Music Broadcasters Protest Radio Subsidy Under New Canada Act

Music Canada and the Digital Media Association have come out strongly against new Canadian regulations requiring the use of streaming services to financially support local radio.

The new law, passed in 2023, requires non-Canadian streaming services with annual revenues above C$25 million to contribute 5% of Canadian revenues to subsidize Canadian content. This includes a 1.5% local radio station subsidy.

It represents companies such as Music Canada, Sony Music Entertainment Canada, Universal Music Canada and Warner Music Canada. DiMA includes publishers Amazon Music, Apple Music and Spotify. Inside a letter Speaking to the Canadian Radio-television and Telecommunications Commission, the groups argued that the audio stream should not be connected to OTA radio, saying “Radio and audio streaming are not the same.”

Broadcasting companies argue it is unfair to ask them to subsidize radio stations they consider to be competition.

In the letter, Music Canada and DiMA emphasized that unlike traditional local radio, broadcasting is not limited by geography, language or broadcast area. They argue that streaming platforms offer greater opportunities for Canadian artists, including women and musicians of color, to reach global audiences.

In July, Amazon, Apple and Spotify filed a legal challenge against the Online Broadcasting Act, which also stunned video publishers. Netflix and various Hollywood studios have taken similar measures.

The letter concludes: “In implementing the Online Broadcasting Act, we ask that you consider streaming services and their interactions with Canadians as they exist today, rather than as a proxy for the broadcast system of the 1900s.”

The law also caused problems for Canadian radio companies (CRTC). announced that it would be frozen for two years The institution, which started new radio applications since August last year, focuses on the implementation of the rules.