Canadian Heritage Minister Steven Guilbeault has said that his top legislative priority is to “get money from web giants.” While much of the attention has focused on his ill-advised plan to require Facebook to obtain licences for linking to news articles, his first legislative step is likely to target Internet streamers such as Netflix, Amazon and Disney with new requirements to fund Canadian content and to increase its “discoverability” by making it more prominent for subscribers. Based on his comments at several town halls, Guilbeault is likely to also create new incentives for supporting indigenous and persons of colour in the sector with a bonus for those investments (potentially treating $1 of investment as $1.50 for the purposes of meeting Cancon spending requirements). Much of the actual implementation will fall to the CRTC, which will be granted significant new regulatory powers and targeted with a policy direction.
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“Get Money From Web Giants”: Why Canadian Heritage Minister Steven Guilbeault’s Top Legislative Priority is Risky Business
As Canadian Heritage Minister Steven Guilbeault prepares an Internet regulation plan that features the prospect of licences for linking, undermining net neutrality, and trade sanctions, he has typically argued that “it’s about fairness”, suggesting that foreign companies unfairly benefit from the Canadian market at the expense of domestic companies. Yet when Guilbeault appeared at a production sector town hall last week, he was far more candid. Guilbeault told the sector that in a minority government situation, his department had to choose between a massive bill changing “everything under the sun” or to slice it up into smaller pieces. Having chosen the piecemeal approach, Guilbeault pointed to his top priority: get money from the foreign Internet companies (his exact words at 47:58 were “the most pressing thing we needed to do was to get oxygen into the system, which is money. And go and get that money where that money is. Which is web giants.”)
The Broadcast Panel Report and Discoverability of Canadian Content: Searching for Evidence of a Problem
The Broadcast and Telecommunications Legislative Review Panel report places considerable emphasis on the need to support the “discoverability” of Canadian content. The term appears repeatedly in the report as discoverability of Canadian content is treated as an equivalent goal to creation and production. Given the panel’s view of its importance, it recommends that all media content undertakings (other than some news organizations) be subject to discoverability requirements:
The CRTC must also be able to impose discoverability measures on media content companies. Consumers now have access to an endless choice of content, making it difficult to find, or simply recognize, Canadian content. In fact, a majority of consumers have said that they have difficulty finding content they want to watch. Further, algorithms and AI-based processes have a major influence on program recommendations with a consequent influence on the discoverability of content.
A Demonstrably False Premise: Why “Inevitable” Canadian Internet and Cancon Regulations Won’t Level the Playing Field, Support Canadian Stories or Save a Thriving Industry
Later this week, a government appointed panel tasked with reviewing Canada’s broadcast and telecommunications laws is likely to recommend new regulations for internet streaming companies such as Netflix, Disney, and Amazon that will include mandated contributions to support Canadian film and television production. In fact, even if the panel stops short of that approach, Canadian Heritage Minister Steven Guilbeault and Canadian Radio-television and Telecommunications Commission chair Ian Scott have both signalled their support for new rules with Mr. Guilbeault recently promising legislation by year-end and Mr. Scott calling it inevitable.
My Globe and Mail op-ed notes that the new internet regulations are popular among cultural lobby groups, but their need rests on a shaky policy foundation as many concerns with the fast-evolving sector have proved unfounded.
Netflix Data Suggests Streaming Giant Spending One-Third of Canadian Revenues on Film and TV Production in Canada
Earlier this week, Canadian Heritage Minister Steven Guilbeault tweeted that he plans to work with Innovation, Science and Industry Minister Navdeep Bains to amend Canadian law to ensure web giants offer more Canadian content, contribute to its creation, promote it, and make it easier to find. The tweet was consistent with the government’s platform and mandate letters that have been pointing to increased Netflix regulation for many months. While there is much to be said about the specifics of each of these regulatory issues – the wisdom of government regulating the Netflix recommendation algorithm, the false “level playing field” arguments, the impact on the company’s 6.5 million Canadian customers among them – it is important to go back to how this debate started with the claims that only regulation would ensure support for film and television production in Canada.
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