Community radio calls for new funding at CRTC

Representatives from several community radio stations emphasized their role as a third-pillar of the Canadian broadcasting system during the CRTC’s hearings on Thursday, urging the regulator to develop a new funding model that supports them. As the regulator works out if its new regulatory framework should require initial base contributions from online undertakings, the radio organizations highlighted the growing financial challenges they are facing as streaming grows in popularity. The Francophone Regional Radio Association (ARRF) and Association of Community Radio Broadcasters of Quebec (ARCQ) both called for the creation of new funds designed to support community radio stations. ARRF’s proposal was for a fund similar to the Independent Local News Fund, but for radio stations producing news. ARCQ said that $25 million should be directed annually towards supporting the wages and productions of local radio stations. The Community Radio Fund of Canada (CRFC) echoed these sentiments, also calling for a new fund to be created. Dubbed the Community Radio Initiative (CRI), this new fund would provide an average of $90,000 in support for qualifying radio stations, they said. The CRFC explained that this fund would be distinct from existing funds because it would provide a set amount of funding per year through multi-year commitments, instead of being project or transaction-based like CCD funds are. It would also complement existing funds by providing eligibility to community, Indigenous, and campus stations which are excluded by many existing programs, said the CRFC. Barry Rooke, executive director for the National Campus and Community Radio Association (NCRA), joined by Dinah Jansen, executive director of CFRC FM at Queen’s University, supported the CRI proposal. “Community radio isn't just about broadcasting,” said Rooke, “it's about preserving local voices and culture. The sector is growing as commercial broadcasters withdraw from financially unstable communities and not for profit stations often fill that gap.” He noted that since 2015, NCRA membership has grown from 89 stations to almost 130 stations, adding that he knows of a dozen more planning to join soon. Members of ACCORD, the coalition representing over 185,000 English and French-Canadian songwriters, composers, and music publishers, appeared as a panel of interveners cautioning the CRTC against relying on revenue-based thresholds when deciding which online undertakings should be required to contribute. One member group, the Society of Composers, Authors and Music Publishers of Canada (SOCAN), explained that revenue is not a sufficient measure of the impact an undertaking has on Canada’s broadcasting system, especially when it comes to the unique business models of online music services. SOCAN is Canada’s largest member-based rights management organization and, according to its presentation, represents virtually all foreign and Canadian-owned copyright protected musical works in the country. It has license agreements with most of the online undertakings being discussed in the proceedings. They said if the CRTC applies its proposed $10 million threshold to audio services, “all but a handful of services operating in the online music space” will be exempt from having to contribute. Legal counsel Fraser Turnbull noted that SOCAN is not able to name those services because their data is based on confidential information from their license agreements, but urged the CRTC to “collect as much information from the services as possible” regarding their subscriber numbers, average monthly active users, and viewing or listening hours. Those metrics will help better determine if an undertaking should fall under the scope of the Act, he said. Quebec’s Association of Music Publishing Professionals agreed, taking aim at Google’s arguments from the day before. “The CRTC needs to take a closer look at companies’ activities to determine whether they are broadcasting audio or video content that falls within the scope of the law, rather than determine if they are a social media service or not,” said general director Jérôme Payette, according to translation. However, Turnbull acknowledged that gathering such information could delay the application of contribution requirements. Leaning on the side of urgency, he said initial base contributions should start with a revenue-based threshold if it means they will come sooner and other factors could be considered later. The ACCORD member groups called for initial base contributions of at least five per cent from online undertakings’ annual revenues to go towards existing Canadian Content Development (CCD) initiatives FACTOR and Musicaction. More specifically, they said 60 per cent of the funds should go towards FACTOR, which supports English-speaking music projects, while 40 per cent should go towards Musicaction, which supports French-speaking ones. FACTOR argued that the new regulatory framework should ensure it continues to receive the majority of CCD funding, stating that its 40 years of experience providing support to the non-French music sector and launch of its Company Envelope Program leaves it well-equipped to adapt and support underrepresented groups. – Reporting by Phalen Tynes-MacDonald at pcreed@thewirereport.ca and editing by Michael Lee-Murphy

Community radio calls for new funding at CRTC

Broadcast | November 24, 2023

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Community radio calls for new funding at CRTC

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