Media Centre > News Releases > Archive > 1996 > April 25, 1996

Copyright reform puts local radio service at risk, warn broadcasters

OTTAWA, April 25, 1996 -- Lost jobs and greatly reduced community service are inevitable in the wake of new music fees radio stations would pay under the Copyright Reform Bill tabled today, the Canadian Association of Broadcasters (CAB) predicts.

"Hundreds of stations have pared expenses to the bone to cope with the last five years of industry red ink," stressed CAB President Michael McCabe. "Even deeper cuts will be needed if broadcasters have to pay neighbouring rights under this bill. More jobs will be lost and local radio news and radio support to community groups could be at risk in many communities."

The extra money the government hopes to squeeze from the fragile radio industry is earmarked for the recording industry, which in Canada has enjoyed a $587 million profit over the past five years.

In the same period, private radio lost $180 million and more than half of all stations are unprofitable. Nevertheless, the industry pays $22 million a year in music fees to songwriters and music publishers. Stations now face the added costs of converting to Digital Radio, which is vital to competing on the Information Highway.

Studies show that at least half of any neighbouring rights money would flow to foreign performers. "We have no guarantee from government that most of the funds won't flow to the United States," added McCabe. The government's own study shows a meagre 2% of the neighbouring rights pot would go to emerging Canadian artists who need it most.

In demanding a neighbouring rights exemption for Canadian radio, the CAB argues that private stations more than compensate performers through free air play, talent development and promotion that helps sells millions of CDs and tapes. Broadcasters are prepared to pay neighbouring rights for new technologies, such as pay audio.

The CAB represents the vast majority of Canada's local-serving, advertising-supported radio and television stations.

For mor information contact:

Susan Tolusso
Director, Communications
(613) 233-4035 ext. 331
(stolusso@cab-acr.ca)