Evidence of meeting #13 for Official Languages in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was it’s.

A recording is available from Parliament.

On the agenda

Members speaking

Before the committee

Leclerc  Vice-President, Leclerc Communication Inc.
Paré  Chief Executive Director, Association québécoise de l'industrie du disque, du spectacle et de la vidéo
Claus  Director, Public affairs, Association québécoise de l'industrie du disque, du spectacle et de la vidéo
Lecomte  Committee Researcher

11:10 a.m.

Vice-President, Leclerc Communication Inc.

Jean-François Leclerc

Those elements are not included in the 65%. It’s an interesting solution to explore.

However, I still want to clarify the reasons that would support a quota of 40%.

If we compare the quotas internationally, we find no language quota that high anywhere in the world. Our current quota of 65% is 62.5% higher than the second-highest quota in the world, which is that of France. We are very far from the quotas imposed internationally.

In 2015, French‑language broadcasters conducted a study with 2,029 French‑speaking respondents from Quebec. They were asked what percentage of francophone music their ideal radio station would play. The result was 34% among respondents aged 16 to 44, and 43% for all respondents, including those aged 55 and older.

The quota of 65% is therefore much too far removed from the actual needs and interests of our listeners at this time, especially when considering the music consumption of Quebeckers on online platforms. Right now, we mustn’t kid ourselves. When our listeners leave French radio and move to foreign platforms, they’re exposed to less than 5% of Quebec music. That’s what’s happening right now.

It is essential to give broadcasters more flexibility to allow us to be more in tune with the tastes and needs of listeners.

11:15 a.m.

Conservative

Joël Godin Conservative Portneuf—Jacques-Cartier, QC

What I understand is that the government, or rather largely the CRTC, has not kept up with the evolution of media. The situation of streaming platforms is not the same today as it was 10 or 20 years ago. I would compare it to the phenomenon of video rental stores. In the past, there were video stores on every corner. Today, that industry no longer exists due to accessibility. We no longer have control over anything in the field of television broadcasting.

We shouldn’t repeat the same model for radio. There’s still time to act.

It’s the same problem as the decline of French in Canada. We need to act quickly. In your industry, the situation is clear.

What do you suggest to the government so it becomes aware of the situation and acts quickly?

What could the government do to quickly realign and protect our businesses that are very important to our regions? These companies generate economic activity and disseminate French‑language content.

I have something in mind. If you don’t tell me, I’ll suggest it to you.

11:15 a.m.

Vice-President, Leclerc Communication Inc.

Jean-François Leclerc

Your observations are good. All the indicators are in the red. We should not wait for radio stations to close before taking bold action.

The most important measures that can immediately give breathing room to French‑language broadcasters are twofold: reducing the quota for French‑language music and regulating foreign platforms.

We need to quickly impose discoverability and content obligations on foreign platforms. Right now, there’s no reason to play on two completely different fronts. Those platforms are taking our listeners, our listening times and our advertising revenue. They can broadcast whatever they want without any obligation, while it’s the opposite for us.

11:15 a.m.

Conservative

Joël Godin Conservative Portneuf—Jacques-Cartier, QC

If I understand correctly, it’s unfair competition.

11:15 a.m.

Vice-President, Leclerc Communication Inc.

Jean-François Leclerc

It’s absolutely unfair competition, and it has been for over 10 years. We see it, but we can’t do anything.

The two solutions I mentioned are certainly the ones that will allow you to act quickly to help us retain the listeners still on our airwaves. That’s what we want to do. The decline in the listening times curve will continue unless we make bold decisions.

11:15 a.m.

Conservative

Joël Godin Conservative Portneuf—Jacques-Cartier, QC

I will tell you two things.

First, we should quickly create a forum for the industry to work together, which is the purpose of the motion here at the committee. I suggest that we form a committee of stakeholders and experts in broadcasting platforms to regulate and provide tools to broadcasters.

In addition, the government should lead by example. During the COVID-19 pandemic, the government made significant investments in advertising to help you financially, which was an interesting tool. This week, we were told that $78 million was invested in advertising. I haven’t checked the numbers, but it’s the order of magnitude that matters. Of the $78 million in radio advertising, $2 million was invested in private radio stations and $76 million in platforms. It’s illogical.

The Chair Liberal Yvan Baker

I’m sorry to interrupt you, but the time is up.

Mr. Leclerc, please give a brief answer in five seconds.

11:15 a.m.

Vice-President, Leclerc Communication Inc.

Jean-François Leclerc

One advertising dollar invested in a Canadian media outlet supports local jobs, content, local news and the discoverability of artists. One dollar invested in foreign platforms leaves the country.

It’s shocking to see that the government is insensitive to this reality.

11:15 a.m.

Conservative

Joël Godin Conservative Portneuf—Jacques-Cartier, QC

Thank you.

The Chair Liberal Yvan Baker

Thank you, Mr. Godin.

