Evidence of meeting #16 for Bill C-32 (40th Parliament, 3rd Session) in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was radio.
A recording is available from Parliament.
12:50 p.m.
Liberal
12:50 p.m.
Radio Consultant, As an Individual
No, I believe Mr. Larche said that he was paying 3% at first and that he's now paying 9%. The trend isn't downward.
12:50 p.m.
Liberal
Pablo Rodriguez Liberal Honoré-Mercier, QC
For a music station, music represents approximately 80% of content. Do we agree on that?
12:50 p.m.
Radio Consultant, As an Individual
Mr. Rodriguez, it's as though you were telling me I have to pay for the tractor in the garden. I don't need a tractor.
12:50 p.m.
Liberal
Pablo Rodriguez Liberal Honoré-Mercier, QC
I'm not asking you to pay for the tractor. I'm asking you whether music in fact represents approximately 80% of content for a music station.
12:50 p.m.
Radio Consultant, As an Individual
Wait, I'm going to tell you about a neighbour.
12:50 p.m.
Radio Consultant, As an Individual
The amount of music is declining, Mr. Rodriguez, and voice content is increasing.
12:50 p.m.
Liberal
12:50 p.m.
Radio Consultant, As an Individual
Music is increasingly expensive, and one day it will be out of reach. It's like gasoline. We're going to have to buy it by the glass.
12:50 p.m.
Liberal
Pablo Rodriguez Liberal Honoré-Mercier, QC
People listen to radio for the music, not for the advertising.
12:50 p.m.
Radio Consultant, As an Individual
No, they listen to their music on iTunes. Tuesday is a big day for iTunes.
12:50 p.m.
Liberal
Pablo Rodriguez Liberal Honoré-Mercier, QC
How do you make your money? You sell advertising because people listen to music.
12:50 p.m.
Radio Consultant, As an Individual
We don't just broadcast music; we also communicate.
I've had a career as a program director. I think it's a bit reductionist to say that radio merely broadcasts music. You're treating me somewhat like a music tap. It isn't just that. We communicate; we have programs and exclusive content.
12:50 p.m.
Liberal
Pablo Rodriguez Liberal Honoré-Mercier, QC
You communicate; that's fine, but it's mainly music that's broadcast at music stations. There's a portion of the royalties that you don't want to pay.
12:50 p.m.
Radio Consultant, As an Individual
We told you earlier: there are a lot of morning programs that don't even have any music.
12:50 p.m.
Liberal
Pablo Rodriguez Liberal Honoré-Mercier, QC
No, but I'm talking to you about music stations. You make money by selling advertising because people want to listen to music.
12:50 p.m.
Radio Consultant, As an Individual
They want to listen to our programs. The human voice has some role to play in this.
12:50 p.m.
Conservative
The Acting Chair Conservative Maxime Bernier
Thank you, Mr. Rodriguez.
I'll now give the floor to Mr. Cardin.
Mr. Cardin, you have the floor.
12:55 p.m.
Bloc
Serge Cardin Bloc Sherbrooke, QC
Thank you, Mr. Chairman.
Good afternoon, gentlemen.
I've been listening to your arguments since 11 o'clock, particularly concerning this $21 million reduction. You say you invest a lot in promotion and that that money goes directly to the artists, but supporting festivals and activities in that industry is part of your advertising, of your marketing. You have to invest in order to do your own marketing. You're not doing your own advertising on the radio. So I think it's absolutely normal for you to accept this. These are necessary costs in the case of your industry, like for any other industry that has to pay for advertising on the radio or elsewhere in order to attract a clientele. In that sense, let's say I find this argument somewhat... This is an investment you're making in order to attract your audience.
12:55 p.m.
Radio Consultant, As an Individual
But, Mr. Cardin, we're talking here about art and science. When we sponsor a concert, we accompany the artist. There's nevertheless a synergy. We're a link in the chain. We talked about perfume and all that, but in fact, there's a whole chain: the stores, television, the weeklies.
Mrs. Lavallée, you talked about the star system. We're a link in that system. We're not carrying all that on our shoulders. Whatever the case may be, the stations compete with each other. If I sponsor Lady Gaga at the Bell Centre, I may have an advantage over my competitor. From an artistic point of view, it's intellectually appropriate to promote new talents by providing them with promotional presentations, by inviting them to perform in the studio. In the case of Florence K, for example, I remember that she had done her own album and recorded it at the Lion d'Or. Couleur Jazz really helped her. And she also does advertising songs for us as well.
12:55 p.m.
Bloc
Serge Cardin Bloc Sherbrooke, QC
I'm happy to hear that, but the fact remains that you're saying that from a perspective of promotion for your station. You say that the artists are essential and that you accompany them, but they also have to earn a living. You're talking about taking away $21 million from them overnight. I can understand the principle you're raising on this point, but, if you believe that artists are essential, it has to be possible to provide them with that sum. The artists return it to you, and not just through promotion. They also enable you to fill your time slots. Ultimately, it could be said that it's no longer applied that way, but that that amount is being paid in royalties.