Canadian radio broadcasters ask CRTC for space to compete with streamers

The CRTC needs to do away with restrictive regulations, argue multiple major broadcasters in response to the CRTC’s review on its commercial radio policy framework. Interventions from BCE Inc., Corus Entertainment Inc., and Stingray Group Inc. call on the CRTC to consider how “foreign” streaming services such as Spotify AB and Apple Inc.’s music service have pulled listeners from traditional radio with freedom of choice and convenience. They claim broadcasters will struggle to compete with streaming services if they continue to be held back by Canadian content quotas, limits on the amount of top 40 songs that can be played in certain regions, and media consolidation. This consultation is part of a CRTC review of its radio policy framework, announced in early 2020. The Commission is seeking to re-examine whether it should regulate a minimum level of music by emerging Canadian artists on radio stations, as well as content categories, news programming, funding of Canadian content, as well as conducting its delayed review into French-language music quotas (initially announced in 2015). In its submission, Bell said it wants to see a regulatory regime that is flexible, consistent, and forward-looking, claiming that audio streaming services represent 35 per cent of Canadians adults’ average weekly listening by Canadians in 2019, compared to private radio, which Bell said accounted for “only” 54 per cent of the Canadian audio market that year. “More and more Canadians are going online to access their audio content from unregulated sources as evidenced by their growth in audience tuning and revenues, and the corresponding decline of commercial radio stations' tuning and revenues,” said Bell. Streamers may not be sticking solely to music and podcasts, either. On Tuesday, Spotify announced its acquisition of Betty Labs, operator of the sports-focused Locker Room live audio app. This will “will accelerate Spotify’s entry into the live audio space,” the Swedish company said in a release. Spotify said customers have been asking for live audio and that it plans to expand Locker Room to appeal to more creators and fans, potentially putting it in heavier competition with broadcasters. Meanwhile, Corus — which said its radio segment revenues dropped 28 per cent in 2020 while profits declined 54 per cent from the previous year — argued that the long-term success of broadcasters should be prioritized over hit quotas and other goals of the CRTC. The so-called hits policy required English FM stations to ensure less than 50 per cent of the songs aired each week were hits, although Corus notes that policy was thrown out in 2009 — except for stations in Ottawa-Gatineau and Montreal serving bilingual markets. The company calls such quotas “relics of an era when terrestrial radio stations enjoyed privileged access to Canadian listeners, and occupied markets unto themselves…the era of closed local radio markets has clearly passed.” Corus said English stations in those communities have to play less-recognizable songs, putting them in a weaker spot than competitors. It also points out that streaming now being included in music chart rankings means some classic holiday carols have reached the charts for the first time and affect the quotas, as one example of how the times have changed. “Ultimately, a station’s ability to effectively serve its audience will determine its success or failure. The hits quotas make it more difficult for our stations to serve its audiences, and thus to succeed.” Stingray agreed with Corus. It said “the issue is no longer about whether audiences will migrate from licensed French-language stations to licensed English-language stations. It is whether they will leave the system entirely.” According to Stingray, forcing radio stations to “radically overplay” Canadian music or other content quotas will “simply result in people tuning out”, as long as there are no such requirements on streaming services. However, listeners have indicated support for Canadian content regulation: a CRTC survey last month suggested solid support for the idea of imposing some form of CanCon requirements on streaming services. Another rule being reviewed by the CRTC is its common ownership policy, which places caps on how many AM and FM stations a company can own in a given market. While Bell argues that the policy should be totally eliminated, others, including Corus and Stingray, say amendments are necessary. The CRTC is also looking at its tangible benefit contribution, which results in broadcasters paying financial contributions after station transactions, and is intended to benefit the broadcast community. One example of this is Bell being required to pay more than $1 million over seven years in tangible benefits after it bought four Ontario radio stations for $15.6 million. In its intervention, Bell said the commission shouldn’t impose a higher contribution than the current minimum of six per cent, and “ the commission to eliminate the requirement to contribute altogether.” Stingray and Corus also recommended the rule be thrown out. The CRTC says it intends to complete its review without a public hearing, but one may be held if deemed necessary. -Reporting by Hannah Daley at hdaley@thewirereport.ca and editing by Tim Forster at tforster@thewirereport.ca

Canadian radio broadcasters ask CRTC for space to compete with streamers

Broadcast | March 30, 2021

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Canadian radio broadcasters ask CRTC for space to compete with streamers

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