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.
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Pay Up and Shut Up: How The CRTC Has Removed Canadians From Broadcast and Internet Policy
Last December, I appeared before the CRTC as part of Bill C-11 hearings, where I emphasized the need for the Commission to pay attention to competition, consumer choice, and affordability. My takeaway from that appearance was that “my intervention met with skepticism from some Commissioners who see their role as guardians of the broadcasting system on behalf of longstanding beneficiaries with little regard for the impact on consumers or the risks to competition.” It turns out that was a pretty good read of the situation as this week’s Bill C-11 streaming ruling acts as if consumers, competition, and affordability are irrelevant issues that are at best someone else’s concern. The result is that Canadians has been largely removed from broadcasting and Internet policy at the regulator, expected to pay up and shut up.
The Behind-the-Scenes Bill C-18 Battle: How Newspapers, Big Broadcasters and the CBC Are Trying to Seize Control Over How Google Money is Allocated to Canadian Media
Bill C-18, the Online News Act, is best known for two things: the government’s bad bet that Meta was bluffing when it said it would block news links in response to a system that mandated payments for links (news links have now been blocked for 10 months in Canada) and its attempt to salvage the legislation by striking a deal with Google worth $100 million annually. The Google deal has receded into the background, but the behind the scenes there is an intense battle over who will be selected to administer and allocate the annual $100 million. The outcome – which will be decided by Google by June 17th – will have enormous implications for Canadian media for years to come since it is anticipated that Google and the selected collective will negotiate a five year deal worth $500 million. Sources say that two proposals have emerged: a big media consortium led by News Media Canada (NMC), the Canadian Association of Broadcasters (CAB), and the CBC, pitted against a proposal spearheaded by a group of independent and digital publishers and broadcasters that is promising a more transparent and equitable governance approach.
More Free Money: Media Lobby Campaigning For Even More Government Funding, Grants and Tax Reform
The proverbial ink is barely dry on the disastrous Bill C-18, yet the Canadian media lobby has already moved onto the next targets for government funding, grants, and tax reform. The effort, which is seemingly designed to ensure that government funding or regulation cover the entire cost of news, focuses on extending grants, expanding provincial tax credits, and overhauling the tax treatment of ad spending. It has hard to overstate how dangerous these policies have become as the sector’s addiction to government funding and regulation has come at an enormous cost that erodes public trust and created dependence on the very governments the press is supposed to hold to account.
The slippery slope of this government’s funding the media has been ongoing for years: the Local Journalism Initiative offered tens of millions in grant money, the Labour Journalism Tax Credit created a tax credit worth nearly $14,000 per journalist when established that was more than doubled last year on a retroactive basis to nearly $30,000 per journalist, and the Online News Act (Bill C-18) offered the hope (or more accurately illusion) of hundreds of millions more from Google and Meta. On top of the federal money, the Quebec government offers a similar tax credit system that comes close to ensuring that government money and regulation cover the entire cost of news journalists at print and digital publications in the province. And if that were not enough, the CRTC is working through its plan for Bill C-11, which the Canadian Association of Broadcasters hopes will lead to the creation of yet another news fund, with 30% of contributions from Internet streaming services such as Netflix and Disney going to the news divisions of Canadian broadcasters such as Bell and Rogers.
The House of Cards Crumbles: Why the Bell Media Layoffs and Government’s Failed Media Policy are Connected
Bell’s announcement this week that it is laying off thousands of workers – including nearly 500 Bell Media employees – has sparked political outrage with Prime Minister Justin Trudeau characterizing it as a “garbage decision.” The job losses are obviously brutal for those directly affected and it would be silly to claim that a single policy response was responsible. Yet to suggest that the government’s media policy, particularly Bills C-11 and C-18, played no role is to ignore the reality of a failed approach for which there have been blinking warning signs for years. Indeed, Trudeau’s anger (which felt a bit like a reprise of his Meta comments over the summer) may partly reflect frustration that his policy choices have not only not worked, but have made matters worse.
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The Law Bytes Podcast, Episode 209: Peter Menzies on Why the Canadian News Sector is Broken and How to Fix It 
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