On the congratulatory side, Blais noted the Canadian film and television production had a record year in 2012, growing by over $500 million over the prior year, by far the highest total and fastest growth in over a decade. Canadian television production led the way, increasing 21.3 per cent in 2011/12, for a ten-year high of just under $2.6 billion. Most of the increase was due to English-language programming, with fiction production growing by over 41 per cent.

Yet there was a second comment that garnered less attention, but that may ultimately prove more important. After encouraging the industry to become more innovative and entrepreneurial, Blais warned "you will need to compete, just like any other sector."

On the congratulatory side, Blais noted the Canadian film and television production had a record year in 2012, growing by over $500 million over the prior year, by far the highest total and fastest growth in over a decade. Canadian television production led the way, increasing 21.3 per cent in 2011/12, for a ten-year high of just under $2.6 billion. Most of the increase was due to English-language programming, with fiction production growing by over 41 per cent.

Yet there was a second comment that garnered less attention, but that may ultimately prove more important. After encouraging the industry to become more innovative and entrepreneurial, Blais warned "you will need to compete, just like any other sector."

For example, most of the funding for the record amount of Canadian English-language television programming came from taxpayers and broadcasters, not the original producers of the content. According to Profile 2012, an annual report on the state of the industry, only ten per cent came from private funding such as production companies and private investors. Canadian distributors covered 18 per cent of the total costs, with foreign distributors kicking in an additional nine per cent.  

The notion of competing in the market should take centre stage this week as the CRTC conducts its hearing on whether Canadians who subscribe to cable and satellite television packages should be required to pay for channels such as Sun News Network and Starlight, a proposed all-Canadian movie channel. The regulatory process has been likened to winning the lottery, since channels selected for mandatory carriage are guaranteed millions in revenue regardless of whether Canadians watch or even want the channel.

That shift in approach would represent a significant change in Canadian broadcast policy, effectively establishing a framework that requires the industry to compete for subscribers. As CRTC Chair Blais would say, just like any other sector. 

• the creation of a Chief Consumer Officer to ensure the CRTC "examine all the issues before us through a consumer-focused lens."
• the creation of wireless code of conduct
• ensuring Canadians have maximum choice of providers and platforms
• transparency in costing data of wholesale services
• accessibility for all Canadians
• broadband availability of downloads of 5 Mbps and uploads for 1 Mbps for all Canadians by 2015
• enforcing do-not-call and anti-spam legislation
• a broad definition of creators to include anyone that creates, distributes or promotes content
• protection against cellphone theft

The Hill Times is reporting that Patricia Neri, the Director General of Copyright Policy at Canadian Heritage has been removed from her position to become a special advisor to Assistant Deputy Minister Jean-Pierre Blais with "duties still to be determined." While people move all the time in government, this development is noteworthy - not just because it comes mere weeks before a copyright bill may be unveiled, but because there are mounting rumours that the move comes as a direct result of a conflict of interest concerns.

Personnel at the Copyright Policy branch were advised by email late last week that the move was for "personal reasons," though Neri apparently stopped coming into work soon after Labour Day. According to multiple sources, the personal reason involves a personal relationship with one of Canada’s leading copyright lobbyists. 

While Neri’s personal life is no one’s business but her own, this does raise troubling questions about the quick passage of Bill C-59, the anti-camcording legislation, since Neri appeared as a witness before a Senate hearing on the bill with the lobbyist in the room.  The Privy Council Office places particular responsibility on public servants that appear before a Parliamentary committee since they do so on behalf of the Minister.

Further, when was this known to senior officials at Canadian Heritage?  If weeks ago, why does it appear that no one took action, particularly since this came at a time when Neri was briefing Josée Verner, the new Minister of Canadian Heritage, and the Prime Minister’s Office on copyright matters? 

This is not an easy issue to raise, but if these reports are true, it surely creates at least a perceived conflict of interest contrary to Government Ethics Guidelines on a file that is very controversial and likely to grab the spotlight this fall.  The Hill Times notes that Canadian Heritage has been slow to comment on the situation other than to confirm the move.  Although it is important to protect the privacy of those affected, public confidence in the copyright process will be undermined if there is not a frank and full disclosure about who knew what and when.

Update: This story is beginning to generate some interest with coverage from VNUNet, The Inquirer, Contact Music, and, unsurprisingly, Frank Magazine.