Download Music Industry Development (MID) Program

Department of Tourism, Heritage and Culture
MUSIC INDUSTRY DEVELOPMENT (MID) PROGRAM
GUIDELINES
The Music Industry Development Program (MID Program) is designed to promote the development and
growth of New Brunswick’s music industry through sound recordings of musical works and the marketing
and promotion of these works by encouraging artistic expression with commercial potential.
GENERAL INFORMATION
The MID Program is comprised of four components:
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Album Production
Marketing and Promotion
Business and Professional Development for Music Industry Professionals
Emerging Artist
Note: The Album Production and Marketing and Promotion components share the same form and
Excel budget spreadsheet. The Business and Professional Development for Music Industry
Professionals and Emerging Artist components each have their own forms.
The Program offers two main components: “Album Production” and “Marketing and Promotion”. The
components may be applied for together over two consecutive years or separately over two nonconsecutive years. If applying for both components, then the program offers a multiyear grant model which
will ensure that funding is there for the second phase of your project, providing that the first phase of the
project is completed and an interim report has been accepted.
Note: For multi-year projects, an interim report is required by March 1st in order that phase 2 funds
can be released in the next fiscal year. Furthermore, if the applicant feels that he(she) will not be
able to expend all of the monies allocated for phase 1 and will not be ready to undertake phase 2 in
the next year, the applicant must advise the Arts Development Branch as soon as possible so that
monies can be re-allocated.
The Program also offers a “Business and Professional Development Program for Music Industry
Professionals” component and an “Emerging Artist (Demo)” component. These components have their
own separate guidelines and forms which can be downloaded from our website.
These guidelines contain important information about the criteria and conditions of the MID Program and its
components. Please read through all the information in this document prior to completing your application
as this information will help you complete the forms correctly the first time and thus ensure that your
application for financial assistance is processed as quickly as possible.
Words in bold in the text are defined at the end of these guidelines under the heading Appendix A –
Definitions and General Information.
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1. PROGRAM OBJECTIVES
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To promote the development and growth of New Brunswick’s music industry artists through
providing opportunities to create sound recordings of musical works and support subsequent
marketing and promotion of these works.
Encourage and support the use of online technologies and new media (Internet, smart phones, etc.)
to distribute and promote music.
Ensure that artists and music industry entrepreneurs from New Brunswick have the skills, knowhow, and tools to succeed in a global and digital environment.
Encourage the career development of New Brunswick artists and the emergence of new talent.
Enable the New Brunswick music industry to play a greater role in developing its own musical talent
and in strengthening the music industry.
2. PROGRAM TARGET OUTCOMES
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To increase the collaboration between the various links in the music industry chain and to provide
artists and music entrepreneurs with more opportunities to develop their creative and commercial
potential while remaining in the province.
To assist artists and music entrepreneurs assume greater professional commitment to their industry
by providing the resources to allow them to assume greater financial risks and by dedicating more
of their time and resources to their business.
To better position artists and music entrepreneurs to increase their chances of success in a global
and digital marketplace through better understanding of the nature and impact of online and new
media technologies (Internet, smart phones, etc.) on the music industry by assisting them in
participating in workshops, seminars and other educational forums. (Professional Development
component)
To make quality New Brunswick musical works with commercial potential readily available to New
Brunswickers and to the world via live performances as well as physical and digital sound recording
products.
3. ELIGIBILITY CRITERIA
In order to be eligible, an Applicant must:
a) be a music industry entrepreneur and;
b) holds the rights to use or owns the master of the eligible sound recording for which funding is being
requested and
c) has contracts with the artist relating to production of the album (exclusive sound recording contract,
co-production, licence) (if applicable) and its distribution, if the artist is not the applicant.
d) demonstrate, through the work plan the ability to carry out the proposal and to achieve the desired
results.
Note: Government Departments, public agencies or other public institutions, and public or private
broadcasters are not eligible to submit applications to this Program.
