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RADIO STARMAKER FUND ANNUAL REPORT 2004–2005#

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RADIO TABLE OF CONTENTS STARMAKER #FUND 02. Message from the Chair 03. Board of Directors and Staff | Mandate | 2004-2005 Overview 04. Application Evaluation | Applications Submitted vs. Applications Approved 05. Tracking Success | Grant Allocation by Type of 06. Radio Starmaker Funded Artists 07. Sales Certifications | Grant Allocation by Genre 08. Grant Allocation by Music Industry Association | Grant Allocation by Province 09. Awards Won by Radio Starmaker Funded Artists 10. Allocation of Funding by Category 11. – 15. Condensed Financial Statements 16. Appendix: Criteria for Qualifying

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RADIO MESSAGE FROM THE CHAIR STARMAKER #FUND This year has seen some ed in the fact that 89% of applicants were spent on the independent sector (including dards of accountability to our stakeholders tremendous improve- approved for funding. artist owned labels) and over $300,000 in and the industry at large. Our audit process ments at the Radio other industry initiatives such as funding once again shows complete compliance Starmaker Fund while we In general terms the Radio Starmaker regional music associations. with our funding rules and regulations and continued our primary Fund continues to be focused on making a we appreciate the efforts made by our objectives of remaining discernable difference to our artists with We have responded to feedback from our applicants to maintain this track record. effective, responsive and substantial funding. The effectiveness of stakeholder community this year by putting For the first time this year, the Board has accountable. this funding is perhaps best expressed in a large emphasis behind our international developed a detailed 3 year projected cap- the artist profiles contained in this report, programs which was a stunning success. We ital funding budget to ensure that we have In May 2005 we introduced a new element which represent only a small sample of the had a large demand for these very new pro- a stable level of funding over the next few to our staff at the Fund in the position of feedback we receive from artists and labels grams which proves that the Radio years. We are all looking forward to work- Manager, Programs and Applications, every week telling us that the Starmaker Starmaker Fund is able to adapt quickly and ing further to continue this ongoing Jerry Leibowitz. Jerry comes to us with an Fund is having a tremendously positive effectively to the changing needs of the broadcaster commitment to recording in depth background in the music industry impact on their ability to compete in a dif- industry. Over 40% of our funding artists in . as the former General Manager of ficult and competitive market. I am proud ($1,512,280) was provided to artists and Rykodisc. As the Manager of Programs of the $4,550,567 committed this year to independent labels for international tour- and Applications it is his mandate to offer 82 applicants and have every confidence ing, marketing, promotion and publicity. assistance to applicants and ensure that that it will continue to make a difference. We expect the demand in this area to con- they file the best application possible. He We are also proud that we have balanced tinue to grow as we see the success of these has made a significant difference to our spending to all aspects of the music indus- projects. Chuck McCoy team and we have seen a great improve- try with over $1 million being spent on Executive Chair, ment in our applications, which is reflect- major label artists, $3.2 million being We continue to maintain the highest stan- Radio Starmaker Fund

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RADIO BOARD OF DIRECTORS AND STAFF| STARMAKER MANDATE | 2004–2005 OVERVIEW FUND

#For the period from September 1st, 2004 to August 31st, MANDATE 2005, 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 careers of Canadian musical recording artists through artist driven marketing assistance, and to support CHAIR DIRECTORS Chuck McCoy Bob Harris the Canadian independent music infrastructure. Executive Vice-President, Operations Manager Montreal, Programming & Marketing Standard Radio Inc. Created by the Canadian Radio-television and Telecommunications Commission’s Radio Policy Review Rogers Broadcasting Limited of 1998, the Radio Starmaker Fund has completed its fourth full year of operation. Dean Sinclair VICE-CHAIR General Manager, French language artists are supported by Fonds RadioStar, although Radio Starmaker Fund supports Brian Chater CORUS Entertainment Inc. President, non-French language and instrumental projects originating from Quebec. Avenue Road Music Group RJ Guha President, TREASURER Kindling Music Inc. 2004-2005 OVERVIEW: Andy McLean Managing Director, Sander Shalinsky NXNE I Committed $4,550,567 to 82 Canadian artists through our domestic marketing, Barrister and Solicitor, Sheppard Shalinsky Brown international marketing, international touring/showcasing and manager mentorship programs. SECRETARY Steve Kane President, STAFF: I Assisted 198 artists to attend industry events in a number of regions through our support to Warner Music Canada EXECUTIVE DIRECTOR associations program ( $114,000 tracked as “miscellaneous funding”) Sutherland DIRECTORS Rob Farina MANAGER, I Committed $1,512,280 to international initiatives Program Director, FINANCE AND ADMINISTRATION CHUM Limited Rachel Oldfield

