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 Record Label 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 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 RADIO STARMAKER FUND ANNUAL REPORT 2005-2006 .01 ANNUAL REPORT 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 album 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 Canada. 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. RADIO STARMAKER FUND ANNUAL REPORT 2005-2006 .02 ANNUAL REPORT 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 Jian Ghomeshi 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 Montreal, Quebec 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 RADIO STARMAKER FUND ANNUAL REPORT 2005-2006 .03 ANNUAL REPORT 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 RADIO STARMAKER FUND ANNUAL REPORT 2005-2006 .04 ANNUAL REPORT 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: CORB LUND 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 STONY PLAIN RECORDS RADIO STARMAKER FUND ANNUAL REPORT 2005-2006 .05 ANNUAL REPORT RADIO ARTIST PROFILE: CITY AND COLOUR STARMAKER #FUND City and Colour features Alexisonfire’s very own Dallas Green. 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 Dine Alone Records 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- “Save Your Scissors” 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.