07

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RADIO ARTIST PROFILE: HEDLEY STARMAKER #FUND

The assistance of the Radio Starmaker Fund has been integral to porting Simple Plan, at a crucial stage in their development. the success of Hedley's self-titled debut release in Canada. The Opening for Simple Plan made it possible for Hedley to reach funds allocated to Universal Music Canada to market and pro- their target market in such a way that would not have been mote Hedley have enhanced our initiatives on a variety of levels available to them on their own headlining shows at the time. and helped take ’s debut CD to platinum-plus status. Furthermore, the tour afforded the band enormous media expo- sure in virtually every key Canadian market leading up to the Starmaker funds were used to finance several Hedley cam- important holiday retail season. paigns, all of which greatly increased their album sales and grew their fan base. Radio buys at Top 40 and HOT AC radio The support of Starmaker has given Hedley a clear advantage in stations timed to run in conjunction with Hedley's second single, the ever-competitive Canadian music market. Given the chal- "Trip", complemented their air-play with advertising spots tar- lenges faced by developing artists like Hedley when launching a geted to reach the consumer with the necessary frequency to be debut release to compete against established house-hold names, effective. Dollars from Starmaker also provided the opportunity the funds offered by Starmaker ensure that promotional and for us to arrange fly-always with radio stations in key markets marketing opportunities will not be missed for emerging across Canada for fans to meet Hedley and see them live in con- Canadian talent. cert. The contesting at radio resulted in valuable, produced on- air spots that further entrenched Hedley's momentum on the air- waves while simultaneously promoting interaction between the band and their fans. STEPHEN GASH Likewise, the Opening Act Tour Subsidy dollars granted to MARKETING MANAGER Hedley enabled the band to embark on a national tour, sup- UNIVERSAL ISLAND DEF JAM CANADA

ANNUAL REPORT

GRANT ALLOCATION BY PROVINCE | RADIO GRANT ALLOCATION BY GENRE STARMAKER #FUND

GRANT ALLOCATION BY PROVINCE

PROVINCE ON NL NS PE NB QC MB SK AB BC NU NT YT TOTAL

TOTAL APPROVED FUNDING $2,025,158.07 $0.00 $138,953.20 $25,000.00 $0.00 $531,423.26 $8,832.58 $0.00 $181,735.50 $435,529.00 $0.00 $0.00 $0.00 $3,346,631.61

% OF APPROVED FUNDING 60.51% 0.00% 4.15% 0.75% 0.00% 15.88% 0.26% 0.00% 5.43% 13.01% 0.00% 0.00% 0.00% 100.00%

NUMBER OF APPROVED APPLICATIONS 58 0 7 1 0 18 2 0 5 11 0 0 0 102*

NUMBER OF ARTISTS 32 0 4 0 0 14 2 0 2 5 0 0 0 59

*NUMBER OF APPROVED APPLICATIONS FOR FISCAL YEAR INCLUDES 16 MISCELLANEOUS FUNDING APPLICATIONS

GRANT ALLOCATION BY GENRE

POP ROCK URBAN A/C COUNTRY FOLK WORLD BLUES CLASSICAL JAZZ ELECTRONIC ABORIGINAL MISC. TOTAL

TOTAL APPROVED FUNDING $495,379.33 $1,424,983.40 $396,197.20 $36,736.38 $311,712.50 $141,996.40 $76,656.00 $27,883.00 $91,965.13 $115,422.25 $0.00 $25,000.00 $202,700.02 $3,346,631.61

