CRTC releases new broadcasting fees regulations

After months of consultations, the CRTC has issued its Broadcasting Fees Regulations for all broadcasting undertakings in Canada. The decision, released late Thursday, stems from the provisions of the Online Streaming Act. “Under the new Broadcasting Fees Regulations, traditional broadcasters will pay a lower percentage of total fees,” the commission noted. “This is in addition to the substantial benefits these broadcasters are gaining under the new fees regime.” Licensees were previously assessed two fees, one that finances the CRTC’s activities and another which was charged for holding a licence. The latter fee has been abolished. The regulator has decided that the threshold for exemption for an undertaking is $2 million. For a broadcast group, the level is set at $25 million. Some intervenors called for an upper limit on fees, but the commission rejected this approach. Online streamers had suggested there should be a two-pronged approach to regulation. This was rejected as being too cumbersome. The commission dismissed the notion that regulated players require a greater level of oversight than non-regulated. “Moreover, the implementation of recent amendments to the Broadcasting Act, which include provisions regarding online undertakings, have generated, and will continue to generate, significant regulatory costs for the commission,” the decision stated. “These costs should be shared equitably between online and licensed undertakings.” It also reported that some traditional broadcasters are dabbling in online activities, making separating revenue streams hard to calculate. The CRTC decided that podcasts will not fall under the scope of the new regime. That brought a dissenting opinion from Manitoba and Saskatchewan commissioner Joanne Levy. She believes the decision was flawed when it speculated that no great level of regulatory activity would be generated by podcasts. “It would be more appropriate to allow revenue from podcast services to be added to the fees, assess real world evidence as to whether it is insignificant, and proceed to decide whether or not to exempt on that basis,” she wrote. Audiobook and video services are also subject to an exemption. The Canadian Association of Broadcasters (CAB), which lobbied heavily on the issue, was delighted with the ruling. “The CAB is pleased that the new Broadcasting Fees Regulations announced by the CRTC will start to level the playing field for broadcasters by requiring online streaming services to pay annual fees, contributing to regulatory costs for the first time,” president Kevin Desjardins wrote in a statement to The Wire Report. “We are particularly relieved that the commission heard our concerns about minimizing the impact on smaller broadcasters. The final thresholds should help ease the regulatory burden for broadcasters, who have faced significant challenges due to advertising market disruption and the presence of previously unregulated players in our broadcasting system.” The new regime comes into effect on April 1. –Reporting by Paul Park at ppark@thewirereport.ca

CRTC releases new broadcasting fees regulations

Broadcast | March 22, 2024

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CRTC releases new broadcasting fees regulations

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