RADIO STARMAKER FUND · 2005, the Radio Starmaker Fund Board of Directors was comprised of: RSM ANNUAL REPORT 23.1.06 1/24/06 9:34 AM Page 4 ★ ANNUAL REPORT RADIO STARMAKER FUND

RADIOSTARMAKERFUND !ANNUAL REPORT 2004–2005

RSM ANNUAL REPORT 23.1.06 1/24/06 9:34 AM Page 1

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RADIO STARMAKER FUND ANNUAL REPORT 2004-2005 .01

TABLE OF CONTENTS

02. Message from the Chair 03. Board of Directors and Staff | Mandate | 2004-2005 Overview 04. Application Evaluation | Applications Submitted vs. Applications Approved 05. Tracking Success | Grant Allocation by Type of Record Label 06. Radio Starmaker Funded Artists07. Sales Certifications | Grant Allocation by Genre08. Grant Allocation by Music Industry Association | Grant Allocation by Province09. Awards Won by Radio Starmaker Funded Artists10. Allocation of Funding by Category11. – 15. Condensed Financial Statements 16. Appendix: Criteria for Qualifying

ANNUAL REPORT

RADIO STARMAKER FUND

25 Adelaide Street East, Suite 1300, Toronto, Ontario M5C 3A1PHONE.416.597.6622 FAX.416.597.2760 TOLL FREE.1.888.256.2211 www.radiostarmaker.com


This year has seen sometremendous improve-ments at the RadioStarmaker Fund while wecontinued our primaryobjectives of remainingeffective, responsive andaccountable.

In May 2005 we introduced a new elementto our staff at the Fund in the position ofManager, Programs and Applications,Jerry Leibowitz. Jerry comes to us with anin depth background in the music industryas the former General Manager ofRykodisc. As the Manager of Programsand Applications it is his mandate to offerassistance to applicants and ensure thatthey file the best application possible. Hehas made a significant difference to ourteam and we have seen a great improve-ment in our applications, which is reflect-

ed in the fact that 89% of applicants wereapproved for funding.

In general terms the Radio StarmakerFund continues to be focused on making adiscernable difference to our artists withsubstantial funding. The effectiveness ofthis funding is perhaps best expressed inthe artist profiles contained in this report,which represent only a small sample of thefeedback we receive from artists and labelsevery week telling us that the StarmakerFund is having a tremendously positiveimpact on their ability to compete in a dif-ficult and competitive market. I am proudof the $4,550,567 committed this year to82 applicants and have every confidencethat it will continue to make a difference.We are also proud that we have balancedspending to all aspects of the music indus-try with over $1 million being spent onmajor label artists, $3.2 million being

spent on the independent sector (includingartist owned labels) and over $300,000 inother industry initiatives such as fundingregional music associations.

We have responded to feedback from ourstakeholder community this year by puttinga large emphasis behind our internationalprograms which was a stunning success. Wehad a large demand for these very new pro-grams which proves that the RadioStarmaker Fund is able to adapt quickly andeffectively to the changing needs of theindustry. Over 40% of our funding($1,512,280) was provided to artists andindependent labels for international tour-ing, marketing, promotion and publicity.We expect the demand in this area to con-tinue to grow as we see the success of theseprojects.

We continue to maintain the highest stan-

dards of accountability to our stakeholdersand the industry at large. Our audit processonce again shows complete compliancewith our funding rules and regulations andwe appreciate the efforts made by ourapplicants to maintain this track record.For the first time this year, the Board hasdeveloped a detailed 3 year projected cap-ital funding budget to ensure that we havea stable level of funding over the next fewyears. We are all looking forward to work-ing further to continue this ongoingbroadcaster commitment to recordingartists in Canada.

Chuck McCoyExecutive Chair, Radio Starmaker Fund

!ANNUAL REPORT



MESSAGE FROM THE CHAIR


!ANNUAL REPORT



BOARD OF DIRECTORS AND STAFF |MANDATE |2004–2005 OVERVIEW

MANDATEThe mandate of the Radio Starmaker Fund is to make a substantial and discernable difference to the careers of Canadian musical recording artists through artist driven marketing assistance, and to support the Canadian independent music infrastructure.

Created by the Canadian Radio-television and Telecommunications Commission’s Radio Policy Review of 1998, the Radio Starmaker Fund has completed its fourth full year of operation.

French language artists are supported by Fonds RadioStar, although Radio Starmaker Fund supports non-French language and instrumental projects originating from Quebec.

2004-2005 OVERVIEW:

" Committed $4,550,567 to 82 Canadian artists through our domestic marketing, international marketing, international touring/showcasing and manager mentorship programs.

" Assisted 198 artists to attend industry events in a number of regions through our support to associations program ( $114,000 tracked as “miscellaneous funding”)

" Committed $1,512,280 to international initiatives

" 89% of applicants received funding

CHAIRChuck McCoyExecutive Vice-President,Programming & MarketingRogers Broadcasting Limited

VICE-CHAIR Brian ChaterPresident, Avenue Road Music Group

TREASURERAndy McLeanManaging Director, NXNE

SECRETARYSteve KanePresident, Warner Music Canada

DIRECTORSRob FarinaProgram Director, CHUM Limited

Jian GhomeshiPresident, Wonderboy Entertainment

DIRECTORS Bob HarrisOperations Manager Montreal, Standard Radio Inc.

Dean SinclairGeneral Manager,CORUS Entertainment Inc.

