Thank you for your question.
People often think that radio plays an isolated role. When people appear before committees as we are doing today, the main topic is the remuneration of artists. Yet radio is clearly a medium that supports artists and culture in Canada.
We also play an important role. This is the era of fake news. We have debated how important professional, factual news and information are to maintaining a healthy democracy. That is the important role that commercial and private radio plays in Canada. As operators of news and information stations, radio serves a purpose that does not generate profits. The small stations that belong to larger stations make it possible for the large group to subsidize less profitable activities, such as providing news and information across Canada.
Despite the $100 royalty that helps small stations, which account for roughly 60% of the radio stations belonging to the Canadian Association of Broadcasters, the industry continues to collect $91 million in royalties from private radio stations every year. What we want is for this $100 exemption on the first $1.25 million to be maintained.