Made-in-Toronto music biz legend Bob Ezrin recently wrote about the Copyright Board ruling on Tariff 8, speculating that it may be “The Day The Music Died”. In the piece, he states the following:
Perhaps the worst result of the low rate is that we will be granting a 90% discount to American streaming companies that covet our market and will eagerly sweep in here with powerful and well-funded systems that will wipe out any Canadian-owned competition – all at the expense of the creators you have historically supported with thoughtful policy.
I run a 100% Canadian music streaming company and I agree with Mr. Ezrin. The ruling was a bad idea and the rates are too low.
It may at first seem counter-intuitive that a streaming company would advocate for paying higher costs to do business, in a business that is already notoriously expensive. Indeed, I was asked in a recent Globe & Mail article if music streaming companies will ever make money.
Read more at Music Canada.