RJ GuhaPresident, Kindling Music Inc.

Sander ShalinskyBarrister and Solicitor, Sheppard Shalinsky Brown

STAFF: EXECUTIVE DIRECTORChip Sutherland

MANAGER, FINANCE AND ADMINISTRATIONRachel Oldfield

MANAGER, PROGRAMS AND APPLICATIONSJerry Leibowitz

For the period from September 1st, 2004 to August 31st,2005, the Radio Starmaker Fund Board of Directors wascomprised of:


!ANNUAL REPORT


APPLICATION EVALUATION |APPLICATIONS SUBMITTED VS. APPLICATIONS APPROVED


Applications to the Radio Starmaker Fund are evaluated on four major criteria:

" The track record of the artist" The amount of money invested by the applicant and his/her agents" The quality of the marketing plan, both the proposed RSF portion, and the portion to which the applicant has committed

through their significant investment" The amount of money the Radio Starmaker Fund has available for the round

In order to qualify for the Radio Starmaker Fund, artists need to reach prescribed sales levels by genre and demonstrate a financial commitment to the marketing of their recorded project (see appendix for application criteria). Furthermore, the artist must be a Canadian citizen or landed immigrant, a resident of Canada, and the ownership of the master tapes must reside with a Canadian company.

We continue to fund artists from every genre of music and from every region of the country, regardless of whether they produce music appropriate for airplay by private broadcasters.

# OF QUALIFYING APPLICATIONS SUBMITTED # OF APPLICATIONS APPROVED %

TOTAL FISCAL YEAR 2004-2005 148 132 89.19%

NUMBER OF QUALIFIED APPLICATIONS SUBMITTED INCREASED BY 128% FROM 2003-2004 DUE LARGELY IN PART TO THE IMPLEMENTATION OF THE INTERNATIONAL TOURING/SHOWCASING/MARKETING PROGRAMS.

MOLLY JOHNSON (ROUND #12 & 13)

“It is a challenge to launch a Canadian artist in anew market. Radio Starmaker Fund’s support forMolly Johnson’s recording in the USA and UK is mak-ing it possible for Marquis to achieve much higherlevels of airplay, media and retail coverage.International success usually reinforces success inCanada, so there is a double benefit from RSF’s inter-national programs.”

EARL ROSENPRESIDENT, MARQUIS

SUCCESS FACT:


!ANNUAL REPORT



TRACKING SUCCESS |GRANT ALLOCATION BY TYPE OF RECORD LABEL

We have begun to conduct interviews with applicants to discuss their use of funding to gain some“qualitative insight” into the impact we are having. Throughout this report there are samples of the feedback we have been receiving in the Artist Profiles. It is very encouraging on all fronts.Clearly the Radio Starmaker Fund is providing artists with the incremental funding they need tomaintain and increase their momentum in the marketplace, both here and abroad.

Of particular importance this year is the impact of our international touring program. We approved close to $1 million in international touring grants that provided many artists with an opportunity to tour countries for the very first time. The feedback on this program has beenoverwhelming and we hope to expand this even further in the future.

$817,232.48 $3,263,702.28 $244,633.00 $339,000.00 $4,664,567.76

17.52% 69.97% 5.24% 7.27% 100%

TOTAL APPROVED FUNDING FOR FISCAL YEAR

% OF TOTAL APPROVED FUNDING

MAJOR LABELS INDIE LABELS QUASI-INDIE MISC. FUNDING TOTAL

METRIC (ROUND #14)“The Radio Starmaker Fund has always been

crucial in assisting Last Gang Records to elevate the profile of our artists. Starmaker money facilitates propelling a developing artist on the verge of breaking, like Metric, to the next level. Metric is an excellent example of how continued access toStarmaker (and FACTOR) has allowed us to developand export Canadian talent successfully for bothdomestic and international markets.”

LENNY LEVINEEXECUTIVE VICE PRESIDENT, LAST GANG RECORDS

SUCCESS FACT:


!ANNUAL REPORT


In May 2004, Arts & Crafts released Feist's sophomore solo album"Let It Die" to an unassuming Canadian audience. Day one ship-ments totaled 1,000 units. The buzz on Feist's newest incarnationgrew steadily via strong word of mouth, 4 star album reviews, fea-tures in The National Post, The Globe & Mail, Macleans and a liveperformance on CBC's "Sounds Like Canada”.

Feist and a full band supported the release with a national tour,hitting major and secondary markets across Canada. Videos for"Mushaboom" and "One Evening" received support at specialtyvideo channels and the latter reached #1 on the Musimax Top 20chart. By the close of 2004 "Let It Die" landed on numerous topten album of the year lists.

The 2004 Juno's marked a major turning point for the project.Feist was invited to perform live, was nominated for three Junosand walked away with two Juno's for New Artist and AlternativeAlbum of the year. The resulting media exposure brought the proj-ect to a much broader mainstream level. The Juno awards were

supported by an extensive TV ad campaign and helped launchFeist on to the Top 50 national sales charts, nearly 10 months afterstreet date. The album has remained in the Top 200 for 12 weeksstraight. In August, Bravo aired Feist "Live From the RehearsalHall" and the new single "Inside & Out" has just entered the Top20 AC National Airplay chart.

Thanks in large part to Starmaker funding, Canada leads the wayin Feist album sales per capita world-wide, with over 42,000 unitsshipped. The Canadian success story created a buzz Statesideand provided a strong set-up for the U.S. release this past winter.With recent features in Vanity Fair, Rolling Stone, a late night TVperformance on Conan O'Brien and an upcoming national tourwith Broken Social Scene, Feist looks ready to break through to allof North America and beyond.

