Recorded music—The beats go on

Sales of Canadian music worldwide were $1.1 billion in 2000, and recognition of Canadian talent by foreign listeners has overtones in our sense of national pride. The health of the industry across the country is due in part to the durable Canadian content regulations, which ensure that Canadian musicians are heard—a vital ingredient in any career.

In 2000, only 16 of the 254 recording companies in Canada were foreign-controlled. However, they accounted for about 87% of the sales of recordings in the industry. As Canadian artists continue to become more and more successful, foreign-controlled companies are likely to be increasingly active in seeking Canadian talent. In total, Canadian labels reported more than $861.4 million worth of revenues from the sale of sound recordings in 2000, down 3% from two years earlier.

In an art so heavily dependent on technology, the digital century will have a profound effect on recorded music. The decline in overall sales raises questions about the impact of Internet technology on the industry. A major factor in the decline could be that consumers are downloading music from the Internet.