CRTC revamps Canadian content regulations for radio; CAB dismayed

The CRTC has revised its rules for Canadian content in commercial radio. In a voluminous decision issued Wednesday, the commission overhauled regulations over playing Canadian music on the radio. One of the chief changes is to the definition of Canadian content. Currently a song must hit two of four MAPL points–the music must be composed by a Canadian, the artist must be Canadian, the performance must have been recorded in Canada or the lyrics must be written by a Canadian. But broadcasters complained that the performance aspect was rarely able to be achieved. The regulator agreed and dropped it. Now songs must hit two of the three remaining criteria in order to be considered as CanCon. The Canadian content development (CCD) process is also undergoing an overhaul. Currently companies with more than $1.25 million in revenues pay $1,000 plus 0.5 per cent on all revenues above the $1.25 million threshold. Under new rules, firms with revenues below $10 million will not pay CCD fees; broadcasters earning between $10 million and $50 million will pay 0.5 per cent; and those over $50 million will be assessed one per cent. The commission is launching a consultation on other aspects of the CCD program, including discretionary initiatives and eligibility for CCD contributions. The regulator also changed the common ownership program. At present, a company may own two AM and two FM stations in a market with at least eight stations. For places with fewer than eight stations, a firm may own three stations, two of them on the same band. That will change to four stations in an eight-station market with up to three stations on the same band. For fewer than eight stations, a broadcaster may hold up to three stations without regard to band. The CRTC rejected an intervention from the Canadian Association of Broadcasters that would have seen the broadcast week extended to 5 a.m. to 1 a.m.. The current definition is 6 a.m. to midnight, seven days a week. The peak listening time remains at 6 a.m. to 6 p.m. weekdays. The CAB wanted it to run from 5 a.m. to 7 p.m. weekdays. The regulator refused to rule on local news programming. It noted that if Bill C-18, the Online News Act currently before Parliament, is passed, it may provide an incentive for radio broadcasters to increase their local news packages. The CRTC will examine the issue in the future. Stations are further expected to devote five per cent of their playlist to emerging artists. That is defined as an act that has not had a hit song on the top 40 of six eligible pop charts or the top 25 of another five country charts. An artist will remain on the list of emerging artists for four years following the release of their first commercial record. “The radio industry is in a transition period and is competing with digital services for listeners,” CRTC chair Ian Scott said in a news release. “A flexible approach will help it remain competitive, while ensuring that Canadians continue to have access to the content that serves their needs and interests. Radio is a very important medium to entertain, inform, discover new artists and ensure that local voices are heard.” Updated: In a Wendesday evening statement, the CAB said the CRTC's decision was a "profound dissapointment and a missed opportunity". “After a drawn-out process of well over two years, we are dismayed that the Commission has missed this critical opportunity to establish a forward-looking policy for the sustainability of radio broadcasting in Canada,” CAB president Kevin Desjardins said in the release. "At a moment when the market for audio listening is exploding with unregulated options, the Commission must change course for the future viability of the sector," the release said. In a Wednesday evening note, National Bank analyst Adam Shine wrote that the bank viewed the policy decision "largely a non-event with neutral implications for commercial broadcasters." "We don't believe anyone had baked in anticipated relief into their forecasts or valuations, so the limited changes to the radio policy framework shouldn't come as a surprise despite it likely disappointing some operators," Shine wrote. –Reporting by Paul Park at ppark@thewirereport.ca and editing by Michael Lee-Murphy at mleemurphy@thewirereport.ca

CRTC revamps Canadian content regulations for radio; CAB dismayed

News | December 7, 2022

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CRTC revamps Canadian content regulations for radio; CAB dismayed

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