sowny.net | The Southern Ontario/WNY Radio-TV Forum


You are not logged in. Would you like to login or register?

June 23, 2019 9:30 am  #1


CRTC Chair Musing Again About Forcing Cancon Costs Onto Netflix/Others

Here we go again – the head of the CRTC is thinking seriously about how to fund more Canadian content on the Internet, while making you pay for it. One suggestion is to force Internet providers to pay an extra levy for carrying Netflix and Amazon-like services, and use that money to help pay for Canadian programming.
 
And you can be almost certain that if the Rogers, Bells et al are forced to fork over more money, they’ll pass those costs onto you.
 
Toronto Star: CRTC chair says foreign online platforms such as Netflix should contribute to Canadian culture. The question is how?
 
While I’m fully in favour of keeping Canucks employed and supporting an industry that I’ve worked in for more than 35 years, I have a lot of trouble with this. The CRTC is assigned to govern over broadcasting in Canada, both radio and TV. Fair enough.
 
But Netflix and other online pay services aren’t technically “broadcasting” in that sense of the word. I really don’t see how this is in the CRTC’s purview and they should stay out of trying to mandate content on the web.
 
Can you imagine if they demanded that, say, NBC, add Canadian content to its programming because it reaches viewers north of the border? Or if I ordered a book published in the U.S. from Amazon and the authors were told they had to stick in a completely superfluous few chapters about Canada – even if it was totally irrelevant – before I could buy it here?
 
It’s ridiculous and as web streaming becomes more and more the norm, I fear the big brains in Hull will continue to insinuate themselves into what is essentially none of their business in the interests of spreading Cancon to a population that may not want to pay for it.

I know where CBC Gem is on the Internet. I can access it if I want. The fact that so few here do compared to the big U.S. streamers tells me everything I need to know.

 

June 23, 2019 9:43 am  #2


Re: CRTC Chair Musing Again About Forcing Cancon Costs Onto Netflix/Others

I believe the issue the CRTC has is Netflix ,and others to come, take from Canada in the form of $ but do not support out film industry in a significant manner.  My take on this is they're looking at Netflix to either open a production studio or shoot more content in Canada putting $ back into the economy.  The argument that the US doesn't is somewhat a non starter as no US providers carry Canadian channels in significant numbers.

 

June 23, 2019 12:26 pm  #3


Re: CRTC Chair Musing Again About Forcing Cancon Costs Onto Netflix/Others

I think it's inevitable that these SVOD services get regulated. The EU has enacted laws, though I'm not sure their quota system will be seen here. I suspect the CRTC will force a CPE spend that is based on their local revenue. I'm sure those companies will then pass the fees onto us. 

RadioActive wrote:

But Netflix and other online pay services aren’t technically “broadcasting” in that sense of the word. I really don’t see how this is in the CRTC’s purview and they should stay out of trying to mandate content on the web.

That's an argument of semantics. Netflix may not be a traditional broadcaster, but for many, it and other VOD options have replaced the use of them. They are a substitute and have undermined decades of regulations, which in turn is directly impacting Canadian industries. This is something a forward-thinking agency would've prepared for long ago, but alas, the CRTC is not that. 

It's hard to feel sorry for the likes of Bell, Corus and Rogers, but at the same time, it's kind of astonishing to see how much their channels have declined in part because they can't really compete with giant multi-nationals. Look at Much, Showcase, Space and Teletoon. Those channels used to have successful, homegrown shows, with multiple new launches every year. Now, they're down to one or two actual Canadian productions. It's a very sad sign of the times. I'm not sure our SVOD overlords will care to make up the difference, at least with regards to shows that are actually Canadian and not just service work. I don't see why Amazon or Netflix would want something like Innerspace or Daily Planet, for instance. 

RadioActive wrote:

Can you imagine if they demanded that, say, NBC, add Canadian content to its programming because it reaches viewers north of the border? Or if I ordered a book published in the U.S. from Amazon and the authors were told they had to stick in a completely superfluous few chapters about Canada – even if it was totally irrelevant – before I could buy it here?

Historically, the CRTC has not been open to foreign ownership of Canadian channels. NBC isn't Canadian, nor is it directly targetting Canadians. The availability of U.S. channels in Canada is grandfathered from days long gone, when geographical proximity and imprecise technology caused market spillover. When Canadians began watching U.S. affiliates (who were starting to solicit Canadian advertisers, thus "taking" money for our broadcasters) in large numbers, this did create blowback resulting in simsub laws. At the dawn of pay TV, some U.S. channels were allowed because the Canadian market was too small to launch our own in big enough numbers. I know you know this. 

Netflix, on the other hand, very much does directly target Canadians. It is in as much competition for our attention and dollars as any broadcaster based in our country. Its existence in this country is not the result of a bygone era or an exception. In fact, its' undermining of regulations puts those at risk of being part of a bygone era. This is the blowback to their actions. 

It's always been very difficult to regulate a la carte options. I don't think it's a coincidence that Canadian film and literature are less relevant in our day-to-day than regulated industries like radio and television. Canadian film, in particular, is largely irrelevant outside of Quebecois audiences. That's because unless you go full commie, you can't really control what people want to watch at a theatre. I believe video games are the only aspect of Canadian media that has thrived in the on-demand world and that's because they're funded by faceless multi-nationals that could have made them anywhere.

Last edited by Retaw (June 23, 2019 12:27 pm)

 

June 23, 2019 1:48 pm  #4


Re: CRTC Chair Musing Again About Forcing Cancon Costs Onto Netflix/Others

Well one thing is certain - you may be right about a CPE (sometimes called a "Netflix tax") but you'll never, ever ever hear about it until after the Oct. 21st federal election. It would be suicide for any party to even think about it right now and there are plenty more urgent issues in any case. 

And you may also be correct about the CRTC claiming to have jurisdiction because it could technically be termed telecommunications. I would just hate to see them stick their big claws into this any more than they already have because I can't imagine for the life of me that they'll make it any better for consumers. Their history appears to confirm that. 

At least in the U.S. you don't need the FCC's approval to change your programming and they're less insistent on where a radio or TV station spends its funds. But then the argument could be made that unlike Canada, they don't have to be. 

The one thing I hate about the U.S. system at present is that three companies - Entercom, iHeart and Cumulus - own practically everything and that's not good for competition or listeners. Glad that can't happen here. Just ask  Bell, Rogers and Corus...

     Thread Starter