Streamers challenge ‘restrictive’ CanCon definitions in audio proceeding

As the CRTC works on revising how it defines Canadian and Indigenous audio content, online streaming services argue that no existing methods, nor any adaptation of them, are suitable for their operations. Stakeholders filed their initial comments to the CRTC earlier this week, providing input on how the regulator should formally define “Canadian musical selection,” who is an “emerging artist,” and what constitutes “French-language vocal music.” Streamers emphasized that their businesses are primarily user-driven, unlike radio where broadcasters program content. Applying radio-based content quotas or rigid definitions to audio streaming is unworkable and ignores the distinct nature of these services, they argued. The Digital Media Association (DIMA), which represents major audio streaming companies including Amazon.com Inc., Apple Music, Spotify AB, and YouTube, repeated arguments against being required to make any financial contributions towards supporting Canadian and Indigenous content (CanCon). The group argues that online audio streaming services already contribute to the success of Canadian artists, and any measures implemented by the CRTC should recognize that. “This consultation is premised on an assumption that Canadian and Indigenous content and artists are not already sufficiently present, discoverable, and succeeding, on streaming services in Canada,” wrote the group. “DIMA and its members strongly disagree with this assumption.” Regarding the various CanCon definitions raised by the CRTC — a primary focus of the proceeding — DIMA does not endorse the regulator’s proposed definitions, nor any alternatives, saying it needs to know how they would be applied first. “Without clarity on the purpose of the definition, it is inherently difficult to answer what the best definition would be,” wrote DIMA. The group called on the CRTC to clarify whether it intends to use it to help review contributions to the Canadian ecosystem, or to create discoverability rules for specific content that meets the definition; streamers oppose the latter. Currently, music must match two of four MAPL points to be deemed CanCon: Music (composed by a Canadian); Artist (must be Canadian); Performance (recorded in Canada); and Lyrics (written by a Canadian). The CRTC proposed dropping the “P” portion of the system. “Music streaming services should not be restricted by prescriptive definitions of ‘Canadian’ works,” said DIMA, asserting that such “inflexible” definitions for Canadian audio content are “not appropriate for online streaming services.” While highlighting the “negative repercussions” that can come from “exclusionary policies that would give preferential treatment to music ‘within’ the definition,” DIMA also emphasized the challenges of identifying which songs would satisfy any sort of criteria at scale. “This is an industry-wide issue,” said Amazon in its own submission, blaming it on the technicalities of the digital supply chain. “Streaming services ingest song metadata from record labels that deliver sound recordings to streaming services. Yet record labels do not reliably deliver metadata relating to either the current or proposed content criteria,” the company wrote. “Often, the metadata we receive has unclear information about the identities of the underlying songwriters and composers, let alone their nationalities or the song's performance location. “This lack of metadata makes it impossible for us to make determinations about what counts as Canadian music at scale, however Canadian music is defined.” That is unless the commission “creates a framework requiring all existing digital music in Canada and any new music to be coded with Canadian musical selection and language data at source and before they are distributed to streaming services,” said Amazon. The CRTC touched on this topic in its notice of consultation, stating that it is developing an “open database to facilitate the identification of Canadian musical selections.” Amazon, however, raised concerns about the idea, stating that it is “not a complete answer” to the issue and "cannot be the entire basis for imposing content requirements on streaming services.” The company highlighted the fact that every week “hundreds of thousands” of new songs are released; too many for a database administrator to “reliably identify” without delays. As such, it should be treated only as a “reference tool,” said Amazon. DIMA echoed Amazon’s criticisms, stating that while such a database might be useful for traditional broadcasters who are required to meet certain content quotas (which the CRTC acknowledged does not work in an online context), streamers should not be obligated to add information to it, include it in their supply chain, or fund its development. DIMA and its members advocate for CanCon definitions that are “as broad and inclusive as possible, and urge the CRTC to recognize as Canadian any song that features a Canadian producer, performer, or songwriter. Radio