MMF Canada takes a stance...

The CRTC (the “Commission”) asked for feedback on an application by the Canadian Association of Broadcasters (“CAB”) requesting regulatory relief for Canadian broadcasters from the effects of the COVID-19 pandemic. The CAB proposal requests that the Commission deem all broadcasters to be in compliance in respect of their expenditure requirements for the 2019-2020 broadcast year. If permitted, the expenditure requirements for the 2019-2020 broadcast year would not have to be carried forward or “made up” in any way. Regular expenditure requirements would resume for the 2020-2021 broadcast year.

The original comments from the Commission is that the “deemed compliance” approach requested by the CAB may not be the most appropriate, and that any flexibility for exhibition or other regulatory requirements must be able to be monitored by the Commission.

Last month, along with fellow societies Canadian Independent Music Association (CIMA) and the Society of Composers, Authors and Music Publishers of Canada, the MMF Canada Advocacy Committee wrote to the Secretary General of the CRTC opposing CABs’ “deemed compliance” request that broadcasters be exempt from their expenditure requirements for the 2019-2020 broadcast year. See the letter here. We believe that this type of regulatory measure does not balance the needs of broadcasters with the elements of the music industry that depend on expenditure commitments like Canadian Content Development (“CCD”) to fund  critical activities, and that granting the CAB’s request would result in unreasonable effects on the music industry ecosystem that depends on  regulatory requirements like CCD.

In its proposal, the CAB recognizes that “CCD requirements represent a relatively low percentage of fixed radio expenditures”. CCD contributions for radio  broadcasters in 2018 was $43.7 million, compared to $1.5 billion in revenues for  private commercial radio stations. Losing these funds would devastate the music industry, in a manner that is far disproportionate to the relief the CAB is requesting. 

While we understand that we all are affected by this years’ economic downturn due to the pandemic, it is imperative that the Broadcasters uphold their obligations as their contributions are essential to the continuance of the Canadian Music industry.

We will continue to update the membership as we get more information.