Thank you and good afternoon. My name is Andrea Kokonis. I am general counsel at SOCAN. I am pleased to appear before this committee in support of Bill C-11, the online streaming act.
SOCAN congratulates the government on the tabling of Bill C-11. The bill delivers on the minister's promise to regulate online streaming services while excluding its application to individual content creators. This represents a big step in the right direction for Canadian creative sector and for Canadian audiences.
Modernizing Canada's broadcasting legislation today is necessary. The Broadcasting Act was enacted long before the Internet became a dominant platform for the delivery of music. Online streaming has experienced explosive growth in recent years, but Canadian songwriters and composers are not benefiting from that growth. This inequity is due in part to the fact that the streaming services that have benefited greatly from operating in Canada are not required to contribute to Canadian culture.
SOCAN itself has experienced considerable growth in revenues from online streaming. In 2021, SOCAN collected $416 million on behalf of Canadian and foreign rights holders, of which $100 million was from digital sources. SOCAN's collections from digital platforms will soon overtake collections from more traditional sources, such as radio and television. Unfortunately, only a fraction of this digital licensing revenue stays in Canada. For every dollar generated from Canadian TV and radio broadcasters, approximately 34 cents is distributed to Canadian songwriters and composers. But of the revenues generated from online streaming services, only 10 cents is distributed to Canadians.
The situation is even more dire for francophone songwriters and composers who receive only 1.8 cents per dollar generated from online streaming services as compared to 7.4 cents from Canadian broadcasters.
The difference between broadcasting and online revenues that flow to Canadian songwriters and composers is due at least in part to the fact that streaming services are not required to support or promote Canadian creators to Canadian audiences. The market alone has not and will not solve this problem. Only legislative reform can do that, and the online streaming act sets the stage.
Online streaming services like traditional broadcasters must contribute to Canadian culture by participating in financial support programs that help foster the creation of Canadian music. Online streaming services like traditional broadcasters must also participate in the promotion of Canadian music. Canadian content must continue to hold a prominent place for Canadian audiences whether broadcast on television, radio or streaming platforms.
Foreign streaming giants that benefit from unfettered access to Canadian audiences should be supporting our cultural community and the next generation of Canadian songwriters and composers. As online streaming becomes the dominant medium for music distribution, that support becomes even more important. It is vital to the survival of our culture and our cultural sovereignty.
Canadian music creators need to be actively promoted by the streaming services that provide content to Canadian audiences. Promotion helps Canadian songwriters, composers and music publishers find an audience and generate revenue for themselves so they can reinvest in others.
Viewer choice is not enough and frankly misconstrues the role that online streamers play. Online platforms already decide who to promote and who to demote on their services. They already play those curatorial and editorial roles and should fulfill those roles by showcasing Canadians to Canadians. Online platforms must help emerging Canadian talent get discovered and reach Canadian audiences. It is not just Canadian songwriters and composers who will benefit; listeners will too. We all benefit when our cultural policies reflect and encourage the Canadian experience and the creation and dissemination of Canadian stories and songs.
We implore the government to require streaming services to play their part in making it easier to find Canadian music and stories on online platforms in Canada.
SOCAN does not propose any amendments to Bill C-11. The bill must remain broad so that it can adapt to future online services, the models of content delivery from which are not yet known. A bill that is tailored only to services in operation today or that carves out specific services as they exist today will not be flexible enough or have staying power for the future of broadcasting online.
For all of these reasons, we urge the government to pass Bill C-11 as soon as possible. The creative industry is an important economic sector in our country. The best way to support it is through legislative reform and the online streaming act.
Thank you for your consideration. I'd be happy to answer any questions you may have.