I 89% of applicants received funding Jian Ghomeshi MANAGER, President, PROGRAMS AND APPLICATIONS Wonderboy Entertainment Jerry Leibowitz

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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 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 In order to qualify for the Radio Starmaker Fund, artists need to reach prescribed sales levels by genre and demonstrate SUCCESS FACT: 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 MOLLY JOHNSON (ROUND #12 & 13) must reside with a Canadian company. “It is a challenge to launch a Canadian artist in a We continue to fund artists from every genre of music and from every region of the country, regardless of whether they new market. Radio Starmaker Fund’s support for produce music appropriate for airplay by private broadcasters. Molly Johnson’s recording in the USA and UK is mak- ing it possible for Marquis to achieve much higher levels of airplay, media and retail coverage. International success usually reinforces success in

# OF QUALIFYING APPLICATIONS SUBMITTED # OF APPLICATIONS APPROVED % Canada, so there is a double benefit from RSF’s inter- national programs.”

TOTAL FISCAL YEAR 2004-2005 148 132 89.19% EARL ROSEN PRESIDENT, MARQUIS

NUMBER OF QUALIFIED APPLICATIONS SUBMITTED INCREASED BY 128% FROM 2003-2004 DUE LARGELY IN PART TO THE IMPLEMENTATION OF THE INTERNATIONAL TOURING/SHOWCASING/MARKETING PROGRAMS.

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RADIO TRACKING SUCCESS | STARMAKER GRANT ALLOCATION BY TYPE OF RECORD LABEL #FUND We have begun to conduct interviews with applicants to discuss their use of funding to gain some “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 SUCCESS FACT: maintain and increase their momentum in the marketplace, both here and abroad.

Of particular importance this year is the impact of our international touring program. METRIC (ROUND #14) We approved close to $1 million in international touring grants that provided many artists with “The Radio Starmaker Fund has always been an opportunity to tour countries for the very first time. The feedback on this program has been crucial in assisting Last Gang Records to elevate the overwhelming and we hope to expand this even further in the future. profile of our artists. Starmaker money facilitates propelling a developing artist on the verge of breaking, like Metric, to the next level. Metric is an excellent of how continued access to Starmaker (and FACTOR) has allowed us to develop and export Canadian talent successfully for both

MAJOR LABELS INDIE LABELS QUASI-INDIE MISC. FUNDING TOTAL domestic and international markets.”

TOTAL APPROVED FUNDING FOR FISCAL YEAR $817,232.48 $3,263,702.28 $244,633.00 $339,000.00 $4,664,567.76 LENNY LEVINE % OF TOTAL APPROVED FUNDING 17.52% 69.97% 5.24% 7.27% 100% EXECUTIVE VICE PRESIDENT, LAST GANG RECORDS

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RADIO ARTIST PROFILE: FEIST STARMAKER #FUND

In May 2004, Arts & Crafts released Feist's sophomore solo supported by an extensive TV ad campaign and helped launch "Let It Die" to an unassuming Canadian audience. Day one ship- Feist on to the Top 50 national sales charts, nearly 10 months after ments totaled 1,000 units. The buzz on Feist's newest incarnation street date. The album has remained in the Top 200 for 12 weeks grew steadily via strong word of mouth, 4 star album reviews, fea- straight. In August, Bravo aired Feist "Live From the Rehearsal tures in The National Post, The Globe & Mail, Macleans and a live Hall" and the new single "Inside & Out" has just entered the Top performance on CBC's "Sounds Like Canada”. 20 AC National Airplay chart.

