RADIO STARMAKER FUND ANNUAL REPORT 2006#–2007 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.- 11. Awards Won by Radio Starmaker Funded Artists 12. Allocation of Funding by Category 13. – 17. Condensed Financial Statements 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 2006-2007 .01 ANNUAL REPORT RADIO MESSAGE FROM THE CHAIR STARMAKER #FUND This fiscal year 2006-2007 was one of again I am impressed by the remarkable consistency in are leaving the Fund this year: Rob Farina from CHUM, transition for the Radio Starmaker Fund. the programs and operations. This year 95.62% of all Bob Harris from Standard (Astral); Sander Shalinsky We moved from reflecting on the past qualifying applications were approved for funding. Also and Brian Chater. I want to take this opportunity to five years as part of the process of the this year we saw an increasing trend toward funding thank these departing members for their insight, dili- CRTC’s Review of Radio, to looking for- independent labels where 74.41% of all money approved gence and hard work in making this Fund such a success. ward to refining and improving the Fund went to independent labels. I am pleased that we have I would also like to thank our staff, Chip Sutherland, for seven additional years of operation. been able to play a part in developing the independent Rachel Oldfield, and Jerry Leibowitz for their efforts and labels to the point where they can make a substantial dedication and for making it such a pleasure over the In December 2006 the CRTC released investment in their artists with our assistance. past five years to act in my capacity as Chair. its decision regarding the review of radio and the Radio Starmaker Fund received a full endorsement and renewal The CRTC in its review of radio, specifically commend- of its mandate from the Commission. ed the Radio Starmaker Fund on its ability to fund diverse genres of music. Once again in 2006/2007 we Following this renewal, two significant transactions were are able to report that more than 50% of our funding approved which have now been built into our capital was approved for specialized genres of music outside of funding model. These revenues secure the financial sta- the pop/rock realm. Chuck McCoy bility of the Fund over the next 7 years as well as provid- Executive Chair, ing the opportunity for us to improve and enhance our This is my final year as Chair of the Radio Starmaker Radio Starmaker Fund touring programs for artists. Fund and I am proud to have been a part of developing this Fund from an initial concept to a cornerstone of the In spite of this transition period, the Fund managed to Canadian artist funding infrastructure. I share this carry on its operations without interruption and once accomplishment along with several Board members who RADIO STARMAKER FUND ANNUAL REPORT 2006-2007 .02 ANNUAL REPORT RADIO BOARD OF DIRECTORS AND STAFF| STARMAKER MANDATE #FUND FOR THE PERIOD FROM SEPTEMBER 1, 2006 TO AUGUST 31, 2007, THE RADIO STARMAKER FUND MANDATE BOARD OF DIRECTORS WAS COMPRISED OF: The mandate of the Radio Starmaker Fund is to make a substantial and discernable difference to CHAIR DIRECTORS DIRECTORS CON’T Chuck McCoy Rob Farina RJ Guha the careers of Canadian musical recording artists Executive Vice President Vice President, Program Development President/Vice-President through artist driven marketing assistance, and Programming and Marketing CHUM Limited Kindling Music/The Management Trust to support the Canadian independent music Rogers Radio Toronto, Ontario Toronto, Ontario infrastructure. Toronto, Ontario Jian Ghomeshi STAFF: VICE-CHAIR President, Wonderboy Entertainment Inc. Created by the Canadian Radio-television and Brian Chater Toronto, Ontario EXECUTIVE DIRECTOR Telecommunications Commission’s Radio Policy President, Avenue Road Music Group Chip Sutherland Bob Harris Toronto, Ontario Review of 1998, the Radio Starmaker Fund has Operations Manager MANAGER, completed its sixth full year of operation. Vice-President Rock Programming FINANCE AND ADMINISTRATION TREASURER Andy McLean Standard Radio Inc. Rachel Oldfield Managing Director, NXNE Montreal, Quebec French language artists are supported by Fonds MANAGER, RadioStar, although Radio Starmaker Fund Toronto, Ontario Blair Bartrem PROGRAMS AND APPLICATIONS Program Director supports non-French language and instrumental SECRETARY Jerry Leibowitz Steve Kane Q107, Corus Entertainment Inc. projects originating from Quebec. President, Warner Music Canada Toronto, Ontario Toronto, Ontario Sander Shalinsky Sheppard Shalinsky Brown Barristers & Solicitors Toronto, Ontario RADIO STARMAKER FUND ANNUAL REPORT 