Strong growth in the Canadian record and distribution industry

With World Music Day just around the corner, now is a good time to tune into what is happening in the Canadian music scene. In 2023, the most recent year for which data are available, sales in the record production and distribution industry rose by over one-fifth from two years earlier to $903.3 million.

Sweet streams continue to sweep the industry

Streaming sales continued to drive growth in the record production and distribution industry, rising by one-quarter (+25.8%) from 2021 to $517.2 million in 2023, accounting for just under four-fifths (79.2%) of total sound recording sales.

Vinyl sales wax, compact disc sales wane while downloads continue to dim

Sales of vinyl records, compact discs, downloads (both singles and albums) and other formats outside of streaming totalled $136.2 million in 2023. Within the vinyl and other format category, sales were up by just over one-third (+34.5%) from 2021 to $84.9 million in 2023, accounting for 13.0% of total sound recording sales.

Compact disc sales were down by one-fifth (-19.8%) to $26.0 million in 2023 and were over four-fifths (-82.8%) lower compared with 2015.

Downloads (albums and singles) were down by over one-quarter (-28.1%) to $25.3 million in 2023 and were nearly five times lower compared with 2015.

Sales at independent Canadian-controlled companies bounce back

Independent Canadian-controlled companies, which experienced a slowdown in recording sales from 2019 to 2021, bounced back to reach $107.7 million in recording sales in 2023, a 25.8% increase from 2021.

Nevertheless, foreign-controlled companies operating in Canada continued to dominate the industry landscape, earning $545.7 million from the sales of recordings in 2023, up 19.6% from 2021 and accounting for 83.5% of total sound recording sales in the record production and distribution industry.

Almost one-third of industry sales come from music publishers 

Music publishers are the second-largest industry in the sound recording industries group, accounting for just under one-third (30.5%) of total operating revenue in 2023. Music publishers generate revenue by licensing musical works and administering copyright on behalf of songwriters and other owners of musical compositions.

In 2023, music publishers earned operating revenues of $491.9 million, up 13.3% from 2021.

Sound recording studios back on track 

Within the industry group, sound recording studios were the industry most affected by the COVID-19 pandemic. Many studios temporarily suspended operations during the pandemic, particularly those that relied primarily on earning revenue from live recording sessions with musical artists.

Additionally, delays in production projects affected studios that provided audio post-production services for clients in the film and television industries. However, operating revenue growth improved from 2021 to 2023, with operating revenues rising 10.2% to $169.0 million.

Sales by Canadian recording artists up by almost one-fifth from two years earlier

Sales of Canadian recording artists rose 18.7% from 2021 to $113.6 million in 2023. 

Nevertheless, Canadian artists accounted for less than one-fifth (17.4%) of sound recording sales in the record production and distribution industry in 2023, with the vast majority ($539.7 million) coming from sales of foreign artists.