The Economic Power of Live Music in Canada: A $10.92 Billion Industry Facing Major Challenges

Live Music is A Key Contributor to Canada’s Economy

The Canadian Live Music Association (CLMA) has released its first-ever economic impact assessment of the country’s live music industry. The report, titled Hear and Now: Understanding the Economic Power and Potential of Canada’s Live Music Industry, reveals that live music contributed an astounding $10.92 billion to Canada’s GDP in 2023. Additionally, the industry generated $3.73 billion in tax revenue and supported more than 101,640 jobs, providing $5.84 billion in labour income.

Despite this impressive contribution, the industry operates without a dedicated fiscal policy framework designed to incentivize live music growth. The study, conducted by research firm Nordicity and commissioned by the CLMA, emphasizes that this economic impact has been achieved “without trying.”

Erin Benjamin, President and CEO of CLMA, underscores the critical role of music venues in fostering economic activity.

“An increase in live music activity at every level of the venue ladder means more people spending their income in those spaces, generating tax revenue and labour income,” Benjamin stated during a press conference at Allied Music Centre in Toronto on January 30, 2025.

The study compares the live music industry to other major sectors in Canada. For example, the fisheries sector generates approximately 32,500 jobs and contributes around $2.6 billion to GDP, while the automotive industry produces 125,000 direct jobs and contributes about $14 billion. These comparisons highlight the underappreciated economic significance of live music.

Beyond economic benefits, live music plays a vital role in cultural development and city-building. The report highlights cities such as Hamilton and Montreal, where music activity significantly enhances local culture and quality of life.

The industry’s diversity is another strength, with over half of music company owners and leaders identifying as women, and roughly a third as members of the 2SLGBTQ+ community. However, Indigenous, Black, and People of Colour (IBPOC) industry members remain underrepresented in business ownership and often hold additional jobs outside the live music sector to sustain themselves. A report by ADVANCE similarly identified funding and mentorship shortages as key barriers for Black professionals in the industry.

Despite its economic and cultural importance, the live music industry faces significant hurdles. Global live music events in 2024 did not meet expectations, with major festivals, including Coachella, reporting lower ticket sales. Rising costs, environmental concerns, and high prices for top-tier artists have left audiences with tighter budgets, limiting their attendance at mid-tier artist performances.

In Canada, the most pressing concern is the closure of music venues. Between 2020 and 2021, Toronto alone saw approximately 15% of its venues shut down permanently. The loss of these spaces is particularly damaging for emerging artists, who rely on a “venue ladder”—a progression from smaller to larger venues to build their careers.

“The first few rungs on the venue ladder are the most vulnerable,” Benjamin noted. “We need to ensure we don’t lose our incubator and discovery spaces.”

CLMA has piloted an initiative with FACTOR Canada called the Promoters Program, aimed at supporting companies that present live music. Benjamin hopes this initiative will be made permanent to sustain small venues.

Musicians and industry professionals are also struggling financially. The report estimates that in 2023, the average salary for a full-time employee in the Canadian live music industry was around $31,000—placing many workers below the poverty line. More than half (52%) of survey respondents identified professional wages as a top concern.

Despite expectations for revenue growth in 2024, many music companies are directing additional earnings toward operational costs rather than expanding their workforce. Artists receive just 1% of total live music revenues, while venues and festivals collect 71%. With skyrocketing living costs in cities like Toronto and Vancouver, many professionals are reconsidering their careers in music, and new artists face increasing barriers to entry.

Calls to Action

The Hear and Now report outlines nine key calls to action, including:

  • Improving compensation and working conditions for industry professionals
  • Supporting risk-taking and innovative business models
  • Addressing systemic barriers for marginalized communities
  • Protecting music venues, which the report calls “the lifeline of the industry”

“When we can ensure that our venues are able to take risks on emerging artists and present discovery acts,” Benjamin emphasized, “it ultimately benefits the entire industry.”

Key Statistics from the Report

  • Canada has more than 3,750 live music venues, festivals, promoters, rehearsal spaces, and industry organizations
  • Approximately 50 live music shows take place in Canada daily
  • The average maximum capacity for live music venues is 238 people for seated events and 252 for standing events
  • Live music events have an average fill rate of approximately 64%
  • Nearly half (47%) of festivals, events, and award shows hosted fewer than 10,000 attendees in 2023, while 35% hosted between 10,000 and 50,000 attendees
  • Live music operations contribute approximately 3.3% of Canada’s cultural and sports GDP impact
  • Music tourism spending has a total GDP impact of $8.92 billion
  • 54% of companies, organizations, and artists relied on public grants for at least part of their revenue in 2023

The Hear and Now report highlights both the economic power and the vulnerabilities of Canada’s live music industry. With billions of dollars in GDP impact and thousands of jobs at stake, supporting venues, improving working conditions, and addressing systemic challenges will be critical for the industry’s sustainability and growth. As policymakers, industry leaders, and music lovers consider the future, ensuring a thriving live music sector will benefit not only artists and professionals but also Canada’s economy and cultural landscape as a whole.

 

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