CRTC denies ‘self-serving’ Sirius XM fund proposal

The CRTC has denied a proposal by Sirius XM Canada Holdings Inc. to create a new fund for its discretionary tangible benefits, directing most of the money to existing funds and a smaller portion to the Broadcast Participation Fund (BPF). The regulator said in a Friday decision that it “is of the view that the outcome of the initiatives associated with the Proposed Fund includes important elements that would serve the interest of Sirius XM without much additional benefit, beyond what can be provided through existing funds, to the overall public interest or to the artists who would receive the associated contributions.” Sirius first proposed the fund in July 2017, instead of allocating the entirety of its $4.79 million in discretionary tangible benefits to the Broadcast Participation Fund (BPF). It said the new fund would fill in the gaps in the existing Canadian content development ecosystem, and suggested it put $1 million to the BPF and the rest to the new fund, the SiriusXM Amp’d Fund/Fond Survolté. However, advocacy groups responded that granting Sirius’ proposal could affect their ability to participate in CRTC proceedings, given that the BPF — which funds cost awards for groups representing public and consumer interests in broadcast proceedings — is under financial pressure. Since then, the BPF has lobbied the Canadian government for the first time, with registrations pointing to the ongoing sustainability of the fund. In its decision, the CRTC directed Sirius pay $596,666 to the BPF over five years, and $1.6 each to the Foundation Assisting Canadian Talent on Recordings (FACTOR) and Musicaction funds, over seven years. It said that “given the relevance and importance of the BPF as a tool to promote the participation of Canadians in Commission radio proceedings ... the Commission considers that a contribution to the BPF, in addition to the $1 million proposed by Sirius XM,” is appropriate. Sirius’ proposed fund would have benefitted “French-, English- and Indigenous-language musical and spoken word artists by directly funding professional recordings, mentorship, promotional support and access to publicists,” the CRTC noted, while recipients would also have been “provided with airtime on Sirius XM’s North American platform.” Among the criteria the CRTC uses to judge such proposals is whether they are “self-serving” and whether the proposal is complete. The CRTC concluded that the governance structure of the fund, under which Sirius would represent 40 per cent of the governance panel, means the company would be in a position to influence the fund. “In light of the above, while the Proposed Fund could yield a measurable improvement to the Canadian broadcasting system, the Commission considers that it also presents a benefit to Sirius XM by giving it priority access to newly created Canadian content and therefore allowing it to improve its service offering and helping it to fulfill its regulatory obligations,” it said. At the same time, the benefits the fund would provide to artists could also be fulfilled by existing funds, it concluded. The CRTC said that it "considers that the information provided by Sirius XM in its application describes an initiative that would be self-serving.” The proposal was also missing “essential information,” the decision said. — With reporting by Anja Karadeglija at akarad@thewirereport.ca and editing by Ahmad Hathout at ahathout@thewirereport.ca

CRTC denies ‘self-serving’ Sirius XM fund proposal

News | March 16, 2018

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CRTC denies ‘self-serving’ Sirius XM fund proposal

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