TORONTO (CelebrityAccess) — In its 2021 Canadian election campaign, the Liberals promised to permanently increase funding to the Canada Music Fund to $50 million (Canadian) from $25 million (Canadian) annually. The new funding came into effect with the 2024-2025 budget on April 17, 2024, when an increase was announced to $32 million annually for the next two years,
For decades the Canada Music Fund has been a critically important investment source for Canadian-owned music companies and artists. However, in recent years the explosive growth of the sector has greatly increased demands on the Fund beyond its capacity. Ahead of the announcement music organizations nationwide had joined forces to call for a permanent increase of the Canada Music Fund
While Bill C-11, the Online Streaming Act, became law on April 27th, 2023—updating Canada’s Broadcasting Act to ensure that Canadians will always be able to listen to music made by Canadians, specifically on digital service providers—Bill C-11 itself didn’t establish what regulations should be in place.
Following consultations with businesses and artists. the Online Streaming Act (formerly Bill C-11) was announced June 4th, 2024 by the The Canadian Radio-television and Telecommunications Commission, an independent public authority in charge of regulating and supervising Canadian broadcasting and telecommunications.
The CRTC announced that it is mandating that online streaming services allocate 5% of their Canadian revenues to bolster the Canadian broadcasting system.
Specifically, the CRTC requires online streaming services making $25 million (Canadian) or more in annual contributions revenues and that are not affiliated with a Canadian broadcaster to contribute 5% of those revenues to be allocated as follows:”
- 2% to FACTOR and Musicaction; of which 60% is to be allocated to FACTOR and 40% to Musicaction;
- 1.5% to a new temporary fund supporting local news production by commercial radio stations outside of the designated markets;
- 0.5% to the Canadian Starmaker Fund and Fonds RadioStar; of which 60% is to be allocated to the Canadian Starmaker Fund and 40% to Fonds RadioStar
- 0.5% to the Community Radio Fund of Canada;
- 0.35% to direct expenditures targeting the development of Canadian and Indigenous content and/or a variety of selected funds;
- 0.15% to the Indigenous Music Office and a new fund to support Indigenous music.
These obligations will start in the 2024-2025 broadcast year and will provide an estimated $200 million (Canadian) annually in new funding for Canada’s audio and audiovisual broadcasting sectors.
