Sorry, Mday, it is absolutely, positively, a royalty. Without a doubt. At all. No question about it. Don't know about Canada - other than they like to tax the sh!t out of everything. Maybe a little bit extra for fancier packaging, but the bulk of the difference is the ROYALTY.
Here's a little history and additional trivia......
The electronics industry's refusal to pay royalties on DAT (Digital Audio Tape) blanks for consumer decks in the early 1980's led to the introduction of SCMS (Serial Copy Management System), which allowed only one generation of digital copying (i.e., you could copy an original but not a copy). Unfortunately SCMS was proven to introduce audible artifacts and thus led to the demise of DAT as a consumer format. DAT is still alive in the professional arena but there it is not burdened with SCMS, since it is used pre-mastering and not typically available to the general public.
The DAT/SCMS debacle led to the royalty scheme on audio CD-R's to avoid the destruction of yet another new format.
When the electronics companies announced plans to produce a consumer-oriented CD recorder (i.e., one you can put in your stereo system that looks like a stereo component, and has no other use than to record music), the RIAA threatened with never-ending lawsuits unless the format either 1)prevented digital copying (via SCMS or another scheme), or 2)paid a royalty on blank media. Since a CD recorder that can't make digital copies is not very appealing, the electronics industry agreed to tack on the royalty fee to the blanks, plus set the proper flag on the disc to indicate that it has been paid and would therefore work in an audio-only recorder.
And that's the rest of the story.