Canadian Heritage Minister Mélanie Joly travels to California this week with an agenda that includes meetings with Internet giants such as Google and Facebook. Given the recent announcement in the budget that the government plans to “review and modernize” the Broadcasting Act and Telecommunications Act, the discussions may help shape an issue that could have a profound impact on the Internet in Canada as there are concerns the government may attempt to shoehorn Canadian cultural policies into telecommunications law.
My Globe and Mail column notes that Ms. Joly’s consultation last year on Cancon in a digital world revealed there is a strong appetite within the traditional Canadian culture lobby for bringing policies such as cultural taxes and mandated Cancon requirements to the Internet. The groups claim the Internet is rapidly replacing the conventional broadcast system as a means of distributing cultural content and that the longstanding analog rules should be shifted into the digital environment.
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Canadians appear to have become so accustomed to an uncompetitive cable and satellite market typified by frequent price increases and restrictive options that many are failing to recognize the arrival of greater consumer choice. Last week’s launch of the new $25 basic “skinny” cable packages mandated by the Canadian Radio-television and Telecommunications Commission (CRTC) left many underwhelmed, as the patchwork of channels and hidden fees seemingly confirmed critics’ claims that consumers would be better off sticking with their existing, pricier packages.
My weekly technology law column (Toronto Star version, homepage version) acknowledges that there is plenty of room to criticize the cable and satellite companies. They have no intention of actively promoting the cheaper options and some seem determined to make them as unattractive as possible. However, the reality is that the combination of basic television service and the pick-and-pay model that must be offered by the end of the year is changing the marketplace for the better.
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Rogers Media’s recent decision to slash 110 jobs and end all newscasts at OMNI, its multicultural channel, has sparked outrage among many ethnic communities, who have lamented the cancellation of local news programs in Italian, Punjabi, Cantonese, and Mandarin. Supporters argue that OMNI programming is essential to those communities and worry that the cancellations will mean that viewers become less politically engaged.
Last week, a House of Commons committee held a hearing on the OMNI cuts as members of Parliament from each party took Rogers executives to task. Rogers was unsurprisingly unapologetic, noting that the decision was based on simple economics as it pointed to declining advertising revenues that made the programming unsustainable.
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The furor over Bell Media President Kevin Crull’s banning of CRTC Chair Jean Pierre Blais from CTV news coverage following the pick-and-pay decision made for a remarkable news day yesterday. From the initial Globe report to the unprecedented response from Blais to the Crull apology, it was a head-spinning day. While Bell presumably hopes that the apology brings the matter to a close, that seems unlikely to be the case as there are bigger implications for Crull, CTV News, and Bell more broadly.
Crull’s future has been the subject of much talk, with some calling for his resignation, particularly since there is evidence that this is not the first instance of the editorial interference. Assuming it has occurred before (the reference to “re-learning” in the Crull apology is telling), CEO George Cope was undoubtedly aware of the practice and must surely have condoned it, suggesting that Crull will survive. However, Crull’s bigger problem may be that his ability to represent Bell Media before the CRTC has been irreparably damaged. Bell could have Cope represent the company rather than Crull (indicating the seriousness of the issues), but Crull will struggle as the public face of the company before the regulator for as long as Blais remains chair.
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The Canadian Radio-television and Telecommunications Commission last week announced much-anticipated plans to require cable and satellite companies to offer consumers basic television packages for an affordable $25 per month alongside the option of picking the television channels they want without requiring them to purchase expensive bundles.
Despite some hand wringing that the changes will lead to reduced revenues for broadcasters, my weekly technology law column (Toronto Star version, homepage version) notes that it is readily apparent that the CRTC is committed to reducing or eliminating outdated regulations in the hope of fostering a more competitive broadcast environment. Consumer choice for television channels, greater flexibility for broadcaster programming, adjustments to Canadian content requirements, and the enforcement of net neutrality rules all fall within the same broader strategy of exercising its regulatory muscle to enable a level playing field and encourage the development of globally competitive content.
What makes the latest CRTC decision particularly notable is that it identifies a new threat to a competitive broadcast environment. Much to the chagrin of many within the Canadian system, it isn’t Netflix. In recent months, seemingly everyone has had a turn taking shots at the enormously popular online video service: the Government of Ontario has called for a Netflix tax, Bell Media has asked for measures to block access to the U.S. service, and many creator groups have urged the CRTC to adopt new regulations for online media.
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