Heritage Minister James Moore has announced an increase in the Canada Music Fund, the federal government's main fund to support the music industry, but changes are coming in the way the fund distributes its money.

Two programs have been eliminated but the five remaining programs will see more money under the new plan, announced in Montreal on Friday. Moore said the changes will direct more money to digital platforms, but he could provide few details.

Its funding will be increased by $9.85 million annually to $27.6 million a year until 2014, he said.

"We are also ensuring that a wide variety of Canadian music is accessible on multiple platforms, increasing the reach of our artists both in Canada and abroad," Moore said in a statement.

The programs eliminated were:

  • Canadian Musical Diversity: This fund, administered through the Canada Council for the arts, went to indie music makers under a sound recording program and a specialized music distribution program.
  • Support to Sector Associations: This program, administered by Canadian Heritage, provided up to $250,000 annually to industry associations.

The musical diversity program distributes about $1.35 million annually, mainly to artists who kept control of their own copyright, and some of that funding has been redirected.

The new program areas include:

  • $900,000 for digital market development, in a fund aimed at music entrepreneurs and businesses.
  • $500,000 for international market development, which will support international showcases that help Canada artists make international connections.

Canadian musicians could be expected to welcome news of the international development program since they were among the artists hurt by last year's cancellation of PromArt, which provided grants so emerging artists could tour.

Expanding eligibility to professionals, such as managers and distributors who work in digital technologies, seems to be among the thrusts of the new development.

The Canadian Music Fund will continue to fund existing programs administered by:

  • FACTOR: the Foundation Assisting Canadian Talent On Recordings, an independent organization that provides grants for new Canadian artists to tour and record.
  • SOCAN: Society of Composers, Authors and Music Publishers of Canada, which provides grants for cultural festivals and new works.
  • MusicAction Foundation: a non-profit organization that supports the marketing and promotion of francophone music.

The announcement from Canadian Heritage did not say how the money would be distributed among the five programs remaining under the fund. Calls to the ministers office seeking clarification were not returned.

The changes take effect in April 2010.