Feist and a full band supported the release with a national tour, Thanks in large part to Starmaker funding, Canada leads the way hitting major and secondary markets across Canada. Videos for in Feist album sales per capita world-wide, with over 42,000 units "Mushaboom" and "One Evening" received support at specialty shipped. The Canadian success story created a buzz Stateside video channels and the latter reached #1 on the Musimax Top 20 and provided a strong set-up for the U.S. release this past winter. chart. By the close of 2004 "Let It Die" landed on numerous top With recent features in Vanity Fair, , a late night TV ten album of the year lists. performance on Conan O'Brien and an upcoming national tour with Broken Social Scene, Feist looks ready to break through to all The 2004 Juno's marked a major turning point for the project. of North America and beyond. Feist was invited to perform live, was nominated for three Junos and walked away with two Juno's for New Artist and Alternative Album of the year. The resulting media exposure brought the proj- DANIEL CUTLER ect to a much broader mainstream level. The Juno awards were ARTS&CRAFTS

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RADIO RADIO STARMAKER FUNDED ARTISTS STARMAKER #FUND ROUND 12 ROUND 13 ROUND 13 (CON’T) ROUND 14 ROUND 14 (CON’T) ROUND 15

RON SEXSMITH ($100,000) K-OS ($144,408) HAYDEN ($32,000) K-OS ($127,867) PILATE ($30,250) THEORY OF A DEADMAN ($119,937) SUM 41 ($99,500) KALAN PORTER ($124,040) JORANE ($78,500) FEIST ($76,399) ($38,000) ($109,000) KESHIA CHANTÉ ($97,250) STABILO ($80,967) LES VOIX HUMAINES ($12,500) ($57,431) SLOAN ($27,000) BROKEN SOCIAL SCENE ($135,603) SARAH SLEAN ($94,000) THE WAKING EYES ($75,000) LHASA DE SELA ($21,000) SHAWN DESMAN ($117,700) STABILO ($25,500) MASSARI ($79,739) ($71,133) SUM 41 ($71,776) MADVIOLET ($18,500) COLIN LINDEN ($35,023) THE BILLS ($9,000) THE DOPE POET SOCIETY ($52,751) BOB WALSH ($68,000) BROKEN SOCIAL SCENE ($203,066) MOLLY JOHNSON ($44,916) ALAIN LEFÈVRE ($39,573) HAYDEN ($19,830) SAMINA ($29,127) IVANA SANTILLI ($55,266) ANGELE DUBEAU ET LA PIETÁ ($50,000) CORB LUND BAND ($14,000) THORNLEY ($57,505) MARTHA WAINWRIGHT ($45,710) HAYDEN ($65,840) JONAS ($57,500) THE BILLS ($13,500) STARS ($143,397) ($10,357) SUSIE ARIOLI BAND ($33,590) JAKALOPE ($54,500) QUARTETTO GELATO ($8,451) SOPHIE MILMAN ($45,900) BUCK 65 ($22,000)

LUKE DOUCET ($33,380) ($41,000) BLACKIE & THE RODEO KINGS ($20,464) NATALIE CHOQUETTE ($32,000) EMBER SWIFT ($25,500) NOT BY CHOICE ($25,145) SOULDECISION ($40,727) SWEATSHOP UNION ($26,200) ($24,000) MADVIOLET ($37,060) KAZZER ($36,750) THE DOPE POET SOCIETY ($37,134) MADVIOLET ($27,000)

BLACKIE & THE RODEO KINGS ($22,500) DEATH FROM ABOVE 1979 ($93,651) DEATH FROM ABOVE 1979 ($38,978) RON KORB ($10,000)

FLORENT VOLLANT ($1,500) IAN TYSON ($23,004) BUCK 65 ($27,000) SERENA RYDER ($6,000)

JANE BUNNETT ($36,000) REZ OFFICIAL ($13,445) ($22,500) SWEATSHOP UNION ($20,000) LES VOIX HUMAINES ($6,000) SLANGBLOSSOM ($13,445) JOHN LANDRY ($19,500) ($68,000)

MOLLY JOHNSON ($6,000) WAYNE LAVALLEE ($12,950) LES VOIX HUMAINES ($3,000) YANNICK NÉZET-SÉGUIN ($13,754) ($22,500) LUCIE IDLOUT ($12,672) LHASA DE SELA ($24,000)

SLOAN ($22,500) JOHN GRACIE ($35,000) METRIC ($62,500) THE BILLS ($12,000) EMBER SWIFT ($17,000) NOT BY CHOICE ($10,000)

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

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SALES CERTIFICATIONS| RADIO GRANT ALLOCATION BY GENRE STARMAKER FUND

