IV - Notes

¹International Federation of the Phonographic Industry (IFPI), Recording Industry in Numbers 2009. Data are based on the wholesale value of sound recordings and not their retail value. The wholesale value represents recording company revenues after the deduction of discounts, deliveries and taxes. Trends over a number of years are presented in US dollars, set at the 2008 rate. Local historic currencies are converted to US dollars by the IFPI using the 2008 exchange rate. The IFPI now includes certain performance royalties in calculating the overall value of audio recordings. The value of digital sales is included in data starting in 2004.

² IFPI. Trade revenues for 1999 were set at the 2008 rate by Canadian Heritage to calculate the percentage gap.

³ According to IFPI, digital formats generated US$3.050 billion in revenues in 2007, whereas physical formats generated US$16.350 billion.

⁴ IFPI, Recording Industry in Numbers 2009, page 85. While the United States accounts for 47.1% of global trade revenues from digital sales, Canada represents 2% of these revenues.

⁵ IFPI, Recording Industry in Numbers 2009. Unlike global data, Canadian market data are expressed in current dollars. The value of digital sales as of 2004 is included. Certain performance royalties are included in the calculation of Canadian sales as of 2006 only

 ⁶According to the IFPI, physical formats produced CAN$453.7 million in trade revenues (wholesale value) in 2007.

⁷ IFPI, Recording Industry in Numbers 2009. Subscriptions (11%) and others (7%).

⁸ Physical albums include CDs, DVDs, LPs and Cassettes. Note that Nielsen SoundScan data published in this profile may vary from unit sales data appearing in the Canadian Music Industry: 2006 Economic Profile, which presented unit sales according to the IFPI collection method, which is different from that used by Nielsen SoundScan.

⁹ SoundScan, year-end data, 2004 to 2008. Includes sales of digital albums.

¹⁰ Canadian Heritage determines the nationality and linguistic profile of artists whose albums appear on the Nielsen SoundScan top 2000. Unit sales of albums in the top 2000 represented 67% of total unit sales in the Canadian market in 2008 according to Nielsen SoundScan. The top 2000 list includes sales of digital albums.

¹¹ In 2008, 410 albums by Canadian artists were on the Nielsen SoundScan top 2000 chart, generating total sales of 5.102 million units (average sales of 12,445 units). The 1,248 albums by foreign artists on this chart produced sales of 15.831 million units (average sales of 12,685 units).

 ¹² Canadian Heritage determines the nationality and linguistic profile of artists whose digital tracks appear on the Nielsen SoundScan top 2000 tracks chart. Unit sales of tracks in this top 2000 chart represented 43% of all digital track sales in 2008 according to Nielsen SoundScan.

¹³ Note that the top 100 digital albums represented less than 20% of total digital album sales. Caution must be used when interpreting the digital album share of Canadian artists derived from this chart.

 ¹⁴ Sources: Canadian Music Industry Database (CMID) and Quebec Collective Society for the Rights of Makers of Sound and Video Recordings (SOPROQ). Because the inventory of new albums is constantly changing, data are revised as the new releases of hundreds of recording companies are taken into account. Thus, the results for a given year may vary slightly in comparison with a previous publication. At the time of the publication, the 2008 preliminary data showed over 2,465 new albums.

¹⁵ Canadian Heritage sets out results by genre, which may vary between the two data sources (CMID and SOPROQ).

¹⁶ Since 2005, Statistics Canada has been using a new method for collecting the financial and operational data required to produce statistics on the Canadian sound recording industry. Collected data are now partly based on a business sample, which represents 95% of total industry revenue. In addition, the sample surveyed varies every other year, which means that some data cannot be monitored on an annual basis. Similarly, it is no longer possible to compare data collected prior to 2005 to data collected using the new methodology.

¹⁷ Statistics Canada collects this type of data every other year. Data were only available for the 2005 and 2007 reporting period when this report was published.

¹⁸ In 2008, some certifications were granted according to previous sales level requirements (gold=50,000; platinum=100,000) while other certifications were based on the new requirements (gold=40,000, platinum=80,000).

¹⁹ In the United States, certifications are granted by the Recording Industry Association of America according to the total number of copies being distributed. Gold certification = 500,000 units, platinum certifications = 1,000,000 units.

²⁰ In the United Kingdom, certifications are issued by the British Phonographic Industry (BPI). Gold certification = 100,000 units, platinum certification = 300,000 units.

²¹ Gold certification = 75,000 units.

²² Dark Horse was certified in the United States the month following its release while All the Right Reasons, released in 2005, was certified twice platinum in the United Kingdom.

²³ Decima Research Centre, Attitudes and Behaviours Towards Canadian Music 2008, Public Opinion Survey conducted with 1505 Canadians aged 15 and older. Phone interviews conducted from June 24 to July 15, 2008. Report available at : http://epe.lac-bac.gc.ca/100/200/301/pwgsc-tpsgc/por-ef/canadian_heritage/2008/008-08-e/report.pdf

²⁴ Canadian Internet Project, 2007. All study results are available at http://www.canadianinternetproject.ca/en/publications.htm

 ²⁵ While all respondents were surveyed on their music CDs and DVDs purchases, only those who had Internet access were asked questions on paid downloads of full albums and individual tracks. Only those respondents owning a cell phone were asked questions on the purchase of ringtones.

²⁶ These percentages are calculated based on all Canadians with Internet access. Thus, they include a portion of Internet users who do not make online purchases; this portion may vary from one demographic group to another.

²⁷ Includes respondents who stated “agree” or “strongly agree”.

²⁸ Mechanical rights compensate composers, authors, songwriters and publishers when their songs are recorded, legally downloaded, or used in film, television programs or commercials. The two main but not exclusive collectives operating in Canada are the Canadian Mechanical Reproduction Rights Agency (CMRRA) and the Société du droit de reproduction des auteurs, compositeurs et éditeurs du Canada (SODRAC). The CMRRA distributes royalties exclusively to publishers, while SODRAC pays royalties separately to authors and publishers.

The amounts of royalties for mechanical rights are not available for public dissemination. It is however possible to refer to 2005 data published in a special study and summarized in the Canadian Music Industry: 2006 Economic Profile available upon request.

²⁹ Excludes any special cable arrears, pay audio arrears, cable overhead rates and private copy distributions.

³⁰ American Society of Composers, Authors and Publishers

³¹ Broadcast Music Incorporated

³² SOCAN writers’ royalties by distribution pool in 2007 (000): television-cable ($7,618), television-broadcast ($9,294), radio and general ($8,601), concerts ($1,387), cinema ($15), pay audio ($451), international affiliated societies ($35,265).

³³ SOCAN publishers’ royalties by distribution pool in 2007 (000): television-cable ($12,311), television-broadcast ($14,327), radio and general ($16,476), concerts ($3,860), cinema ($236), pay audio ($872), international affiliated societies ($7,873).

 ³⁴ Data from the “Financial Highlights” section on the CPCC web site, http://cpcc.ca/english/finHighlights.htm (referenced November 9, 2009).