Canada: Gaining Global Ground

The world clearly has taken notice of Canadian music.

The recent multimarket success of two artists, Vancouver crooner Michael Bublé and Quebec chanteuse Lynda Lemay (both on Warner Music Canada), underscores Canada's role as a leading international source of repertoire.

Bublé's 143 Records/Reprise sophomore set, "It's Time," entered the charts in February at No. 1 in Canada, Italy, Australia and Japan, No. 4 in the United Kingdom and No. 7 on The Billboard 200.

The following month, Lemay's eighth WEA album, "Un Paradis Quelque Part," debuted at No. 1 in France and on Quebec's Francophone Nielsen SoundScan chart. Lemay's folk opera "Un Éternel Hiver" recently opened in France to strong reviews and is slated to run for six months.

As the Canadian record industry gathers April 3 in Winnipeg, Manitoba, for the 2005 Juno Awards, global markets continue to embrace such established Canadian acts as Celine Dion, Shania Twain, Bryan Adams, Avril Lavigne, Sarah McLachlan, Alanis Morissette, Diana Krall, Nickelback, Barenaked Ladies, Our Lady Peace, Nelly Furtado, Kid Koala and Bruce Cockburn.

Additionally, Canadian mainstream rock acts Simple Plan, Finger Eleven, Three Days Grace, Default and Theory of a Deadman and singer/songwriters Rufus Wainwright, Fred Eaglesmith, Sarah Harmer, Kathleen Edwards and Ron Sexsmith have developed significant international profiles in recent years.

French-language markets recognize Canada as a leading repertoire source, not only because of Dion and Lemay but also Corneille, Natasha St Pier, Daniel Powter, Garou, Roch Voisine, Isabelle Boulay, Jorane and Lhasa de Sela.

In addition, a score of fledgling Canadian acts—the majority signed to local independent labels—are achieving international breakthroughs.

These talents include alternative-based bands the Arcade Fire, Broken Social Scene, Stars, the Dears, Alexisonfire, Death From Above 1979, Hot Hot Heat and the New Pornographers; punk/hardcore group Black Maria; country singer George Canyon; the Duhks; Blackie & the Rodeo Kings; the Sadies; and Nathan. There are also Canadians—notably Leslie Feist, Danko Jones and Peaches—working successfully from Europe.

"Canadian music is starting to hit on all cylinders," Warner Music Canada president/CEO Steve Kane says. "Our grass-roots [independent] industry is coming to fruition. We are seeing bands come through a system that has matured."

Others agree. "There are a lot of Canadian acts being noticed around the world that might not be selling a lot of records yet, but they are becoming important cultural factors," EMI Music Publishing Canada president Michael McCarty notes. "Those acts will probably thrive by combining record sales, touring and selling merchandise."

However, Terry McBride, CEO of Nettwerk Productions in Vancouver and manager of Barenaked Ladies, Lavigne and McLachlan, counters, "The only thing I like out of Canada in the past year has been the Arcade Fire. Their record is going to sell a million copies, and deservedly so. It's a hell of an album and a great live band."

Revenue from these emerging acts may be modest compared with market leaders signed directly to multinationals. However, these acts are benefiting from Internet-driven marketing, particularly in the absence of mainstream retail and radio support.

"Music gets around today like it has never done before," says Eric Lawrence, co-principal of Coalition Entertainment Management in Richmond Hill, Ontario, which handles Our Lady Peace, Finger Eleven and Simple Plan. "Years ago, a buzz band became a buzz band by someone seeing it and mentioning it to another person on the telephone. Today, a buzz band is talked about in [Internet] chat rooms [and] message boards and receives all kinds of press."

EMI's McCarty describes what he calls "an explosion" in alternative music.

"Not alternative in sound," he adds, "but alternative to the mainstream industry. The similarities to the musical explosion with FM radio in the '60s are striking. Then, AM radio, playing primarily pop music, was the main way music reached the masses. FM radio came along and connected people with music that wasn't being heard.

"Today, the Internet is a connecting point between music and the public. Eventually, the mainstream media will pay attention, and there will be an explosion in the commercial viability of these acts."

Kim Cooke, GM of MapleMusic Recordings in Toronto, adds, "This is the best and the worst of times. It's the worst of times in the sense that it's hard to sell records today, and the best of times because of the incredible fertility of the Canadian marketplace."

The four multinational majors—Universal, Sony BMG, Warner and EMI—dominate the country's $807 million Canadian ($722 million) music market, collectively accounting for 90% of revenue. Their trade practices are the de facto industry standard, particularly in distribution.

But while the majors continue to play a pivotal role in launching new acts internationally and domestically, Canada's indie sector has honed its artist-development strategy.