DATE ARTIST ALBUM CERTIFICATION UNITS # SEPTEMBER 2004 ALEXISONFIRE “WATCH OUT” GOLD 50,000 SEPTEMBER 2004 SARAH HARMER “ALL OF OUR NAMES” GOLD 50,000 SUCCESS FACT: OCTOBER 2004 SUM 41 “CHUCK” GOLD 50,000

OCTOBER 2004 K-0S “JOYFUL REBELLION” GOLD 50,000 TEAM REZOFFICIAL (ROUND #13) OCTOBER 2004 KALAN PORTER “AWAKE IN A DREAM” (SINGLE) 4X PLATINUM 40,000 NOVEMBER 2004 SUM 41 “ALL KILLER NO FILLER” 3X PLATINUM 300,000 “At this stage of introducing Team Rezofficial to main- NOVEMBER 2004 SUM 41 “CHUCK” PLATINUM 100,000 stream, and First Nation audiences simultane-

NOVEMBER 2004 KALAN PORTER “AWAKE IN A DREAM” (SINGLE) 8X PLATINUM 80,000 ously, RSF has played a major role in supporting our wide-reaching campaign. Through radio, print and DECEMBER 2004 THORNLEY “COME AGAIN” GOLD 50,000 other means, we’re getting Team Rezofficial out there JANUARY 2005 KALAN PORTER “219 DAYS” 200,000 2X PLATINUM for all to fall in love with.” JANUARY 2005 KESHIA CHANTÉ “KESHIA CHANTÉ” GOLD 50,000 FEBRUARY 2005 K-OS “JOYFUL REBELLION” PLATINUM 100,000 ARTHUR PEARSON JUNE 2005 THE TREWS “” GOLD 50,000 GENERAL MANAGER, ARBOR RECORDS LTD.

JULY 2005 THEORY OF A DEADMAN “GASOLINE” GOLD 50,000

AUGUST 2005 JONAS “JONAS” GOLD 50,000

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

TOTAL APPROVED FUNDING $515,876.00 $1,766,409.98 $728,566.08 $137,500.00 $109,004.00 $427,364.32 $176,000.00 $103,023.85 $165,278.30 $198,033.23 $41,000.00 $56,512.00 $240,000.00 $4,664,567.76

% OF APPROVED FUNDING 11.06% 37.87% 15.62% 2.95% 2.34% 9.16% 3.77% 2.21% 3.54% 4.24% 0.88% 1.21% 5.15% 100.00%

NUMBER OF APPROVED APPLICATIONS 13 36 16 3 4 22 6 3 8 8 1 6 6 132*

NUMBER OF ARTISTS 8 22 9 3 4 11 4 2 6 6 1 6 0 82

*NUMBER OF APPROVED APPLICATIONS FOR FISCAL YEAR INCLUDES 24 MISCELLANEOUS FUNDING APPLICATIONS INCREASE IN ROCK (+13.98%) AND URBAN (+5.39%) FROM 2003-2004 DECREASE IN POP (-7.81%); WORLD (-7.37%) AND ABORIGINAL (-5.67%) FROM 2003-2004

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GRANT ALLOCATION RADIO BY MUSIC INDUSTRY ASSOCIATION| STARMAKER GRANT ALLOCATION BY PROVINCE #FUND RECIPIENT EVENT/CITY/PROVINCE

CANADIAN ACADEMY OF RECORDING ARTS & SCIENCES 2005 JUNO AWARDS*, WINNIPEG, MANITOBA SUCCESS FACT:

STABILO (ROUND #13 & 14) CANADIAN SONGWRITERS HALL OF FAME 2005 CANADIAN SONGWRITERS HALL OF FAME GALA*, TORONTO, ONTARIO

“The Radio Starmaker Fund enabled us to deliver EAST COAST MUSIC ASSOCIATION 2005 EAST COAST MUSIC AWARDS*, CAPE BRETON, Stabilo to a broad audience that has now become their base. The Radio Starmaker Fund was CANADIAN ASSOCIATION 2005 CANADIAN COUNTRY MUSIC AWARDS, CALGARY, ALBERTA instrumental in getting Stabilo to the next level with the consumer and industry alike.”