DANIEL CUTLERARTS&CRAFTS

ARTIST PROFILE: FEIST


!ANNUAL REPORT



RADIO STARMAKER FUNDED ARTISTS

RON SEXSMITH ($100,000)

SUM 41 ($99,500)

KESHIA CHANTÉ ($97,250)

SARAH SLEAN ($94,000)

THE TREWS ($71,133)

BOB WALSH ($68,000)

IVANA SANTILLI ($55,266)

HAYDEN ($65,840)

SUSIE ARIOLI BAND ($33,590)

LUKE DOUCET ($33,380)

NOT BY CHOICE ($25,145)

MADVIOLET ($37,060)

BLACKIE & THE RODEO KINGS ($22,500)

FLORENT VOLLANT ($1,500)

JANE BUNNETT ($36,000)

LES VOIX HUMAINES ($6,000)

MOLLY JOHNSON ($6,000)

SAM ROBERTS ($22,500)

SLOAN ($22,500)

THE BILLS ($12,000)

K-OS ($144,408)

KALAN PORTER ($124,040)

STABILO ($80,967)

THE WAKING EYES ($75,000)

SUM 41 ($71,776)

BROKEN SOCIAL SCENE ($203,066)

ANGELE DUBEAU ET LA PIETÁ ($50,000)

JONAS ($57,500)

JAKALOPE ($54,500)

DELERIUM ($41,000)

SOULDECISION ($40,727)

KAZZER ($36,750)

DEATH FROM ABOVE 1979 ($93,651)

IAN TYSON ($23,004)

REZ OFFICIAL ($13,445)

SLANGBLOSSOM ($13,445)

WAYNE LAVALLEE ($12,950)

LUCIE IDLOUT ($12,672)

JOHN GRACIE ($35,000)

EMBER SWIFT ($17,000)

ROUND 12 ROUND 13 ROUND 13 (CON’T)HAYDEN ($32,000)

JORANE ($78,500)


LHASA DE SELA ($21,000)

MADVIOLET ($18,500)

MOLLY JOHNSON ($44,916)

CORB LUND BAND ($14,000)

THE BILLS ($13,500)

QUARTETTO GELATO ($8,451)

BLACKIE & THE RODEO KINGS ($20,464)

ROUND 14K-OS ($127,867)

FEIST ($76,399)

KATHLEEN EDWARDS ($57,431)

SHAWN DESMAN ($117,700)

COLIN LINDEN ($35,023)

ALAIN LEFÈVRE ($39,573)

THORNLEY ($57,505)

STARS ($143,397)

SOPHIE MILMAN ($45,900)

NATALIE CHOQUETTE ($32,000)

SWEATSHOP UNION ($26,200)

THE DOPE POET SOCIETY ($37,134)

DEATH FROM ABOVE 1979 ($38,978)

BUCK 65 ($27,000)

DANKO JONES ($22,500)

JOHN LANDRY ($19,500)


LHASA DE SELA ($24,000)

METRIC ($62,500)

NOT BY CHOICE ($10,000)

ROUND 14 (CON’T)PILATE ($30,250)

SERENA RYDER ($38,000)

SLOAN ($27,000)

STABILO ($25,500)

THE BILLS ($9,000)

HAYDEN ($19,830)

ROUND 15THEORY OF A DEADMAN ($119,937)

MATT MAYS ($109,000)

BROKEN SOCIAL SCENE ($135,603)

MASSARI ($79,739)

THE DOPE POET SOCIETY ($52,751)

SAMINA ($29,127)

MARTHA WAINWRIGHT ($45,710)

JOEL PLASKETT ($10,357)

BUCK 65 ($22,000)

EMBER SWIFT ($25,500)

HAWKSLEY WORKMAN ($24,000)

MADVIOLET ($27,000)

RON KORB ($10,000)

SERENA RYDER ($6,000)

SWEATSHOP UNION ($20,000)

THE DEARS ($68,000)

YANNICK NÉZET-SÉGUIN ($13,754)

INCLUDES FUNDING APPROVED FOR DOMESTIC MARKETING, INTERNATIONAL MARKETING AND INTERNATIONAL TOURING/SHOWCASING PROGRAMS


TOTAL APPROVED FUNDING

% OF APPROVED FUNDING

NUMBER OF APPROVED APPLICATIONS

NUMBER OF ARTISTS

ROCK

$1,766,409.98

37.87%

36

22

URBAN

$728,566.08

15.62%

16

9

A/C

$137,500.00

2.95%

3

3

COUNTRY

$109,004.00

2.34%

4

4

FOLK

$427,364.32

9.16%

22

11

WORLD

$176,000.00

3.77%

6

4

BLUES

$103,023.85

2.21%

3

2

CLASSICAL

$165,278.30

3.54%

8

6

JAZZ

$198,033.23

4.24%

8

6

ELECTRONIC

$41,000.00

0.88%

1

1

ABORIGINAL

$56,512.00

1.21%

6

6

MISC.

