SOCAN Tariff for Online Music Videos

Summary#

The Copyright Board has published SOCAN Tariff 22.A.2 – Online Music Video Services (2014-2018). It sets how much online music-video services must pay for streaming musical works from 2014 to 2018, and requires reports and record-keeping; amounts owed for those years are due September 25, 2026.

What it does#

• Sets the royalty a service must pay for a month as the greater of:
  • 2.99% of the service’s gross revenue for the month, or
  • 0.07¢ per stream that needs a SOCAN licence.
• Applies to services that predominantly offer music videos (including cloud-based services) and to recommended and on‑demand streams.
• Specifically excludes certain services, for example audio-only platforms, sites for games, services that mainly carry user-generated content, and the Canadian Broadcasting Corporation.
• Requires online services to provide identification and file-level information and to file monthly music-use reports no later than 20 days after the end of each month. Required report items include file identifiers, titles, performer names, play counts, subscriber numbers, and gross revenue.
• Requires quarterly royalty payments due no later than 20 days after the end of each quarter. Past amounts for 2014–2018 are payable by September 25, 2026 and will be increased using the published interest factors.
• Requires services to keep records for six years and allows SOCAN to audit those records. If an audit shows royalties were understated by more than 10%, the service must pay the audit costs.
• Late payments accrue interest daily at 1% above the Bank Rate (as published by the Bank of Canada) and interest does not compound.
• Limits adjustments: no adjustment to royalties paid more than six years earlier (with some exceptions for audits).

Who's affected#

• Primary: online music video service operators that mainly stream music videos in Canada.
• Secondary: digital distributors and platforms that host or repackage those services in Canada.
• Rights-holders represented by SOCAN (songwriters, composers, music publishers) are the recipients of the royalties set by this tariff.
• Not affected (by this tariff): audio-only streaming sites, gaming sites, platforms that mainly carry user-generated content, and the Canadian Broadcasting Corporation.
• The rules apply to activity during 2014–2018, and the deadline for amounts owed for those years is September 25, 2026.

Why it matters#

• Songwriters, composers and publishers represented by SOCAN may receive payments for past streams from 2014–2018, plus interest.
• Platforms that streamed music videos in Canada during those years could face significant back payments and extra administrative work to produce the required reports and records.
• Smaller services may find the reporting, audits and possible retroactive bills burdensome, which could affect what content they offer or how they price services.
• For users, this could influence availability of music videos, advertising, or subscription costs if platforms change business choices to cover the added costs.