URBAN MUSIC ASSOCIATION OF CANADA 2005 CANADIAN , TORONTO, ONTARIO DAVE MORRIS NATIONAL MARKETING MANAGER, WESTERN CANADIAN MUSIC ALLIANCE 2005 WESTERN CANADIAN MUSIC AWARDS, , EMI MUSIC CANADA

*2005 JUNO AWARDS, 2005 EAST COAST MUSIC AWARDS AND 2005 CANADIAN SONGWRITERS HALL OF FAME GALA WERE ALL PAID FROM PREVIOUS FISCAL YEAR ALLOCATIONS

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

TOTAL APPROVED FUNDING $3,100,110.36 $0.00 $255,357.00 $0.00 $0.00 $729,652.00 $106,890.00 $0.00 $39,504.00 $430,554.40 $0.00 $0.00 $2,500.00 $4,664,567.76

% OF APPROVED FUNDING 66.46% 0.00% 5.48% 0.00% 0.00% 15.64% 2.29% 0.00% 0.85% 9.23% 0.00% 0.00% 0.05% 100.00%

NUMBER OF APPROVED APPLICATIONS 80 0 9 0 0 22 5 0 3 12 0 0 1 132*

NUMBER OF ARTISTS 45 0 6 0 0 16 4 0 3 7 0 0 1 82

*NUMBER OF APPROVED APPLICATIONS FOR FISCAL YEAR INCLUDES 24 MISCELLANEOUS FUNDING APPLICATIONS

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RADIO ARTIST PROFILE: DEATH FROM ABOVE 1979 STARMAKER #FUND

Death From Above 1979 has greatly benefited from Starmaker have all cylinders firing at once and driving home our marketing support of “You’re a Woman, I’m a Machine”. The money grant- message to the consumer. ed Last Gang Records on behalf of this album has facilitated our efforts in every aspect of the overall marketing and promotion of It is extremely important to be able to hit the market from various this record, both domestically and internationally. By using angles at the same time, reinforcing the likelihood of impacting Starmaker money to build upon organically garnered momen- the consumer and generating sales. By running these Starmaker tum, Death From Above 1979 has been able to break through to funded initiatives, a band like Death From Above 1979 signed to a more sustainable and viable consumer base. an indie label like Last Gang Records, secures a greater vantage point and has greater leverage in the world of the multinational We have allocated Starmaker dollars for use in print advertising “priority” artist. Starmaker assisting us in filling our war chest (street weeklies and national monthlies), retail marketing with more marketing dollars balances the scales and evens out (throughout the life of the record) and radio advertising among the terrain, so that the QUALITY of the MUSIC becomes the deter- other promotional outlets. For example, Last Gang will run a mining factor in a project’s success. This can be clearly illustrated Death From Above 1979 national radio advertising campaign at with Death From Above 1979, their sales consecutively in the Top Rock radio this autumn that will coincide with the band touring 200 for over 12 weeks and counting and their momentum just North America with Nine Inch Nails and Queens of the Stone about to hit critical mass this autumn with “You’re a Woman…” Age. This will be perfectly timed to not only work in tandem with fighting it’s way towards gold sales in Canada. one of the hottest tours this fall but will also overlap with back to school retail initiatives that will promote both the album and the LENNY LEVINE band, spiking sales in the critical fall plan period. This strategic EXECUTIVE VICE PRESIDENT, utilization of Starmaker money has been essential in order to LAST GANG RECORDS

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

2005 MUCHMUSIC VIDEO AWARDS KALAN PORTER PEOPLE'S CHOICE: FAVOURITE CANADIAN ARTIST - "SINGLE"

K-OS SINGLE OF THE YEAR - "" RAP RECORDING OF THE YEAR - "JOYFUL REBELLION" FEIST NEW ARTIST OF THE YEAR ALTERNATIVE ALBUM OF THE YEAR - "LET IT DIE" 2005 JUNO AWARDS RON SEXSMITH SONGWRITER OF THE YEAR SARAH HARMER ADULT ALTERNATIVE ALBUM OF THE YEAR - "ALL OF OUR NAMES" ALEXISONFIRE NEW GROUP OF THE YEAR KESHIA CHANTÉ R&B/SOUL RECORDING OF THE YEAR - "KESHIA CHANTÉ" TAIMA ABORIGINAL RECORDING OF THE YEAR - "TAIMA"