% OF APPROVED FUNDING 14.80% 42.58% 11.84% 1.10% 9.31% 4.24% 2.29% 0.83% 2.75% 3.45% 0.00% 0.75% 6.06% 100.00%

NUMBER OF APPROVED APPLICATIONS 14 35 10 1 13 8 4 1 4 6 0 1 5 102*

NUMBER OF ARTISTS 9 20 7 1 7 5 2 1 4 3 0 0 0 59

*NUMBER OF APPROVED APPLICATIONS FOR FISCAL YEAR INCLUDES 16 MISCELLANEOUS FUNDING APPLICATIONS

RADIO STARMAKER FUND ANNUAL REPORT 2005-2006 .08

ANNUAL REPORT

RADIO ARTIST PROFILE: ALAIN LEFÈVRE STARMAKER #FUND

Winner of two Felix Awards for Best Classical Album of the Year Contributions from the Radio Starmaker Fund have allowed and recently described as a "new personality that truly stands out Analekta Records to complete its marketing strategy for this par- from the typical trends and artifices offered on the international ticular CD. The label was able to place advertising campaigns scene” (Classica), Alain Lefèvre has been invited to perform by on English and French radio, as well as putting posters on the the most prestigious orchestras around the world. These include back of city buses. This, along with extensive press coverage by The Royal Philharmonic Orchestra in and The Orchestre all major radio and television shows, contributed to Alain Symphonique de Montréal. He has both previously won First Lefèvre’s exemplary success. Prize at the Canadian Music Competition nine times and was awarded First Prize in and chamber music at the Conservatoire National Supérieur de Musique de Paris. ALEXANDRE VOVAN DIRECTOR, SALES-COMMUNICATIONS With the help of the Radio Starmaker Fund, Alain Lefèvre’s CD, ANALEKTA RECORDS “Blissfully Sleepless”, has exceeded the sales of all his previous recordings. It has remained in the top ten on the SoundScan clas- sical chart since its launch on March 16, 2006. T PHOTO LAURENCE LABA

ANNUAL REPORT

GRANT ALLOCATION RADIO BY MUSIC INDUSTRY ASSOCIATION STARMAKER #FUND RECIPIENT EVENT CITY/PROV. AMOUNT

CANADIAN ACADEMY OF RECORDING ARTS AND SCIENCES 2006 JUNO AWARDS HALIFAX, NS $100,700.02

CANADIAN HALL OF FAME 2006 CANADIAN SONGWRITERS HALL OF FAME GALA TORONTO, ON $42,000.00

CANADIAN ASSOCIATION 2006 AWARDS ST. JOHN, NB $40,000.00

EAST COAST MUSIC ASSOCIATION 2006 EAST COAST MUSIC AWARDS CHARLOTTETOWN, PE $25,000.00

INDIAN ART-I-CRAFTS OF ONTARIO 2006 CANADIAN ABORIGINAL MUSIC AWARDS TORONTO, ON $25,000.00

POLARIS MUSIC PRIZE 2006 TORONTO, ON $20,000.00

URBAN MUSIC ASSOCIATION OF CANADA 2006 CANADIAN URBAN MUSIC AWARDS TORONTO, ON $15,000.00

WESTERN CANADIAN MUSIC ALLIANCE 2006 WESTERN CANADIAN MUSIC AWARDS WINNIPEG, MB $15,000.00

BEDOUIN SOUNDCLASH 2006 CANADIAN RADIO MUSIC AWARDS TORONTO, ON $2,500.00

MATT MAYS & EL TORPEDO 2006 CANADIAN RADIO MUSIC AWARDS TORONTO, ON $2,500.00

AMANDA STOTT 2006 CANADIAN RADIO MUSIC AWARDS TORONTO, ON $2,500.00

DIVINE BROWN 2006 CANADIAN RADIO MUSIC AWARDS TORONTO, ON $2,500.00

AMANDA WILKINSON 2006 CANADIAN RADIO MUSIC AWARDS TORONTO, ON $2,500.00

MOBILE 2006 CANADIAN RADIO MUSIC AWARDS TORONTO, ON $2,500.00

THE SADIES 2006 CANADIAN RADIO MUSIC AWARDS TORONTO, ON $2,500.00

BLUE RODEO 2006 CANADIAN RADIO MUSIC AWARDS TORONTO, ON $2,500.00

TOTAL $302,700.02

NUMBER OF APPROVED APPLICATIONS FOR FISCAL YEAR INCLUDES 16 MISCELLANEOUS FUNDING APPLICATIONS AS INDICATED ABOVE RADIO STARMAKER FUND ANNUAL REPORT 2005-2006 .09

