The call for Internet and Netflix taxes are not the only demands raised by Canadian cultural groups regarding online video services. Many groups argue that the services should be required to make Canadian content more prominent, citing the challenge of “discoverability” of Canadian content in a world of seemingly unlimited choice. While the ACTRA call for government sanctions against search engines that refuse to prioritize Cancon in search results is an extreme example, many have asked the Broadcast and Telecommunications Legislative Review panel to either mandate that a certain percentage of the Netflix library consist of Canadian content or that it more actively promote Cancon on the service.
Post Tagged with: "Cancon"
ACTRA Wants Government To Penalize Search Engines that Refuse to Promote Canadian Content in Search Results
The escalating battle being waged for new Internet taxes to fund Canadian content does not stop with proposals for new fees on Internet access and online video services. Cultural groups also want to increase the “discoverability” of Canadian content by mandating its inclusion in search results. According to the ACTRA submission to the broadcast and telecom legislative review panel, it has been calling for search engine regulation for the past 20 years:
ACTRA stated during the 1999 CRTC process that Internet search engines would become the gateway for consumers to access the vast array of entertainment and information now available from around the world. We argued then the CRTC should regulate them.
It now argues for mandated inclusion of Canadian content in search results for cultural content under threat of economic sanction:
Building a Digital Wall: What Lies Behind The Emerging Battle Over New Taxes to Support Canadian Content
The battle over the future of Canadian broadcasting and telecommunications is quickly emerging as a hot-button policy issue, with a government-mandated review of the law recently garnering thousands of public responses. My Globe and Mail op-ed notes that while recommendations from an expert panel are not expected for months, Canada’s broadcast regulator, the CBC, and several high-profile cultural groups are lining up behind a view that Canadian culture is facing an existential crisis. Among the ideas being proposed are new taxes on internet and wireless services, mandated Cancon requirements for Netflix and the prioritization of Canadian content in search results from online services to enhance its “discoverability.”
There are unquestionably real communications policy issues in Canada for Innovation, Science and Economic Development Minister Navdeep Bains and Canadian Heritage Minister Pablo Rodriguez to grapple with: Some of the world’s highest wireless prices hamper adoption and usage, privacy safeguards have failed to keep pace with online threats and public-interest voices say they don’t feel heard at the Canadian Radio-television and Telecommunications Commission (CRTC) under chair Ian Scott.
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.
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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