The Standing Committee on Canadian Heritage is reportedly set to release its much-anticipated study on the future of media today with a recommendation for a new 5% tax on broadband services to fund Canadian media and the creation of Cancon. The Globe reports that the Conservative MPs on the committee oppose the recommendation. I raised concerns about the possibility of new digital taxes last fall, fearing that Canadian Heritage Minister Melanie Joly would implement them as part of her review of Cancon in a digital world and noting that the Ontario government appeared supportive of the approach. Joly has yet to outline her plans which are scheduled for release in September, but has refused to rule out Internet taxes and regulation. I will update this post once the full report is released, but based on the Globe report it must be stated that an Internet tax to fund Canadian content is a terrible policy choice with exceptionally harmful effects on the poorest and most vulnerable households in Canada.
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The Upcoming 2017 Copyright Act Review: What Next for Canadian Copyright
This week Policy Options launched a new series on copyright reform with plans to provide perspectives from across the spectrum. I was delighted to write the first published piece, which starts by making the case that the Conservative government got far more right than wrong in 2012. Canadian copyright law is widely regarded as one of the most innovative in the world with unique, forward-looking provisions (non-commercial user generated content, notice-and-notice) and flexible fair dealing. The last five years have largely achieved what the government had in mind as the days of labelling Canada a “piracy haven” are over, the cultural industries such as movies and music are enjoying record earnings, and new digital services have found great success in Canada.
So, as Parliament prepares for a review of the law later this year, what’s next for Canadian copyright?
Why Violating Net Neutrality is not a Smart Way to Promote Canadian Content
In the aftermath of last month’s CRTC’s zero rating decision, there have been several pieces in the Globe and Mail raising the possibility that Canadian cultural policy might benefit from zero rating Cancon. In other words, rather than rely on net neutrality rules (including restrictions on zero rating) to ensure that Canadian content benefits from a level playing field, perhaps it would be even better to tilt the rules in favour of Cancon by mandating that domestic content not count against monthly data caps.
The issue was raised during the CRTC zero rating hearing as Canadian Media Producers Association argued that:
the Commission should be open to considering ways in which differential pricing practices related to Internet data plans could be used to promote the discoverability of and consumer access to Canadian programming.
The CRTC rejected the argument, concluding that “any benefits to the Canadian broadcasting system would generally not be sufficient to justify the preference, discrimination, and/or disadvantage created by such practices.” In response, anti-net neutrality advocate Roslyn Layton argued that Canada should exempt Canadian content from data charges, an idea picked up by Kate Taylor and Robert Everett-Green.
Can Cancon Compete?: A Response to the WGC on The Future of Canadian TV Production
My post this week on the recent CRTC’s television licensing decision elicited a strongly worded response yesterday from the Writers Guild of Canada. My original post made two key points. First, responding to Kate Taylor’s assertion that CRTC Chair Jean-Pierre Blais has offered no consistent strategy to the challenges facing the Canadian television production industry, I noted that over the course of the past five years, Blais has charted a very clear path toward making Canadian policy and regulation relevant in the digital age by promoting a competitive marketplace for Canadian creators, consumers, broadcasters, and broadcast distributors.
Second, I defended the recent CRTC decision on several grounds, including the need to address the gap between regulated and unregulated services (such as Netflix), the already-significant public support for Canadian content creation, the incentives for Canadian broadcasters to invest in original content, and the fact that Canadian broadcasters contribute a very small slice of the overall financing of domestic fictional programming which suggests that the harm to the sector from a further reduction is overstated.
Canadian TV in the Netflix Age: In Defence of the CRTC Television Licensing Decision
Last week’s CRTC decision on group licensing for the major Canadian broadcasters has the creative community in a panic, claiming that it could “mean the devastation of Canadian domestic [television] production.” The decision, which set a uniform spending requirement of 5 percent on programs of national interest (PNI, which includes dramas, documentaries, some children’s programming, and some award shows), means a reduction in spending requirements for some broadcasters. The Writers Guild of Canada fears that the decision could lead to a reduction in spending on PNI of $200 million over five years.
Groups have heaped criticism on CRTC Chair Jean-Pierre Blais, whose term ends next month. The WGC labels him a “Harper appointee”, while Kate Taylor says “he doesn’t leave much of a legacy for himself” and that “his piecemeal approach offers no consistent strategy to address the challenges facing Canadian television production in the Netflix age.”
Blais may have his faults, but claiming that he has not had a strategic vision for the digital age is not one of them. He recognized that the advent of the digital networks, an abundance of consumer choice, and the effective removal of longstanding analog protections for Canadian creators would gradually reduce the relevance of the regulator and leave it with two choices. The first – favoured by the creator groups – was to temporarily prolong the protections by extending Cancon regulations to Internet services and increasing regulatory costs on broadcasters. The second was to jump on the digital bandwagon, gradually removing the safeguards and creating a regulatory environment premised on competition at all levels – creators, broadcasters, and broadcast distributors. Anyone following the CRTC broadcast and telecom decisions in recent years knows that he chose the latter.
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