$240,000.00

5.15%

6

0

TOTAL

$4,664,567.76

100.00%

132*

82

*NUMBER OF APPROVED APPLICATIONS FOR FISCAL YEAR INCLUDES 24 MISCELLANEOUS FUNDING APPLICATIONS INCREASE IN ROCK (+13.98%) AND URBAN (+5.39%) FROM 2003-2004 DECREASE IN POP (-7.81%); WORLD (-7.37%) AND ABORIGINAL (-5.67%) FROM 2003-2004


DATE

SEPTEMBER 2004

SEPTEMBER 2004

OCTOBER 2004

OCTOBER 2004

OCTOBER 2004

NOVEMBER 2004

NOVEMBER 2004

NOVEMBER 2004

DECEMBER 2004

JANUARY 2005

JANUARY 2005

FEBRUARY 2005

JUNE 2005

JULY 2005

AUGUST 2005

ARTIST

ALEXISONFIRE

SARAH HARMER

SUM 41

K-0S

KALAN PORTER

SUM 41

SUM 41

KALAN PORTER

THORNLEY

KALAN PORTER

KESHIA CHANTÉ

K-OS

THE TREWS

THEORY OF A DEADMAN

JONAS

ALBUM

“WATCH OUT”

“ALL OF OUR NAMES”

“CHUCK”

“JOYFUL REBELLION”

“AWAKE IN A DREAM” (SINGLE)

“ALL KILLER NO FILLER”

“CHUCK”

“AWAKE IN A DREAM” (SINGLE)

“COME AGAIN”

“219 DAYS”

“KESHIA CHANTÉ”

“JOYFUL REBELLION”

“HOUSE OF ILL FAME”

“GASOLINE”

“JONAS”

CERTIFICATION

GOLD

GOLD

GOLD

GOLD

4X PLATINUM

3X PLATINUM

PLATINUM

8X PLATINUM

GOLD

2X PLATINUM

GOLD

PLATINUM

GOLD

GOLD

GOLD

UNITS

50,000

50,000

50,000

50,000

40,000

300,000

100,000

80,000

50,000

200,000

50,000

100,000

50,000

50,000

50,000

POP

$515,876.00

11.06%

13

8

TEAM REZOFFICIAL (ROUND #13)

“At this stage of introducing Team Rezofficial to main-stream, hip hop and First Nation audiences simultane-ously, RSF has played a major role in supporting ourwide-reaching campaign. Through radio, print andother means, we’re getting Team Rezofficial out therefor all to fall in love with.”

ARTHUR PEARSONGENERAL MANAGER, ARBOR RECORDS LTD.

SUCCESS FACT:

!ANNUAL REPORT


SALES CERTIFICATIONS|GRANT ALLOCATION BY GENRE


!ANNUAL REPORT



GRANT ALLOCATION BY MUSIC INDUSTRY ASSOCIATION|GRANT ALLOCATION BY PROVINCE

RECIPIENT EVENT/CITY/PROVINCE

CANADIAN ACADEMY OF RECORDING ARTS & SCIENCES 2005 JUNO AWARDS*, WINNIPEG, MANITOBA

CANADIAN SONGWRITERS HALL OF FAME 2005 CANADIAN SONGWRITERS HALL OF FAME GALA*, TORONTO, ONTARIO

EAST COAST MUSIC ASSOCIATION 2005 EAST COAST MUSIC AWARDS*, CAPE BRETON, NOVA SCOTIA

CANADIAN COUNTRY MUSIC ASSOCIATION 2005 CANADIAN COUNTRY MUSIC AWARDS, CALGARY, ALBERTA

URBAN MUSIC ASSOCIATION OF CANADA 2005 CANADIAN URBAN MUSIC AWARDS, TORONTO, ONTARIO

WESTERN CANADIAN MUSIC ALLIANCE 2005 WESTERN CANADIAN MUSIC AWARDS, VANCOUVER, BRITISH COLUMBIA

*2005 JUNO AWARDS, 2005 EAST COAST MUSIC AWARDS AND 2005 CANADIAN SONGWRITERS HALL OF FAME GALA WERE ALL PAID FROM PREVIOUS FISCAL YEAR ALLOCATIONS

ON

$3,100,110.36

66.46%

80

45

NL

$0.00

0.00%

0

0

NS

$255,357.00

5.48%

9

6

PE

$0.00

0.00%

0

0

NB

$0.00

0.00%

0

0

QC

$729,652.00

15.64%

22

16

MB

$106,890.00

2.29%

5

4

SK

$0.00

0.00%

0

0

AB

$39,504.00

0.85%

3

3

BC

$430,554.40

9.23%

12

7

NU

$0.00

0.00%

0

0

NT

$0.00

0.00%

0

0

YT

$2,500.00

0.05%

1

1

TOTAL

$4,664,567.76

100.00%

132*

82

PROVINCE


% OF APPROVED FUNDING

NUMBER OF APPROVED APPLICATIONS

NUMBER OF ARTISTS

*NUMBER OF APPROVED APPLICATIONS FOR FISCAL YEAR INCLUDES 24 MISCELLANEOUS FUNDING APPLICATIONS

STABILO (ROUND #13 & 14)

“The Radio Starmaker Fund enabled us to deliverStabilo to a broad audience that has now becometheir base. The Radio Starmaker Fund was instrumental in getting Stabilo to the next level with the consumer and industry alike.”

DAVE MORRISNATIONAL MARKETING MANAGER,EMI MUSIC CANADA

SUCCESS FACT:


!ANNUAL REPORT


Death From Above 1979 has greatly benefited from Starmakersupport of “You’re a Woman, I’m a Machine”. The money grant-ed Last Gang Records on behalf of this album has facilitated ourefforts in every aspect of the overall marketing and promotion ofthis record, both domestically and internationally. By usingStarmaker money to build upon organically garnered momen-tum, Death From Above 1979 has been able to break through toa more sustainable and viable consumer base.

