Television Retransmission Tariff 2014–2018

Summary#

The Copyright Board published the Television Retransmission Tariff, 2014–2018, which sets the royalties that people who retransmit distant television signals in Canada must pay for those years. It gives fixed small-system fees, per-premise monthly rates for larger systems, discounts for francophone markets and some special cases, and splits the money among several collecting societies.

What it does#

• Sets a flat royalty of $100 a year for a small retransmission system (systems serving up to 2,000 premises) and for unscrambled LPTV or unscrambled MDS transmitters.
• Sets monthly per-premises royalties for other retransmission systems based on how many premises they serve. Rates vary by tier and year and (overall) range from about $0.49 to $1.12 per premise per month.
• Gives a 50% royalty rate discount for systems in a Francophone market (rules explain which places qualify).
• Applies a 95% reduction for premises receiving only the TVA distant signal in certain circumstances.
• Provides "duplicate network" discounts:
  • 75% reduction when premises receive only one distant signal that duplicates a local network signal;
  • 50% reduction for two or more such duplicate signals (smaller reductions apply when TVA is also involved).
• Reduces royalties for certain non-residential premises:
  • 75% discount for rooms in hospitals and schools,
  • 40% discount for hotel rooms.
• Splits revenues among collective societies. For example:
  • For 2014–2015, the Copyright Collective of Canada (CCC) gets 53.38%, Canadian Retransmission Collective (CRC) 14.85%, Canadian Broadcasters Rights Agency (CBRA) 13.50%, Canadian Retransmission Right Association (CRRA) 9.76%, and others get smaller shares.
  • For 2016–2018, allocations change slightly (for example, CCC 54.13%, CRC 16.10%, CBRA 10.72%, CRRA 10.65%).
• Requires retransmitters to report system information (service area, number and type of premises, which distant signals are carried, fees charged, etc.) as of December 31 each year and to provide that information by January 31 of the following year.
• Requires records to be kept and allows collective societies to audit those records (records and audits are subject to a retention and audit window running through December 31, 2024).
• Sets interest rules for late payments: interest accrues daily at 1% above the Bank Rate (not compounded). The tariff also gives special rules and dates for "additional royalties" and reallocation payments, including a settlement date of March 31, 2024 and reallocation payments due no later than June 30, 2024.

Who's affected#

• Retransmitters of distant television signals, such as:
  • cable companies,
  • master antenna systems,
  • DTH (direct-to-home satellite) operators,
  • MDS operators,
  • LPTV operators,
  • small local retransmission systems.
• The collective societies named in the tariff, including Copyright Collective of Canada (CCC), Canadian Retransmission Collective (CRC), Canadian Broadcasters Rights Agency (CBRA), Canadian Retransmission Right Association (CRRA), SOCAN, FWS, BBI, DRTVC, and MLB — these groups receive the royalties according to the allocation tables.
• It is less clear from the tariff itself whether and how much consumers or end users would feel any indirect effect (for example, via distributor costs). The document focuses on who must pay and how royalties are divided and reported.

Why it matters#

• Operators who retransmit distant TV signals must pay these fees and supply regular reports. That creates a financial and administrative obligation for many small and large retransmitters.
• The tariff determines how money collected for retransmitted TV content is shared among rights-collecting organizations and, indirectly, to creators and rights holders they represent.
• Special discounts (for francophone markets, hotels, hospitals, schools, TVA, and duplicate signals) affect how much different types of premises or regions pay.
• The tariff includes audit and record-keeping rules and interest for late payments — important for retransmitters to follow to avoid extra costs.