THE ROAD HAMMERS GROUP OR DUO OF THE YEAR SUCCESS FACT: 2005 CANADIAN COUNTRY MUSIC AWARDS THE CORB LUND BAND ROOTS ARTIST OR GROUP OF THE YEAR INDEPENDENT GROUP OR DUO OF THE YEAR NATALIE MACMASTER FEMALE ARTIST OF THE YEAR STARS (ROUND #14) 2005 EAST COAST MUSIC AWARDS ROOTS/TRADITIONAL SOLO RECORDING OF THE YEAR - "BLUEPRINT" THE TREWS GROUP OF THE YEAR

DOC WALKER OUTSTANDING COUNTRY RECORDING - "EVERYONE ABOARD" “The Radio Starmaker program has proven to be an 2004 WESTERN CANADIAN MUSIC AWARDS ENTERTAINER OF THE YEAR OUTSTANDING RAP/HIP-HOP RECORDING - "HEAVY" essential part of the success of the Stars project.

K-OS HIP HOP RECORDING OF THE YEAR - "B-BOY STANCE" Without it we would struggle to compete adequately 2004 CANADIAN URBAN MUSIC AWARDS KESHIA CHANTÉ NEW ARTIST OF THE YEAR with the majors in the development of this artist. We

THE TREWS BEST NEW GROUP OR SOLO ARTIST (ROCK) - "NOT READY TO GO" can trace the success of Stars’ “” K-OS BEST NEW GROUP OR SOLO ARTIST (CHR) - "CRABBUCKIT" 2005 CANADIAN RADIO MUSIC AWARDS BEST NEW GROUP OR SOLO ARTIST (HOT AC) - "CRABBUCKIT" directly back to specific initiatives made possible by BEST NEW GROUP OR SOLO ARTIST (DANCE URBAN RHYTHMIC) - "CRABBUCKIT" the Starmaker Program.” RON SEXSMITH BEST NEW GROUP OR SOLO ARTIST (MAINSTREAM AC) - "WHATEVER IT TAKES"

THE TREWS FAVOURITE ALBUM - "HOUSE OF ILL FAME" THORNLEY FAVOURITE SINGLE - "SO FAR, SO GOOD" JEFFREY REMEDIOS 2005 CANADIAN INDEPENDENT MUSIC AWARDS THE WAKING EYES FAVOURITE GROUP METRIC FAVOURITE POP ARTIST/GROUP ARTS&CRAFTS

2005 NATIONAL JAZZ AWARDS CANADA MOLLY JOHNSON MOVADO VOCALIST OF THE YEAR

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RADIO ARTIST PROFILE: K- OS STARMAKER #FUND

The release of k-os’ sophomore album “Joyful Rebellion” has importantly, it allowed us to translate the success of our Top 5 been everything expected and more. With a debut of #7 on The CHR and #1 Video (“Crabbuckit”), and Top 10 CHR and #1 Top 200, it set a benchmark as the highest debut for a Canadian Video (“”) into album and digital sales (both urban artist since the chart’s inception. Over 150,000 units, four tracks are certified Gold digital singles). I think you would be hit singles later and 48 weeks atop the Top 200, the rebellion still hard pressed to find another Canadian artist who garnered air- charges on. play on CHR, Hot AC, Urban and Modern Rock stations in this country! k-os has received numerous awards for Joyful Rebellion (CRIA Platinum Certification, 3 Juno Awards, 4 MMVA’s, 3 Canadian All the domestic success has helped expedite activity abroad for Radio Music Awards and 1 UMAC Award), yet I think the most “Joyful Rebellion” with releases in over 20 territories. While telling recognition is the Canadian Music Week Industry Award avenues to achieve success have been ever present for k-os, RSF for Canadian Talent Development Story of the Year and The has facilitated and provided an ability to react and capitalize on Radio Starmaker Fund has been there every step of the way. opportunities, be creative and execute numerous marketing and promotional initiatives. While k-os’ album is the number one priority for EMI Canada, the contributions from RSF made a crucial assist to the growth of this DUANE WATSON project. Its funds greatly aided in focusing our efforts of breaking DIRECTOR OF URBAN MARKETING, into new and developing Canadian markets and audiences, as EMI MUSIC CANADA well as facilitating international showcases and support. More

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RADIO ALLOCATION OF FUNDING BY CATEGORY STARMAKER #FUND CATEGORY TOTAL APPROVED FUNDING % OF TOTAL APPROVED FUNDING CATEGORY TOTAL APPROVED FUNDING % OF TOTAL APPROVED FUNDING

