FOR IMMEDIATE RELEASE CRTC's Online Streaming Act Implementation: Good News for Canadian Artists and Music Industry Toronto, ON (June 4, 2024) - The Canadian Independent Music Association (CIMA) welcomes today’s news regarding the ongoing implementation of the Online Streaming Act (formerly Bill C-11). The Canadian Radio-television and Telecommunications Commission (CRTC) announced today that it is mandating that online streaming services allocate 5% of their Canadian revenues to bolster the Canadian broadcasting system. Specifically, the Commission will require online streaming services that make $25 million or more in annual contributions revenues and that are not affiliated with a Canadian broadcaster to contribute 5% of those revenues to certain funds. These obligations will start in the 2024-2025 broadcast year and will provide an estimated $200 million per year in new funding for Canada’s audio and audiovisual broadcasting sectors. CIMA believes that the best way for Canadian artists to be discovered globally and domestically is for Canada to continue to develop incredible artists supported by smart, well-resourced, and highly competitive music companies with IP ownership remaining in Canada. "This decision by the CRTC is good news for the Canadian music sector," said Andrew Cash, CIMA President & CEO. “As we look towards the future of music in Canada, this decision lays the groundwork for a dynamic partnership with digital platforms where Canadian talent can thrive both domestically and internationally." Throughout this process, CIMA has advocated for direct investments into the Canadian- owned music sector through established organizations like FACTOR and Musicaction, as well as the Canadian Starmaker Fund. CIMA’s consistent efforts emphasized the importance of channeling funds through these well-established bodies to maximize impact and efficiency. Consequently, the contributions from audio online undertakings will be allocated as follows:

• 2% to FACTOR and Musicaction; of which 60% is to be allocated to FACTOR and 40% to Musicaction;
• 1.5% to a new temporary fund supporting local news production by commercial radio stations outside of the designated markets;
• 0.5% to the Canadian Starmaker Fund and Fonds RadioStar; of which 60% is to be allocated to the Canadian Starmaker Fund and 40% to Fonds RadioStar
• 0.5% to the Community Radio Fund of Canada;
• 0.35% to direct expenditures targeting the development of Canadian and Indigenous content and/or a variety of selected funds; and
• 0.15% to the Indigenous Music Office and a new fund to support Indigenous music.

Today’s decision shows that the voice of the Canadian music industry is being heard by the CRTC as well as the Government of Canada. "Organizations like FACTOR, Musicaction and Starmaker have the experience and a strong track record of supporting Canadian creators effectively," said Tim Potocic, CIMA Chair of the Board and President of Sonic Unyon Records. "Ensuring funds are allocated through these channels guarantees that our artists receive the necessary support to compete on the global stage." While there remains work to be done in the implementation of C-11 – notably in ensuring that contributions from platforms do not eventually come out of creators’ pockets – CIMA regards today’s announcement as a very good step and looks forward to continuing to participate in the CRTC consultations to ensure the needs of the Canada’s music sector are met. -30- MEDIA CONTACT Jenia Schukov Communications & Export Programming Officer E: jenia@cimamusic.ca ABOUT CIMA Founded in 1975 CIMA is the not-for-profit national trade association representing over 350 Canadian-owned music companies connected to over 6000 artists in every province and territory in Canada. CIMA's membership ranges from individual artists and solopreneurs to Canadian-owned global music companies. CIMA’s mission is to empower and engage Canada’s music community to build and sustain equitable, inclusive, diverse, and successful global businesses and careers through advocacy, professional development, collaboration, networking, and celebration.