Broadcasting rule changes proposed to get streamers to fund Canadian storytelling

Canadian Prime Minister Justin Trudeau congratulates Steven Guilbeault after he was sworn-in as Minister of Canadian Heritage during a ceremony at Rideau Hall. Image: AFP/Chris Wattie

Ottawa proposed changes to Canada’s broadcasting regulatory framework on Tuesday, Nov. 3, that would see it applied to booming online streaming platforms and may require them to contribute cash to support Canadian storytelling.

If passed by parliament, the amendment to the Broadcasting Act would empower the Canadian Radio-television and Telecommunications Commission (CRTC) to apply the same rules as traditional broadcasters to companies such as Netflix, Amazon Prime and Spotify.

It may also compel them to contribute to a fund that supports the creation, production and distribution of Canadian music, film and television, which the government estimates could raise as much as 830 million Canadian dollars (around $631 million or P30.5 billion) by 2023.

“One system for our traditional broadcasters and a separate system for online broadcasters doesn’t work,” Canadian Heritage Minister Steven Guilbeault told a news conference. “Our government believes that everyone who benefits from the system should contribute to it fairly.”

Critics, however, said the legislative changes do not go far enough.

“The new Broadcasting Act… is a mess,” tweeted opposition New Democratic Party MP Alexandre Boulerice, accusing the government of having “surrendered to Big Tech without a fight.”

The Broadcasting Act has not been updated since 1991, prior to the advent of the internet.

Prime Minister Justin Trudeau’s minority Liberal government has been under pressure by Canadian broadcasters to tax Netflix and others to level the playing field.

A government briefing document noted that 62% of Canadian households now subscribe to Netflix, which last year generated CA$1 billion in revenues (around $761 million or P36.8 billion) in Canada.

At the same time, the revenues of traditional radio and television broadcasters are stagnating or in decline, along with their contributions to the Canadian content fund.

Guilbeault noted that some of the streaming platforms are already spending on Canadian music, television and film productions, but their contributions are only voluntary. Netflix, for example, announced in 2017 it would spend CA$500 million (around $380 million or P18.4 billion) or five percent of its global production budget to make original films and television shows in Canada.

The CRTC, Guilbeault said, is expected to sort out how the funding requirements would be applied to streaming services over the coming year.

User-generated content, online news and video games, the government said, will not be subjected to the new rules. CC

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