ANNUAL REPORT

RADIO ARTIST PROFILE: SOPHIE MILMAN STARMAKER #FUND

For Sophie Milman, her label and management, the past few cycle of the album that was a major contributor to achieving the months have been very exciting as her debut album hit the num- level of commercial success it has in Canada. Tour enhance- ber one position on the iTunes Jazz Album chart in the United ment (Sophie performed in the summer of 2005 at every major States and has been released in Japan and Europe. Only twen- Canadian Jazz festival), marketing and advertising initiatives ty-three years old, the road to Sophie’s success began three around these concerts were the main drivers, culminating in years ago when she signed a recording and management con- Sophie’s sold out performance at the prestigious Montreal Jazz tract with Linus. Marketing began well before the album was Festival and a Juno Award nomination. released, as we sought to put Sophie’s music into the hands of fans of Norah Jones and Diana Krall - distributing CD samplers Outside of Canada, Starmaker funding is a key component of at their concerts, organizing appearances at jazz clubs and fes- the marketing assets we have to leverage. We are already see- tivals and organizing promotions with Russian and Jewish com- ing the results as we launch Sophie in the USA and Japan, as munity newspapers. Starmaker’s financial support for her album has helped with launch showcases in New York and Tokyo, as well as her sum- Sophie Milman’s self-titled debut album was released in Canada mer 2006 US tour and the international marketing initiatives sur- in late 2004 and over the course of the next year and a half sold rounding them. more than 14,000 copies, becoming one of the top five best sell- ing Jazz in Canada for 2005, according to Nielsen SoundScan. FACTOR funding to record and provide first phase GEOFF KULAWICK marketing made the release of her album possible. However, it PRESIDENT was Starmaker funding kicking in at a critical time in the release LINUS ENTERTAINMENT PHOTO: ALEX NUNEZ

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AWARDS WON BY RADIO RADIO STARMAKER FUNDED ARTISTS STARMAKER #FUND EVENT ARTIST AWARD

2006 MUCHMUSIC VIDEO AWARDS CITY AND COLOUR PEOPLE'S CHOICE: FAVOURITE CANADIAN ARTIST - "SAVE YOUR SCISSORS"

THE ROAD HAMMERS COUNTRY RECORDING OF THE YEAR - "THE ROAD HAMMERS" K'NAAN RAP RECORDING OF THE YEAR - "THE DUSTY FOOT PHILOSOPHER" SHAWN DESMAN 2006 JUNO AWARDS R&B/SOUL RECORDING OF THE YEAR - "BACK FOR MORE" CORB LUND ROOTS & TRADITIONAL ALBUM OF THE YEAR - "HAIR IN MY EYES LIKE A HIGHLAND STEER" SUCCESS FACT: THE DEARS BEDOUIN SOUNDCLASH NEW GROUP OF THE YEAR BROKEN SOCIAL SCENE ALTERNATIVE ALBUM OF THE YEAR - "BROKEN SOCIAL SCENE"

CORB LUND ALBUM OF THE YEAR - "HAIR IN MY EYES LIKE A HIGHLAND STEER" THE ROAD HAMMERS GROUP OR DUO OF THE YEAR CORB LUND 2006 CANADIAN COUNTRY MUSIC AWARDS ROOTS ARTIST OR GROUP OF THE YEAR JOHNNY REID CHEVY TRUCKS RISING STAR AWARD JOHNNY REID INDEPENDENT MALE ARTIST OF THE YEAR JOHNNY REID INDEPENDENT SINGLE OF THE YEAR - "MISSING AN ANGEL" THE DEARS went from