PRINT ADVERTISING $330,401.76 7.08% TOUR BUS $43,291.00 0.93%

RADIO ADVERTISING $513,801.00 11.01% OPENING ACT TOUR SUBSIDY $20,000.00 0.43%

T.V. ADVERTISING $629,155.00 13.49% MISCELLANEOUS (MUSIC ASSOC., ETC.) $339,000.00 7.27%

WEB ADVERTISING* $19,979.50 0.43% INTERNATIONAL PRINT ADVERTISING* $63,585.04 1.36%

SHOWCASING $61,100.00 1.31% INTERNATIONAL RADIO ADVERTISING* $2,206.13 0.05%

INDEPENDENT RADIO PROMOTER $106,402.00 2.28% INTERNATIONAL T.V. ADVERTISING* $12,047.70 0.26%

INDEPENDENT PUBLICITY $95,623.00 2.05% INTERNATIONAL WEB ADVERTISING* $1,470.76 0.03%

CONTESTS $83,695.92 1.80% INTERNATIONAL RADIO PROMOTER* $78,005.20 1.67%

POSTERING $274,886.00 5.89% INTERNATIONAL PUBLICITY* $207,000.00 4.44%

RETAIL PROMOTIONS $237,047.07 5.08% INTERNATIONAL POSTERING* $203.64 0.00%

PROMO TOURS $103,750.00 2.22% INTERNATIONAL CONTESTS* $104.47 0.00%

CD SAMPLERS* $35,812.00 0.77% INTERNATIONAL RETAIL PROMOTIONS* $51,122.17 1.10%

T.V. SHOWS $26,900.00 0.58% INTERNATIONAL CD SAMPLERS* $6,880.13 0.15%

WEB DESIGN $69,500.00 1.49% INTERNATIONAL PROMO TOURS* $26,655.21 0.57%

TOUR - ADDITIONAL MUSICIANS $45,209.00 0.97% INTERNATIONAL TOURING $981,750.00 21.05%

TOUR - PRODUCTION $46,962.00 1.01% INTERNATIONAL SHOWCASING $64,420.00 1.38%

TOUR - ADDITIONAL TECHNICAL CREW $57,417.40 1.23% INTERNATIONAL T.V. SHOWS* $16,829.66 0.36%

REHEARSAL SPACE RENTAL $12,355.00 0.26% TOTAL $4,664,567.76 100.00%

*NEW CATEGORIES IN 2004 - 2005

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RADIO ARTIST PROFILE: THORNLEY STARMAKER #FUND It’s been 16 months since Thornley’s debut gold-selling album Awards during 2005’s Canadian Music Week and were invited “Come Again” entered the Top 200 SoundScan charts at to perform at the event. Performing is one of the band’s special- #7….and it’s still going strong! Record sales are consistent, the ties, a fact made clearly apparent when they appeared on Jay band is still touring and selling out shows across Canada and a Leno prior to the release of their album. 4th single has again landed on rock radio across the country. Thornley is a band in which 604 Records & Universal Music With 4 singles released in Canada, Thornley dominated the rock Canada have a lot of faith. With a small indie label behind the radio airwaves for the last 18 months with thanks to significant band, it was very important to have the support of the Radio Radio Starmaker Fund support. Touring has also been key to the Starmaker Fund. We fully believe that the marketing and promo- success of this band due to their phenomenal live performances. tion behind Thornley was largely made possible with the support With Starmaker’s help, local radio stations, great TV campaigns of the Fund. It helped jump start this new Canadian rock group and print advertising supported the tours and helped increase the and establish it in the industry. With the assistance of the Radio band’s profile. Starmaker Fund, a strong foundation has been built for Thornley’s future success. Thornley’s success has been recognized with 2 Juno nominations (“Rock Album Of the Year” and “New Group of the Year”). They were able to attend the Junos in Winnipeg with the help of JULIE BALDWIN Starmaker, continuing on their western tour afterwards. Thornley DIRECTOR OF MARKETING, also won “Single of the Year” at the Canadian Independent Music PROMOTION & ARTIST RELATIONS, 604 RECORDS

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RADIO FINANCIAL HIGHLIGHTS STARMAKER FISCAL YEAR 2004–2005 #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, 2005 and for the year then ended on which our auditors, PricewaterhouseCoopers LLP, have expressed an opinion without reservation in their report dated November 7, 2005.

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.

