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November 28, 2023 4:32 pm  #1


Rogers:U.S. Streamers Should Give 2% Of Cdn. Earnings To Local Content

I have never made a secret of the fact that I'm against Bill C-11, but if pressed, I can perhaps be stretched into the idea that if a U.S. company is going to do business here, they should be regulated and follow the rules like any other Canadian broadcaster, including producing CanCon. (I don't actually like it, and I know many here disagree with me, but for the sake of argument, let's say we all accept that premise.)

Now Rogers has asked the CRTC to force American streamers to give up 2% of their earnings in Canada to help them pay for news and content. To me, this is way, way over the top. In essence, they're asking their competition to help them fund the very programming that competes against them. That makes no sense to me and I can't see any American outlet agreeing to such a scheme.

Imagine if the government demanded Wal-Mart give a percentage of its earnings to help keep a struggling Hudson's Bay Co. in business. (And yes, I'm aware HBC was sold to an American company in 2008. But this is for the sake of the argument.)

No company would ever agree to funding their own rival. I certainly hope the CRTC looks at this request and does what I did - laugh out loud at the sheer audacity of it. And then say absolutely not. 

Online streamers should direct 2% of Canadian revenues to local content: Rogers

 

November 28, 2023 6:50 pm  #2


Re: Rogers:U.S. Streamers Should Give 2% Of Cdn. Earnings To Local Content

They can always pull out of Canada, geoblock their services and install VPN blockers as a way to thumb their noses at Canada.
I wonder how much they actually make here?

 

November 28, 2023 10:05 pm  #3


Re: Rogers:U.S. Streamers Should Give 2% Of Cdn. Earnings To Local Content

pinto wrote:

They can always pull out of Canada, geoblock their services and install VPN blockers as a way to thumb their noses at Canada.
I wonder how much they actually make here?

yup!  ...and once they go that route, they will never come back... no mater who forms the next government... or whether or not Bill C-11 gets killed or a major set of revisions...  it won't matter one iota...
 

 

November 28, 2023 10:53 pm  #4


Re: Rogers:U.S. Streamers Should Give 2% Of Cdn. Earnings To Local Content

As a freelance writer for print-based periodicals, I hold my own copyright, and only give away rights through a signed contract. When the internet came into its own, parties of all kinds would lift my stories without asking and reprint them on their web sites, in their newsletters, even verbatim on mass mailouts to their own e-mail lists. When I happened to spot violations - occasionally I'd Google "By Saul Chernos" or even phrases from my stories - I sent a polite e-mail or occasionally phoned and offered them the choice of removing my copyrighted material, paying me for its reuse, or linking to the web site of the periodical in which my article appeared. I actually collected on some of these; other removed the copy, and over the years most simply linked to the original.

That third option - linking to the original article, and thus driving traffic to my client periodical - has always struck me as key. My client has paid me for my article. I am generally (depending on any contracts signed with the client) free to repurpose or even reprint my article elsewhere. (I choose to significantly repurpose at the very least because it sucks to read the same article in two different publications).

A link to my article, if done properly, essentially takes the internet viewer to the web site hosting the article. It drives traffic to my client's site, and stands to help increase advertising potential there. More eyeballs for my client, and those eyeballs have at least temporarily shifted away from Facebook.

Maybe I'm missing something, or maybe the game has changed (I'm getting older and paying less attention to the politics of writers' issues). But logic seems to tell me this: If Facebook links to an article, and that link takes the viewer off Facebook and onto my client's site, isn't it my client who stands to benefit? That set of eyeballs found my article while on Facebook, but Facebook didn't actually reprint my article. In fact, Facebook defacto delivered my article to a set of eyeballs that might otherwise not have seen my article, or perhaps even known about my client's periodical.

Facebook and other social media behemoths are flush, and profiting much better than periodicals are in this internet era. But perhaps there's an argument to be made that print publications have, like broadcasters, utterly failed to properly adapt to and succeed in the new digital environment. There were some pretty big media chains in the 1990s, and they were eclipsed by upstarts who didn't have old-school baggage clogging their brains.

The real battle for professional content creators is to be paid fairly by their clients, and to collect royalty payments where their copy is reproduced or reused. That's been brutal. Publications by and large haven't raised their rates in decades. Some are as low as .05-.25 a word. A three source, 1000-wrd story at .50 a word earns the writer $500, with time spent coming up with the idea, researching basic facts and storyline, checking to see if sources will talk on the record, doing interviews, transcribing, writing, fact checking, and sometimes more tasks or expenses in the equation. Hell, every trades person who's done work on my home or car has earned more per hour than a decent writer will earn. And all kind of users, most notably universities and other educational institutions, have been studiously trying to avoid paying royalties. (Writers survive either by becoming world renowned authors or by supplementing their periodical writing with corporate writing).

I hate Facebook for many reasons (I find social media highly problematic on many fronts). But this isn't one of them. I'm curious who agrees with me, and why; and - even more - who doesn't, and why.

 

November 29, 2023 10:47 am  #5


Re: Rogers:U.S. Streamers Should Give 2% Of Cdn. Earnings To Local Content

I agree with you wholeheartedly Saul. Bill C-18, which includes the proverbial "link tax," was one of the most ill-thought out pieces of legislation I can ever remember from any government. Not only is it impossible for a business to anticipate on a yearly basis how much it would cost their company, but the fallout from it should have been easily foreseeable. Yet they stubbornly stuck to this law, imperious in their certainty that they were right, despite hundreds of deputants warning them at hearings of what might happen. 

You're right that these links drive traffic to the sites, where I could read your work and see the ads on display that helped pay for your efforts. Why simply linking to an article, with perhaps a single headline and a cutline that explains the story, and inviting you to click through for more info is somehow seen as stealing content is beyond me. How else are most people going to find a story that interests them? You can't check every site non-stop. 

