OTTAWA – The CRTC said SiriusXM cannot defer its obligations to funds supporting Canadian content from the 2021-2022 year because it hasn’t shown a financial need to do so.
The satellite and online radio service requested a deferral due to the impact of the Covid-19 pandemic. It proposed paying its shortfalls incrementally, with 50 per cent paid by August 2024 and other 50 per cent by August 2025.
But the CRTC said revenues have largely rebounded since the start of the pandemic. It also said SiriusXM, which is predominantly subscription-based, “enjoyed more stability in revenue” compared to the rest of the commercial radio industry, which saw significant declines in revenue and are rely heavily on the advertising market.
The CRTC also said the company is a major contributor to Canadian content initiatives, so if it were to approve the application, “a significant amount of CCD funding would be further delayed.
“This would be added to the CCD shortfall that SiriusXM incurred from the 2019-2020 broadcast year and has only recently started repaying,” the CRTC added. “The delay would further impact CCD funds that predict significant deficits in their 2022-2023 budgets.”
It also said if it approved the application without a “sufficient rationale,” there would be a flood of other broadcasters asking the same, which would cripple the Cancon funds.
