Radio

The CRTC had a real chance to update things for broadcasters, but…

The CRTC has been studying how the landscape for traditional broadcasters has changed in the digital age. Canadian radio has essentially been operating under the same rules for 30 year with only slight cosmetic changes along the way.

Broadcasters had hopes that they would be meaningful changes this time, At Departure/Canadian Music Week, there was optimism that the playing field would be leveled, at least somewhat, with music streamers. Yesterday’s announcement (May 21) showed that there’s still plenty of work to do.

First, the good news.

Foreign streaming services with annual revenues in Canada of more than $25 million (Spotify, et al) will be required to direct 15% of their earnings toward Canadian Programming Expenditures (CPE). Meanwhile, large Canadian broadcasting groups will now pay 25%, down from as much as 45%. This is supposed to make things more even with Big Tech.

The Canadian Association of Broadcasters like this, but points to the continuing disparity.The last time anyone checked,, 25% was bigger than 15%. Maybe the raw numbers will tell a different story in terms of actual dollars.

But then it gets complicated. Remember the 2024 law that required streamers to pay 5% of revenue into the Canadian domestic culture system? Yes, it pissed off the American streamers so greatly that the matter is not only before the courts but has become a sticking point in the free trade talks between Canada and the US. The new 15% absorbs that 5% and also includes 6.55% for “legally-mandated production funds” plus 8.45% that “can be funnelled directly by global platforms into local content production and partnerships.” (Via Broadcast Dialogue)

There’s more, too, involving how much streamers must contribute to the Canadian Media Fund. Instead of having to direct 75% of contribution to the creation of Canadian content, the rate will now be a flat 2% of revenue.

This is going to greatly piss off the streamers and the Trump administration when it comes to renegotiation of the USMCA, This is going to be interesting.

This won’t be the only meaningful CRTC decision to come down this year. Stand by.

Alan Cross

is an internationally known broadcaster, interviewer, writer, consultant, blogger and speaker. In his 40+ years in the music business, Alan has interviewed the biggest names in rock, from David Bowie and U2 to Pearl Jam and the Foo Fighters. He’s also known as a musicologist and documentarian through programs like The Ongoing History of New Music.

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