Int'l Launch For Canadian Acts Is High-risk Venture

TORONTO‹With rising marketing and production costs, the financial risks of launching a
domestic act have grown in recent years. Most Canadian labels are looking to develop artists for the international market to improve their chances for a return on investment.
The consolidation of music labels worldwide, coupled with the growth of foreign markets, has also made artist development in Canada more globally directed.
However, launching a Canadian act internationally is a high-stakes risk. "You're looking at a $1 million [investment] with a two-year horizon," says Rick Camilleri, president of Sony Music Entertainment (Canada). "That's probably four videos, two national [Canadian] promotion tours, and costs associated with [co-producing] TV specials, radio broadcasts, online activities, and touring. With any international [interest], the ante can go up considerably."
If the risks of development have become high for major companies, for many independent labels they are becoming out of reach. Sources estimate that domestic marketing alone can run to $250,000 Canadian for an indie act. "If [an independent doesn't] have deep enough pockets to put out at least 20 albums, chances are they'll run out of money," says Alexander Mair, president of independent record company Attic Music Group. "If they're releasing only Canadian product, they need at least 10 Canadian acts to give it a proper shot. Anybody who thinks they are going to [be successful] in the first two or three albums is dreaming."
LARRY LeBLANC