SOCAN Tariff for Online Music Video Services

Summary#

The Copyright Board published SOCAN Tariff 22.A.2 – Online Music Video Services (2014-2018). It sets the royalty rates, reporting rules and timelines for online services that stream music videos for the period 2014 to 2018, and gives a deadline of September 25, 2026 for amounts and reports under the tariff.

What it does#

• Sets the royalty formula for on-demand and recommended music-video streams as the greater of:
  • 2.99% of the service’s gross revenue for the month, or
  • 0.07¢ per stream that requires a SOCAN licence.
• Defines key terms such as “music video,” “online music video service,” “on-demand stream,” and “recommended stream.” The tariff excludes audio‑only services, most user‑generated content services, and the Canadian Broadcasting Corporation.
• Requires services to identify themselves to SOCAN within 20 days of first offering files that need a licence.
• Requires monthly reporting (file metadata, play counts, subscriber numbers, gross revenue, free streams) no later than 20 days after the end of each month.
• Requires quarterly royalty payments due no later than 20 days after the end of each quarter.
• Keeps records for six years and allows SOCAN to audit those records on reasonable notice.
• If an audit finds royalties understated by more than 10%, the service must pay the audit’s reasonable costs within 30 days.
• Allows adjustments when errors are found, but no adjustment may be made to royalties paid more than six years earlier.
• Applies interest to late payments at a rate equal to 1% above the Bank Rate; interest is calculated daily and does not compound.
• Sets transitional rules: amounts owing under the tariff are due September 25, 2026, and reports under the tariff must also be filed on or before September 25, 2026.

Who's affected#

• Online platforms that primarily stream music videos or operate cloud-based music-video services.
• Authorized distributors that deliver music videos on behalf of those services.
• Rights holders whose works are in SOCAN’s repertoire (songwriters, composers, music publishers) — they may receive collected royalties.
• It is unclear from the tariff how some hybrid platforms (those mixing music video, audio-only content, user-generated content, or other dominant features) will be classified and whether they must comply.

Why it matters#

• Services that streamed music videos between 2014 and 2018 could face retroactive royalty bills and must provide detailed metadata and play counts to SOCAN.
• The rules could lead to payments or audits, with interest and possible audit-cost charges if underreporting is found.
• For creators, clearer reporting and a formal tariff aim to improve how royalties are collected and distributed for music used in videos.
• For users, platforms may change how they label or deliver content to avoid inclusion, or adjust pricing to cover licence costs.