SOCAN Online Allied Audiovisual Tariff

Summary#

This is the Copyright Board publication of SOCAN Tariff 22.D.3 – Online Allied Audiovisual Services (2014-2024). It sets the royalties and reporting rules that online services allied with traditional TV/distributors must pay to SOCAN for music used in streamed audiovisual works. The notice was published on September 21, 2024 and covers the period 2014 to 2024.

What it does#

• Sets royalty rates for services that stream audiovisual works (called an Allied Audiovisual Service) to pay to SOCAN:
  • Standard rate: 1.9% of relevant fees or revenue, with minimums of 1.3¢ per program and 7.5¢ per subscriber per month. A single initial free trial of up to 31 days in any 12-month period is exempt from royalties.
  • Low-music-use rate (when music is under 20% of airtime or similar): 0.8% of fees or revenue, with the same minimums.
  • If a service has no revenue in a year, the charge is $15.00 for that year (due January 31).
• Explains how to calculate the taxable base (the “Rate Base”), including use of an “AV Ratio” and a “Domestic Ratio” (the rules give fallback defaults such as 100% and 10% in some cases).
• Reporting and data rules:
  • Services must give identifying information no later than 30 days after the first month they stream licensed files (or before making such files public).
  • Monthly sales and usage reports are due 30 days after each month. Reports must include play counts, subscriber counts, revenue details and rich metadata for streamed files where available.
  • If a service claims a file does not need a SOCAN licence, it must supply the records that justify that claim.
• Record keeping, audits and payments:
  • Keep records for 6 years. SOCAN may audit records (no more than once in any 12-month period).
  • If an audit finds royalties understated by more than 10% for a quarter, the service may have to pay the audit costs.
  • Late payments bear interest calculated daily at a rate equal to 1% above the Bank Rate (published by the Bank of Canada).

Who's affected#

• Online streaming services that are run “in conjunction with” or in support of a conventional TV service or a distribution undertaking (BDU), where the online content is duplicative, complementary or adjunct to the conventional service.
• Broadcasters, cable/satellite distributors and any authorized distributors that operate linked online services.
• Streaming platforms that charge per-program fees, subscriptions, or earn Internet-related revenue from audiovisual streams.
• Music creators and rights holders represented by SOCAN, who are the recipients of these royalties.
• Smaller or new services: the tariff includes a nominal fee of $15.00 if there is no revenue, but otherwise imposes reporting and payment duties.

It may not be obvious from the text whether some standalone streaming platforms qualify as “allied” — the tariff’s definitions determine that in practice.

Why it matters#

• Money: it defines how much online services allied with broadcasters must pay for music in streamed shows. That can affect a service’s costs and, indirectly, subscription or advertising prices.
• Payments to creators: it clarifies how and when songwriters, composers and publishers represented by SOCAN get paid for music used in streamed TV-style content.
• Data and admin load: monthly reporting, detailed metadata requirements and a 6-year record retention rule increase administrative work for affected services.
• Small services and trials: even services with no revenue face a $15.00 annual charge, while short free trials (up to 31 days) are exempt from royalties.