The CRTC has released its much-anticipated Bill C-11 ruling on the initial mandated contributions from Internet streaming services. The headline the Commission and government will promote is that the services will be required to contribute 5% of their Canadian revenues to support various Canadian funding programs that support film and TV production, news, and music. The decision is a perfect illustration of a sector that is too often focused on regulatory payments rather than market-based success with incredible micromanagement of funding in which the CRTC is turned into a policy funding machine of the government (no surprise that government officials spent last week calling stakeholders for advance supportive comments). For the moment, the actual contributions from Internet streaming services are ignored, an updated definition of Canadian content doesn’t exist, commercial success is irrelevant, and subsidies for the news operations of companies such as Bell and Rogers are encouraged. To top it off, the streaming services are required to pay but are unable to access the funds even as they invest in production in Canada. Bill C-11 was about “making web giants pay” and that is what the CRTC was determined to do even if it is consumers that will ultimately get the bill.
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The Law Bytes Podcast, Episode 202: David Soberman on the Reality Behind Claims Canadian Wireless Prices Have Been Cut in Half
Prime Minister Justin Trudeau recently claimed that “we’ve cut the cost of cell phone plans in half since 2019 – in part by increasing competition.” Is that true? What is the real state of Canadian wireless competition and how does pricing compare with other countries? To help answer those questions, this week David Soberman, a Professor of Marketing at the Rotman School of Management at the University of Toronto and the Canadian National Chair of Strategic Marketing joins the Law Bytes podcast. Professor Soberman’s research is focused on understanding how the operation of markets is affected by the exchange of information between organizations and customers, relationships within the distribution channel and the introduction of innovations to markets.
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.
Bill C-18 is Dead, Long Live Bill C-18: Government Rewrites Online News Act With Final Regulations
The government this morning released the final Online News Act regulations, effectively gutting the law in order to convince Google to refrain from blocking news links in Canada and to fix some of the legislative mistakes that have been apparent from the start. While proponents of the law will point to the $100 million contribution from Google as evidence of success, privately most in the industry and government acknowledge the obvious: Bill C-18 was deeply flawed and a massive miscalculation that has created far more harm than good. Canadian Heritage Minister Pascale St-Onge seemingly agrees as she was willing to make changes that were derided by the government throughout the legislative process. Indeed, by the time St-Onge took over the file that was a challenging salvage job, Meta’s $20 million in news deals were lost and blocked news links on Facebook and Instagram was a reality. The prospect of the same happening with Google was too much for the industry and the government since the lost deals would have been at least double that amount (many believe in the $40-50 million range) and lost news links in search would have been catastrophic.
The Law Bytes Podcast, Episode 188: Consumers, Competition or Corporate Cash Grab? – My Bill C-11 Appearance at the CRTC
The CRTC just concluded a three week hearing on Bill C-11 with its primary focus on the prospect of mandating interim payments by Internet streaming services. The result was predictable as just about everyone made their way to Gatineau to make their case for cash. I appeared for the first time before the CRTC where argued that it should prioritize competition, consumer choice and affordability, recognizing that the emerging system brings with it risks of market exit or higher prices. This week’s Law Bytes episode goes inside the Commission hearing for my opening statement and exchanges with the panel of Commissioners.
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