Music Canada applies to intervene in appeal of CRTC’s base contribution decision

Today, Music Canada filed an application with the Federal Court of Appeal seeking leave to intervene in the ongoing appeal of the CRTC’s base contributions decision, which imposed a 5% levy on the major music streaming platforms operating in Canada. Specifically, we are asking the court to consider music streaming services’ direct investments in Canada among qualifying contributions.

Throughout the years-long legislative process and the CRTC’s implementation of the Online Streaming Act, Music Canada has worked to help ensure that this new regulatory framework supports and grows Canada’s commercial music sector and creates new opportunities for Canadian and Indigenous artists. Today’s application for leave continues these efforts.

As the voice of commercial music in Canada, we are concerned that the CRTC’s base contributions decision risks harming ongoing and direct investments in the Canadian music streaming market and Canadian and Indigenous artists. Supporting the success of Canadian and Indigenous artists must be at the centre of the CRTC’s policies, but its decision does not do that.

Music streaming platforms have established Canadian teams and invested in programs and initiatives to promote the music of Canadian and Indigenous artists. These investments are essential to helping Canadian and Indigenous artists succeed and building audiences in the highly competitive streaming market. But the CRTC’s contributions decision risks outcomes counter to the aims of the updated Broadcasting Act.

• In setting the 5% levy, the CRTC did not take into account or recognize any of the investments made by music streaming services in Canada.
• Moreover, 30% of platform contributions will be siphoned away from the music industry to fund commercial radio news. While support for news is a laudable goal, it should not come at the expense of artists who are already trying to compete in a highly competitive, global music marketplace.

We have sought leave to intervene because we believe Music Canada is uniquely positioned to share with the Court the important role that these investments play in the Canada’s commercial music industry and the harms artists will face if they are reduced or eliminated.

Music Canada will keep up this work as on-the-ground investment in the voices and stories of Canadian and Indigenous artists has never been more important.