SOCAN Tariff 17 TV Royalties

Summary#

This Gazette notice publishes SOCAN Tariff 17 setting the royalties that the Society of Composers, Authors and Music Publishers of Canada (SOCAN) can collect when distribution companies carry television signals. It covers the years 2014–2024 and gives formulas, flat fees and reporting rules for different kinds of TV services. The item appeared in the Canada Gazette on November 23, 2024.

What it does#

• Defines terms used in the tariff (for example what counts as a small cable transmission system — one that serves no more than 2 000 premises).
• Sets a flat annual royalty of $10 for each qualifying small cable system, unscrambled low-power TV stations, or comparable terrestrial systems.
• Sets the monthly royalty for community channels and non‑programming services at 0.14¢ per premise or TVRO served.
• Gives two licensing options for programming services that are carried by distributors:
  • Standard blanket licence: a fee made of 1.9% of affiliation payments plus a second revenue‑share component based on gross income and how many premises receive the signal.
  • Modified blanket licence (MBL): a different formula that breaks charges down (including charges of 3%, 5%, and 22% applied to parts of gross income and affiliation payments) and treats “cleared programs” differently.
• Allows a reduced royalty rate of 0.8% in some cases when a service uses licensed music for under 20% of its airtime and keeps recordings of the last 90 broadcast days.
• Sets reporting and payment timing:
  • Royalties are due on the last day of the third month following the relevant month.
  • Distribution undertakings must report certain numbers by the last day of the month following the relevant month.
  • Programming undertakings must provide other financial information by the last day of the second month following the relevant month.
  • For small systems, payment is due on the later of January 31 of the relevant year or the last day of the month after the system first transmits that year.
• Requires undertakings to keep records for 6 years and allows SOCAN to audit those records (with the audited party potentially paying reasonable audit costs if royalties were understated by more than 10%).
• Includes confidentiality rules for information shared with SOCAN, an interest charge on late payments equal to 1% above the Bank Rate, and other operational details (forms and calculation templates are included).

Who's affected#

• Distribution undertakings — for example cable companies, small cable operators, and other services that retransmit TV signals.
• Programming undertakings — TV channels, pay and specialty services, community channels and similar broadcasters whose signals are carried by distributors.
• Operators of TVROs (satellite TV receive-only systems) and low‑power/un‑scrambled TV stations that fit the tariff definitions.
• In practical terms, broadcasters and distributors will be the ones making payments and filing reports. It is possible, but not stated here, that those costs could affect contracts or subscriber fees.

Why it matters#

• These rules set how much broadcasters and distribution companies must pay SOCAN when music in TV programming is carried to homes and other premises. That determines a recurring cost for those businesses.
• Small local systems face a very small flat fee ($10), while larger services are subject to percentage formulas that tie fees to affiliation payments and gross income.
• The tariff includes specific reporting, recordkeeping and audit obligations, which affect the administrative work of broadcasters and distributors.
• Because royalties are a business cost for TV services, the tariff can influence commercial decisions and potentially the prices or availability of services — though this notice itself does not set prices for viewers.