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Eligible Projects
Projects that include activities in the life cycle of a sound recording (album production), marketing and
promotion (touring, music videos, publicity, radio promotion, retail and distribution promotion,
advertizing, merchandizing, websites, social network marketing, blogs, public relations, EPK
development, showcases, attending conferences and trade show, etc).
An eligible New Brunswick content sound recording must demonstrate artistic quality and originality
relative to the musical genre with an eligible New Brunswick artist who is likely to have an impact on
the music scene with critical and commercial success in a digitized global economy.
The project must contribute to supporting the artist’s career development and directly support the
Program’s Objectives and Target Outcomes.
Note: To be eligible for the Marketing and Promotion component of the Program, an existing sound
recording must not have been released more than twelve (12) months prior to the fiscal year in which
funding is being requested and the Applicant must not be an Applicant in default.
Funding Context
Even though an Applicant may meet all of the eligibility criteria set out in the program, it does not
guarantee that he will receive financial assistance and any financial assistance may be less than the
amount requested.
Funding for the “Album Production” and “Marketing and Promotion” components is limited to three (3)
applications per applicant. That is, an applicant may apply under each of the two components a
maximum of three (3) times as long as the applicant is not considered an “Applicant in default”.
All applications are evaluated according to how well they meet the Program’s Objectives and Target
Outcomes, the evaluation criteria and the available funding.
The Program allows for multi-year funding of up to two years:
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Up to $20K for a 1-12 month project
Up to $40K for a 13-24 month project
Note: The assistance provided cannot represent more than 50% of eligible expenses. Any grant
received must be spent to cover expenses incurred within the fiscal year in which it was received.
The Applicant should also note the following:
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Grants will be issued in two (2) installments. 75% of the grant will be issued upon approval of
the application and the balance of 25% will be issued upon receipt of the interim or final report,
depending on the stage of the project.
The Department reserves the right to carry out an audit of projects and/or request receipts
and/or invoices as well as proofs of payment associated with an interim or final report.
Album productions funded by the Program must be completed and ready for the retail market
within the first year (12 months) from the date the funding is confirmed from the department,
and;
Funding for marketing and promotion activities for album productions funded by the Program
will only be available after submission and acceptance of the interim report and approval of
recordings completed within the timeframe.
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4. DEADLINES:
Applications and all required support materials must be postmarked no later than March 31st (the day
prior to the new fiscal year in which funding is being requested.)
Applications received after the deadline and incomplete applications submitted on time will not be
accepted.
5. ELIGIBLE EXPENSES:
Eligible expenses are those listed in the MID Program “Project Budget Excel Spreadsheet”, and that are
specific to the sound recording related activities (i.e. company business expenses do not constitute an
eligible expense).
Eligible expenses must be incurred within the fiscal year following in which funding was received. The
New Brunswick Government's fiscal year runs from April 1st through March 31st of the next year.
Other considerations:
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Eligible expenses included in the application should be based on fair market prices.
If using the services of a project manager or for professional services provided by the applicant,
the applicant’s company, or other companies associated with the project, total management or
administrative fees may not exceed 15% of total eligible expenses.
Travel expenses such as meals, accommodations and transportation are eligible expenses. However,
travel under 200 kms (return) is not eligible. If using a private vehicle, the Department will recognize the
provincial government kilometer rate. Effective April 1st 2012 the rate is $0.41 per kilometer.
Ineligible Project Expenses:
 Expenses paid in cash without a receipt (except for per diem);
 Expenses incurred prior to the project approval date unless prior approval has been received;
 Donated services;
 Costume/wardrobe;
 Equipment purchases, capital expenditures;
 Audit expenses, personal legal fees, fines;
 Recoverable taxes, fees, or similar expenses;
 Interest charges on overdue payments;
 Supplier’s administrative expenses;
 Hospitality expenses (e.g., catering, food, beverages) except for launch expenses;
 The following costs associated with the production of sound recordings:
o Mechanical and audiovisual reproduction licences;
o Travel, local transportation, accommodation, and per diem of the Applicant and the
artist.
