Post Tagged with: "netflix"

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No Netflix Tax & No New Money: Reading Between the Lines of the Digital CanCon Consultation

Canadian Heritage Minister Melanie Joly’s release of the Canadian content in a digital world consultation is likely to spark renewed demands from industry stakeholders for more money from two main sources: unregulated Internet companies such as Netflix and the government. As I noted in my first post on the consultation release, there is a significant divide between the industry and the public on the issue. Industry stakeholders emphasize more public and government support, while the public is focused on efforts to promote Canadian content.

The government will surely wait for the consultation to close before adopting firm positions, but the new consultation paper makes it clear that not everything is on the table. In fact, it adopts several notable policies and sends some signals about future funding sources.

September 14, 2016 — Comments are Disabled — News

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Forget a Netflix Tax: How The Digital CanCon Review Can Shake Up the Status Quo

Canadian Heritage Minister Mélanie Joly’s digital CanCon consultation is likely to spark calls from the cultural establishment for new levies and taxes to fund the creation of domestic content. The Internet will be the primary target with demands for a Netflix tax along with legislative reforms that would open the door to additional fees on Internet providers.

Yet an unimaginative approach that seeks to regulate the Internet imposes costs that would make Internet access less affordable and create a regulatory environment that runs counter to fundamental principles of freedom of speech and access to information. Joly should reject efforts to recycle stale policies and instead embrace the opportunity to shake up Canadian cultural policy.

My weekly technology law column (Toronto Star version, homepage version) argues that the starting point should be a shift in funding for Canadian content creation. The current model, which relies heavily on mandatory contributions from the Canadian broadcasting community, is in decline as revenues from the sector slowly shrink (the Canadian Radio-television and Telecommunications Commission recently reported that conventional television revenues declined by 2.4 per cent in 2015).

May 10, 2016 — 12 comments — Columns

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The Trouble With the TPP, Day 26: Why It Limits Canadian Cultural Policies

The intersection between the TPP and Canadian cultural policies is likely to emerge as one of the more controversial aspects of the TPP, particularly given the government’s emphasis on a stronger cultural policy in its election platform. Earlier in the Trouble with the TPP series, I wrote that the TPP fails to protect Canadian cultural policy. I pointed to U.S. lobby pressure to limit Canadian protection of cultural policies as well as provisions that restrict Canada’s ability to consider expanding Cancon contributions to entities currently exempt from payment. I have not been a supporter of mandating Cancon contributions to online video provides such as Netflix, but restricting Canada’s right to do so in a trade agreement is shortsighted, bad policy.

Peter Grant has written a careful response to my post on Barry Sookman’s blog. He argues that Canada can still “maintain or enhance our cultural policies.” He opens by stating that “I am not entirely wrong” about the TPP being a departure from Canada’s traditional approach to culture in trade agreements. However, he argues that the TPP approach is not unique since the Canada – EU Trade Agreement adopts a similar approach. Yet CETA contains numerous cultural exceptions within the chapters for Cross-Border Trade in Services, Domestic Regulation, Government Procurement, Investment, and Subsidies. In the TPP, there are only seven provisions in the entire agreement that are subject to the cultural exception and many of the issues addressed by CETA are not covered. Further, the TPP has exceptions to the cultural exception not found in CETA and (as Grant notes) Canada did not get an explicit exception to allow for measures to allow domestic audio-visual content to be reasonably available as did Australia.

February 8, 2016 — 3 comments — News

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The Trouble with the TPP, Day 18: Failure to Protect Canadian Cultural Policy

Culture and the TPP has yet to garner much attention, but that is a mistake. The TPP departs from longstanding Canadian policy by not containing a full cultural exception and creates unprecedented restrictions on policies to support the creation of Canadian content. The Canadian position on trade and culture has been consistent for decades with successive governments requiring a full exemption for the cultural industries. The exemption, which is found in agreements such as NAFTA and CETA, give the government full latitude to implement cultural policies to support the creation of Canadian content.

The TPP’s approach to culture is different from Canada’s other trade agreements. Rather than include an exception chapter or provision, the TPP contains several annexes that identify “non-conforming measures.” This allows countries, including Canada, to list exceptions to specific TPP rules. Without an exception for the cultural industries, the TPP rules banning local presence requirements and national treatment for service providers would place Canadian cultural rules at risk. Annex II includes a Canadian exception for the cultural industries. The exception is promoted in the government’s summary of the TPP, which claims that the agreement:

includes a broad reservation under Services and Investment for existing and future programs and policies with respect to cultural industries that aim to support, directly or indirectly, the creation, development or accessibility of Canadian artistic expression and content. 

That led to media coverage reporting that Canada had obtained a full exception to protect cultural policies. A closer look at the actual text, however, reveals that Canada did not obtain a full cultural exception. Rather, there are two notable exceptions to the general cultural exception, which state:

January 27, 2016 — 10 comments — News

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Government Docs Suggest Officials Thinking About Website Blocking, Targeting VPN Usage

The Trudeau government has thus far said very little about its plans for future digital and copyright policy reform. There were few references in its election platform and the ministerial mandate letters that identify immediate policy priorities did not speak to the issue.

My weekly technology law column (Toronto Star version, homepage version) notes that according to ministerial briefing documents recently released by the government, Canadian Heritage officials have told new minister Mélanie Joly that emerging issues may include targeting the use of virtual private networks and website blocking. The comments can be found in a departmental briefing for Joly on copyright policy, which includes a discussion titled “what’s next” for copyright.

December 8, 2015 — 28 comments — Columns