Music Canada Seeks Intervention in CRTC Streaming Levy Appeal, Championing Artist Investment
Music Canada has filed an submission with the Federal court of Appeal, requesting the possibility to intervene in the ongoing appeal of the Canadian Radio-television and Telecommunications Commission’s (CRTC) recent base contributions decision. This decision imposes a 5% levy on major music streaming platforms operating within Canada. Our core argument centers on ensuring direct investments made by these platforms into the Canadian music ecosystem are recognized as qualifying contributions.
For years, music Canada has actively participated in the legislative process surrounding the Online Streaming Act. We’ve consistently advocated for a regulatory framework that fosters growth within Canada’s commercial music sector and unlocks new opportunities for Canadian and Indigenous artists. This application for leave to intervene is a direct continuation of that commitment.
The Core Concern: Protecting Artist investment
As the national voice of the commercial music industry, Music Canada is deeply concerned that the CRTC’s current decision risks undermining the considerable and ongoing investments streaming services are making in the Canadian music landscape. Supporting the success of Canadian and indigenous artists must be the central tenet of the CRTC’s policies, and we believe the current ruling falls short of this crucial objective.
streaming platforms have demonstrably committed to Canada through dedicated teams and targeted programs designed to elevate Canadian and Indigenous music. These investments are vital for helping artists thrive in today’s fiercely competitive global streaming market and build lasting audiences.However, the CRTC’s contributions decision threatens to counteract the very goals outlined in the updated Broadcasting Act.
Specifically, our concerns include:
Lack of Recognition for Existing Investment: The CRTC’s 5% levy was established without acknowledging or factoring in any of the investments already being made by music streaming services within Canada. This oversight creates a disincentive for continued support.
Diversion of Funds from the Music Industry: A full 30% of the contributions collected will be allocated to funding commercial radio news. While supporting journalism is vital, diverting these funds from the music industry directly impacts the artists already navigating a challenging marketplace.
Why Music Canada’s Intervention is Crucial
Music Canada is uniquely positioned to inform the Court about the critical role these investments play in the health of Canada’s commercial music industry. We can clearly articulate the potential harm artists will face if these investments are reduced or eliminated. Our intervention will provide essential context and data to ensure a well-informed decision.
We believe a thriving Canadian music industry requires a balanced approach – one that supports both journalism and the artists who create the content that drives engagement.
Music Canada remains steadfast in its commitment to on-the-ground investment in the voices and stories of Canadian and Indigenous artists. This work has never been more critically important, and we will continue to advocate for policies that foster a vibrant and sustainable music ecosystem for all.