Canada's live music industry grew economy by more than $10B in 2023: report

Canada's live music industry generated $10.92 billion for the economy in 2023, according to a new report released Thursday. 

The industry also supported more than 101,640 full-time equivalent jobs, according to the report by the Canadian Live Music Association (CMLA). The organization says the report is the first-ever to assess the economic impact of live music in the country.

"The report makes it clearer than ever that protecting and growing Canada's live music infrastructure …  drives major economic impact for cities and towns, and creates more opportunities for Canadian artists," CMLA president Erin Benjamin said at a launch event in Toronto on Tuesday. 

Benjamin added the industry's economic contributions were made "largely in the absence of any dedicated policy frameworks aimed at incentivizing innovation and growth in live music." 

Visitor spending related to live music tourism in 2023 was estimated at $9.9 billion — representing just over 10 per cent of total tourism spending in Canada that year, the report says. 

The report used a public survey with 651 responses collected last summer as the primary financial data collection tool. This survey was promoted through the CMLA social and email channels, and through community partners with networks in the music industry. 

CMLA also conducted a series of regional roundtables to gather qualitative findings about the industry. 

The report incorporated secondary research from sources including Statistics Canada and the International Federation of the Phonographic Industry. 

'It's really hard to get people to leave their homes' 

Canada's live music industry is facing difficulty due to operational costs, with many festivals and events still recovering from financial losses during the COVID-19 pandemic, the report says. 

Declining support from corporate sponsorships and government, as well as inflation, are making recovery from the pandemic challenging, it adds. 

While Toronto is one of the major live music markets in the country — along with Vancouver and Montreal — the report found the rising cost of living in these cities is making it difficult for music professionals to maintain their careers. 

"As a result, many artists are struggling to afford to live in the very cities that are central to Canada's music industry," the report said. 

In a statement, the city said it's supporting live music through several initiatives, including by giving eligible venues a 50 per cent reduction in property tax each year. 

The city is also exploring how to protect existing venues and encourage new spaces, such as through more tax incentives and cultural heritage designations, spokesperson Imane Boussaid said. 

"Much of this work is ongoing, and the continued support of live music remains a priority for the city," she said. 

In Toronto, live music venues create a total economic impact of $850 million annually, while providing the equivalent of 10,500 full-time jobs, according to the city's website. 

About 80 per cent of recording industry expenditure in the country is in the Toronto region, the city said. 

But affording rent in the city can be difficult for some live music venues, said Billy Wild, owner of Division 88. The venue, located near Dufferin Street and Geary Avenue is also a production studio, record label and event space.  

Wild said declining alcohol sales have hit music venues, including Division 88, hard — an issue noted in the CLMA report. Promotion is also challenging, unless a notable artist is performing, he said. 

"It's really hard to get people to leave their homes… It's harder to get them to spend money at a place," he said. 

To diversify their events, Wilder said Divison 88 livestreams performances on YouTube and also hosts other programming, such as video game tournaments. 

"I think if we were to operate like a standard music venue, we would have failed a long time ago," Wild said.