Under those rules, streaming services that are not Canadian-owned and have more than CAD $25 million (approx. USD $18.5 million) in revenue in Canada annually are required to pay 5% of that revenue into funds that subsidize Canadian content and creators.
Under that plan, 1.5% of music streamers’ revenue would go towards subsidies for local radio stations.
If I remember something kn my econ 101 class, they’re going up 2.5%, because taxes are not entirely pass to the consumer, they take a part of the company earnings too.
Say sub is currently $100/year, they now have to pay $5, they get $5 less. If they raise by 5% to $105, they have to pay $5.25, they get 25c less than originally. But if they raise to $110, they have to pay $5.50, and suddenly they are getting $4.50 more than before, even though they are paying more taxes. And they can blame it on this so people don’t hate them as much and accept it.
Interesting that they’re pumping back money into traditional radio.
The letter argued that Canada’s radio regulations were designed to address the problems created by its vast geography, its “linguistic duality” (English and French), and the fact that space on analog radio is limited, making decisions about what gets broadcast necessary.
Gee, that’s not the history I remember. I’m not super familiar, but wasn’t it about holding back Americanisation? (We have radio band allocations separately)
Lol, yea, pay your fucking taxes, grifters.
Unfortunately, that 5% fee means Spotify prices are going up 10%
Sure. That just means that Canadian consumers of Spotify will be indirectly subsidizing Canadian artists.
I see no problem here.
Well, assuming you see having domestic content as a valid goal, anyway, which isn’t necessarily a given.
If I remember something kn my econ 101 class, they’re going up 2.5%, because taxes are not entirely pass to the consumer, they take a part of the company earnings too.
Sure but then they pay more taxes. Increase in price means more revenue which means more taxes. It’s just a circle.
That’s why they raise it by 10%, not 5%.
Say sub is currently $100/year, they now have to pay $5, they get $5 less. If they raise by 5% to $105, they have to pay $5.25, they get 25c less than originally. But if they raise to $110, they have to pay $5.50, and suddenly they are getting $4.50 more than before, even though they are paying more taxes. And they can blame it on this so people don’t hate them as much and accept it.
Interesting that they’re pumping back money into traditional radio.
Gee, that’s not the history I remember. I’m not super familiar, but wasn’t it about holding back Americanisation? (We have radio band allocations separately)