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6. EVALUATION PROCESS:
For each annual program cycle under the album production and marketing and promotion components,
the Department, in consultation with MusicNB, will convene an External Evaluation Committee to
evaluate all applications. The Evaluation Committee is made up of representatives from the music
industry in the areas of creation, marketing and promotion.
7. NOTES:
Tax
Grants provided under the MID Program are taxable. The New Brunswick government does not issue a
T4A tax receipt. Please direct all tax-related inquiries to the Canada Revenue Agency (CRA).
Direct Deposit Service
The Province of New Brunswick offers automatic electronic deposits for grant payments. Grant
recipients who opt for the direct deposit method must fill out a Direct Deposit Service Application Form.
To obtain a direct deposit form, to change your banking information, or if you have any questions about
this service, you may contact the Central Accounting Branch of the Office of the Comptroller at
506-453-2565 or http://www.gnb.ca/0087/eft/DirectDeposit-e.asp .
Additional Information
Please ensure that you retain a copy of all forms and attachments for your records.
Grant recipients must acknowledge the support of the Province of New Brunswick in all promotional
materials and publicity related to the project. The official logos of the Province can be accessed here.
In the case of disagreement concerning the interpretation of its policies funding programs and their
respective components, the Department reserves the right to final interpretation of the intent and
implementation of a funding component.
The Department reserves the right to revise programs or their respective components at any time
without notice.
8. FOR FURTHER INFORMATION:
Department of Tourism, Heritage and Culture
Arts Development Branch
Attention: Music Industry Development Program
P.O. Box 6000
Fredericton, N.B. E3B 5H1
Telephone:
Fax:
Email:
Web:
506-453-2555
506-453-2416
[email protected]
www.gnb.ca/culture
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APPENDIX A – DEFINITIONS AND GENERAL INFORMATION
Below are definitions of terms that you will encounter throughout the MID Program application process.
AVLA
The Audio-Video Licensing Agency (AVLA) is a collective management society that collects and administers copyright
royalties for owners of master audio and music video recordings. It issues licences for the copying of audio and music
video recordings for commercial purposes. A non-exclusive agency, AVLA represents both majors and independent
labels. Further information is available on the AVLA website: http://www.avla2007.ca/index.php.
Applicant in Default
To be eligible for financial assistance under the MID Program, the applicant must not be in default of payment, i.e.,
must not be an individual or a company that:
 Becomes, or is in the process of becoming, bankrupt or insolvent;
 is in receivership;
 makes or has made, directly or through one or more representatives, a false or misleading statement;
 has not submitted either an interim or final report by the due date.
Artist royalties
Different types of artist royalties can be found here: http://entertainment.howstuffworks.com/music-royalties4.htm
Bar code
A bar code, often referred to as U.P.C. symbols (or Uniform Product Codes), is a combination of parallel bars and
spaces that communicates data about a product or shipping container. Further information is available on the GS1
Canada website: http://www.gs1ca.org/page.asp?intPageID=1299&intNodeID=2 .
CHRC
The Cultural Human Resources Council (CHRC) brings together representatives of arts disciplines and cultural
industries in the cultural sector to address the training and career development needs of cultural workers – artists,
creators, technical staff, managers and all others engaged professionally in the sector, including the self-employed.
Note: CHRC has produced a series of competency charts and profiles to identify skills/competencies for a wide range
of cultural jobs in mainstream cultural sub-sectors including those of Record Label Managers and Music Artist
Managers. They can be used to improve human resources management activities of your company. Further
information is available on the CHRC website: www.culturalhrc.ca/home-e.asp.
CMRRA
The Canadian Musical Reproduction Rights Agency Ltd. (CMRRA) represents a large number of domestic and
foreign music publishers doing business in Canada. It negotiates collective agreements (e.g. with CRIA for
mechanical rights in Canada) and individual agreements (reproduction or synchronization licences) with music users.
Further information is available on the CMRRA website: http://www.cmrra.ca/default.htm.
