SOCAN Allied Audiovisual Services Tariff

Summary#

The Copyright Board published SOCAN Tariff 22.D.3 (the SOCAN‑Allied Audiovisual Services Tariff (2007–2013)) on February 25, 2023. It sets the royalty rates, reporting rules and other obligations for online audiovisual services that are operated with or alongside broadcast or distribution undertakings for the period 2007–2013, and includes a transitional deadline of May 26, 2023 for amounts and reports that are owed.

What it does#

• Sets the main royalty rates for allied streaming services:
  • 1.9% of relevant revenue for standard use, with a minimum of 1.3¢ per program or 7.5¢ per subscriber per month.
  • A reduced “low music use” rate of 0.8% with the same minima, when music makes up less than 20% of airtime or the allied service mirrors a main service that meets that test.
  • If a service has no revenue in a year, the fee is $15.00 for that year.
• Defines who counts as an “Allied Audiovisual Service” and what counts as the different revenue and usage measures used to calculate fees.
• Reporting and record rules:
  • Monthly sales and usage reports must be filed within 30 days after each month, with specific data required (plays, subscriber counts, amounts, identifiers such as ISAN, and detailed music metadata when available).
  • Services that claim a file does not need a SOCAN licence must provide information to support that claim.
  • Records supporting reports must be kept for 6 years.
• Payments, audits and penalties:
  • Royalties are due monthly (or by January 31 for the annual $15.00 fee). Late amounts accrue interest (Bank Rate + 1%).
  • SOCAN may audit records, generally no more than once in any 12‑month period; if understatements over 10% are found, the service may have to pay the audit costs.
• Other rules:
  • One initial free trial of up to 31 days in any 12‑month period does not generate a royalty for that trial period.
  • There are confidentiality rules for the information exchanged and special transitional provisions that apply to amounts for the period 2007–2013 (due May 26, 2023), with interest factors listed for each month/year in the tariff.

Who's affected#

• Online video and streaming services that are operated “allied” with a broadcast station, programming undertaking, or distribution company — for example, catch‑up sites, channel apps, or duplicate/complementary services owned or run alongside a TV station or distributor.
• The tariff is addressed to members of the Canadian Association of Broadcasters and services that use music in audiovisual works covered by SOCAN licences.
• Broadcasters, distributors and app/platform operators who supply or host those allied services will need to comply with the reporting, payment and record‑keeping rules.
• It is less clear whether stand‑alone global streaming services that are not allied to a main broadcast or distribution undertaking fall under this tariff; the tariff targets services that are specifically “Allied Audiovisual Service[s].”

Why it matters#

• Financial impact: affected services may owe retroactive royalties for 2007–2013, plus interest, which could be a significant cost for some operators. The tariff also sets ongoing fees and minimums that affect operating costs.
• Administrative burden: monthly reporting, detailed metadata, and six‑year record retention create ongoing paperwork and compliance responsibilities.
• For users: operators might pass some costs on to subscribers through fees or changes to service offerings. The one free trial rule (up to 31 days) means short trials are not charged.
• For creators: the tariff clarifies how music used in online audiovisual services allied with broadcasters is remunerated, which affects how songwriters and performers are paid for that use.