We have allocated Starmaker dollars for use in print advertising(street weeklies and national monthlies), retail marketing(throughout the life of the record) and radio advertising amongother promotional outlets. For example, Last Gang will run aDeath From Above 1979 national radio advertising campaign atRock radio this autumn that will coincide with the band touringNorth America with Nine Inch Nails and Queens of the StoneAge. This will be perfectly timed to not only work in tandem withone of the hottest tours this fall but will also overlap with back toschool retail initiatives that will promote both the album and theband, spiking sales in the critical fall plan period. This strategicutilization of Starmaker money has been essential in order to

have all cylinders firing at once and driving home our marketingmessage to the consumer.

It is extremely important to be able to hit the market from variousangles at the same time, reinforcing the likelihood of impactingthe consumer and generating sales. By running these Starmakerfunded initiatives, a band like Death From Above 1979 signed toan indie label like Last Gang Records, secures a greater vantagepoint and has greater leverage in the world of the multinational“priority” artist. Starmaker assisting us in filling our war chestwith more marketing dollars balances the scales and evens outthe terrain, so that the QUALITY of the MUSIC becomes the deter-mining factor in a project’s success. This can be clearly illustratedwith Death From Above 1979, their sales consecutively in the Top200 for over 12 weeks and counting and their momentum justabout to hit critical mass this autumn with “You’re a Woman…”fighting it’s way towards gold sales in Canada.

LENNY LEVINEEXECUTIVE VICE PRESIDENT, LAST GANG RECORDS

ARTIST PROFILE: DEATH FROM ABOVE 1979



2005 MUCHMUSIC VIDEO AWARDS

2005 JUNO AWARDS

2005 CANADIAN COUNTRY MUSIC AWARDS

2005 EAST COAST MUSIC AWARDS

2004 WESTERN CANADIAN MUSIC AWARDS

2004 CANADIAN URBAN MUSIC AWARDS

2005 CANADIAN RADIO MUSIC AWARDS

2005 CANADIAN INDEPENDENT MUSIC AWARDS

2005 NATIONAL JAZZ AWARDS CANADA

EVENT ARTIST

KALAN PORTER PEOPLE'S CHOICE: FAVOURITE CANADIAN ARTIST - "SINGLE"

K-OS SINGLE OF THE YEAR - "CRABBUCKIT"RAP RECORDING OF THE YEAR - "JOYFUL REBELLION"

FEIST NEW ARTIST OF THE YEARALTERNATIVE ALBUM OF THE YEAR - "LET IT DIE"

RON SEXSMITH SONGWRITER OF THE YEARSARAH HARMER ADULT ALTERNATIVE ALBUM OF THE YEAR - "ALL OF OUR NAMES"ALEXISONFIRE NEW GROUP OF THE YEARKESHIA CHANTÉ R&B/SOUL RECORDING OF THE YEAR - "KESHIA CHANTÉ"TAIMA ABORIGINAL RECORDING OF THE YEAR - "TAIMA"

THE ROAD HAMMERS GROUP OR DUO OF THE YEARTHE CORB LUND BAND ROOTS ARTIST OR GROUP OF THE YEAR

INDEPENDENT GROUP OR DUO OF THE YEAR

NATALIE MACMASTER FEMALE ARTIST OF THE YEARROOTS/TRADITIONAL SOLO RECORDING OF THE YEAR - "BLUEPRINT"

THE TREWS GROUP OF THE YEAR

DOC WALKER OUTSTANDING COUNTRY RECORDING - "EVERYONE ABOARD"ENTERTAINER OF THE YEAR

SWOLLEN MEMBERS OUTSTANDING RAP/HIP-HOP RECORDING - "HEAVY"

K-OS HIP HOP RECORDING OF THE YEAR - "B-BOY STANCE"KESHIA CHANTÉ NEW ARTIST OF THE YEAR

THE TREWS BEST NEW GROUP OR SOLO ARTIST (ROCK) - "NOT READY TO GO"K-OS BEST NEW GROUP OR SOLO ARTIST (CHR) - "CRABBUCKIT"

BEST NEW GROUP OR SOLO ARTIST (HOT AC) - "CRABBUCKIT"BEST NEW GROUP OR SOLO ARTIST (DANCE URBAN RHYTHMIC) - "CRABBUCKIT"

RON SEXSMITH BEST NEW GROUP OR SOLO ARTIST (MAINSTREAM AC) - "WHATEVER IT TAKES"

THE TREWS FAVOURITE ALBUM - "HOUSE OF ILL FAME"THORNLEY FAVOURITE SINGLE - "SO FAR, SO GOOD"THE WAKING EYES FAVOURITE GROUPMETRIC FAVOURITE POP ARTIST/GROUP

MOLLY JOHNSON MOVADO VOCALIST OF THE YEAR

AWARD

!ANNUAL REPORT


AWARDS WON BY RADIO STARMAKER FUNDED ARTISTS

STARS (ROUND #14)

“The Radio Starmaker program has proven to be anessential part of the success of the Stars project.Without it we would struggle to compete adequatelywith the majors in the development of this artist. Wecan trace the success of Stars’ “Set Yourself on Fire”directly back to specific initiatives made possible bythe Starmaker Program.”

