Satellite Radio Royalties (2019–2021)

Summary#

This notice publishes Re:Sound Tariff 4 – Satellite Radio Services (2019-2021). It sets the monthly royalties, reporting, record-keeping and audit rules that multi-channel subscription satellite radio services in Canada must follow for that period.

What it does#

• Sets royalty rates:
  • For January 1, 2019 to April 28, 2020: 3.63% of service revenues for the reference month, with a minimum of 36¢ per subscriber.
  • For April 29, 2020 to December 31, 2021: 3.71% of service revenues for the reference month, with a minimum of 37¢ per subscriber.
  • Royalties for April 2020 are adjusted on a pro rata basis.
• Requires monthly payments and monthly reporting. Services must pay royalties by the first day of each month and report the number of subscribers and a breakdown of service revenues for the reference month.
• Requires detailed track-level reporting each month, including play time, title, author/composer, main performer and, when commercially available, codes like ISRC, UPC, ISWC, catalogue numbers and usage type.
  • This information must be provided electronically no later than 10 business days after the service gets its monthly music report, and in any case no later than 45 days plus 10 business days after month end.
• Record-keeping and audits:
  • Keep track-level records for six months after the related month.
  • Keep revenue/subscriber records for six years after the related year.
  • Re:Sound may audit records on reasonable notice. If an audit shows royalties were understated by more than 10%, the service must pay the shortfall and reasonable audit costs within 30 days.
• Confidentiality and information sharing:
  • Information supplied by a service is treated as confidential, but Re:Sound may share it with SOCAN, the Copyright Board, other collecting bodies involved in distributing royalties, or when required by law.
• Interest on late payments is charged daily at a rate equal to 1% above the Bank Rate (as published by the Bank of Canada) on the last day of the previous month. Interest does not compound.
• Clarifies scope:
  • Applies to multi-channel subscription satellite radio services licensed by the Canadian Radio-television and Telecommunications Commission for private reception by subscribers.
  • Does not cover internet streaming to end-users or uses for commercial subscribers.
  • Covers local relay from a satellite radio device using built-in Wi‑Fi or Bluetooth for private listening.

Who's affected#

• The main direct parties are multi-channel subscription satellite radio services licensed in Canada. That includes companies such as Sirius XM Canada Inc. (whose reporting supplier is Sirius XM Radio Inc.), if they offer the covered services.
• Re:Sound and SOCAN are involved as the collecting society and a recipient of some shared information.
• Individual subscribers are not the tariff payers, but they could be indirectly affected if services change pricing or features because of royalty costs.
• It is not clear from the notice whether any smaller or newer satellite services beyond the major operator(s) exist; the tariff applies to any service that fits the definition.

Why it matters#

• This tariff determines how much satellite radio companies must pay to use recorded music. That affects the income that performers and record companies receive through Re:Sound.
• The detailed reporting and audit rules aim to make payments more accurate. That can help ensure artists get paid for actual plays.
• The rules create administrative duties and potential costs for services. Those costs could influence subscription prices, available channels, or how services handle music metadata.
• The notice is a formal publication of the tariff terms for the 2019–2021 period.