Commercial music
At this time, eligible commercial music genres to this program include, but are not limited to:
 pop, rock, heavy metal, alternative, country, adult contemporary and new age
 urban music, including rap, r & b, soul, new soul, hip hop, garage and reggae
 electronic, including house, techno, down tempo, commercial dance, drum and bass, electro, jungle, ambient
and trance, and
 commercially oriented forms of folk, jazz, world music, blues, Americana, Aboriginal music, children’s music,
classical music and gospel.
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Emerging Artist
An emerging artist is considered an artist which has not produced an album at the time of application.
EPK
Electronic Press Kit.
Fiscal year
The New Brunswick Government's Fiscal Year runs from April 1st through March 31st.
ISRC Code
The International Standard Recording Code (ISRC) is an identification system developed by the International
Standards Organization (ISO) for sound recordings and music video recordings. It makes it possible to identify
recordings around the world. The ISRC identifies the recordings as such, not the physical product (sound medium).
Further information is available on the SOPROQ website: http://www.soproq.org/site_dynamic/en/Accueil/index.php and
the CRIA website: http://www.cria.ca.
Legal deposit
Successful applicants are required to send a copy of the musical sound recordings they produce to Library and
Archives Canada. Further information is available on the Library and Archives Canada website:
www.collectionscanada.ca.
Maker of a sound recording
The maker of a sound recording, also called the owner of master recording, is the person or company that covers the
costs of making a sound recording of a musical work and is therefore usually the owner of it. Sometimes this person
or company also owns the record label that distributes the recording. By owning the master, he holds and controls all
rights to the use of the recording. The term maker of a sound recording should not be confused with record producer.
Manager
The manager is the artist’s representative and is responsible for developing the artist’s career.
Note: For further information, please consult the Chart of Competencies - Music Artist Managers available on the
website of the Cultural Human Resources Council www.culturalhrc.ca/home-e.asp.
Master
The master is the first-generation audio recording of the performance used to make copies.
Music Industry Entrepreneur
For the purpose of the MID Program, a music industry entrepreneur is either a New Brunswick Artist or an individual
or business able to demonstrate that its main business activities are managing artists, publishing music, marketing or
distributing sound recordings or a combination of those activities carried out under contract with musicians, vocalists
or copyright holders.
Must be a Canadian company held and controlled by New Brunswick Residents and must demonstrate that it meets
the following conditions:
 If it is a private company in New Brunswick,
o it is incorporated;
o its head office and principal place of business are in New Brunswick and
o a majority of the voting shares are beneficially owned by New Brunswick Residents.
 If it is a partnership or a sole proprietorship in New Brunswick,
o it is registered in New Brunswick;
o its head office and principal place of business are in New Brunswick and
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o
a majority of those exercising voting control are New Brunswick Residents.
New Brunswick Artist
An artist (solo, group, or ensemble) is a recording artist – vocalist or musician – who performs a musical work as a
performer and who meets the following conditions:
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Has maintained a principal residence in New Brunswick for income tax purposes for at least 12 consecutive
months prior to the date of application to the MID Program;
has 50% or more of its members who are New Brunswick Residents and
receives or will receive artist royalties on the recording for which funding is requested except for public
domain works used in classical, traditional, traditional jazz/blues, and world music.
New Brunswick Resident
An individual who has maintained a principal residence in New Brunswick for income tax purposes for at least 12
consecutive months prior to the date of application to the MID Program.
New Brunswick Content Sound Recording
A recording that complies with the following New Brunswick content standards:
 Music and lyrics: at least 50% of the music and lyrics on the master are the work of New Brunswickers,
except in the case of classical, traditional, traditional jazz/blues, and world music.
 Artist-performer: All of the tracks on the master are performed by an eligible artist.
 Production: all of the tracks on the master are recorded and mixed in Canada and when it is practical all or
partly in New Brunswick.
Record Company
A record company, also called a record label, holds the rights to use masters and is responsible for marketing them.
Although it often takes care of making sound recordings, its main function is selling records. A record company has its
own label and usually a catalogue and is responsible for the legal deposit of Canadian-made sound recordings.
