MUCH HAS BEEN SAID and written over the last few weeks on the new CBC Music service, which has generated quite a bit of interest from the industry, and from the population in general for Stingray’s Part 1 application with the CRTC regarding the newly launched service (and letter to the Minister of Heritage).
Founded in 2007, Stingray’s various services, including Galaxie, the Karaoke Channel and Concert TV, are now available to over 70 million households in 48 countries around the world. With over 200 employees, a good portion of which are here in Canada, Stingray has quickly become one of the leading exporters of Canadian technology and culture.
As an all-Canadian company, we are proud supporters of CBC/Radio Canada and the core services it provides to Canadian viewers and listeners. I want to emphasize that our concern lies only with the on-line CBC Music service in its current form, and not with any of the other CBC services.
In reading through the comments that have been filed with the Commission, I note that most reflect our own position, that CBC Music can play an important role in promoting Canadian talent in the increasingly digital music space and that as such, Canadian talent should be exclusively reflected on the new service.
In its application to the CRTC, Stingray suggested that CBC Music should be operated as a music service that is focused exclusively on the exposure and promotion of Canadian artists. As a new service from Canada's public broadcaster, we submit that it would be appropriate that CBC Music be operated as a platform for emerging and established Canadian artists, and artists providing music in formats that may not currently be heard in traditional or new media environments.
Espace.mu, the on-line music service currently offered by Radio-Canada (http://www.espace.mu/), is a perfect example of such an initiative undertaken by the public broadcaster and certainly serves as a benchmark for what CBC could do with its English language, on-line music offering.
Financed by Canadian taxpayers, an all Canadian CBC Music service would not only be aligned with the CBC’s mandate to give a voice to Canadian artists, but would also ensure that the copyright payments generated by the service would stay in Canada, stimulating the growth of the Canadian music system and helping build new stars.
Because of its status as a not for profit public broadcaster, it is a fact that CBC has a different royalty fee structure than commercial broadcasters in general. For example, most tariffs applicable to the CBC are based on flat annual fees rather than a percentage of revenues typically applicable to services offered by companies such as Stingray. It should be noted that Stingray’s various music services generate annually more than $12 million in rights and royalties payments, a good portion of which are paid to Canadian collecting societies and copyright holders.
In comparison, the tariffs for SOCAN and Re:Sound that were applicable to CBC radio in 2011 were just over $3 million. That said, would it not be better if the funds that the CBC does pay for rights and royalties were going into the pockets of Canadian artists instead of flowing outside of the country to established, internationally renowned stars who surely don’t need the support of Canadian taxpayers to survive? As stated in our submission to the Commission, on the morning of April 9th, the featured artist on CBC Music was Elton John, while at the same time, artists that were playing on some of the channels included George Michael, Hall & Oats, Enrique Iglesias & Usher, Tom Petty and Phil Collins.
Ultimately, it is up to the CRTC to decide if the current tariff structures applicable to the CBC constitute an unfair advantage for the CBC Music service. Irrespective of the outcome of the regulatory process though, I am pleased that a very productive and constructive debate has been initiated around the role that Canada’s public broadcaster could take in the constantly evolving digital music scene.
Eric Boyko (pictured) is president and CEO of Stingray Digital Group.
