Beyond the music: Driving profits for independent Canadian artists through innovation

Declining music sales revenues are forcing independent Canadian musicians to find new ways to support themselves financially. This study suggests how Heritage Canada might modify the Canada Music Fund to better support artists without contracts with major record labels. To do so, the study explores why some music fans spend more on their favourite artist than other fans, using the results of an original survey to test the extent to which innovative product releases and artist outreach efforts influence fan expenditure. Statistical testing reveals the key variablesdriving increased revenue include offering official band merchandise for fans to purchase and fans feeling a strong personal connection to their favourite artist. The study then evaluates three policy options according to cost, effectiveness and responsiveness. Analysis suggests HeritageCanada can best support working artists by reorienting current entry-level grant program by funding the creation of profitable self-produced products.