In fact, entrepreneurial indies like Arts & Crafts, Last Gang, Distort Entertainment, Mint, Three Gut, Sonic Unyon, G7 Welcoming Committee, Smallman, Paperbag Records, Grenadine, MapleMusic and Six Shooter are creating a substructure within Canada's music industry. They have also discovered a receptive global audience for their alternative rock, roots, folk, jazz and blues catalogs.

"These labels have seen models that have worked elsewhere and are now starting to evolve their own markets," Kane says. "They are not limiting themselves to breaking their acts in Canada first."

McCarty agrees. "No matter what country you're from today, you can occupy a very narrow niche and can get to a large enough audience around the world that, in total, makes it possible for you to have a career."

The majors "are primarily in the distribution and marketing business," says Jim West, president of Distribution Fusion III in Montreal. "For taking a record from 50,000 to 300,000 units, there's nobody better than them. Smaller labels and distributors, however, are more attuned to what's going on. The majors realize that too."

REALIZING INDIE CLOUT

One example within the past year of major-label awareness of indie clout has been Universal Music Canada's decision to pick up distribution of Canadian indies at a dizzying clip. These include Black Smith Entertainment, the Orange Record Label, Paperbag Records, Alma, Last Gang, Distort Entertainment and Linus Entertainment, all in Toronto, and DEP Distribution and Curve Records in Montreal.

Universal also distributes Anthem, Alert Music and Somerset Entertainment, all in Toronto; 604 Records and Maximum Music, both in Vancouver; and the artist-run imprints of Harmer, Loreena McKennitt and Kevin Parent.

In 2002, Universal acquired a minority share of Toronto-based MapleCore, which operates alternative-rock-oriented MapleMusic and country imprint Open Road Recordings. MapleMusic is home to Edwards, the Cowboy Junkies, Pilate, the Dears and Joel Plaskett. Open Road has top Canadian country artists Doc Walker and Jason McCoy.

Universal's own domestic roster includes Sam Roberts, Matt Dusk, Matthew Good, Jann Arden, Fefe Dobson, Remy Shand and Hawksley Workman.

"Having Distort is an example of our company aligning with an independent label that is winning with an act like Alexisonfire," Universal Music Canada president/CEO Randy Lennox says. "We want to give the independent sector representation in Canada while being a conduit to international territories. At the same time, we are engaging our sister companies around the world with co-ventures with them on Remy Shand, Matt Dusk, Fefe Dobson and Hawksley Workman."

The recent merger of Sony and BMG is certain to shake up the Canadian A&R world once the dust settles. The combined company's domestic roster is formidable, including veteran acts Dion, Garou, Leonard Cohen, Our Lady Peace, Chantal Kreviazuk and Jacksoul, as well as promising newcomers Keshia Chanté, Aselin Debison, Liam Titcomb and "Canadian Idol" winner Kalan Porter.

The Canadian affiliate also handles such U.S.-based signings as Three Days Grace (Zomba), Finger Eleven (Epic), Lavigne and Carolyn Dawn Johnson (both on Arista).

Canada's small market size and distinctive culture enable labels to develop acts that are distinguishable from their towering U.S. neighbors. An impressive number of Canadian veteran acts remain popular primarily at home, including Blue Rodeo, Great Big Sea, the Rheostatics, the Tragically Hip and Sloan.

Currently stirring interest domestically are such English-language newcomers as Toronto rapper K-OS; rockers Billy Talent, the Waking Eyes, the Trews and Robin Black; alternative-styled Illuminati, MIR, the Weakerthans and Metric; singer/songwriters Sarah Slean, Matt Mays, the artist known simply as Boy, Luke Doucet and Buck 65; and roots-styled Nathan Wiley, the Bills, Harry Manx, the Wailin' Jennys and the Corb Lund Band.

Quebec's explosive music scene includes such new French-language acts as Les Trois Accord, La Cowboys Fringan and Kodiak, which have joined the ranks of more established stars Eric Lapointe, Boom Desjardins, La Chicane, Stephanie Lapointe, Wilfred Le Bouthillier, Mario Pelchat, Daniel Bélanger and Dany Bedar.

"Not enough Canadian talent cultivates Canada as a live market today," complains Susan de Cartier, head of Toronto-based Starfish Entertainment, which oversees management of Blue Rodeo. "It's a huge commitment and a challenge. You have to be a touring warhorse. A lot of people don't bother. You end up with artists that don't have pockets [in the market] where they can make money. They play in a whole bunch of places where they make little or they break even."

However, Coalition's Lawrence adds, "Canada is great boot camp to get a band up and running."