MATT MAYS & EL TORPEDO ALBUM OF THE YEAR - "MATT MAYS & EL TORPEDO" playing small clubs in JOEL PLASKETT MALE ARTIST OF THE YEAR MATT MAYS & EL TORPEDO GROUP OF THE YEAR Canada to playing major 2006 EAST COAST MUSIC AWARDS MATT MAYS & EL TORPEDO SINGLE OF THE YEAR - "COCAINE COWGIRL" JOEL PLASKETT OF THE YEAR - "HAPPEN NOW" international festivals, MATT MAYS & EL TORPEDO ROCK RECORDING OF THE YEAR - "MATT MAYS & EL TORPEDO" from Glastonbury to Coachella. With Starmaker’s sup- CORB LUND ENTERTAINER OF THE YEAR THE WAKING EYES 2005 WESTERN CANADIAN MUSIC AWARDS OUTSTANDING ALBUM (INDEPENDENT) - "VIDEO SOUND" port the band completed a headlining tour of the US OUTSTANDING COUNTRY RECORDING - "SONGS FROM THE GRAVEL ROAD" THE WAKING EYES OUTSTANDING ROCK RECORDING - "VIDEO SOUND" and performed at the Wireless Festival (Hyde Park, DIVINE BROWN R&B RECORDING OF THE YEAR - "OLD SKOOL LOVE" K'NAAN HIP HOP RECORDING OF THE YEAR - "STRUGGLIN" London, UK), Glastonbury (UK), Roskilde (Denmark), DIVINE BROWN 2005 CANADIAN URBAN MUSIC AWARDS NEW ARTIST OF THE YEAR K-OS FAN'S CHOICE AWARD Wertcher (Belgium), Montreux Jazz Festival JULLY BLACK DANCE/ELECTRONIC RECORDING OF THE YEAR - "SWEAT OF YOUR BROW" K-OS SONGWRITER OF THE YEAR (Switzerland), Oxygen (Ireland), and T In The Park BEDOUIN SOUNDCLASH BEST NEW GROUP OR SOLO ARTIST (CHR) - "WHEN THE NIGHT FEELS MY SONG" (Scotland), all of this in addition to two tours of Europe 2006 CANADIAN RADIO MUSIC AWARDS THE ROAD HAMMERS BEST NEW GROUP OR SOLO ARTIST (COUNTRY) - "I'M A ROAD HAMMER" DIVINE BROWN BEST NEW GROUP OR SOLO ARTIST (DANCE URBAN RHYTHMIC) - "OLD SKOOL LOVE" and sold out shows in Australia and Japan. BEDOUIN SOUNDCLASH FAVOURITE SINGLE - "WHEN THE NIGHT FEELS MY SONG" CITY AND COLOUR FAVOURITE SOLO ARTIST 2006 THE INDIES DEATH FROM ABOVE 1979 FAVOURITE GROUP/DUO TARA LUFT CORB LUND FAVOURITE FOLK ARTIST/GROUP DIVINE BROWN FAVOURITE URBAN ARTIST/GROUP DIRECTOR, NEW MEDIA AND MARKETING MAPLEMUSIC RECORDINGS/MAPLEMUSIC.COM 2005 CASBY AWARDS BEDOUIN SOUNDCLASH FAVOURITE NEW SINGLE - "WHEN THE NIGHT FEELS MY SONG"

RADIO STARMAKER FUND ANNUAL REPORT 2005-2006 .10

ANNUAL REPORT

RADIO ARTIST PROFILE: THE ROAD HAMMERS STARMAKER #FUND

The Road Hammers’ debut CD “I Am A Road Hammer” has driv- two extraordinarily talented musicians to the Road Hammers’ en onto the Canadian Country Music Charts much like the big stage show. Funds provided have also afforded the rental of wheeling, long distance traveling truckers that are the inspiration rehearsal space in Calgary in preparation for key tour dates, as behind the band. It has captivated country music fans and televi- well as the hiring of a much needed additional tech. With sion audiences out of the box. The band’s second single, “East the additional players, technical and rehearsal support, The Road Bound and Down” was a record-breaking smash success marking Hammers have created a strong, compelling live show and have The Road Hammers as the first domestically signed band to obtain established themselves as a more than credible touring band with a number one single on the Canadian Country chart and “I Am A a strong draw. Road Hammer” is now certified gold in Canada. The band’s success in Canada, due in part to the Radio Starmaker Radio Starmaker marketing funds have contributed to the overall Fund, has opened doors in other markets including Australia, with success of this project by funding additional television advertising an American release now in the works. Their Canadian success and premium placement in national retail accounts. The band has has created an undeniable buzz in the States and beyond. This been touring extensively throughout Canada and the supplemen- buzz will provide a strong set up for the U.S. release furthering tary marketing funds have also allowed us the ability to purchase The Road Hammers’ career both nationally and internationally. extra print advertising in essential tour markets. This exposure has ensured prominently racked product at retail, resulting in strong scans in all tour markets. CARLA PALMER In addition to providing invaluable marketing support, Radio SENIOR MARKETING MANAGER Starmaker tour enhancement funds have supported the addition of MAPLEMUSIC RECORDINGS/OPEN ROAD RECORDINGS PHOTO: RICHARD BELAND

