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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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.
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.
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.
Government’s Telecom/Broadcast Review Sets Up Internet Taxes and Regulation As a 2019 Election Issue
The government unveiled the members of its telecom and broadcast review panel this morning setting the stage for Internet access taxes, Netflix regulation, and the imposition of cultural policies on telecommunications to emerge as a 2019 election issue. The new panel will be chaired by Janet Yale, who brings experience from both telecommunications and broadcasting to the role. The remaining six panel members line up nicely as telecom nominees (Hank Intven, my colleague Marina Pavlovic, and Monica Song) or broadcast nominees (Peter Grant, Monique Simard, and Pierre Trudel).
The leaked coverage this morning paints the panel as an effort to redraft broadcasting regulation with Internet companies such as Netflix and Facebook firmly in the government sights. Yet the reality is far more complex with terms of reference that touch on a wide range of telecom and broadcast issues. The Canadian Heritage perspective may be focused on broadcast and Internet regulation (despite repeated assurances that there is no support for new Internet taxes), but the ISED view will be focused on competition, consumer issues, and net neutrality. Last week’s CRTC report provides momentum for Internet taxes and regulation, however, the government has yet to provide much of a response. Indeed, the instructions to the panel reflect the departmental tensions with language that supports both sides and questions that touch on everything from consumer protection to the CBC.
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