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

12:10 p.m.

Director, Public affairs, Association québécoise de l'industrie du disque, du spectacle et de la vidéo

Simon Claus

It was a very good day.

Ms. Paré summarized it very well in her conclusion. Since you are talking about emerging and new artists, I must say that radio provides unparalleled exposure.

The very idea of the Broadcasting Act, which is over a century old, is to say that people should have access to music in which they see themselves, in which they can find their identity, which is expressed in particular through the French language. That’s fundamental.

Guillaume Deschênes-Thériault Liberal Madawaska—Restigouche, NB

I’m sorry to interrupt you, but I only have a few seconds left.

You mentioned being present at that day of reflection in Montreal.

Are there any other lessons we could take away from that day of reflection, which was surely full of good ideas?

The Chair Liberal Yvan Baker

You have 25 seconds left.

12:10 p.m.

Director, Public affairs, Association québécoise de l'industrie du disque, du spectacle et de la vidéo

Simon Claus

We organized it.

In fact, it may be Ms. Paré’s conclusion. Francophone music should be showcased everywhere it can be, whether on television, radio, in schools or in public spaces. We said it clearly in response to the previous questions.

The promotion of francophone music is a collective responsibility. This burden should not rest solely on the shoulders of radio stations.

The Chair Liberal Yvan Baker

Thank you very much, Mr. Deschênes-Thériault.

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

Mario Beaulieu Bloc La Pointe-de-l'Île, QC

Thank you, Mr. Chair.

We have heard broadcasters say that only 4% of people listen to French music, that quotas have a negative impact on listening, and that they accelerate the migration to digital platforms. I think you don’t agree on that.

Can you explain that to us further?

12:10 p.m.

Director, Public affairs, Association québécoise de l'industrie du disque, du spectacle et de la vidéo

Simon Claus

First, there is a fundamental misunderstanding about the purpose of quotas, which are imposed on companies that have been granted the right to use a public asset such as the airwaves. We sometimes forget about that a bit.

The quotas are not intended to reflect existing demand, but rather to support and stimulate listening practices and to ensure a significant presence of French‑language content in the public space.

The fact that they hold an extremely small share of the digital market compared to their position in the world of physical sales is not an argument in favour of relaxing regulatory requirements. On the contrary, it’s more important than ever to modernize the CRTC’s regulatory framework by subjecting online broadcasting companies to promotion and recommendation obligations.

Radio still plays a fundamental role in the discovery of music by Quebeckers. Data from the Observatoire de la culture et des communications du Québec, or OCCQ, shows that radio usage in Quebec is positively associated with listening to songs in French.

Mario Beaulieu Bloc La Pointe-de-l'Île, QC

Do you think the CRTC could regulate the major digital platforms?

12:10 p.m.

Director, Public affairs, Association québécoise de l'industrie du disque, du spectacle et de la vidéo

Simon Claus

Yes, but it’s also obligated to do so. In 2023, the Broadcasting Act was updated to subject online broadcasting companies to the obligations of the act, just like broadcasting companies. It was to restore some fairness in the system and to reaffirm Canada’s cultural sovereignty, which is fundamental.

The CRTC is updating its regulatory framework. It’s quite a long and very demanding process. That’s normal, since we’re questioning the different stakeholders around the table and seeking various areas of expertise. A decision has already been made on the obligation of companies to fund music creation and production. We’re currently finishing the consultation phase on the enhancement and recommendation obligations that will be imposed on the platforms.

Mario Beaulieu Bloc La Pointe-de-l'Île, QC

There was supposed to be a tax on digital platforms, which would have brought in about $1.2 billion a year.

Could we also consider applying that tax and ensuring that the revenues generated are used for French‑language private broadcasters?

12:15 p.m.

Director, Public affairs, Association québécoise de l'industrie du disque, du spectacle et de la vidéo

Simon Claus

There are two elements to consider, namely the tax on digital businesses and issues related to taxation.

Normally, any business operating in Canada must be subject to taxation. Next, there are financial contribution obligations that arise from the Broadcasting Act.

Today, radio stations contribute 0.5% of their revenues to the funding of various funds supporting music creation, production and marketing. As for online broadcasting companies, according to a decision made by the CRTC a year ago, they must contribute 5% of their revenues.

This decision is being challenged by some digital companies in court, but we believe that it’s indeed an important element to continue ensuring the funding of our system.

Moreover, part of this money is allocated to music funds, but another portion is designated for community radio funds, in particular.

Mario Beaulieu Bloc La Pointe-de-l'Île, QC

What are the effects of montages on the share of French‑language music broadcast?

