Today : Feb 01, 2025
Arts & Culture
01 February 2025

Canada's Live Music Boom Contributes Over $10 Billion

Music industry support leads to economic growth and job creation, yet rising costs challenge sustainability.

The live music industry in Canada has emerged as a powerful economic force, contributing over $10.92 billion CAD to the nation's economy and creating more than 100,000 jobs, according to the latest report from the Canadian Live Music Association (CLMA). Released on January 30, 2025, this landmark study not only showcases the vibrant growth of live music but also highlights the socio-economic intricacies tied to it.

The report, aptly titled "Here and Now: Understanding the Economic Power and Potential of Canada’s Live Music Industry," was presented by CLMA President and CEO Erin Benjamin at the Allied Music Centre Theatre. Her words echoed the essence of the industry, stating, "The incredible small, medium, and large venues, clubs, concert halls, festivals, arenas, and other live music spaces... form a vast, complex, indoor and outdoor ecosystem." This ecosystem, she argues, is fundamental to the success of artists and the overall cultural fabric of Canada.

Delving deep, the report outlines the considerable financial impact attributed to both live music operations and the associated tourism it incites. With live music attracting millions of visitors, the report confirms approximately 19.69 million attendees at festivals and events across the nation. Collectively, live music contributed $2 billion to GDP from its operations alone, alongside $9 billion from tourism spending.

Among the numerous jobs attributed to this sector are not only performers and artists but also support staff, including stage technicians, promoters, and venue staff. Notable is Tarun Nayar, Co-Founder of the 5X Festival, who remarked, "Protecting and growing Canada’s live music infrastructure directly results in more jobs, major economic impact for cities and towns." He emphasizes the broader social benefits as well, ranging from mental health improvements to social cohesion through shared musical experiences.

Yet, the report juxtaposes these impressively high figures with the sobering reality of changing consumer behavior. Audiences are becoming increasingly selective with their purchases, opting for fewer shows and spending less on tickets, especially as top-tier acts escalate prices. This shift has put pressure on mid-range events, hampering smaller venues' profitability amid inflated costs. Benjamin stated, "Sometimes people have to make a choice, and occasionally they make a choice between a big-ticket show... versus a series of discovery shows with smaller live music venues." This trend speaks to broader economic pressures impacting discretionary spending across demographics.

Interestingly, the report also mentions how younger audiences are less inclined to consume alcohol, traditionally one of the steady revenue streams for venues. This behavioral change, alongside the uptick in last-minute ticket purchasing, complicates financial forecasting for venue operators and artists alike. With approximately 3,750 venues and 18,945 live shows booked across Canada, the challenges of planning have never felt more acute.

The notable shift was underscored vividly by Canadian R&B veteran Jully Black, who highlighted the stark contrasts between her past tours and her current financial realities. "We need to sell out. We need to sell merch," she confessed, underscoring the pressure on artists to make every performance economically viable. Her current national tour kicks off on February 7, and she is adamant about treating each show with the utmost professionalism, even as she adapts to leaner touring conditions.

Benjamin expressed concern about the industry's sustainability amid these economic uncertainties, stressing the need for new partnerships and support structures, particularly for artists from marginalized communities, including those who identify as LGBTQ+, Indigenous, and Black. "The cost of touring now is off the charts... The convergence of inflation and the changes in consumer habits have meant more of an unpredictability and one of the results, the direct result of this, is less risk-taking on stages," she asserts. This sentiment resonates within the community, indicating the need for systemic change to support the industry's backbone.

A pivot toward collaboration is also gaining momentum as artists like Black seek to uplift new talent by inviting them to share stages and exchanging opportunities, aimed at enriching the live music culture. This reflects the growing awareness among established artists to act as allies, as Black emphasized her early career experience of pairing performances with different genres as beneficial for audience reach.

The findings of the CLMA report are both alarmingly illuminating and promise briefly for the future, obliging both governmental and private sectors to provide the necessary framework to reinvigorate and protect the live music ecosystem. If left unattended, the ramifications could ripple through communities, jeopardizing not only cultural expression but economic stability, which has begun to intertwine more closely within artistic endeavors.

The live music industry remains at the crux of cultural and economic vitality across Canada. This report substantiates its significance and offers actionable insights aimed at preserving this pivotal sector focused on connecting artists with their communities, fostering rich experiences, and propelling economic growth.