Alvvays, featuring Molly Rankin, is one of many independent music groups and artists that will be affected by Sirius XM's decision to drop CBC Radio 3.Winslow Townson/The Associated Press
In a move that blindsided this country’s independent music scene, Sirius XM satellite radio quietly dropped CBC Radio 3 from its platform on Oct. 1. That decision, part of a series of programming changes involving Canadian channels, could have devastating effects on artists and music labels already hurt by skyrocketing touring costs this past summer.
“It’s left a lot of us reeling,” said Nigel Jenkins, artist manager and owner of the Newfoundland-based label LHM Records. “I’m still feeling a bit winded by the news.”
Radio 3 is a digital deliverer of 100-per-cent Canadian content. Its freeform mix of alternative rock, indie pop and other genres has been carried on Sirius XM since 2005. Though it still exists as a playlist on CBC platforms, Radio 3 will no longer produce the same level of lifeblood royalties paid by Sirius XM to established and emerging independent Canadian artists and record labels.
“The revenue from satellite radio has made operating mid-tier record labels in Canada profitable, or at least sustainable,” said Jenkins. “It pays the rent for artists and keeps the lights on for companies like mine.”
CBC’s contract with Sirius XM was not renewed by the satellite radio giant, which will now produce in-house the Canadian content required by its license. Other channels affected include CBC Country, which has been replaced by Top of the Country Radio. Instead of ICI Musique Franco-Country and ICI Musique Chansons, fans of Francophone music will be serviced by new channels Racines Musicales and Attitude Franco.
Canadian indie labels are alarmed because of the loss of exposure to U.S. and Canadian audiences and, more importantly, the expected loss of income derived from Radio 3′s spot on the Sirius XM dial. While terrestrial radio pays royalties to songwriters and publishers for airplay, satellite stations are also required to pay performers and the owners of the music for the broadcast of their recordings.
The money is significant enough that labels develop strategies to gain more plays – “spins,” in the industry parlance – on satellite services and similar platforms (not to be confused with interactive streaming services such as Spotify).
“Up to a quarter of our revenue comes from digital channels, and 90 per cent of that comes from Sirius XM,” said Dina Young, owner of Toronto’s Royal Mountain Records, home to indie stalwarts Alvvays, Pup, Metz, Mac DeMarco and Orville Peck. “Having Radio 3 removed from that platform will likely be devastating.”
Satellite radio income varies among artists, but an indie act with a new album might expect to get from $500 to $2,000 a month in royalties. “The issue here is the young band or young artist being able to make some real money from getting radio play,” said Trevor Murphy, a musician, publicist and owner of the boutique Halifax label Acadian Embassy. “It’s also a sticking point for independent labels who have been using that revenue to invest in other emerging artists.”
Orville Peck said that Radio 3's removal from Sirius XM will likely be 'devastating'.Rich Fury/Getty Images North America
If there’s a silver lining to the cloud, it is the creation of Mixtape: North, a new Sirius XM channel dedicated to Canadian hip hop and R&B, hot-bed genres in this country. Spotlighting established and emerging artists, the station is billed as a listening post for “the greatest home-grown bangers.”
Dropping Radio 3′s indie sounds for pop music’s most dominant genres is the kind of format switch that is routine in the industry. “There is no way anyone can argue that Toronto and Canada is not on fire with hip hop and R&B,” said Kieran Roy, president and co-owner of Toronto’s Arts & Crafts label. “As a business decision, it’s hard to fault Sirius XM.”
While some of the artists heard on Radio 3 will still receive play on Sirius XM’s own channel the Verge, many others will be squeezed out and lose royalties. There is a sense, however, that beyond the bottom line there are cultural issues at stake.
“Radio 3 took a chance on small bands from Halifax that nobody had heard of yet,” said Murphy. “As folks who are often marginalized based on geography, Radio 3 was a space where an artist could find a home. And we just don’t know what is going to happen without it.”
Brad Wheeler