JEFFREY REMEDIOSARTS&CRAFTS

SUCCESS FACT:


!ANNUAL REPORT


The release of k-os’ sophomore album “Joyful Rebellion” hasbeen everything expected and more. With a debut of #7 on TheTop 200, it set a benchmark as the highest debut for a Canadianurban artist since the chart’s inception. Over 150,000 units, fourhit singles later and 48 weeks atop the Top 200, the rebellion stillcharges on.

k-os has received numerous awards for Joyful Rebellion (CRIAPlatinum Certification, 3 Juno Awards, 4 MMVA’s, 3 CanadianRadio Music Awards and 1 UMAC Award), yet I think the mosttelling recognition is the Canadian Music Week Industry Awardfor Canadian Talent Development Story of the Year and TheRadio Starmaker Fund has been there every step of the way.

While k-os’ album is the number one priority for EMI Canada, thecontributions from RSF made a crucial assist to the growth of thisproject. Its funds greatly aided in focusing our efforts of breakinginto new and developing Canadian markets and audiences, aswell as facilitating international showcases and support. More

importantly, it allowed us to translate the success of our Top 5CHR and #1 Video (“Crabbuckit”), and Top 10 CHR and #1Video (“Man I Used To Be”) into album and digital sales (bothtracks are certified Gold digital singles). I think you would behard pressed to find another Canadian artist who garnered air-play on CHR, Hot AC, Urban and Modern Rock stations in thiscountry!

All the domestic success has helped expedite activity abroad for“Joyful Rebellion” with releases in over 20 territories. Whileavenues to achieve success have been ever present for k-os, RSFhas facilitated and provided an ability to react and capitalize onopportunities, be creative and execute numerous marketing andpromotional initiatives.

DUANE WATSONDIRECTOR OF URBAN MARKETING, EMI MUSIC CANADA

ARTIST PROFILE: K-OS


!ANNUAL REPORT


ALLOCATION OF FUNDING BY CATEGORY


CATEGORY

PRINT ADVERTISING

RADIO ADVERTISING

T.V. ADVERTISING

WEB ADVERTISING*

SHOWCASING

INDEPENDENT RADIO PROMOTER

INDEPENDENT PUBLICITY

CONTESTS

POSTERING

RETAIL PROMOTIONS

PROMO TOURS

CD SAMPLERS*

T.V. SHOWS

WEB DESIGN

TOUR - ADDITIONAL MUSICIANS

TOUR - PRODUCTION

TOUR - ADDITIONAL TECHNICAL CREW

REHEARSAL SPACE RENTAL


$330,401.76

$513,801.00

$629,155.00

$19,979.50

$61,100.00

$106,402.00

$95,623.00

$83,695.92

$274,886.00

$237,047.07

$103,750.00

$35,812.00

$26,900.00

$69,500.00

$45,209.00

$46,962.00

$57,417.40

$12,355.00


7.08%

11.01%

13.49%

0.43%

1.31%

2.28%

2.05%

1.80%

5.89%

5.08%

2.22%

0.77%

0.58%

1.49%

0.97%

1.01%

1.23%

0.26%

CATEGORY

TOUR BUS

OPENING ACT TOUR SUBSIDY

MISCELLANEOUS (MUSIC ASSOC., ETC.)

INTERNATIONAL PRINT ADVERTISING*

INTERNATIONAL RADIO ADVERTISING*

INTERNATIONAL T.V. ADVERTISING*

INTERNATIONAL WEB ADVERTISING*

INTERNATIONAL RADIO PROMOTER*

INTERNATIONAL PUBLICITY*

INTERNATIONAL POSTERING*

INTERNATIONAL CONTESTS*

INTERNATIONAL RETAIL PROMOTIONS*

INTERNATIONAL CD SAMPLERS*

INTERNATIONAL PROMO TOURS*

INTERNATIONAL TOURING

INTERNATIONAL SHOWCASING

INTERNATIONAL T.V. SHOWS*

TOTAL


$43,291.00

$20,000.00

$339,000.00

$63,585.04

$2,206.13

$12,047.70

$1,470.76

$78,005.20

$207,000.00

$203.64

$104.47

$51,122.17

$6,880.13

$26,655.21

$981,750.00

$64,420.00

$16,829.66

$4,664,567.76


0.93%

0.43%

7.27%

1.36%

0.05%

0.26%

0.03%

1.67%

4.44%

0.00%

0.00%

1.10%

0.15%

0.57%

21.05%

1.38%

0.36%

100.00%

*NEW CATEGORIES IN 2004 - 2005


!ANNUAL REPORT


It’s been 16 months since Thornley’s debut gold-selling album“Come Again” entered the Top 200 SoundScan charts at#7….and it’s still going strong! Record sales are consistent, theband is still touring and selling out shows across Canada and a4th single has again landed on rock radio across the country.

With 4 singles released in Canada, Thornley dominated the rockradio airwaves for the last 18 months with thanks to significantRadio Starmaker Fund support. Touring has also been key to thesuccess of this band due to their phenomenal live performances.With Starmaker’s help, local radio stations, great TV campaignsand print advertising supported the tours and helped increase theband’s profile.

Thornley’s success has been recognized with 2 Juno nominations(“Rock Album Of the Year” and “New Group of the Year”). Theywere able to attend the Junos in Winnipeg with the help ofStarmaker, continuing on their western tour afterwards. Thornleyalso won “Single of the Year” at the Canadian Independent Music

Awards during 2005’s Canadian Music Week and were invitedto perform at the event. Performing is one of the band’s special-ties, a fact made clearly apparent when they appeared on JayLeno prior to the release of their album.