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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

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RADIO STARMAKER FUND CONDENSED STATEMENT OF FINANCIAL POSITION ...CONTINUED RADIO AS AT AUGUST 31, 2005 2004 STARMAKER FUND ADMINISTRATION CAPITAL ASSET GRANT FUND TOTAL 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

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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

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RADIO STARMAKER FUND CONDENSED STATEMENT RADIO OF OPERATIONS AND CHANGES IN FUND BALANCES ...CONTINUED STARMAKER FOR THE YEAR ENDED AUGUST 31, 2005 FUND

RESTRICTED FUNDS 2004#

CAPITAL ASSET GRANT FUND TOTAL FUND

REVENUES $ $ $

CONTRIBUTIONS FROM CAB – 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

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RADIO ARTIST PROFILE: LES VOIX HUMAINES STARMAKER #FUND

Susie Napper and Margaret Little have been thrilling audiences soprano Suzie LeBlanc and countertenor Daniel Taylor and a with their performances of exotic masterpieces of the 17th and Telemann disc with renowned Belgian flutist Barthold Kuijken. 18th centuries for the past twenty years. Les Voix Humaines are Their recording of the complete “Concerts a deux violes renowned for their spectacular arrangements of a wide variety esgales“ by Sainte-Colombe is a world premiere. of music for two viols and their brilliant performances of con- temporary music commissioned by the duo. Their Montreal con- The duo has performed at many of the most important music fes- cert series offers a unique opportunity for an international array tivals in North America, Mexico and including the of instrumentalists and singers to explore unusual repertoire that Boston Early Music Festival, Early Music Vancouver, the Festival includes virtuoso viols. The duo is regularly joined by some of Internacional Cervantino, Mexico, the Brighton International Montreal’s finest young gambists to form the Voix Humaines Music Festival, , the Festival Oude Musiek, Holland and Consort specializing in the vast 17th-century repertoire for viol the Summer Festivities of Early Music in Prague. Thanks to the consort. help of the Radio Starmaker Fund, they made their debut in Australia and New Zealand and toured New England in 2005. Les Voix Humaines record for the ATMA label and were nomi- The RSF contributions to international touring costs made it pos- nated for four Opus prizes in 2004. They have recorded over sible for Les Voix Humaines to perform ten concerts, give two 20 CD’s which have received critical acclaim and several prizes master classes and teach at the Australian Viola da Gamba including the Prix Opus, Diapason d’Or, Félix de l’Adisq Society Easter Workshop. awards. They include the complete “Poeticall Musicke“ of Tobias Hume, “The 4 Seasons“ of Christopher Simpson, the complete ÉLISABETH COMTOIS “Le Nymphe di Rheno“ of Johannes Schenck, several discs with ARTIST MANAGER

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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

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RADIO ARTIST PROFILE: KATHLEEN EDWARDS STARMAKER #FUND

Hailed as one of the finest and most distinctive singer-songwrit- The Radio Starmaker Fund was fundamental in the marketing of ers to emerge in 2003 with the release of her debut record this project, contributing toward the cost of a street campaign for “Failer”, Kathleen Edwards has triumphantly returned with her album launch, allowing us to purchase additional print advertis- critically acclaimed sophomore album, “Back To Me”. It has ing in support of retail initiatives and supplementary advertising received rave reviews nationally and internationally while surrounding and incorporating tour dates. With this support, we Kathleen has been hard at work touring North America and the were able to create a greater presence in the marketplace, inte- UK. She has headlined her own club shows in major markets gral to the momentum of the project. across North America and been selected as opening support by artists such as Willie Nelson, Aimee Mann and John Prine. The Radio Starmaker Fund has been fundamental in furthering Kathleen’s touring internationally. This money has provided the In 2005 alone, Kathleen has appeared on numerous television foundation for the success of the tours, bringing her live show to programs, performing on Austin City Limits, The Late Late Show, a higher professional level with the addition of supporting musi- The Tonight Show with Jay Leno and of course, David Letterman. cians and extra crew. The fund has allowed Kathleen to tour This was the third invitation extended by Letterman made in hon- new regions in Europe and the US, creating new markets while our of the release of “Back To Me”. Kathleen also recorded a reinforcing support in existing territories. Bravo Television special and has appeared on countless region- al television programs in Canada and the States. CARLA PALMER SENIOR MARKETING MANAGER, MAPLEMUSIC RECORDINGS