CRTC proposes $10M exemption threshold for broadcasting groups, 35% upper-fee limit, for broadcasting fee regime

The CRTC has launched a consultation for its proposed new broadcasting fees regulations as it continues to implement the Online Streaming Act. In its Wednesday notice of consultation, the CRTC said that the provisions in its proposed new fees regulations are similar to the current one with a few exceptions. Under the new regime, broadcasting ownership would pay broadcasting fees, rather than individual broadcasting undertakings. The CRTC is defining a broadcasting ownership group as “a group of all operators that are affiliates of one another or, in the case of an operator that is not an affiliate of any other operator, that operator.” “Because this approach combines the revenues of all the undertakings in the group, it avoids the issue of selective or creative accounting – allocating revenues to a chosen undertaking in order to minimize fees,” the CRTC wrote. The CRTC is also proposing a threshold exemption of CAD $10 million for the ownership groups and limit to the amount of fees. The CRTC said the new regime aims to achieve several objectives. Under its proposal all existing fee paying groups will pay now more, percentage wise, than what they currently pay. The obligation to pay fees as a group as opposed to individual undertakings will reduce the number of feepaying undertakings, the CRTC noted, adding that “the top several corporate groups pay the greatest amount of the commission’s fees.” “By merging Canadian-owned online undertakings with traditional feepaying broadcasting undertakings and by requiring ownership groups, rather than individual undertakings, to pay fees, opportunities for broadcasters to assign revenues or expenses artificially to one undertaking rather than another one will be reduced,” the CRTC wrote. The new regime also sets out to ensure that no group is disproportionately responsible for paying fees. The commission proposed an “upper limit” to broadcasting fees of 35 per cent. Under the proposal, if an ownership group exceeds 35 per cent of the total regulatory costs, the remaining fees will be redistributed on a prorated basis to other feepayers. According to the commission, the $10 million threshold for all broadcasting ownership groups will “have the benefit of achieving consistency across various regulatory obligations,” such as ensuring all undertakings contribute to the system while excluding those that do not contribute in a material manner to the implementation of the broadcasting policy. “The proposed threshold level would achieve the objective of eliminating the obligation on the smallest current feepayers. The $10 million threshold level also corresponds to the proposed level of exemption for registration purposes and for proposed new conditions of service to be imposed on online undertakings. Finally, the $10 million threshold lines up with existing regulatory levels established by the Commission in other spheres,” the commission wrote. – Reporting by Jenna Cocullo at jcocullo@thewirereport.ca and editing by Phalen Tynes-MacDonald at pcreed@thewirereport.ca

CRTC proposes $10M exemption threshold for broadcasting groups, 35% upper-fee limit, for broadcasting fee regime

News | August 23, 2023

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CRTC proposes $10M exemption threshold for broadcasting groups, 35% upper-fee limit, for broadcasting fee regime

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