That's why, to me, aggregators like Google or Bing are so valuable. They're like signposts directing traffic. You wouldn't be expected to pay a toll to see a sign. But you might once you're on the highway. To me, the media sites are that highway. The entire thing is backwards. Talk about blaming the victim. (And I have no love for either Meta or Google, but in this case, they're not wrong.)

I've often speculated here on whether these giants will simply forgo Canada as the endless costs mount and take their toys and go home. Meta has already started that by restricting Canadian news on its Facebook pages. There is every chance Google will follow suit by the end of the year, which will be far worse.

I agree the media needs help if it's to survive in the Internet age. Something has to be done. But the solution they came up with is probably the worst one they could have chosen. There simply has to be another way.

This was supposed to be a way to support beleaguered media sites. Instead, it may very well destroy some of them. How ironic that the cure is worse than the disease!

     Thread Starter
 

November 29, 2023 11:06 am  #6


Re: Rogers:U.S. Streamers Should Give 2% Of Cdn. Earnings To Local Content

RadioActive wrote:

You're right that these links drive traffic to the sites, where I could read your work and see the ads on display that helped pay for your efforts. Why simply linking to an article, with perhaps a single headline and a cutline that explains the story, and inviting you to click through for more info is somehow seen as stealing content is beyond me. How else are most people going to find a story that interests them? You can't check every site non-stop. 

Not to mention, the vast majority of news links (~90% apparently) posted are re-shares of the news orgs' original posts linking to their own articles. Social sharing is obviously a net benefit.
 

 

November 29, 2023 11:23 am  #7


Re: Rogers:U.S. Streamers Should Give 2% Of Cdn. Earnings To Local Content

Talk about great moments in good timing - this story appeared on the Financial Post site Wednesday morning, just as this subject was heating up here. It's kind of eye opening and perfectly encapsulates what's been discussed here, including concrete examples of news sites that are being harmed or even threatened with existence by this law. 

Somewhat ironically, it was a story I found from a link in Google News.

'Catastrophic': Fight between Zuckerberg and Trudeau battering Canada's media outlets

     Thread Starter
 

November 29, 2023 12:04 pm  #8


Re: Rogers:U.S. Streamers Should Give 2% Of Cdn. Earnings To Local Content

 

November 29, 2023 12:10 pm  #9


Re: Rogers:U.S. Streamers Should Give 2% Of Cdn. Earnings To Local Content

RadioActive wrote:

=12pxNow Rogers has asked the CRTC to force American streamers to give up 2% of their earnings in Canada to help them pay for news and content. To me, this is way, way over the top. 

This is just a form of corporate tax and 2% is hardly punitive- why shouldn't foreign corporations doing business in Canada have to pay Canadian taxes or their equivalent? 
 

Last edited by Hansa (November 29, 2023 12:10 pm)

 

November 29, 2023 12:49 pm  #10


Re: Rogers:U.S. Streamers Should Give 2% Of Cdn. Earnings To Local Content

Hansa wrote:

RadioActive wrote:

=12pxNow Rogers has asked the CRTC to force American streamers to give up 2% of their earnings in Canada to help them pay for news and content. To me, this is way, way over the top. 

This is just a form of corporate tax and 2% is hardly punitive- why shouldn't foreign corporations doing business in Canada have to pay Canadian taxes or their equivalent? 
 

They absolutely should pay all taxes that apply to Canadian businesses. 

Adding another tax to bail out legacy competitors is punishing success.
 

 

November 29, 2023 12:50 pm  #11


Re: Rogers:U.S. Streamers Should Give 2% Of Cdn. Earnings To Local Content

Yes, taxes are one thing. Hopefully, that money collected will be beneficial to all. But what Rogers is asking is that 2% of that money go directly to them (or Bell) to help them produce a newscast or the next Hudson & Rex. 

Why should Netflix have to pay for Rogers to compete with them for viewers? 

If you own Hansa's Worldwide Widgets and are selling your product around the world to great success, and I start RadioActive's Widgets - sold only in Canada - how would you feel if you were compelled to give some of your profits to me so I could directly compete with you?

It makes no sense to me. And I think you would object, too, in the above scenario. No company would agree to this. 

By the way, worth repeating this is not the law yet, just a suggestion of total self-interest from Rogers, which is very good at demanding money from other people while spending as little as possible on its own.

     Thread Starter
 

November 29, 2023 10:04 pm  #12


Re: Rogers:U.S. Streamers Should Give 2% Of Cdn. Earnings To Local Content

Canadian broadcasters, of course, are all for C-11, seeing a potential big payday that will benefit them. 

But on Wednesday, Spotify testified in front of the CRTC and warned the kind of legislation that requires out of the country streaming companies to play by those rules may have far reaching and unforeseen consequences. This is the other side of the coin that giants like Rogers either don't realize - or more likely, don't care about.

And they warned if the Commission insists on going through with this, companies like Spotify may be forced to cut back on its Canadian investments in other areas. 

“We can’t be the only jurisdiction in the world that is asking you for contributions,” Joanne Levy, commissioner for Manitoba and Saskatchewan, told Spotify representatives in her questioning following their opening remarks.

“I’d like to know a little bit more about what’s happening in other jurisdictions.”

But Olivia Regnier, senior director of public policy for Spotify, called it “a bit of an exceptional situation.”

“Actually, you are the only country in the world that is looking at those contributions, at least at this stage,” she replied.

“We actually hope that this is not going to spread to other countries because it will be a real difficulty.”

Mandatory CanCon contribution could prompt investment cuts, Spotify tells CRTC

     Thread Starter