SOCAN Streaming Royalties (2007–2018)

Summary#

The Copyright Board has published SOCAN TARIFF 22.B – COMMERCIAL RADIO AND SATELLITE RADIO (2007–2018). It sets how much broadcasters and satellite radio services must pay for streaming music on the Internet for the years 2007–2018, and it explains reporting, recordkeeping and interest rules; any amounts owing are due January 28, 2024 (with interest).

What it does#

• Sets a formula for royalties on Internet audio by commercial radio broadcasters and satellite radio providers. For broadcasters subject to Tariff 1.A, royalties are based on:
  • the broadcaster’s applicable Tariff 1.A rate,
  • the broadcaster’s Internet-related revenues, and
  • the ratio of audio page impressions to all page impressions (or 0.5 if that ratio is not available).
• For satellite providers subject to Tariff 25, a similar formula applies but is reduced by the share of Canadian vs non‑Canadian page impressions (or a default of 0.9 for non‑Canadian if the ratio is not provided).
• Requires service providers to identify themselves to SOCAN no later than 20 days after they first offer files that need a SOCAN licence.
• Requires monthly reports, due 20 days after the end of each month, including:
  • Internet-related revenues,
  • the audio-to-all page impression ratio,
  • the number of plays per file and total plays,
  • subscriber counts and subscription revenues (if applicable), and
  • detailed track metadata (called “additional information”), such as title, authors, performers, release source, ISRC, ISWC, GRid, running time and album identifiers.
• Requires service providers to keep records for 6 years and allows SOCAN to audit those records on reasonable notice.
• If an audit shows royalties were understated by more than 10% in a quarter, the provider must pay the reasonable audit costs.
• Late payments incur interest calculated daily at a rate equal to 1% above the Bank Rate (no compounding).
• Declares that amounts owed for the tariff period are due January 28, 2024, and provides monthly interest‑factor adjustments covering 2007–2018.

Who's affected#

• Commercial radio broadcasters that stream music online and are subject to Tariff 1.A.
• Satellite radio service providers that stream online and are subject to Tariff 25.
• Online services operated by those broadcasters or satellite providers that make music available on demand or as semi‑interactive streams.
• Music creators and rightsholders in SOCAN’s repertoire, who are the recipients of these royalties.
• It is not always clear from the notice whether very small or purely transactional services fall under the tariff; the tariff applies to services that require SOCAN permission.

Why it matters#

• This is a retroactive, formal rule covering 2007–2018, so affected broadcasters and satellite providers may face significant back payments plus interest by January 28, 2024.
• It creates a regular monthly reporting and recordkeeping burden (detailed plays and metadata) for services that stream music online.
• Rights‑holders in SOCAN’s repertoire could receive unpaid royalties for past years.
• The audit and interest provisions increase the financial risk for providers that underreport or delay payments.
• The notice does not list total amounts owed, so the actual financial impact depends on each service’s historical revenues and play data.