Last week, the CRTC released its much-anticipated Bill C-11 ruling on the initial mandated contributions from Internet streaming services. While the government focused on the requirement to contribute 5% of Canadian revenues, a closer look revealed the CRTC largely ignored industry data and the actual contributions from Internet streaming services and seemed entirely unconcerned by the effects on competition and consumer costs. Len St-Aubin is the former Director General of Telecommunications Policy at Industry Canada and played a role in the development of both the Broadcasting Act and Telecommunications Act. He provided consulting services to Netflix until 2020 and has since been an active participant in the debate on Internet policy. He joins the Law Bytes podcast to talk about the CRTC ruling, the state of TV and film production in Canada, and what may lie ahead for the streamers, creators, and consumers.
Post Tagged with: "broadcasting act"
My CRTC Appearance on Bill C-11: Why Isn’t the Commission Concerned with Competition, Consumer Choice, and Affordability?
The CRTC’s Bill C-11 hearings are in their third and final week as a steady stream of broadcasters and producers make their way to Gatineau to urge the Commission to force Internet streamers to hand over cash in a giant cross-industry subsidy scheme designed to support everyone from small producers to Bell’s news division. As the witnesses take turns seeking the mantle that they are facing the biggest crisis (even as there is record film and television production in Canada and broadcasters stand to be the biggest beneficiary of the Online News Act), there has been practically no interest or discussion of the risks to consumers and competition that could come from significant new regulatory costs.
I set out to change that yesterday in my appearance before the Commission. It was my first time to appear as a witness before the CRTC and I used the opportunity to emphasize the real risks of reduced competition and higher costs that can come with mandated payments that exceed global standards. Further, I argued that the Commission should not establish interim payments at all, noting that it was more appropriate to address all of the outstanding Bill C-11 regulatory questions before looking to streamers to start cutting cheques.
Heritage Minister Pascale St-Onge’s Tries to Re-Write Bill C-11 History: There Is No Quick Implementation and the Government is to Blame
The government plans to release its final policy direction on Bill C-11 today just days ahead of the start of a weeks-long series of hearings at the CRTC on the Online Streaming Act (I am scheduled to appear in early December). Ahead of the release, Canadian Heritage Minister Pascale St-Onge tries to re-write history, urging fast enactment of the legislation and blaming the Conservatives for the delays. Yet here is the reality: Bill C-10, the predecessor to Bill C-11, would have become law back in 2021 had the government not opened the door to regulating user content. Instead, the bill rightly became a source of concern, leading to years of legislative delays that virtually guarantees that nothing will take effect until 2025 at the earliest.
What the CRTC’s New Registration Requirements Mean for Regulating Everything from Online News Services to Podcast Providers
The CRTC last week released the first two of what is likely to become at least a dozen decisions involving the Online Streaming Act (aka Bill C-11). The decision, which attracted considerable commentary over the weekend, involves mandatory registration rules for audio and visual services that include far more than the large streaming services. The Commission says the registrations would give it “de minimis information about online undertakings and their activities in Canada, which would give the Commission an initial understanding of the Canadian online broadcasting landscape and would allow it to communicate with online undertakings.” By contrast, the inclusion of registration requirements for a wide range of undertakings, including some podcast services, online news sites, adult content sites, and social media left some characterizing it as a podcast registry or part of “one of the world’s most repressive online censorship schemes.” So what’s the reality? As is often the case, it is not as bad as critics would suggest, but not nearly as benign as the CRTC would have you believe.
Foreign Internet Streaming Services Warn CRTC Its Bill C-11 Regulations May Lead to Blocked Content or Services in Canada
The Bill C-11 process featured a marked divide on the implications for consumer choice. While Heritage Minister Pablo Rodriguez claimed it would lead to increased choice (a claim he re-iterated this week in Banff), critics of the bill argued that the opposite was true, namely that the bill would likely lead to fewer services entering the Canadian market or streamers reducing content choices. The net effect – contrary to government claims – would be to impact what Canadians could watch. With the CRTC’s Bill C-11 consultations now underway, foreign streamers are warning that they may block services from Canada or reduce the scope of their content libraries due to the regulatory requirements or burden. This notably includes mainstream streamers such as PBS and niche services such as AMC’s ALLWAYSBLK.