12:15 p.m.

Director, Public affairs, Association québécoise de l'industrie du disque, du spectacle et de la vidéo

Simon Claus

That’s an interesting question.

From the beginning, the spectre of the 65% quota has been highlighted. In fact, it’s 65% during the week and 55% during prime time. There’s also a feature called montages. The quotas are calculated based on the number of musical pieces that are broadcast. If we broadcast 100 musical pieces in a week, we must play 65 in French. However, there’s a nuance related to montages, which are compilations of several songs put together without interruption, that count as one song.

In fact, either French‑language or English-language montages could be broadcast. However, we currently only see English-language montages. It is important to note that montages may be broadcast up to a limit of 10% of the content broadcast during a week of broadcasting. This is a long technical explanation to say that, mechanically, in the end, montages serve as a workaround, and that the 65% quota would have to be lowered by 10 percentage points for the share of French‑language content actually broadcast to match it.

Mario Beaulieu Bloc La Pointe-de-l'Île, QC

It has been proposed to give a tax credit to companies that purchase advertising from private broadcasters and to withdraw those intended for large digital platforms.

Do you have other solutions to propose?

The Chair Liberal Yvan Baker

Sorry, but there are only 10 seconds left.

12:15 p.m.

Director, Public affairs, Association québécoise de l'industrie du disque, du spectacle et de la vidéo

Simon Claus

As we said, radio stations are our partners. We’re therefore necessarily in favour of economic policies that can encourage them.

Mario Beaulieu Bloc La Pointe-de-l'Île, QC

Thank you.

The Chair Liberal Yvan Baker

Thank you, Mr. Beaulieu.

We will now move on to the second round of questions. We will proceed in the same way, that is to say, I will give three minutes to Mr. Bélanger, three minutes to Ms. Chenette, one and a half minutes to Mr. Beaulieu, three minutes to Mr. Dalton, and then three minutes to Ms. Mingarelli.

Mr. Bélanger, you have the floor for three minutes.

Jim Belanger Conservative Sudbury East—Manitoulin—Nickel Belt, ON

Thank you.

We’re discussing the possibility of changing the percentage of the quota, and you’ve given us your opinion. However, private radio stations tell us that their survival is at risk. Coming from a background of small or medium‑sized enterprises, I believe that no one knows their business better than they do.

What concrete solutions do you propose to ensure compliance with the francophone music quota while ensuring the financial viability of private radio stations, not only in Quebec but also outside Quebec?

12:20 p.m.

Director, Public affairs, Association québécoise de l'industrie du disque, du spectacle et de la vidéo

Simon Claus

As I’ve been saying from the beginning, these are partners. We disagree on certain elements of the diagnosis. What we are demanding is that equity be ensured within the broadcasting system by subjecting online broadcasting companies to the obligations of the Broadcasting Act.

Moreover, nothing prevents us from helping radio stations that need it. We were talking about the different budgets earlier, particularly for community radio. This is something we will support, but we believe that a reduction in quotas will not save radio.

12:20 p.m.

Conservative

Jim Belanger Conservative Sudbury East—Manitoulin—Nickel Belt, ON

If private radio stations cannot survive and disappear, do you agree that we’ll reach even fewer listeners?

12:20 p.m.

Director, Public affairs, Association québécoise de l'industrie du disque, du spectacle et de la vidéo

Simon Claus

Yes, I completely agree. That’s why we say that radio is a key player in our industry. We were also talking about digital migration. Earlier, someone was talking about the presence of radios in cars. That’s something we also support.

For example, in Quebec, a bill has been introduced stating that our broadcasters must be present in this new digital world and its various interfaces. This can include smart speakers or connected cars, among other things. Our radio stations must be present and promoted, including our public broadcaster and private stations, which, in accordance with their obligations, prominently showcase our music.

12:20 p.m.

Conservative

Jim Belanger Conservative Sudbury East—Manitoulin—Nickel Belt, ON

In my opinion, the current situation shows that the regulations, which have not evolved in 50 years, should be modernized.

Do you agree? Don’t you think that the quotas should be reduced?

12:20 p.m.

Director, Public affairs, Association québécoise de l'industrie du disque, du spectacle et de la vidéo

Simon Claus

We believe that this solution will not help radio stations increase their revenues. The CRTC is currently considering ways to lighten the workload of radio stations, particularly in terms of administration and reporting. We are in favour of this, but we do not believe that the solution necessarily lies in lowering quotas.

The Chair Liberal Yvan Baker

Thank you, Mr. Bélanger.

I now give the floor to Ms. Chenette for three minutes.