Industry groups representing major record labels and streaming platforms have a message for Canada’s telecoms regulator: Streaming is not broadcasting and should not be regulated in the same way.
“We are writing to you today to highlight an important message shared throughout the consultation process: broadcasting and audio streaming are not the same,” a letter read. canadian music and Dima (Digital Media Association) to the Canadian telecommunications regulator CRTC.
The Canadian Music Association represents the country’s three major record companies: Sony Music Entertainment Canada, universal music canadaand Warner Music Canada. DiMA represents a variety of digital media companies, including Amazon Music, apple musicand Spotify.
The groups are responding to a series of workshops the CRTC recently held on implementing new rules for streaming services.
Under these rules, non-Canadians who own more than C$25 million (about. $18.5 million) is required to pay annual income in Canada 5% A portion of this revenue goes into a fund that subsidizes Canadian content and creators.
According to the plan, 1.5% A portion of the revenue from music streaming will be used to subsidize local radio stations.
These provisions stem from a new law–” Online Streaming ActPassed in 2023 – Echoing earlier regulations from the broadcast era, requiring Canadian broadcasters to pay funds that support the creation of Canadian radio, television and film content.
Music and video streaming companies have spoken out against the plan, with some music streaming companies saying it’s fundamentally unfair to require streaming services to subsidize radio stations, which are effectively their competitors.
In July, Amazon, Apple and Spotify launched a legal challenge to the rule in Canada’s Federal Court, while canadian film associationrepresenting Netflix and Several major Hollywood studios, including disney, Paramount, sony, NBCUniversal, and Warner Bros. Discoveryfiled a similar lawsuit.
The Canadian Music Association and DiMA said in the letter that at the CRTC workshop there was “a clear attempt to continue to enforce radio regulations on audio streaming services as a next step.” “We disagree.”
The letter states that Canada’s broadcasting regulations are designed to address issues posed by its vast geography, “linguistic duality” (English and French) and the fact that analogue broadcast space is limited in determining what content is necessary to be broadcast.
The letter from the Canadian Music Association and DiMA said these issues “do not exist” with streaming.
“Driven by each consumer’s personal interests and activities, it represents nearly unlimited listening time, a vast catalog of recordings, multiple languages, and breaks not just physical geography but also international borders.”
“Streaming not only allows Canadians to access the world in previously unimaginable ways, it also allows Canadian artists who don’t have a home in traditional broadcast systems to be found by Canadian and international fans.”
Canadian Conservatoire and DiMA
The letter echoes earlier arguments made by companies like Netflix and Spotify, effectively arguing that Canadian content does not need subsidies in the digital age.
“The fact that three of the 10 most streamed songs in India in 2022 are by Canadian artists would have been unthinkable to the founders of our terrestrial broadcasting system,” the letter reads.
“Streaming not only allows Canadians to access the world in previously unimaginable ways, it also allows Canadian artists who would not have a home in the traditional broadcast system to be found by Canadian and international fans. Compared to Canadian radio stations, this results in female and racially diverse Artists get more plays on streaming media.
Earlier this year, Spotify said Canadian artists “earn more from streaming outside Canada than they do domestically…Canada has become the third most successful country in the world for artists exporting through Spotify.”
“We will be unable to continue funding the many projects that rely on our support as we now need to allocate resources to meet the CRTC’s new investment mandate.”
Netflix
Netflix has long claimed that it has voluntarily funded Canadian content by producing television shows in Canada and providing grants to various organizations that support Canadian content creators. Netflix says it has spent some $25 million Participate in these projects and support more than 1,200 Canadian directors, producers, writers and performers.
However, that appears to be over given the CRTC’s new streaming fees. Last week, multiple cultural groups discovered that Netflix would be cutting its financial support to cover the new streaming fees.
“Despite our long-term commitment, the government has chosen not to recognize our strong support for Canada’s film and television industry,” Netflix said. globe and mail.
“As a result, we will be unable to continue funding the many projects that rely on our support as we now need to allocate resources to meet the CRTC’s new investment mandate.”
globe and mail According to the report, a number of professional development programs and cultural institutions are “in jeopardy” due to Netflix’s withdrawal, including Pacific Screenwriters Projectand Popular documentsNorth America’s largest documentary film festival, held annually in Toronto.global music business
