The Canadian Radio-television and Telecommunications Commission, (the "CRTC") recently completed its long awaited review of its Commercial Radio Policy by issuing Broadcasting Regulatory Policy 2022-332.

Among the issues addressed in the revised Commercial Radio Policy are: changes to the Common Ownership Policy ("COP") that allow broadcasters to operate one more FM station(s) in the same market; modifications to the Canadian content regulations; and confirmation that a follow-up proceeding will be launched to update the system of financial contributions for Canadian content development ("CCD").

This bulletin focuses on these three issues.

Revised Common Ownership Policy

The CRTC's COP has sought to achieve a number of key objectives, most notably to ensure that there continues to be a plurality of ownership and editorial voices within the private commercial element of radio broadcasting and to maintain a balance of competition between radio broadcasters in any particular market.

The current COP states that, in markets with eight commercial stations or more operating in a particular language, a person may be permitted to own or control as many as two AM and two FM stations in that language. In markets with fewer than eight commercial stations operating in a particular language, a person may be permitted to own or control as many as three stations operating in that language, with a maximum of two stations in any one frequency band.

Among the CRTC's decisions in the revised COP are to:

  • maintain the current definition of a "market" as set out in the Radio Regulations, 1986, finding that it continues to be an appropriate clear, predictable, flexible definition; and
  • "gradually and carefully" relax the COP Limits so that, in markets with eight commercial radio stations or more, a person may be permitted to own or control as many as four stations, with a maximum of three stations per frequency band (FM or AM) per language (and for markets with fewer than eight commercial radio stations, there will be no limits on frequency bands).

The CRTC confirmed it will continue to assess requests for exceptions to its COP policy on a case-by-case basis, and may grant an exception to the COP where it finds that an exception is in the public interest.

Redefining a Canadian musical selection

The CRTC has also refined the definition of a "Canadian Musical Selection". The Radio Regulations currently require that, for a vocal musical selection to be considered Canadian, it must generally meet two of the following conditions of the "MAPL" (Music, Artist, Performance and Lyrics) system:

  • the music is or the lyrics are performed principally by a Canadian;
  • the music is composed entirely by a Canadian;
  • the lyrics are written entirely by a Canadian; and
  • the musical selection consists of a live performance that is recorded wholly in Canada, or performed wholly in and broadcast live in Canada.

In the revised Commercial Radio Policy, the CRTC indicated that it intends to launch a proceeding seeking comments on proposed amendments to the Regulations whereby a musical selection would be considered Canadian if it meets at least two of the three following conditions:

  • the music is, or the lyrics are, performed principally by a Canadian;
  • the music is composed principally (at least 50%) by a Canadian; or
  • the lyrics are written principally (at least 50%) by a Canadian.

Updated policy with respect tor CCD

One way radio stations contribute to the objectives of the Broadcasting Act is through CCD contributions, which support the development and promotion of Canadian musical and spoken word content for broadcast. Under the current regulations, radio licensees with annual revenues of more than $1.25 million, make a basic contribution to eligible initiatives of $1,000 annually plus 0.5% of those revenues that are in excess of $1.25 million.

Among other things, the CRTC's follow-up proceeding will address:

  • the issue of whether basic CCD contributions will be calculated based on the annual radio revenues of each ownership group as opposed to on a station-by-station basis;
  • the allocation formula for basic CCD contributions; and
  • the level of information licensees should provide in regard to the discretionary portion of their CCD contributions.

The CRTC also provided its "preliminary views" on changing the categories of ownership and CCD contribution levels by requiring licensees with revenues above certain thresholds to contribute a higher percentage of their revenues to CCD and revising the breakdown of where licensees must devote their annual CCD (i.e. the minimum amount of CCD that a licensee must devote to specific funds and may devote to other eligible initiatives).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.