Note: For further information, please consult the Chart of Competencies - Record Label Managers available on the
Cultural Human Resources Council (CHRC) here: www.culturalhrc.ca/home-e.asp.
SOCAN
The Society of Composers, Authors and Music Publishers of Canada (SOCAN) is the Canadian copyright collective
for the communication and performance of musical works. It administers these rights on behalf of its members and
those of affiliated international organizations. The fees collected are distributed as royalties to its members and to
affiliated organizations throughout the world. Further information is available on the SOCAN website: www.socan.ca.
SODRAC
The Society for the Reproduction Rights of Authors, Composers and Publishers in Canada (SODRAC) is a collective
management society for the reproduction rights to musical works. Further information is available on the SODRAC
website: http://www.sodrac.com.
SOPROQ
SOPROQ is a copyright collective for makers of sound recordings and videos and administers these royalties. It
distributes to its members the royalties which come from the equitable remuneration ("neighbouring rights") and
private copying regimes as well as the royalties which come from licensing agreements it has entered into with
regards to the broadcast of videoclips and reproduction of sound recordings. Further information is available on the
SOPROQ website: www.soproq.org.
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Sound Recording
For the purpose of the MID Program, an eligible sound recording is a collection of recorded musical works
(minimum of 8 tracks with a play time of no less than 30 minutes), with or without lyrics, that is on a vinyl record,
a compact disc, audio digital format, DropcardTM or audio tape and is produced by analogue, digital or similar
technology.
A non-eligible sound recording includes one which:
 is not intended for commercial use;
 is created as a fundraising, instructional tool, advertising, or promotional product;
 is created as soundtracks for films, television programs, dance performances, or plays;
 is created as an accompanying medium and not the main work (example, audio book);
 is created for the purpose of teaching or learning a technique, for corporate use, or for talking books or
sound effect banks, or for projects whose objective is community development or social service;
 is created as a re-release or compilation projects (re-recordings are eligible);
 is primarily of the spoken word or of wildlife or nature sounds;
 is capable of inciting hatred against an identifiable group, including a section of the public distinguished by
colour, race, religion, sex, sexual orientation, or ethnic origin and;
 in which the dominant characteristic of any lyrics is the undue exploitation of sex or and one or more of
crime, horror or cruelty, or violence.
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APPENDIX B - PROJECT WORK PLAN PREPARATION TIPS
The descriptions and examples below are meant to assist the Applicant in developing a standard work plan. The
simplicity or complexity of your project should guide you about the level of information you provide. The work plan
forms are located at the end of the application form. There is a form for each phase of your project (where
applicable).
1. Yearly expected results (What do you want to accomplish?)
Describe the changes you hope will occur by listing concrete and measurable results that you expect to achieve
during each year your project.
Make sure that your results are appropriate to the size and length of your project, its goal and activities and your
company’s resources and expertise. The results and activities that you identify in the work plan are used as
benchmarks to measure the progress and successes of your project.
2. Activities (How will you accomplish it?)
List the key tasks or things you will do, in chronological order, to achieve the desired results.
3. Deadline (Month, Year)
Indicate month and year when the expected results will be met.
4. Duration
Indicate project timelines.
5. Person(s) Responsible (Who is responsible for carrying out the activity?)
List the name(s) of the person(s) responsible for seeing through each of the specific activities.
6. Performance Indicators (How will you know you've accomplished what you wanted to?)
The indicators of success should be connected to the measurable results you identified in the first column. To
monitor your project performance:
1) Identify performance indicators such as;
i. Qualitative data (e.g. demonstrable awareness of potential for exporting, information sharing,
increase in knowledge) and;
ii. Quantitative data (e.g. sales, charts, live performances, etc) measures to monitor project
performance;
2) Which methods will you use and at what frequency will you collect the data to measure your indicators?
(e.g., through activity and sales logs, attendance records, distribution reports, face-to-face interviews,
surveys, online traffic, website feedback and comments, etc.)
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