ANNUAL REPORT

RADIO ALLOCATION OF FUNDING BY CATEGORY STARMAKER #FUND

% OF TOTAL % OF TOTAL TOTAL APPROVED FUNDING CATEGORY APPROVED FUNDING CATEGORY TOTAL APPROVED FUNDING APPROVED FUNDING

PRINT ADVERTISING $186,666.21 5.58% TOUR - ADDITIONAL TECHNICAL CREW $74,321.23 2.22%

RADIO ADVERTISING $483,402.00 14.44% TOUR - REHEARSAL SPACE RENTAL $6,070.20 0.18%

TV ADVERTISING $521,994.00 15.60% TOUR - OPENING ACT TOUR SUBSIDY $31,000.00 0.93%

WEB ADVERTISING $43,101.00 1.29% TOUR - BUS $37,593.00 1.12%

SHOWCASING $9,671.55 0.29% MISC. - MUSIC ASSOCIATION, ETC. $302,700.02 9.04%

INDEPENDENT RADIO PROMOTER $75,327.48 2.25% INTERNATIONAL - PRINT ADVERTISING $42,754.93 1.28%

INDEPENDENT PUBLICITY $80,071.79 2.39% INTERNATIONAL - RADIO ADVERTISING $33,241.60 0.99%

CD SAMPLERS $2,875.00 0.09% INTERNATIONAL - TV ADVERTISING $9,848.93 0.29%

CONTESTS $93,601.00 2.80% INTERNATIONAL - WEB ADVERTISING $14,948.39 0.45%

POSTERING $170,443.40 5.09% INTNL - INDEPENDENT RADIO PROMOTER $23,026.24 0.69%

PROMO TOUR $3,879.00 0.12% INTERNATIONAL - INDEPENDENT PUBLICITY $85,500.00 2.55%

RETAIL PROMOTIONS $173,935.00 5.20% INTERNATIONAL - POSTERING $17,338.60 0.52%

TV SHOWS $15,534.00 0.46% INTERNATIONAL - PROMO TOUR $14,039.67 0.42%

WEB DESIGN $45,883.54 1.37% INTERNATIONAL - RETAIL PROMOTIONS $44,433.75 1.33%

TOUR - ADDITIONAL MUSICIANS $48,223.50 1.44% INTERNATIONAL - TOURING $428,100.00 12.79%

TOUR - ADDITIONAL PRODUCTION $32,174.00 0.96% INTERNATIONAL - SHOWCASING $194,932.58 5.82%

TOTAL $3,346,631.61 100.00%

RADIO STARMAKER FUND ANNUAL REPORT 2005-2006 .11

ANNUAL REPORT

RADIO FINANCIAL HIGHLIGHTS STARMAKER FISCAL YEAR 2005–2006 #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, 2006 and for the year then ended on which our auditors, PricewaterhouseCoopers LLP, have expressed an opinion without reservation in their report dated December 7, 2006.

These condensed financial statements are offered for ease of reference only and 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 2005-2006 .12

ANNUAL REPORT

RADIO STARMAKER FUND CONDENSED STATEMENT OF FINANCIAL POSITION RADIO AS AT AUGUST 31, 2006 2006 STARMAKER FUND ADMINISTRATION CAPITAL ASSET GRANT FUND TOTAL FUND FUND # ASSETS $ $ $ $

CURRENT ASSETS CASH 20,003 – 749,870 769,873 SHORT-TERM INVESTMENTS – – 6,020,336 6,020,336 PREPAID EXPENSES 7,410 – – 7,410

27,413 – 6,770,206 6,797,619

INTERNALLY RESTRICTED INVESTMENTS 300,000 – – 300,000 CAPITAL ASSETS – NET – 4,462 – 4,462

327,413 4,462 6,770,206 7,102,081

LIABILITIES

CURRENT LIABILITIES GRANT LIABILITY – – 2,702,564 2,702,564 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 577 – – 577

