CIMA's CRTC submission re: SiriusXM Canada's Licence Renewal
On April 18, 2019 – CIMA filed a submission with the CRTC responding to SiriusXM's licence renewal application.
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Background:
SirusXM is proposing changes to section 6 and 13 of their license; these amendments address the definition of emerging artist and the level of Canadian content development (CCD) contributions.
• SiriusXM currently has to play a minimum of 25% of “new Canadian musical selections” • Sirius asks that the definition of “new Canadian selections” be changed from 6 months prior to the date that the musical selection is broadcast to 18 months. • Of the 25% dedicated to “new Canadian music selection” 40% has to be “emerging Canadian artists” as defined by in the Radio Regulations. • Sirius is requesting to change the definition of “emerging Canadian artists”
Current definition of “emerging Canadian artist”:
• He/she is Canadian (that is, meets the “A” criterion of the MAPL system) • Has never previously charted or reached the Top 40 position on the music charts listed in Schedule A* or the Top 25 position on the music charts listed in Schedule B** o Schedule A : RPM 100 Singles until 3 September 1988, RPM Retail Singles from 10 September 1988 to 10 February 1990, Record Retail Singles until 1 April 1996, Canadian Music Network National Airplay, Billboard Hot 100 Singles or the Billboard Canadian Hot 100. o Schedule B: The Record Country, RPM 100 Country Tracks, Canadian Music Network Country Top 50 Audience, Billboard Hot Country or the Nielsen BDS Country Spins. • An artist would retain the status of “Emerging Canadian Artist” for a period of 36 months from the date he/she reaches the positions on the music charts mentioned above.
Proposed definition by SiriusXM:
• an “emerging English Canadian artist” is an artist who has not yet achieved “Gold” record sales according to SoundScan or has not reached a position on the Nielsen Canada Top 200 Billboard Album Chart or a position in the Top 20 on the Nielsen Emerging Chart. • The artist would retain the status of emerging English Canadian artist until a period of 48 months have passed from the date in which the artist has achieved the position on the charts noted herein.
SiriusXM is also requesting to replace the current requirement to contribute 4% of their gross revenues to the development of Canadian content development (CCD).
• The 4% of CCD is allocated as follows: o no less than 20% to FACTOR; o no less than 10% to MUSICACTION; o no less than 5% to the Community Radio Fund of Canada; and o the remainder to other eligible initiatives (discretionary contribution). Sirius XM proposes to replace the aforementioned condition of licence with the following:
• Year 1: … 2.5% of gross revenues o 20% to FACTOR o 10% to MUSICACTION o 5% to the Community Radio Fund of Canada o 1% to the Canada Media Fund for allocation to the Aboriginal Program; and o The remainder to other eligible initiatives (discretionary contribution). •
Year 2: …. 1.5% of gross revenues o 20% to FACTOR o 10% to MUSICACTION o 5% to the Community Radio Fund of Canada o 3% to the Canada Media Fund for allocation to the Aboriginal Program; and o The remainder to other eligible initiatives (discretionary contribution).
Years 3 to 7: ….. 0.5% of gross revenues o 50% to FACTOR o 30% to MUSICACTION o 15% to the Community Radio Fund of Canada o 5% to the Canada Media Fund for allocation to the Aboriginal Program.