Parliamentarians need to listen to audio streaming concerns on C-11

Since launching in 2014, Spotify has become Canada's most popular audio streaming service, transforming an industry ravaged by piracy into one of growth: through the explosion of new music on our platform, record revenues for labels and music publishing partners, and the introduction of new listeners to artists every day. Now in 2022, Canadians are discussing a sweeping proposal to regulate audio streaming like radio in legislation that would be the first of its kind anywhere in the world: the Online Streaming Act, or Bill C-11. Spotify supports the underlying goals of Bill C-11; we also want to get Canadian music into Canadian ears—and beyond. However, with no prior case studies to learn from, it is imperative lawmakers get this regulation right. If not, they risk inadvertently hurting Canadian artists and the ecosystem that connects them to their fans around the world. It is already bold for C-11 to regulate streaming like radio; it would go too far to treat music and video streaming platforms as an homogenous industry. The truth is that video and audio streaming are different in important ways—in how they offer content, engage users, and support creation. These differences should be treated distinctly in the legislation. That is why Spotify has recommended three simple, practical amendments to add clarity to Bill C-11 for the audio streaming industry. First, we have asked that the legislation provide guardrails to make sure the CRTC takes into account all of the ways that the different individual streaming platforms support Canadian artists—financial or otherwise—when considering any regulations. Unlike video platforms like Disney+ or Netflix, audio platforms typically carry libraries of millions of tracks of content directly licensed from rightsholders, rather than produced in-house. That means that the investments audio platforms make in Canadian talent are not the same as studios that may produce content directly or carry a narrower set of entertainment options. Spotify Canada engages and invests in artists and songwriters through editorial and marketing support, including curating over 90 playlists that focus on Canadian artists to increase their global visibility, facilitating recording space and training the industry on leveraging the platform's tools to grow their audiences. We also support artists with landmark marketing opportunities to reach new audiences. For example, francophone artist Roxane Bruneau and Punjabi artist Ikky were featured on billboards in New York's Times Square and Toronto's Dundas Square, respectively, through our EQUAL and Spotify Singles initiatives this year. Spotify also pays over two-thirds of all music revenue to rightsholder partners, which is 8.5 times the rate of broadcast radio royalties—and a record high for the recorded music and music publishing sectors. All of these supports are essential to success in the industry today. For example, four-time Juno award winner and Montreal native Charlotte Cardin started working with Spotify in 2015 at the inception of her career. The collaboration has resulted in her success in Canada and around the world, with over 280 million streams from Spotify's global audience, international touring, and her tracks being added to more than 2.5 million user-generated playlists. Spotify, with its 456 million users worldwide and a global brand and presence, unlocks that success for artists. Second, while the government's plans to update the rules for CanCon are a start, even with new rules, there needs to be flexibility to accommodate the scale of audio streaming platforms. In order to ensure obligations to promote Canadian content are commercially reasonable, the legislation should limit the CRTC's authority to programming where the nationality of content can be reasonably ascertained. It should also expressly permit platforms to make good faith judgements on what is and isn't CanCon based on the data available. The reality is, in many cases, there isn't data available to determine whether songs qualify under the current CanCon definitions. Because radio is a one-to-many broadcast, it can get by with a smaller set of songs to play - in fact, 83 times more Canadian tracks are listened to on Spotify in Canada than on radio in a given week. But if audio streaming platforms were forced to limit their libraries of CanCon to those that qualify, this would negatively affect the user listening experience, harming the discoverability and performance of diverse artistry. Similarly, our final request is that the trust platforms have built with consumers should be respected, and regulation should not require streaming services to override user preferences—including when algorithms are used to make personalized recommendations. Listeners engage with audio streaming platforms because they can listen to what they want, when they want. With millions of tracks to choose from, two-thirds of user listening experiences on Spotify are the result of content chosen through searches, saves, and personal playlists. Interfering with the user-led nature of streaming or our successful techniques that drive listener discovery would jeopardize how listeners use our platform, turning them away. That, in turn, would jeopardize the discovery of new artists and engagement with favourites, fundamental to the bill's goals. Lawmakers have heard from the music industry. They've heard from artists and content creators. They've heard common-sense amendments to fix the unintentional negative consequences of this bill. If we want Canadian artists to continue to flourish in the opportunities that streaming provides, Parliament must consider the unique needs of each type of streaming and carry the right amendments forward. Senators studying the bill can make a difference and consider audio streaming and its role in this ecosystem. The Canadian music industry is poised for a future of continued growth and creation, powered by streaming. Spotify is excited to keep building and supporting Canadian artists. Please make sure Bill C-11 does not hamper our efforts. Nathan Wiszniak is Spotify's head of artist and label partnerships in Canada, a position he's held for eight years and encompasses the day-to-day relationships with labels, artists, songwriters, management, and organizations within the Canadian music industry. He also leads the local strategy in building an ecosystem to promote and export Canadian creators at home and abroad. The Hill Times

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Parliamentarians need to listen to audio streaming concerns on C-11

It is already bold for Bill C-11 to regulate streaming like radio; it would go too far to treat music and video streaming platforms as an homogenous industry.

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