CRTC Chair Vicky Eatrides opened last week’s Radiodays North America conference with an analogy that set the tone for discussion on the state of the Canadian media industry.
“Two years ago, we were laying the foundation for a house that is built to last,” Eatrides said of the commission’s forthcoming broadcasting framework. “Today, that foundation is laid, and our frame is built. And in the coming months, we will be doing finishing touches. Like any house that is built to last, this is not the work of one builder. It takes many hands, many perspectives, and a lot of collaboration.”
Veteran radio programmer Ross Davies, who moderated a subsequent panel on Radio, Music, and Regulation, argued that “the wolf” (unregulated foreign streaming platforms) is already in the house, with radio experiencing revenue declines of 40% over the last decade.
“The wolf is at door. And now the wolf is in the house,” said Davies of the escalating financial and competitive threats facing the Canadian radio industry.
“To take it one step further…’the roof, the roof, the roof is on fire,'” said Stingray Radio President Steve Jones, quoting the iconic early ’80s hip hop track from Rock Master Scott & the Dynamic 3.
The panel – which also included CRTC VP of Broadcasting Scott Shortliffe; Music Canada CEO Patrick Rogers; and Susan Wheeler, VP, Regulatory, Broadcasting, at Rogers Communications – painted a picture of a sector struggling under the weight of “obsolete” regulations while revenue vanishes into the pockets of unregulated foreign streaming giants.
“We’ve had our hopes set high before for meaningful change,” Jones said, referencing past promises of regulatory reform. “We still hang on, and we still fight on, but the business model doesn’t work in some markets anymore.”
Wheeler added that the crisis is particularly acute outside of major cities.
“Forty-four per cent of the radio industry stations are operating at a loss,” Wheeler noted. “That’s not sustainable. Those small markets…I can’t see a path forward for them without some type of consolidation.”
Jones expressed frustration that the “weakest part of the system” is still expected to fund the cultural “plumbing” of the country, while the strongest players bear no obligations.
The Cancon debate
A point of contention remains the 35% Canadian content airplay quota. While radio stations must ensure over a third of their music is Canadian, data shows that when Canadians choose their own music on streaming services, they only select homegrown artists about 10% of the time.
“We are now in a different competitive landscape where we need more control over the programming product,” Wheeler argued, suggesting that the rule makes it harder for radio to compete with the personalized algorithms of streamers.
However, Rogers, speaking on behalf of music industry trade association, Music Canada, defended the quota as the foundation of Canada’s global success.
“Ten per cent represents a huge success story,” Rogers said, arguing that the system built the careers of stars like Justin Bieber and The Weeknd. “My only desire…is that I just wanted an extension on the house. I wanted to make sure there was a streaming section of the house that made sure the plumbing made sense.”
Shortliffe urged patience, promising that the commission is laying the groundwork for a “bold” new framework.
“I’m inside the house, and I can see what we’re laying the groundwork for,” Shortliffe said, highlighting the elimination of license renewals as a move to free up staff to focus on more impactful policy changes. “In the audio field, we’re not afraid of being bold. Hold us to account.”