Mr. Villeneuve, you have the floor for six minutes.

Louis Villeneuve Liberal Brome—Missisquoi, QC

Thank you.

Mr. Leclerc, thank you for being with us this morning. You are a well‑prepared man. I understand what you are saying.

We talked about the concept of prime time. You’re not the only one who has mentioned this to us, and I’d like to understand it better.

What is the connection between prime time and vocal music programming in French?

11:15 a.m.

Vice-President, Leclerc Communication Inc.

Jean-François Leclerc

Right now, the quota is working in a particular way. We must broadcast 55% of French vocal music during prime time, between 6:00 AM and 6:00 PM, from Monday to Friday. We therefore need to broadcast a specific percentage to ensure the discovery of francophone music during the most important hours.

One of the interesting points raised on Tuesday concerned a credit system. If we want to move towards credits, one option would be to provide benefits to broadcasters who air French‑language music at the right time. It would therefore be about giving an additional credit during times when there are more listeners, and an even more advantageous credit when we broadcast French music during prime time shows, namely the flagship morning and drive-home shows.

These initiatives could certainly encourage the broadcaster to feature French‑language music during prime time.

Louis Villeneuve Liberal Brome—Missisquoi, QC

Earlier, you mentioned France. Don’t worry, I’m not trying to put you on the spot. I really want to understand.

You made a comparison with France in terms of the quota needed to keep our radio stations. You mentioned reducing the quota from 65% to 40% because France had the second‑highest quota, at 40%.

How do you see the difference in terms of the geographical environment? France is different from Quebec, which is surrounded by an anglophone sea. France doesn’t experience that.

Wouldn’t having a higher quota here than in France be justified?

I’m throwing you an open question.

11:20 a.m.

Vice-President, Leclerc Communication Inc.

Jean-François Leclerc

That’s an excellent question.

Today, the reality is that competition from online platforms is unbounded, meaning it no longer has geographical limits. All the countries in the world are experiencing the Americanization of music. All the countries in the world are experiencing the repercussions of the actions of Spotify and Apple Music.

Despite everything, several French‑speaking countries have decided to revise their quota system to take our new environment into account. Recently, France significantly adjusted its quota. Today, everyone lives with this same reality.

I understand that Quebec is surrounded by English‑speaking regions due to its proximity to English Canada and the United States, but that doesn’t change the fact that listeners will enjoy listening to an English hit, just like in France.

Louis Villeneuve Liberal Brome—Missisquoi, QC

Exactly, I’d like to know how the situation would be different. What we often hear is that people go elsewhere because they want to listen to what they feel like listening to.

By better regulating online platforms, how can we ensure the retention of French‑speaking audiences?

Do you really believe that it would have the desired result? Should we instead look elsewhere or do it differently?

11:20 a.m.

Vice-President, Leclerc Communication Inc.

Jean-François Leclerc

That would be one of the solutions.

It’s true that adding discoverability requirements to online platforms would help level the playing field a bit more, but it’s going to be difficult.

The CRTC is still right. Since we don’t have the same model, it will be difficult to ensure that online platforms and traditional radio stations operate under the same regulatory obligations.

This is yet another reason to give traditional radio broadcasters some breathing room. If we can’t regulate online platforms and provide the same playing field for online platforms and traditional broadcasters, we need to relax the current regulatory model.

Louis Villeneuve Liberal Brome—Missisquoi, QC

What you’re telling me is that there’s inequality and that it needs to be balanced out.

11:20 a.m.

Vice-President, Leclerc Communication Inc.

Jean-François Leclerc

That’s exactly it. There’s a great inequality at the moment, and that’s been the case for over 10 years.

Louis Villeneuve Liberal Brome—Missisquoi, QC

You mentioned amending section 19 of the Income Tax Act.

If you had a little magic wand today and could change that, what would you do?

11:20 a.m.

Vice-President, Leclerc Communication Inc.

Jean-François Leclerc

It’s not complicated. Section 19 of the Income Tax Act was adopted in the 1960s, and it didn’t explicitly include foreign digital media in the non‑eligible media for tax deductions. They wanted to protect traditional media by ensuring that foreign television and radio could not be considered for a tax deduction.

However, that section was adopted before the digital age. This means that digital media have not been taken into account in that law. Online platforms and foreign digital media are therefore also targeted by the deductions at this time. That’s where there’s a problem. I think this law needs to be revised to exclude foreign media from this measure.

Louis Villeneuve Liberal Brome—Missisquoi, QC

Okay.

Thank you.

The Chair Liberal Yvan Baker

You have five seconds left, Mr. Villeneuve.

Louis Villeneuve Liberal Brome—Missisquoi, QC

I have five seconds left to say thank you, Mr. Leclerc.

11:25 a.m.

Vice-President, Leclerc Communication Inc.

The Chair Liberal Yvan Baker

Thank you, Mr. Villeneuve.

I now give the floor to Mr. Beaulieu for six minutes.