Tangible Benefits in Broadcasting
When broadcasters change hands, they make promises. We make sure those promises are kept.
What Are Tangible Benefits?
When a broadcasting company is sold or merged, the buyer is required by the CRTC to commit a percentage of the transaction value to initiatives that benefit the Canadian broadcasting system. These are called tangible benefits.
Tangible benefits typically fund things like local programming, Canadian music and content development, training for industry professionals, and community broadcasting initiatives. The CRTC generally expects tangible benefits valued at 10% of the transaction price, though this can vary.
The principle is straightforward: if you are profiting from acquiring a Canadian broadcasting licence, some of that value should flow back to the communities the licence is meant to serve.
Why They Matter
Tangible benefits commitments represent one of the few mechanisms that directly convert private broadcasting transactions into public value. When a $500 million deal closes, the tangible benefits package can mean $50 million for Canadian content creation, local journalism, or music development.
These are not voluntary donations. They are binding conditions attached to the CRTC's approval of ownership transfers. Without them, the public gets nothing when broadcasting assets change hands between private corporations.
The Problem
Broadcasters have a pattern of seeking relief from their tangible benefits obligations after the deal closes. The argument usually goes like this: market conditions have changed, revenues are lower than expected, and meeting the full commitment would cause financial hardship.
Sometimes these requests are justified. But a pattern of underfunding tangible benefits commitments undermines the entire framework. If broadcasters learn they can consistently negotiate their obligations downward after the fact, the original commitments become meaningless.
The CRTC has granted relief in some cases and denied it in others. CBA monitors these proceedings to ensure that the public interest is represented when broadcasters ask to reduce what they owe.
What We're Watching
CBA tracks tangible benefits compliance across major broadcasting transactions. We look at whether commitments are met on schedule, whether funds are directed to the promised recipients, and whether broadcasters are seeking to reduce or redirect their obligations after receiving CRTC approval.
When broadcasters apply for relief from their tangible benefits commitments, the CRTC opens a public proceeding. Canadians have the right to intervene and make their views known.
What You Can Do
If you want to ensure broadcasters keep their tangible benefits promises, there are several ways to get involved:
- Monitor CRTC proceedings for tangible benefits relief applications — we'll alert our email list when important ones arise
- File an intervention when a broadcaster seeks to reduce its commitments
- Sign our petition for greater broadcaster accountability
- Join our email list for updates on tangible benefits compliance
Frequently Asked Questions
What percentage of a broadcasting transaction goes to tangible benefits?
The CRTC's general expectation is 10% of the value of the transaction, though the exact amount is negotiated as part of the ownership approval process.
Who decides how tangible benefits money is spent?
The buyer proposes a tangible benefits package as part of their application to the CRTC. The CRTC reviews and may modify the proposal before approving the transaction. The money typically goes to specific projects, funds, or organizations named in the approved package.
Can broadcasters change their tangible benefits commitments after the deal closes?
They can apply to the CRTC for relief or modifications, but changes require CRTC approval through a public proceeding. The public can intervene in these proceedings to oppose or support the requested changes.
Are tangible benefits the same as Canadian content spending requirements?
No. Tangible benefits are one-time commitments tied to ownership transactions. Canadian content expenditure requirements are ongoing conditions attached to broadcasting licences. Both serve the goal of supporting Canadian content, but they operate under different frameworks.