Thornley is a band in which 604 Records & Universal MusicCanada have a lot of faith. With a small indie label behind theband, it was very important to have the support of the RadioStarmaker Fund. We fully believe that the marketing and promo-tion behind Thornley was largely made possible with the supportof the Fund. It helped jump start this new Canadian rock groupand establish it in the industry. With the assistance of the RadioStarmaker Fund, a strong foundation has been built for Thornley’sfuture success.

JULIE BALDWINDIRECTOR OF MARKETING, PROMOTION & ARTIST RELATIONS, 604 RECORDS

ARTIST PROFILE: THORNLEY


!ANNUAL REPORT


FINANCIAL HIGHLIGHTS FISCAL YEAR 2004–2005


The accompanying condensed financial statements provide an overview of the Fund’s operations and are derived from the complete financial statements of Radio Starmaker Fund as at August 31, 2005 and for the year then ended on which our auditors, PricewaterhouseCoopers LLP, have expressed an opinion without reservation in their report dated November 7, 2005.

These condensed financial statements do not contain all the disclosures required by Canadian generally acceptedaccounting principles. Complete financial statements are available on request from Radio Starmaker Fund.


!ANNUAL REPORT



ASSETS

CURRENT ASSETSCASHSHORT-TERM INVESTMENTSPREPAID EXPENSES

INTERNALLY RESTRICTED INVESTMENTSCAPITAL ASSETS – NET

LIABILITIES

CURRENT LIABILITIESGRANT LIABILITY ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

FUND BALANCESINVESTED IN CAPITAL ASSETSRESTRICTEDUNRESTRICTED

17,830–

7,416

25,246

300,000–

325,246

–20,298

20,298

–300,000

4,948

304,948

325,246

–––

–

–8,328

8,328

––

–

8,328––

8,328

8,328

573,9275,345,211

–

5,919,138

––

5,919,138

3,086,049 –

3,086,049

–2,883,089

–

2,883,089

5,919,138

591,7575,345,211

7,416

5,944,384

300,0008,328

6,252,712

3,086,049 20,298

3,106,347

8,3283,133,089

4,948

3,146,365

6,252,712

TOTAL

$

GRANT FUND

$

CAPITAL ASSET FUND

$

ADMINISTRATION FUND

$

RADIO STARMAKER FUND CONDENSEDSTATEMENT OF FINANCIAL POSITIONAS AT AUGUST 31, 2005 2005


!ANNUAL REPORT


ASSETS

CURRENT ASSETSCASHSHORT-TERM INVESTMENTSPREPAID EXPENSES

INTERNALLY RESTRICTED INVESTMENTSCAPITAL ASSETS – NET

LIABILITIES

CURRENT LIABILITIESGRANT LIABILITY ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

FUND BALANCESINVESTED IN CAPITAL ASSETSRESTRICTEDUNRESTRICTED

77,074–

11,375

88,449

300,000–

388,449

–39,070

39,070

–300,000

49,379

349,379

388,449

–––

–

–10,941

10,941

––

–

10,941––

10,941

10,941

831,3633,267,958

–

4,099,321

––

4,099,321

2,433,423 –

2,433,423

–1,665,898

–

1,665,898

4,099,321

908,4373,267,958

11,375

4,187,770

300,00010,941

4,498,711

2,433,423 39,070

2,472,493

10,9411,965,898

49,379

2,026,218

4,498,711

2004

TOTAL

$

GRANT FUND

$

CAPITAL ASSET FUND

$

ADMINISTRATION FUND

$


RADIO STARMAKER FUND CONDENSEDSTATEMENT OF FINANCIAL POSITION ...CONTINUED AS AT AUGUST 31, 2005


!ANNUAL REPORT



REVENUES

CONTRIBUTIONS FROM CABDISCRETIONARY FUNDS FOR CANADIAN TALENT DEV.INTEREST

EXPENSES AND LOSSES

GRANTS, NET OF REALLOCATED UNUSED FUNDINGAMORTIZATION

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES

FUND BALANCES – BEGINNING OF YEAR

INTERFUND TRANSFERS

FUND BALANCES – END OF YEAR

– 5,035,402 5,035,402– 20,000 20,000– 89,819 89,819

– 5,145,221 5,145,221

– 3,503,030 3,503,0305,585 – 5,585

5,585 3,503,030 3,508,615

(5,585) 1,642,191 1,636,606

10,941 1,665,898 1,676,839

2,972 (475,000) (472,028)

8,328 2,833,089 2,841,417

TOTAL

$

GRANT FUND

$

CAPITAL ASSET FUND

$

RESTRICTED FUNDS 2005

RADIO STARMAKER FUND CONDENSED STATEMENT OF OPERATIONS AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED AUGUST 31, 2005


!ANNUAL REPORT



REVENUES

CONTRIBUTIONS FROM CABINTEREST

EXPENSES AND LOSSES

GRANTS, NET OF EXPIRING AMOUNTSAMORTIZATION AND OTHER

DEFICIENCY OF REVENUES OVER EXPENSES

FUND BALANCES – BEGINNING OF YEAR

INTERFUND TRANSFERS

FUND BALANCES – END OF YEAR

– 1,731,819 1,731,819– 61,451 61,451

– 1,793,270 1,793,270

– 2,431,683 2,431,6835,092 322 5,414

5,092 2,432,005 2,437,097

(5,092) (638,735) (643,827)

