Mr. Marc Morin January 20, 2025 Filed Online Dear Secretary General Morin: 1. DIMA appreciates the opportunity to participate in the above-noted call for comments (“BNC 2024-290”), on behalf of our members, the world’s leading audio streaming companies. 2. The Commission has stated that the objective of this proceeding,“which is directed primarily to radio station operators, is to identify ways to provide flexibility to certain radio processes in order to reduce the administrative burden these operators may be experiencing” (para. 8), but that more broadly, it is “part of a larger suite of proceedings that are designed to implement the recent amendments to the Broadcasting Act” (para. 7), and more pointedly, that the Commission is of the view that radio regulatory processes need to be reviewed “given the emergence of online undertakings in Canadian broadcasting landscape and the Commission’s new power to regulate these undertakings” (Summary). DIMA is therefore providing these comments and monitoring this proceeding for issues of relevance to its members, and to ensure fair treatment of the online audio undertakings they operate. 3. The Commission has stated that issues related to radio’s contributions and regulatory requirements, and “the issue of online audio undertakings and their implications, such as the discoverability of Canadian audio content and news” will be considered in the upcoming audio content proceeding (para. 9). The Commission made the same statement in paragraph 27 of Broadcasting Notice of Consultation 2025-2, The Path Forward – Working towards a sustainable Canadian broadcasting system and posed questions about the discoverability of Canadian audio content in that consultation (Q.10 and 11). DIMA looks forward to providing comments to the Commission on those issues; however, we note that the discoverability of audio content is now the subject of two parallel consultations, and one upcoming consultation (on Canadian audio content), which makes the process for interested parties somewhat confusing and repetitive. To the extent that parties to this BNC 2024-290 proceeding raise issues regarding the contributions and activities of online audio undertakings, or the discoverability of Canadian audio content, we will consider those comments and reserve our right to respond to them during the reply period ending February 4, 2025. Radio processes may be modernized, but they should remain specific to radio 4. The overview of the Canadian traditional radio licensing and compliance framework set out in BNC 2024-290 reinforces just how different traditional, local radio stations and global online audio services are. We repeat the observation we and our members have made in earlier consultations, (1) that each has its own distinct business models and strengths which must be reflected in the Commission’s approach to regulation. As DIMA and Music Canada stated following the Commission’s September 2024 engagement sessions on Canadian content: Today’s radio regulations were carefully crafted for Canada’s radio environment. One that is shaped by our vast geography, linguistic duality, and a willingness in an analogue system to make decisions about what is available to Canadian listeners. They also reflect the limitations of the medium: a finite number of hours, increasingly centralized programming, and a live broadcast format, and relatively small number of recordings that radio broadcasts. Streaming is none of these things. Being driven in terms of each consumer’s individual interest and activity, it represents nearly infinite hours of listening, a vast catalogue of recordings, a plethora of languages, and has broken down not just physical geography but international borders as well. Three of the top 10 songs streamed in India in 2022 were by Canadian artists – a fact that would be inconceivable to the founders of our terrestrial broadcasting system. Not only has streaming allowed Canadians to reach the world in ways previously unimaginable, streaming has allowed Canadian artists with no home in the traditional radio system to be found by their Canadian and international fans. This has led to higher levels of play on streaming for women and racially diverse artists compared to Canadian radio. (2) The Commission must recognize these differences in its regulatory framework. In this consultation and its parallel consultations regarding audio issues (3), the Commission must make decisions recognizing that the processes and frameworks contemplated for radio are not transferable to online audio services. News services 5. The Commission has proposed creating an exemption order for radio stations that broadcast news content focused on local news (paras. 51-52). If such an exemption order entitles stations to receive funding from the temporary fund supporting local news production under condition of service 2(b) of the Orders imposing expenditure requirements on online audio undertakings, further to Broadcasting Regulatory Policy CRTC 121-1 (the “Temporary News Contribution”), those exempt stations must have appropriate reporting requirements. Conditions of exemption must include a requirement to provide regular (at least annual) reports from funding recipients on the application of money received “to local news production by commercial radio stations outside of the designated markets of Montréal, Toronto, Vancouver, Calgary, Edmonton and Ottawa-Gatineau”, as required under the terms of the Temporary News Contribution. (4) Compliance measures 6. The Commission has stated that payment of over-and-above Canadian content development (“CCD”) contributions have been “an effective measure to remedy the harm caused to the broadcasting system” arising from non-compliance with CCD contribution or programming requirements (para. 90). The Commission is now seeking comment on the broader use of CCD contributions to “address any type of non- compliance” (paras. 90, 95 and 96 (Q28)), including matters not related to CCD or programming. 7. We recognize that the CRTC is asking this question in the context of radio processes and not for other sectors, and we therefore make our comments here as a matter of principle. The CRTC has several remedies available to it for regulatory non-compliance, including but not limited to imposing conditions of service, and administrative monetary penalties (AMPs) for serious or repeated issues, which may generally be used for various contraventions. However, CCD contributions are expenditure requirements that may be imposed for certain specific statutory purposes to support and benefit the system (Broadcasting Act, section 11.1) in a manner that is proportional to clear objectives (Policy Direction, s. 12(a)). The regulatory objectives for expenditure requirements under section 11.1 of the Act and section 12 of the Policy Direction do not include remedies or penalties for non-compliance. It would be inappropriate, and inconsistent with the CRTC’s mandate under the Act and Policy Direction, to impose CCD contributions as an enforcement mechanism, or to correct any matter unrelated to CCD or programming. Conclusion 8. Thank you for the opportunity to provide our comments in this consultation. We appreciate your consideration of these comments. Sincerely, Colin Rushing Executive Vice President and General Counsel Digital Media Association (DIMA) 1 See DIMA’s comments in Broadcasting Notice of Consultation 2023-138, The Path Forward – Working towards a modernized regulatory framework regarding contributions to support Canadian and Indigenous content, Intervention July 11, 2023 at paras. 38-39 and Reply Comments July 26, 2023 at paras. 21-22. 2 Music Canada and DIMA issue joint letter to CRTC following Canadian content audio workshops, September 25, 2024, available at https://musiccanada.com/news/music-canada-and-dima-issue-joint- letter-to-crtc-following-canadian-content-audio-workshops/. 3 Including Broadcasting Notice of Consultation 2025-2, The Path Forward – Working towards a sustainable Canadian broadcasting system, and the pending consultation on audio policy, planned for Winter 2025. 4 Please see DIMA’s comments on Broadcasting Notice of Consultation CRTC 2024-270 – Call for comments regarding the Canadian Association of Broadcasters’ proposed plan for the operation of a temporary fund supporting local news production by commercial radio stations in smaller markets, at para. 7.
Broadcasting Notice of Consultation CRTC 2024-290 – Call for comments – Modernization of radio processes – DIMA Comments
Secretary General
Canadian Radio-television and
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