The Canadian Radio-television and Telecommunications Commission has announced an update to its commercial radio rules “to help the radio industry remain competitive in a changing environment.”

In markets with eight commercial radio stations or more operating in a given language, an owner may now own as many as four stations with a maximum of three on one band. That is an increase from the current limit of two on each band. In markets with fewer than eight commercial radio stations operating in a given language, one may be permitted to own or control as many as three stations operating in that language, with no limits on frequency band.

The changes will also see the CRTC lessen its restrictions on LMAs and LSAs (Local Sales Agreements) between operators. Groups will still be required to seek CRTC approval for such arrangements but will no longer only be allowed for unprofitable stations. Under the new guidelines, an LMA will be considered as long as it doesn’t circumvent the new ownership limit, effective control of each undertaking remains exercised by their respective licensees, each licensee maintains distinct and separate programming and news services, each licensee remains responsible for the management of their distinct services, including the program director and the news director, as well as any other related staff assigned to programming and/or news activities, and each LMA includes a provision that prohibits parties of the LMA acquiring exclusivity on advertising.

The CRTC is also implementing changes to its Canadian content requirements. Among the changes will be ensuring that Canadian and French-language vocal music requirements can no longer be circumvented through montages of popular non-Canadian songs, setting an expectation that commercial stations play at least 5% of songs from emerging Canadian artists, launching in the near-future a consultation that will examine the approach to Canadian content development contributions by commercial radio broadcasters and ensure that funding reaches diverse initiatives.

The CRTC will also develop new criteria to determine if a song is Canadian, refine content categories moving towards new criteria to determine if a song is Canadian, and refining some content categories that will broaden the eligible songs that stations can play to meet their requirements, implement a new digital monitoring system and open music database that will reduce the regulatory burden on broadcasters, and eliminate the “hits policy” in Montreal and Ottawa-Gatineau.

The full rulemaking can be read at the CRTC.

Today, the CRTC updated its commercial radio policy to better support Canadian artists and provide flexibility to help the radio industry remain competitive in a changing environment.

To support Canadian artists, the CRTC is:

• upholding requirements for Canadian content and French-language vocal music
• ensuring that Canadian and French-language vocal music requirements can no longer be circumvented through montages of popular non-Canadian songs
• setting an expectation that commercial stations play at least 5% of songs from emerging Canadian artists, and
• launching, in the near future, a consultation that will examine the approach to Canadian content development (CCD) contributions by commercial radio broadcasters and ensure that funding reaches diverse initiatives.

To provide more flexibility to the radio industry, the CRTC is:

• moving towards new criteria to determine if a song is Canadian, and refining some content categories that will broaden the eligible songs that stations can play to meet their Canadian content requirements
• working to implement a new digital monitoring system and open music database that will reduce the regulatory burden on broadcasters
• eliminating the “hits policy” in Montreal and Ottawa-Gatineau; and
• allowing broadcasters to operate one more FM station in the same market, under certain conditions.

To increase support for Indigenous content and voices within mainstream radio, the CRTC also expects commercial radio stations to include Indigenous music in their playlists and to report annually on the amount of Indigenous content aired. Additionally, the Commission intends to gather information on the different funds and initiatives that help support, promote and ensure the sustainability of the Indigenous content through the launch of a follow-up proceeding.

Meanwhile, the Commission continues the co-development of a new Indigenous broadcasting policy with Indigenous Peoples of Canada. Some of the outcomes from that process may have an impact on commercial radio stations, as well as other sectors of the broadcasting industry.

Quotes

“The radio industry is in a transition period and is competing with digital services for listeners. A flexible approach will help it remain competitive, while ensuring that Canadians continue to have access to the content that serves their needs and interests. Radio is a very important medium to entertain, inform, discover new artists and ensure that local voices are heard.”

– Ian Scott, Chairperson and Chief Executive Officer, CRTC

Quick facts

• Canada’s commercial radio sector includes all AM and FM radio stations, except those owned and operated by the CBC/Radio-Canada or licensed as campus, community, Indigenous or ethnic stations.
• In 2020, the CRTC initiated a proceeding to assess the relevance and effectiveness of the rules currently governing commercial radio in Canada.
• Throughout the proceeding, the CRTC heard how commercial radio is valued by Canadians and how they support the promotion of Canadian artists.
• In a follow-up proceeding, the CRTC will seek comments on multiple elements related to Canadian content development, including how to ensure better contributions to Indigenous and diversity initiatives.
• The CRTC will also examine whether broadcasters should collect gender and race-based data about Indigenous Peoples, persons with disabilities and people who identify as 2SLGBTQI+ from the initiatives benefiting from their contributions.

Associated links

• Broadcasting Regulatory Policy CRTC 2022-332 — Updated Commercial Radio Policy
• Broadcasting Notice of Consultation CRTC 2020-374 – Call for comments – Commercial radio policy framework review
• Broadcasting Notice of Proceeding CRTC 2020-25 – Commercial radio policy framework review
• Broadcasting Notice of Proceeding CRTC 2019-217 – Co-development of a new Indigenous Broadcasting Policy
• Public opinion research: Attitudes and opinions towards commercial radio in Canada