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:

  • 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 non-consecutive years. If applying for both components, then the program offers a multiyear grantmodel 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” componentand 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 completingyour application as this information will help you complete the formscorrectly 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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Revised: January 2014Page 1 of 14

  1. Program Objectives
  • 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, know-how, 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.
  1. Program Target Outcomes
  • 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 byproviding the resources to allow them to assumegreater financial risks and by dedicatingmore 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 throughbetter 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.
  1. Eligibility Criteria

In order to be eligible, an Applicant must:

a)be a music industry entrepreneurand;

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.

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, EPKdevelopment, 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 artistwho 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’sObjectives 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:

  • 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:

  • 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 ofthe 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.
  1. 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.

  1. 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 1stthrough March 31stof the next year.

Other considerations:

  • Eligible expenses included in the application should be based on fair market prices.
  • If using the services of a project manageror 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 1st2012 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:
  • Mechanical and audiovisual reproduction licences;
  • Travel, local transportation, accommodation, and per diem of the Applicant and the artist.
  1. 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.

  1. 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 506-453-2565or .

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.

  1. 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: 506-453-2555

Fax: 506-453-2416

Email:

Web:

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:

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

Differenttypes of artist royalties can be found here:

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:

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:

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:

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.
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: and the CRIA website:

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:

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

Master

The master is the first-generation audio recording of the performance used to make copies.

Music Industry Entrepreneur

For the purpose of the MIDProgram, a music industry entrepreneur is either aNew Brunswick Artist or anindividual 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,
  • it is incorporated;
  • its head office and principal place of business are in New Brunswick and
  • 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,
  • it is registered in New Brunswick;
  • its head office and principal place of business are in New Brunswick and
  • 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:

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 Residentsand

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.