2006-2007 .03 ANNUAL REPORT RADIO APPLICATION EVALUATION |APPLICATIONS STARMAKER SUBMITTED VS. APPLICATIONS APPROVED #FUND SUCCESS FACT: BELLY 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 are required to reach prescribed sales levels by genre and demonstrate a financial commitment to the marketing of their recorded project. For a detailed description of our criteria please visit our website at www.radiostarmakerfund.com. Furthermore, the artist must be a Canadian citizen or landed immigrant, a resident of Canada and the ownership of the master tapes must reside with a Canadian company. Being able to sell records as a new Canadian hip-hop artist is an extremely difficult task, especially in this age of internet We continue to fund artists from a wide variety of musical genres and from every region of the country. downloads. Belly's debut album "The Revolution" was the first hip-hop album in Canadian history to debut at #1 on the hip- hop SoundScan charts. The Radio Starmaker Fund's financial support was instrumental in this accomplishment. With the fund- ing, CP Records was able to assemble the kind of massive mar- keting campaign often reserved for only priority major label APPLICATIONS SUBMITTED VS. APPLICATIONS APPROVED artists. Belly's album is now on the verge of reaching gold sta- tus in Canada only twelve weeks into the release. The response # OF QUALIFYING APPLICATIONS SUBMITTED # OF APPLICATIONS APPROVED % to Belly's project has been overwhelming and has led to nego- tiations for releasing the album in other territories. TOTAL FISCAL YEAR 2006-2007 160 153 95.62% Manny Dion Vice-President of Artist Management CP Records RADIO STARMAKER FUND ANNUAL REPORT 2006-2007 .04 ANNUAL REPORT RADIO TRACKING SUCCESS| STARMAKER GRANT ALLOCATION BY TYPE OF RECORD LABEL #FUND SUCCESS FACT: LES VIOLONS DU ROY TRACKING SUCCESS We have established throughout the operation of the Fund a system of following up with our applicants to seek feedback on the impact of the funding. Statistics can only tell part of the story and we prefer to have specific and direct feedback from our applicants as to how they felt Starmaker assisted their goals. Throughout this report there are several success stories provided by our applicants that illustrates the very positive impact we are having on Canadian artists both here and abroad. GRANT ALLOCATION BY TYPE OF RECORD LABEL With the help of the Radio Starmaker Fund, ATMA was able to raise the profile of Les Violons du Roy both within Canada and MAJOR LABELS INDIE LABELS QUASI-INDIE MISC. FUNDING TOTAL internationally, especially in key English-speaking territories. A well-planned marketing campaign, including international print, TOTAL APPROVED FUNDING FOR FISCAL YEAR $541,133.95 $3,292,391.54 $314,324.44 $276,850.00 $4,424,699.93 radio and transit advertising, along with the assistance of pro- % OF TOTAL APPROVED FUNDING 12.23% 74.41% 7.10% 6.26% 100% fessional publicists both in Canada and abroad, helped the chamber orchestra’s “Piazzolla” recording achieve significant success in international markets. Johanne Goyette President Disques Atma Inc. RADIO STARMAKER FUND ANNUAL REPORT 2006-2007 .05 ANNUAL REPORT RADIO ARTIST PROFILE: BEDOUIN SOUNDCLASH STARMAKER #FUND The Radio Starmaker Fund has played an paigns which aided in branding Bedouin shows necessary to promote the album integral role in the successful release of Soundclash across the nation. These initia- internationally. Bedouin Soundclash’s third album, “Street tives increased the band’s fan base by Gospels” (Dine Alone Records, 2007). extending into new target markets, crossing The combination of Domestic Marketing Following the success of their previous CRIA both musical genres and age categories. and International Tour Support that gold certified album “Sounding A Mosaic”, Starmaker provided for Bedouin the success of this new album was crucial to Starmaker funding supported promotional Soundclash has had a huge impact on the establish the band as a mainstay within the campaigns to create and distribute flyers, initial success of the album, which reached Canadian music scene. posters and stickers at various festivals, #1 in digital sales and #2 in retail sales shows and lifestyle shops across Canada. within Canada. Bedouin Soundclash is cur- The Radio Starmaker Fund has allowed It also enabled the label to hire a street rently on tour promoting “Street Gospels” Dine Alone Records to undertake national team to distribute these items at genre and continuing to see the benefits of the marketing campaigns for the album that an related shows, raising awareness for the Radio Starmaker Fund’s contributions.