Canada music in '05: A very good year
EmptyOTTAWA -- Canada's sound recording and music publishing industries recorded a healthy profit in 2005, despite the challenges of digital music downloading, Statistics Canada reported Wednesday.
The survey by the government statistics agency, though looking back two years, found that domestic record production, music publishing and recording studios managed a profit of CAN$127 million ($116.5 million) in 2005, on revenue of CAN$942 million ($864 million) and expenses of CAN$815 million ($714 million).
That amounted to a 14% profit margin in 2005, according to Statscan, which came despite a worldwide decline in CD sales and increased competition from other forms of entertainment.
The Statscan report notes that new distribution and delivery channels geared toward the digital markets helped the Canadian record production industry overcome challenges in 2005.
"The market for digital products requires less inventory along with lower distribution and return expenses," the report said. Statscan added that the record production business also was able to lower expenses as it streamlined and restructured global operations.