577 – 2,702,564 2,703,141

FUND BALANCES INVESTED IN CAPITAL ASSETS – 4,462 – 4,462 RESTRICTED 300,000 – 4,067,642 4,367,642 UNRESTRICTED 26,836 – – 26,836 326,836 4,462 4,067,642 4,398,940 327,413 4,462 6,770,206 7,102,081

RADIO STARMAKER FUND ANNUAL REPORT 2005-2006 .13

ANNUAL REPORT

RADIO STARMAKER FUND CONDENSED STATEMENT OF FINANCIAL POSITION RADIO AS AT AUGUST 31, 2005 2005 STARMAKER FUND ADMINISTRATION CAPITAL ASSET GRANT FUND TOTAL FUND FUND # ASSETS $ $ $ $

CURRENT ASSETS CASH 17,830 – 573,927 591,757 SHORT-TERM INVESTMENTS – – 5,345,211 5,345,211 PREPAID EXPENSES 7,416 – – 7,416

25,246 – 5,919,138 5,944,384

INTERNALLY RESTRICTED INVESTMENTS 300,000 – – 300,000 CAPITAL ASSETS – NET – 8,328 – 8,328

325,246 8,328 5,919,138 6,252,712

LIABILITIES

CURRENT LIABILITIES GRANT LIABILITY – – 3,086,049 3,086,049 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 20,298 – – 20,298

20,298 – 3,086,049 3,106,347

FUND BALANCES INVESTED IN CAPITAL ASSETS – 8,328 – 8,328 RESTRICTED 300,000 – 2,883,089 3,133,089 UNRESTRICTED 4,948 – – 4,948 304,948 8,328 2,883,089 3,146,365 325,246 8,328 5,919,138 6,252,712

RADIO STARMAKER FUND ANNUAL REPORT 2005-2006 .14

ANNUAL REPORT

RADIO STARMAKER FUND CONDENSED STATEMENT RADIO OF OPERATIONS AND CHANGES IN FUND BALANCES STARMAKER FOR THE YEAR ENDED AUGUST 31, 2006 #FUND RESTRICTED FUNDS 2006

CAPITAL ASSET GRANT FUND TOTAL FUND

REVENUES $ $ $

CONTRIBUTIONS FROM CAB – 3,699,028 3,699,028 DISCRETIONARY FUNDS FOR CANADIAN TALENT DEV. – 62,742 62,742 INTEREST – 202,676 202,676

– 3,964,446 3,964,446

EXPENSES AND LOSSES

GRANTS, NET OF REALLOCATED UNUSED FUNDING – 2,254,738 2,254,738 AMORTIZATION 5,209 – 5,209 BANK SERVICE CHARGES – 155 155

5,209 2,254,893 2,260,102

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES (5,209) 1,709,553 1,704,344

FUND BALANCES – BEGINNING OF YEAR 8,328 2,833,089 2,841,417

INTERFUND TRANSFERS 1,343 (475,000)* (473,657)

FUND BALANCES – END OF YEAR 4,462 4,067,642 4,072,104

* ADMINISTRATION COST ALLOCATION RADIO STARMAKER FUND ANNUAL REPORT 2005-2006 .15

ANNUAL REPORT

RADIO STARMAKER FUND CONDENSED STATEMENT RADIO OF OPERATIONS AND CHANGES IN FUND BALANCES STARMAKER FOR THE YEAR ENDED AUGUST 31, 2005 #FUND RESTRICTED FUNDS 2005

CAPITAL ASSET GRANT FUND TOTAL FUND

REVENUES $ $ $

CONTRIBUTIONS FROM CAB – 5,035,402 5,035,402 DISCRETIONARY FUNDS FOR CANADIAN TALENT DEV. – 20,000 20,000 INTEREST – 89,819 89,819

– 5,145,221 5,145,221

EXPENSES AND LOSSES

GRANTS, NET OF REALLOCATED UNUSED FUNDING – 3,503,030 3,503,030 AMORTIZATION 5,585 – 5,585

5,585 3,503,030 3,508,615

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES (5,585) 1,642,191 1,636,606

