SOCAN welcomes a recent decision by the CRTC (Canadian Radio-Television and Telecommunications Commission) that will require online streaming platforms to contribute five percent of their Canadian broadcasting revenues to funds that will help support the creation of Canadian music. The requirement will affect both audio-visual content services like Netflix, and audio content services like Spotify.
“This is an important first step in modernizing Canada’s broadcasting system to ensure the future of Canadian songwriters and composers,” said SOCAN CEO Jennifer Brown.
In 2023, the CRTC passed the Online Streaming Act (Bill C-11), which amended the Broadcasting Act to update Canadian broadcasting in the streaming era – including legislation that would subject American and other foreign streaming platforms to subsidize Canadian content. After creating a regulatory plan, and accepting consultations following the adoption of the bill, the CRTC is now imposing the five percent contribution requirements on streamers that make $25 million or more in annual revenues (and are not affiliated with a Canadian broadcaster).
The earnings will support local news on TV and radio, Francophone content, Indigenous content, and content created by and for equity-deserving groups, official language minority communities, and Canadians of diverse background. The CRTC estimates that once the ruling takes effect in the 2024–2025 broadcasting year (which begins Sept. 1, 2024), it will provide approximately $200 million annually in new funding.