Published Jul 10, 2014Musicians looking to have their retirement funds padded by payments of online streaming royalty rates in Canada are in for a rude awakening, as it's been revealed that the Copyright Board of Canada's recent Tariff 8 is reportedly paying out rates at an estimated 90 percent lower than the rest of the world.
The tariff system, which went into action in May, is currently set up so that Canadian commercial broadcasters are subject to a rate of 10.2 cents per 1,000 plays (or, rather, $0.0001 per play), the Vancouver Sun reports, while the CBC's streaming service would compensate at a rate of 13.1 cents per 1,000 plays ( $0.00013 per play).
With those numbers in mind, non-profit agency Music Canada tackled the abysmal situation by estimating that it would take 9.8 billion plays of the Barenaked Ladies' "If I Had a Million Dollars" to actually rack up the titular sum.
Putting things into perspective, Spotify, the popular streaming service that has yet to crack the Canadian market, pays at the comparatively charitable rate of $0.007 a stream.
The Copyright Board of Canada had projected in its report that the tariff will have CBC paying annual streaming royalties of $36,000 per year, while commercial streaming services "with annual revenues of about $130,000" would pay out $7,000.
"I believe that royalties to be paid in respect of the tariff set today are fair and equitable for both the users and the copyright owners. These royalty rates will not be an impediment for webcasters to do business in Canada," Copyright Board Secretary General Gilles McDougall had said in a statement earlier this year.
You can find out more details about the Copyright Board of Canada's Sound Tariff 8 over here.