$1.25 Million Radio Exemption
The Commercial Radio Tariff is a fee that Canadian radio stations must pay to compensate for the use of copyrighted music and recordings. As a part of the 1997 amendment to the Canada’s Copyright Act, a $1.25 Million Exemption was put in place to ease impact on commercial radio stations. This exemption allows commercial radio stations to pay only $100 in public performance royalties to performers and artists on their first $1.25 million of advertising revenue.
It has been over 25 years since what was to be a transitional and temporary exemption took effect to aid the commercial radio industry. Since then, the commercial radio landscape has changed dramatically, now dominated by a few large and highly profitable corporations whose total profits are 8,300% higher than in the 1990s. Today, this exemption is outdated and no longer justified, as the industry is far from the precarious position it faced when the exemption was first introduced. It also remains the only subsidy of its kind in the world.
Radio royalties are a key source of revenue for artists and their livelihoods. However, despite significant industry gains, the outdated radio tariff subsidy continues to benefit commercial radio exclusively. Performers remain the rightsholders most penalized by this exemptive law in Canada, costing artists approximately $45 million annually in lost revenue. This comes at a time when the music industry is grappling with the challenges of a shifting digital landscape and seeking updated monetization strategies.
ACTRA RACS advocates for the removal of the $1.25 million exemption from the Canadian Copyright Act to ensure fair compensation for Canadian artists. This can be accomplished through market-based strategic solutions, that have proven to be burdenless to both the government and the taxpayer.
The government must step up to support Canadian artists by ensuring they receive the royalties they are entitled to for music played on these commercial radio stations. This commitment is vital in upholding and sustaining key Canadian cultural creators.
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