Music Canada and the Digital Media Association have voiced strong opposition to new Canadian regulations that require streaming services to financially support local radio.
The new law, passed in 2023, mandates that non-Canadian-owned streaming services with annual revenues over $25 million CAD must contribute 5% of their Canadian revenue to subsidize Canadian content. This includes 1.5% going towards local radio station support.
Music Canada represents labels like Sony Music Entertainment Canada, Universal Music Canada, and Warner Music Canada. DiMA includes streamers Amazon Music, Apple Music, and Spotify. In a letter to the Canadian Radio-television and Telecommunications Commission, the groups argued that audio streaming should not be be tied to OTA radio, stating, “Radio and audio streaming are not the same.”
Streaming companies argue that requiring them to subsidize radio stations – which they consider competition – is unfair.
In the letter, Music Canada and DiMA emphasized that streaming, unlike traditional local radio, is not limited by geography, language, or broadcast space. They argue that streaming platforms offer more opportunities for Canadian artists, including women and racially diverse musicians, to reach global audiences.
In July, Amazon, Apple, and Spotify filed a legal challenge against the Online Streaming Act, as it has causes consternation for video streamers, as well. Netflix and several Hollywood studios have taken similar action.
The letter closes saying, “We ask that as you move forward implementing the Online Streaming Act, you think of the streaming services and their interactions with Canadians for what they are today and not as a proxy to the broadcasting system of the 1900s.”
The act has also caused problems for Canadian radio companies – the CRTC announced a two-year freeze on new radio applications starting in August of last year while the organization focuses on implementing the rules.
