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    Five Straight Years: Canadian Digital Music Sales Growth Against Beats the U.S.

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    Thursday March 24, 2011
    Nielsen Soundscan releases annual music sales figures for the United States in the first week of the new year and for Canada one month later. This year Nielsen released the U.S. figures, but nearly three months later, there has still not been a public release of the Canadian figures. However, a Globe and Mail story over the weekend included the data, which confirms that the Canadian digital market grew faster than the U.S. market in 2010.  Last year, digital music sales grew by 19.8% in Canada, while the U.S. market was basically flat, with just 1% growth.  As the chart below demonstrates, this marks five straight years in which the Canadian digital market has grown faster than the U.S.:

    Year
    Canada
    United States
    2010
    20%
    1%
    2009
    38%
    8%
    2008
    58%
    27%
    2007
    73%
    45%
    2006
    122%
    65%


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    Canadian Digital Music Sales Growing Faster Than U.S. in 2010

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    Tuesday September 28, 2010
    Nielsen Soundscan reports that Canadian digital music sales grew outpaced the U.S. during the first six months of 2010.  This continues a longstanding trend as Canadian sales have grown faster than the U.S. each year since 2006.
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    Canadian Digital Music Sales Growth Beats The U.S. For the 4th Straight Year

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    Thursday February 04, 2010
    Nielsen Soundscan has just released the Canadian music sales figures for 2009.  Notwithstanding the regular claims that the Canadian digital music market cannot develop without copyright reform, the Canadian market grew faster than the U.S. market for the fourth consecutive year.  As the chart below demonstrates, digital music sales have grown faster in Canada than in the U.S. in every year since 2006:

    Year
    Canada
    United States
    2009
    38%
    8%
    2008
    58%
    27%
    2007
    73%
    45%
    2006
    122%
    65%

    While this does not suggest that the market is thriving - a down economy with more competition for the entertainment dollar it is a tough market - it does confirm yet again that attempts to link copyright reform to the development of a Canadian digital market are not borne out by the facts.  Indeed, Canada has consistently grown faster than the United States (from an admittedly lower starting point given that digital music stores arrived later in Canada). 


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    How Does Canada's Digital Music Market Really Stack Up?

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    Wednesday August 26, 2009
    CRIA's Graham Henderson has posted an op-ed in the Georgia Straight in which he repeats many of his comments from an earlier copyright consultation roundtable. Henderson points to U.S. sales and new services Europe such as Spotify and Nokia's Comes With Music to support his claim is that Canada is falling far behind its counterparts in the digital music sales and services.  In Canada, he says the choice is just between iTunes and illegal (it is rather amazing to see the person who launched Puretracks now ignore it).

    Yet Henderson's claims simply don't stand up to scrutiny.  First, digital music sales as a percentage of total sales in Canada is ahead of every major European country. While the U.S. is indeed ahead of Canada, the IFPI reports that Canada is ahead of France, Britain, Spain, Belgium, Italy, Germany, Switzerland, the Netherlands, Austria, Sweden, Czech Republic, Finland, Greece, Hungary, Norway, Poland, Portugal, and Russia.  Canada also leads countries such as Australia, New Zealand, Hong Kong, Singapore, Taiwan, Mexico, Argentina, Brazil, and South Africa (percentage of digital sales are highest in countries where physical sales are virtually non-existent such as Indonesia and China). In fact, of the top 20 global markets for recorded music, the IFPI says that Canada ranks 5th for the percentage of digital sales.  Overall, Canada's digital market stands 7th worldwide, while ranking 6th for all recorded music - in other words, about what you would expect. Not exactly the laggard that CRIA claims.

    Second, Canada trails the U.S. in the digital sales as a percentage of total sales, but digital music sales growth in Canada has outperformed the U.S. for the past three years according to Nielsen Soundscan data. Indeed, the IFPI notes that Canada's growth rate is ahead of the global average. In comparing with the U.S., Canada is starting from a lower base, but Apple iTunes launched much later in Canada and it has failed to seriously target French language music sales (effectively cutting out a chunk of the Canadian market).

    Third, recent reports note that services like Spotify are promoted by the major labels who hold an ownership stake, but artists actually receive very little.  Moreover, Canada has been home to new services such as SpiralFrog, which launched in Canada before the U.S.

    Fourth, Canada's private copying levy has provided hundreds of millions of dollars in compensation for personal, non-commercial copying that may include downloading.  Given that revenue, it should come as little surprise to find that many groups representing artists are focused on retaining or expanding the levy as their key issue, not the reforms promoted by CRIA.
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