14,069 2,779,633 2,793,702

1,964 (475,000) (473,036)

10,941 1,665,898 1,676,839

TOTAL

$

GRANT FUND

$

CAPITAL ASSET FUND

$

RESTRICTED FUNDS 2004

RADIO STARMAKER FUND CONDENSED STATEMENT OF OPERATIONS AND CHANGES IN FUND BALANCES ...CONTINUEDFOR THE YEAR ENDED AUGUST 31, 2005


!ANNUAL REPORT


Susie Napper and Margaret Little have been thrilling audienceswith their performances of exotic masterpieces of the 17th and18th centuries for the past twenty years. Les Voix Humaines arerenowned for their spectacular arrangements of a wide varietyof music for two viols and their brilliant performances of con-temporary music commissioned by the duo. Their Montreal con-cert series offers a unique opportunity for an international arrayof instrumentalists and singers to explore unusual repertoire thatincludes virtuoso viols. The duo is regularly joined by some ofMontreal’s finest young gambists to form the Voix HumainesConsort specializing in the vast 17th-century repertoire for violconsort.

Les Voix Humaines record for the ATMA label and were nomi-nated for four Opus prizes in 2004. They have recorded over20 CD’s which have received critical acclaim and several prizesincluding the Prix Opus, Diapason d’Or, Félix de l’Adisqawards. They include the complete “Poeticall Musicke“ of TobiasHume, “The 4 Seasons“ of Christopher Simpson, the complete“Le Nymphe di Rheno“ of Johannes Schenck, several discs with

soprano Suzie LeBlanc and countertenor Daniel Taylor and aTelemann disc with renowned Belgian flutist Barthold Kuijken.Their recording of the complete “Concerts a deux violesesgales“ by Sainte-Colombe is a world premiere.

The duo has performed at many of the most important music fes-tivals in North America, Mexico and Europe including theBoston Early Music Festival, Early Music Vancouver, the FestivalInternacional Cervantino, Mexico, the Brighton InternationalMusic Festival, England, the Festival Oude Musiek, Holland andthe Summer Festivities of Early Music in Prague. Thanks to thehelp of the Radio Starmaker Fund, they made their debut inAustralia and New Zealand and toured New England in 2005.The RSF contributions to international touring costs made it pos-sible for Les Voix Humaines to perform ten concerts, give twomaster classes and teach at the Australian Viola da GambaSociety Easter Workshop.

ÉLISABETH COMTOISARTIST MANAGER

ARTIST PROFILE: LES VOIX HUMAINES


!ANNUAL REPORT


APPENDIX:CRITERIA FOR QUALIFYING


Applicants must have sold a qualifying number of units on a previous or current release, determined by their genre.

" The artist, their label or agent, must invest (“Significant Investment”) the dollar amounts below by genre in third party, non-recoupable marketing costs.

" Ownership of the masters must reside with a Canadian company, and the royalties must flow through a Canadian company.

" The artist must be a Canadian citizen or landed immigrant, and resident of Canada.

POP/ROCK/AC

COUNTRY/FOLK/URBAN/ELECTRONICA /DRUM AND BASS

WORLD/JAZZ/CLASSICAL/BLUES

ABORIGINAL

GENRE UNITS SOLD

15,000 MAJOR LABEL10,000 INDIE LABEL



2,500 MAJOR/INDIE LABEL

SIGNIFICANTINVESTMENT

$75,000$25,000

$20,000$10,000

$20,000$10,000

$7,500


!ANNUAL REPORT


Hailed as one of the finest and most distinctive singer-songwrit-ers to emerge in 2003 with the release of her debut record“Failer”, Kathleen Edwards has triumphantly returned with hercritically acclaimed sophomore album, “Back To Me”. It hasreceived rave reviews nationally and internationally whileKathleen has been hard at work touring North America and theUK. She has headlined her own club shows in major marketsacross North America and been selected as opening support byartists such as Willie Nelson, Aimee Mann and John Prine.

In 2005 alone, Kathleen has appeared on numerous televisionprograms, performing on Austin City Limits, The Late Late Show,The Tonight Show with Jay Leno and of course, David Letterman.This was the third invitation extended by Letterman made in hon-our of the release of “Back To Me”. Kathleen also recorded aBravo Television special and has appeared on countless region-al television programs in Canada and the States.

The Radio Starmaker Fund was fundamental in the marketing ofthis project, contributing toward the cost of a street campaign foralbum launch, allowing us to purchase additional print advertis-ing in support of retail initiatives and supplementary advertisingsurrounding and incorporating tour dates. With this support, wewere able to create a greater presence in the marketplace, inte-gral to the momentum of the project.

The Radio Starmaker Fund has been fundamental in furtheringKathleen’s touring internationally. This money has provided thefoundation for the success of the tours, bringing her live show toa higher professional level with the addition of supporting musi-cians and extra crew. The fund has allowed Kathleen to tournew regions in Europe and the US, creating new markets whilereinforcing support in existing territories.

CARLA PALMERSENIOR MARKETING MANAGER, MAPLEMUSIC RECORDINGS

ARTIST PROFILE: KATHLEEN EDWARDS


Documents

RADIO STARMAKER FUND · 2005, the Radio Starmaker Fund Board of Directors was comprised of: RSM ANNUAL REPORT 23.1.06 1/24/06 9:34 AM Page 4 ★ ANNUAL REPORT RADIO STARMAKER FUND