The Canadian live music industry proved its resilience during uncertain economic times, generating $10.92 billion for the economy and supporting over 101,640 full-time equivalent jobs, according to the Canadian Live Music Association (CMLA).
The CMLA's report, released on January 31, 2025, noted significant contributions to Canada’s GDP, but it also highlighted the challenges facing live music venues and artists today. Erin Benjamin, president and CEO of CMLA, stated, "The report makes it clearer than ever... drives major economic impact for cities and towns, and creates more opportunities for Canadian artists." This is particularly relevant as many segments of the music industry still grapple with the lasting effects of the COVID-19 pandemic.
Illuminated by the CMLA's findings, the report presents the first comprehensive look at the live music sector's economic influence, emphasizing not just the raw numbers but also the vibrancy it brings to communities. The $10.92 billion generated includes $3.73 billion in tax revenue, showcasing how arts and culture directly contribute to public revenue and economic health.
Visitor spending related to live music tourism was estimated at $9.9 billion, representing about 10.8 percent of total tourism expenditures across the nation. The industry welcomed approximately 19.69 million visitors engaged with live music events throughout the year.
This influx of visitors is significant; approximately 1.47 million visitors were from the United States, with even more coming from other provinces within Canada. This influx creates positive spillover effects across various sectors including hospitality, transportation, and retail.
Despite these promising contributions, the report uncovered troubling trends for the live music industry. Rising operational costs, inflation, and declining support from corporate sponsors and government hold back recovery efforts. According to Billy Wilder, owner of Division 88, "It's really hard to get people to leave their homes... It's harder to get them to spend money at a place." This sentiment reflects broader concerns as public interest appears to fluctuate based on economic conditions and ticket pricing.
The economic pressures are evident. Audiences, especially younger generations, are adapting their consumption habits, leaning toward fewer but more expensive events—often due to increasing ticket prices for top-tier acts. Benjamin noted, "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.”
The CMLA's report signifies not only the importance of live music but also its fragility amid current economic challenges. While live music companies reported revenue growth post-pandemic, Benjamin cautioned, “This uncertainty... does feel permanent.”
These fluctuations impact not only the audience but also the artists. The average income for artists remains dishearteningly low, with many relying on public grants for sustainability. The report revealed about 54 percent of live music organizations rely on government assistance to support their revenue, highlighting the precarious balancing act artists must navigate within this economic framework.
To address these challenges, Benjamin hopes the data derived from the study will inspire policymakers to invest more seriously in the live music sector, advocating for measures such as tax incentives or regulatory support for venues. She argued, "Live music makes up happier, healthier people. It addresses mental health and loneliness," underscoring the broader social benefits of the industry.
Toronto, highlighted as one of the major markets for live music, is actively creating supportive conditions for venues, including property tax reductions and potential cultural heritage designations to protect existing spaces. The city acknowledges the economic return of $850 million annually from live music venues, which is pivotal considering the city’s extensive contributions to the recording industry.
Looking to the future, the CMLA report aims to provoke dialogue around necessary structural changes within the industry, promoting collaborations between public, private and non-profit sectors to bolster the live music economy. Doing so may lead to enhanced opportunities for artists and music professionals across the country, whose passion fuels this vibrant industry.
The energy surrounding the revival of live music is palpable. With performers like Jully Black embarking on national tours, the potential for recovery and growth remains, particularly if the right framework and investment are committed to preserving Canada's rich live music heritage.