SOCAN Allied Audiovisual Services Tariff

Summary#

This publication sets out the SOCAN Tariff 22.D.3 – Online Allied Audiovisual Services (2014-2024), the schedule of royalties and reporting rules for certain online services that stream television-like content. It was published by the Copyright Board on September 21, 2024 and covers the years 2014 to 2024.

What it does#

• Defines which online services count as an Allied Audiovisual Service (services that operate alongside or in support of a conventional TV service or a BDU).
• Sets standard royalty rates:
  • 1.9% of relevant revenue for most services (or 1.3¢ minimum per program for per-program fees; 7.5¢ minimum per subscriber per month for subscription services).
  • A reduced “low music use” rate of 0.8% if music makes up less than 20% of airtime (same minimums apply).
  • For services with no revenue in a year, a flat royalty of $15.00 per year.
• Explains how to calculate the money owed (use of a “Rate Base” that can be actual Canadian AV revenue or a formula: Internet-Related Revenue × AV Ratio × Domestic Ratio).
• Requires monthly reporting of streams, plays, subscriber counts, revenue and detailed metadata (reports due within 30 days after each month).
• Requires services to keep records and usage data for 6 years and to make them available for audit; SOCAN may audit at most once in any 12‑month period.
• Late payments incur interest calculated daily at 1% above the Bank of Canada rate (interest does not compound).
• Includes confidentiality rules about the data reported, with limited exceptions for sharing in hearings or for royalty distribution.
• Notes limited exemptions where an allied online service does not separately track subscribers from the related conventional service, subject to conditions.

Who's affected#

• Online video services that are linked to or operated with conventional broadcasters or distribution undertakings (BDUs), including “hybrid” services that allow temporary offline caching.
• Authorized distributors that offer or bundle such services.
• Small, low- or no-revenue services that may face the $15.00 annual minimum.
• It is not always clear from the document which new or foreign platforms will be captured; services should check the tariff definitions to see whether they qualify as “allied.”

Why it matters#

• Streaming services that are extensions of TV channels or BDUs now have a clear tariff to follow for 2014–2024, which affects how much they must pay for music used in streamed audiovisual works.
• The rules combine percentage-of-revenue fees with per-play or per-subscriber minimums, so financial impact can vary by business model (subscription vs. per-program vs. ad-supported).
• Monthly reporting, 6‑year record-keeping and possible audits add administrative work and compliance costs.
• The reduced rate for services with low music content (under 20%) can significantly lower royalties for some services.
• Because the tariff covers past years up to 2024, some services may need to review their past activity to see if amounts are owed for earlier periods.