Question Period Note: Modernization of the Broadcasting Act – discoverability of Canadian music on online platforms

On November 3, 2020, the Government tabled a bill to modernize the Broadcasting Act to support the creation of Canadian audio and audiovisual content for the digital age. The Bill would have clarified that online broadcasting services fall under the Act and would have ensured that the CRTC had the proper tools to put in place a modern and flexible regulatory framework for broadcasting. These tools include the ability to make rules, gather information, and levy penalties for non-compliance. Additionally, the Bill sought to support greater diversity and inclusion in the broadcasting sector, ensuring the promotion of a broad range of Canadian views and talent. Though Bill C-10 made its way through second reading in the Senate, it died on the order paper when Parliament was dissolved on August 15, 2021. Stakeholders in the music industry have called for a swift tabling of a modernized Broadcasting Act (the Act) to ensure platforms pay their fair share and increase the discoverability of Canadian artists. Recently, the Association québécoise de l'industrie du disque, du spectacle et de la vidéo (ADISQ) published an open letter to reiterate the urgency of modernizing the Act.

• The last major reform of the Broadcasting Act was in 1991 – before Internet was widely available in Canada. Today’s streaming services should help the discovery of Canadian music and stories, as well as support our creators and producers.
• Equally important is providing greater support for original French-language programming and assuring a place for Indigenous peoples. It is incumbent on us to be more inclusive of persons with disabilities, ethno-cultural groups, racialized communities, LGBTQ2+ communities and women.
• Finally, fairness is critical: Canadian broadcasters and streaming services should play by the same rules.

• The last major reform of the Broadcasting Act (the Act) was in 1991 – before Internet was widely available in Canada. Online streaming services have dramatically changed how Canadians discover, access, and consume television and movies, and listen to music. As committed to in Budget 2017, the Minister of ISED and the Minister of Canadian Heritage, announced on June 5, 2018, the launch of a review of the Broadcasting Act.
• On November 3, 2020, the Minister of Canadian Heritage tabled Bill C-10, An Act to Amend the Broadcasting Act, to modernize the Broadcasting Act for the digital age. The Act was intended to be a key instrument in supporting Canada’s creative industries and in ensuring that Canadian music and stories be available and accessible. Bill C-10 would have clarified that online broadcasting services fall under the Act and would have ensured that the CRTC has the proper tools to put in place a modern and flexible regulatory framework for broadcasting. These tools include the ability to make rules, gather information, and assign penalties for non-compliance. Additionally, the Bill would have supported greater diversity and inclusion in the broadcasting sector, ensuring the promotion of a broad range of Canadian views and talents in both official languages and Indigenous languages as well as being more reflective of Canadian society, including Indigenous Peoples, LGBTQ2 and racialized communities and persons with disabilities.
• Had the Bill been adopted, the Minister of Canadian Heritage intended to ask the Governor-in-Council to issue a policy direction to the CRTC guiding its use of the new tools afforded by the Bill. As the independent regulator, the CRTC would have determined how online undertakings would contribute to Canadian content.
• After hearing from witnesses, Government members of the Standing Committee on Canadian Heritage (CHPC) voted to remove section 4.1 from Bill C-10 to ensure that the CRTC’s jurisdiction extends to social media services. This would have ensured that the CRTC has the power to request information with respect to programming posted on these services in order to assess whether conditions of service, such as financial contributions or discoverability obligations, may be warranted. These conditions of service would be imposed on the social media service, not its users. Bill C-10 provided that, subject to certain situations, individual users are not to be considered “broadcasting undertakings.”
• The removal of section 4.1 was received very negatively by some Members of Parliament, some online social media platforms as well as some experts and individuals concerned that the Bill would limit freedom of expression. On May 13, the Minister of Justice, provided supplemental information to the Committee indicating that the amended Bill was consistent with section 2(b) of the Charter.
• Provincial governments also expressed differing views. The Saskatchewan Government voiced their concerns and asked that the Bill be put on hold. The Quebec National Assembly adopted a unanimous motion affirming the National Assembly's support for the measures proposed in Bill C-10.
• On June 22, the House of Commons adopted Bill C-10. The Bill was supported by the Liberal Party, the New Democratic Party and Bloc Québécois, by a vote of 196-112. The Conservative Party opposed the Bill and has pledged to repeal it during the electoral campaign. In a press conference, Yves-François Blanchet (Bloc Québécois), invited the Senate to ‘’proceed, as we say, right now.’’
• After its adoption by the House of Commons, the Bill passed second reading on June 29, 2021. It was then referred to a Senate committee for further study.
• On August 15, 2021, the Government requested the dissolution of parliament for an election. Consequently, Bill C-10 died on the order paper.
Music sector-specific concerns
• Budget 2021 proposed to provide $70 million over three years, starting in 2021-22, to Canadian Heritage for the Canada Music Fund to help Canadian musicians, concert venues, producers, and distributors. This includes up to $50 million in 2021-22 to help the live music sector, including music venues weather the pandemic. The remaining $20 million is to support the program’s recent modernization and will be delivered over 2022-23 and 2023-24.
• ADISQ and the Professional Music Publishers' Association (PMPA) recently published an open letter, in which they indicate that it is because of the current requirements of the Broadcasting Act on traditional players, that the Canadian music industry was able to flourish. The letter states that “it is high time that online music services, most of which are foreign, were also required to showcase our music and contribute to its funding.” [translation]
• The executive director of PMPA, indicated that when comparing Quebec figures on radio and record sales, market shares have dropped between three and seven times. He goes on to note that this represents a collapse in market shares, as Canadian music is struggling to reach audiences online.
• As of October 2021, a sufficient number of online services such as YouTube Music, Spotify and Apple Music, are providing Quebec-specific data, which is treated by ADISQ. Latest data indicated that approximately 7 percent of the music streamed online in Quebec was from Quebec, all languages combined.

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