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: "crtc"
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.
CRTC Bill C-11 Ruling “Makes Web Giants Pay” But it is Canadian Consumers That Will Get the Bill
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.
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.
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