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

INTERFUND TRANSFERS 2,972 (475,000)* (472,028)

FUND BALANCES – END OF YEAR 8,328 2,833,089 2,841,417

* ADMINISTRATION COST ALLOCATION RADIO STARMAKER FUND ANNUAL REPORT 2005-2006 .16

ANNUAL REPORT

RADIO ARTIST PROFILE: MASSARI STARMAKER #FUND

As a new urban artist, it is difficult to break through to the mar- nationally in over twenty different territories, where it has ketplace. While there will always be an even playing field in reached the number one spot in two of those countries. This did terms of creativity, as an independent, the money necessary to not happen overnight. Starmaker's support internationally was market your creative concepts is always at a premium. one of the critical components in enabling us to afford to tour new territories so that we could build a foothold there. We have Once we demonstrated that we could sell records, the Radio now built enough of a following to make touring profitable in Starmaker Fund was a critical component of our success. many new countries, building what we hope will be a long-term Without Starmaker's support, we would not have been able to career for Massari. Thank you Starmaker for your support. afford to continue to promote our record in Canada to the extent we did. As a result, Massari's debut has gone gold and con- tinues to sell very well even fifteen months after its initial release. MANNY DION VICE-PRESIDENT OF ARTIST MANAGEMENT Its success in Canada has enabled us to release the record inter- CAPITAL PROPHET RECORDS AL PROPHET RECORDS PHOTO: CAPIT

ANNUAL REPORT

APPENDIX: RADIO CRITERIA FOR QUALIFYING STARMAKER #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.

GENRE UNITS SOLD SIGNIFICANT INVESTMENT

POP/ROCK/AC 15,000 MAJOR LABEL $75,000 10,000 INDIE LABEL $25,000

COUNTRY/FOLK/URBAN/ 7,500 MAJOR LABEL $20,000 ELECTRONICA /DRUM AND BASS 5,000 INDIE LABEL $10,000

WORLD/JAZZ/CLASSICAL/BLUES 2,500 MAJOR LABEL $20,000 2,500 INDIE LABEL $10,000

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

RADIO STARMAKER FUND ANNUAL REPORT 2005-2006 .17

ANNUAL REPORT

RADIO ARTIST PROFILE: THE NEW PORNOGRAPHERS STARMAKER #FUND

The New Pornographers’ third album “” has far The release of “Twin Cinema” was supported by extensive tour- exceeded its expectations. It was an exciting year for the Juno ing across North America as well breaking into new markets in Award-winning band that included appearances on Late Night Europe and the UK. Radio Starmaker funding was fundamental with Conan O’Brien and Last Call with Carson Daly, as well as in creating this opportunity to expand to markets overseas that nominations for another Juno Award and the Polaris Music are still new to the band. After performing consecutive tours in Prize. The release also debuted at number five on the Billboard these new territories, the band was able to garner the attention Top Independent Albums Chart. of new fans in new markets.

The New Pornographers have always had a huge buzz across Radio Starmaker gave Mint the opportunity to pursue a detailed the border and it was ' goal to reflect that momen- marketing plan that would have been difficult for an independ- tum in their own territory. The Radio Starmaker Fund gave Mint ent label to do on its own. With the final proof being the record the opportunity to support the release with more angles that sales of ”Twin Cinema” in Canada, which reached SoundScans piqued consumer interest and generated more sales. Funding of 13,000 as of July 23, 2006 - almost 50% more than their pre- was allocated to marketing initiatives including an extended ad vious album, ”“. Scans for “Twin Cinema” in the campaign, radio promotion, detailed retail marketing and inde- United States have topped 100,000. This project has been a pendent street teams. Particularly noteworthy was the ability for huge success made possible in part by the generous contribu- Mint to hire DMD Entertainment to promote two singles to com- tions from the Radio Starmaker Fund. mercial radio. Without the financial support of the Radio Starmaker Fund, Mint would not have been able to undertake this effort. JENN BARKER SPECIAL PROJECTS MANAGER MINT RECORDS PHOTO: STEPHEN DEWELL