SOCAN Allied Audiovisual Services Tariff

Summary#

This item publishes the Copyright Board’s decision setting the SOCAN tariff called SOCAN Tariff 22.D.3 – Audiovisual Services Allied with Programming and Distribution Undertakings (2007–2013). It fixes how much certain online video services allied with broadcasters must pay for music in audiovisual works for the period 2007–2013, and sets reporting, record-keeping and payment rules, with amounts owing to be handled on Friday, May 26, 2023.

What it does#

• Defines which online video services count as an Allied Audiovisual Service (online services run with or supporting a broadcaster or distributor).
• Sets standard royalty rates:
  • 1.9% of fees for per-program charges, with a minimum of 1.3¢ per program.
  • 1.9% of subscriber fees for subscription services, with a minimum monthly fee of 7.5¢ per subscriber. A single free trial of up to 31 days in any 12‑month period is exempt.
  • 1.9% of a calculated “Rate Base” for services that earn Internet-related revenue.
• Offers lower “low music use” rates when music is a small part of the service:
  • 0.8% instead of 1.9%, with the same minimums, if music makes up less than 20% of transmissions (or the allied main service meets that test).
• For services with no revenue in a year, the fee is $15.00 per year.
• Requires monthly reporting to SOCAN (e.g., program titles, number of plays, identifiers such as ISAN, and detailed music metadata when available) no later than 30 days after each month.
• Requires services to keep records for 6 years and allows audits; if royalties are understated by more than 10% in a quarter, the service may have to pay the audit costs.
• Sets interest on late payments at 1% above the Bank Rate (as published by the Bank of Canada) and gives transitional rules with interest factors for the years 2007–2013.
• Includes confidentiality rules for data shared with SOCAN, with exceptions for distribution of royalties and legal requirements.

Who's affected#

• SOCAN (Society of Composers, Authors and Music Publishers of Canada) — the organization that collects these royalties — is a central party in the tariff.
• Online video services that are operated in conjunction with broadcast or distribution undertakings — the “Allied Audiovisual Services” described above. That includes web or app channels tied to TV broadcasters or distributors when they make audiovisual works available on demand.
• Broadcasters, distributors and programming undertakings that operate allied online services.
• These services’ subscribers or customers could feel indirect effects (for example, through pricing), though the tariff applies to the services themselves.
• Music creators and rights holders represented by SOCAN may benefit indirectly when royalties are collected and distributed.

Why it matters#

• The tariff makes clear how much certain broadcaster-linked online video services owe for music used in on-demand audiovisual content from 2007–2013. That can mean retroactive payments and interest are due — centred on the May 26, 2023 transitional deadline in this notice.
• Services that fall under this tariff must collect and keep detailed playback and metadata (titles, identifiers, play counts) and be ready for audits. That raises administrative costs and record-keeping requirements.
• The rates and minimums affect low-revenue or niche services: the tariff includes small fixed minimums (for example, 1.3¢ per program or 7.5¢ per subscriber per month) and a $15.00 annual fee for services with no revenue.
• For the public, this can influence how broadcasters structure their online offerings and whether costs are passed on to viewers through subscriptions or ads.