broadcasters push for CanCon streaming quotas Canadian radio broadcasters have been challenging online audio streamers’ position that they should not be given content quotas, and questioned the CRTC’s preliminary finding on the issue. “We see absolutely no reason why audio streaming services should not be required to provide a number or proportion of Canadian ‘channels’ or playlists,” wrote the Canadian Association of Broadcasters (CAB), advocating for curated playlists that have similar CanCon levels as the requirements for radio stations. The group argues that because audio platforms have “near unlimited capacity,” it should be easy for them to support Canadian, Indigenous, French, and emerging artists “without impacting their attractiveness to listeners.” Also, “as the holders of vast amounts of data,” audio streamers should be able to explain to the CRTC how they are meeting certain discoverability requirements. “In the absence of specific, meaningful, and measurable discoverability commitments, the spending obligations of online streamers should be increased,” urged the CAB. READ MORE: -- UPDATED: Music Canada, SOCAN look to intervene in appeal against CRTC streaming service levy -- Google asks court to reverse Streaming Act contribution decision -- Netflix pulling funding from Canadian arts programs due to Online Streaming Act -- Canadian Association of Broadcasters president sees warning signs on the horizon Broadcasters support expanded CanCon definition In addition to their continued push for lighter regulations for radio services — with BCE Inc. concisely stating that it is “the only realistic way the commission can create an equitable Canadian broadcasting system” — Canada’s traditional broadcasters are also advocating for a looser definition of “Canadian musical selection,” although they are still approaching it through the MAPL system. The CAB is calling on the CRTC to adopt a definition “that is more aligned with the listener experience” by adjusting the A (Artist) criterion to count for two points instead of just one. They also suggest rather than reducing the MAPL system to MAL by removing the P (Performance) criterion, as the CRTC has proposed, it should instead include a new P (Producer) criterion — which could either replace that category or expand the four-point system to five. “The reality is that listeners identify songs by the performer,” said the CAB. While the other roles of songwriter and lyricist are important, the current system “over-emphasizes” them and disconnects how CanCon is identified by the wider public, they argued. The CAB noted that artists are often the focus of marketing and promotional efforts by music labels and services. Putting more emphasis on artists and adding a producer criterion would help “expand the pool” of Canadian musical selections, which the CAB said should be the goal. Incentivize, not mandate, emerging artist and Indigenous content, urges CAB The CAB is against any requirements around emerging artists, arguing that both the CRTC’s current and proposed definitions are “unclear and raise the spectre of additional complex work to even properly identify and track emerging artists.” The CRTC currently considers an artist “emerging” until 48 months has passed since their first commercially marketed song was released, and has proposed that be changed to 48 months since their first song obtains an International Standard Recording Code (ISRC). The CAB argues that this definition and any obligations that come with it “will indirectly result in the commission returning to regulating radio formats” because emerging artist quotas only work for certain genres. It pointed to stations dedicated to Top 40s music as an example of where emerging artists will be “naturally ,” whereas it “makes no sense” for stations geared towards classic rock or specific ethnic groups. The group made similar arguments against rules for Indigenous content. Rather than mandate such quotas, the CRTC should incentivize their airplay, said the CAB, proposing that broadcasters be given a credit that counts one played song from an emerging or Indigenous artist as two plays of a popular Canadian or French-language song. Beyond the various definitions, stakeholders also discussed questions raised by the CRTC around fostering discoverability, additional financial contributions for streaming services, supporting news programming, data collection, and the role of artificial intelligence (AI) in the audio sector. The regulator has several upcoming hearings related to the various Online Streaming Act consultations, including this audio proceeding, which is scheduled for Sept. 18. The hearing for the audio-visual CanCon proceeding will begin on May 14, and the hearing related to broadcasting market dynamics is scheduled for June 18. phalentm@thewirereport.ca

Streamers challenge ‘restrictive’ CanCon definitions in audio proceeding

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By Phalen Tynes-MacDonald
| May 8, 2025

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