Post Tagged with: "Cancon"

Netflix by Avijeet Sachdev (CC BY-ND 2.0) https://flic.kr/p/9vou6m

Making Sense of the Canadian Digital Tax Debate, Part 2: Mandated Canadian Content Contributions aka a “Netflix Tax”

The series on the Canadian digital tax debate continues with an examination of calls for mandated contributions by Internet video services to support the creation of Canadian content, frequently referred to as a “Netflix tax” (earlier post on digital sales tax). The Netflix tax is perhaps the most politicized digital tax issue, with both the Conservatives and Liberals opposing such a tax during the last federal election. Despite the opposition, the issue continues to resurface as it is regularly raised by cultural groups and was part of the CRTC’s report on the future of broadcast regulation released in the spring.

Proponents of a mandated Netflix contribution typically rely on three arguments: (i) failure to impose fees and regulation on foreign providers represents an “existential threat” to Canadian creative industries since they argue it will lead to reduced spending on production in Canada; (ii) there is a need to “level playing field” for Canadian services competing against foreign providers; and (iii) Europe is moving toward Netflix regulation and Canada should too.

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October 25, 2018 1 comment News
Honora's November Holiday Shows at QVC - Behind The Scenes by Honora Pearls (CC BY-NC-ND 2.0) https://flic.kr/p/7kavLr

The Full “Culture Exception” That Isn’t: Why Canada Caved on Independent Cultural Policy in the USMCA

In the final weeks of the USMCA negotiations, Canada signalled that a full cultural exception was a non-negotiable issue with Prime Minister Justin Trudeau wading in to emphasize the importance of the issue. While the resulting deal has garnered applause from many culture lobby groups (music, magazines, publishers, ACTRA), the reality is that the government did not obtain a full cultural exception. In fact, after criticizing the Conservatives for accepting exceptions to the cultural exception in the TPP (and making it a key issue in the CPTPP once the U.S. exited the agreement), the Liberal government similarly included two exceptions and agreed to an extension in the term of copyright that will have a far more damaging impact on access to Canadian culture than any proposed USMCA provision.

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October 11, 2018 6 comments News
Montréal, QC (Maison Radio-Canada) by JasonParis (CC BY 2.0) https://flic.kr/p/9NmGLZ

The Internet is not an ATM: My Appearance at the Senate Transport and Communications Committee on Broadcast and Telecom Reform

Earlier this week, I appeared before the Senate Standing Committee on Transportation and Communications alongside Carleton professor Dwayne Winseck to discuss broadcast and telecom reform. The Senate study, which largely mirrors the government’s broadcast and telecommunications reform panel, is expected to run into 2019 with a broad mandate that covers everything from affordable access to net neutrality. The discussion was similarly wide ranging with discussion on the failings of the CRTC, the lack of telecom competition, and on the need for real data in assessing the impact of the Internet on the cultural sector.

My opening statement focused on the danger of treating the Internet as equivalent to the broadcast system, the realities of how the Canadian cultural sector is succeeding online, and how policy makers ought to respond the changing landscape for communications in Canada. It is posted below.

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September 21, 2018 6 comments News
PCH memo on Netflix, obtained under ATIP, https://www.scribd.com/document/383336048/PCH-Memo-Bell-Netflix

Government Memo Suggests Netflix Outspends Canadian Private Broadcasters on Canadian English Scripted Programming

Canadian Heritage Minister Melanie Joly view of cultural policy shifted gears in recent months with her emphasis on the need for all players to contribute and rhetoric on “no free rides”, a position that could lead to taxes on Internet services. While Netflix has been a popular target for many Canadian cultural organizations, according to documents released under the Access to Information Act, Canadian Heritage officials appear to have evidence that Netflix spends more on Canadian English-language scripted programming than the Canadian private broadcasters. The revelations come in a June 2017 internal memo to Graham Flack, the Canadian Heritage Deputy Minister, which respond to correspondence from BCE’s Mirko Bibic. Bibic met with Flack in April 2017 and was concerned with department comments about Netflix outspending Bell.

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July 6, 2018 6 comments News
What Is it to Be Human in the Fourth Industrial Revolution? by World Economic Forum (CC BY-NC-SA 2.0) https://flic.kr/p/Q2JwZA

Math Not Magic: If Melanie Joly Mandates Internet Taxes, Consumers Will Foot the Bill

The government launched its telecom/broadcast review yesterday and the discussion immediately turned to Internet and Netflix taxes. Despite the wide array of issues ranging from net neutrality to the CBC before the newly established panel, for many the focus of its recommendations and the government response will ultimately come down to whether there are new Internet regulations and taxes established to support the creation of Canadian content.

Canadian Heritage Minister Melanie Joly and Innovation, Science, and Economic Development Minister Navdeep Bains both commented on the issue, suggesting divergent priorities.

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June 6, 2018 16 comments News