Hurtling toward online content ‘tipping point,’ Canadian voices could be drowned out, Perlmutter says

OTTAWA--Canada could find itself scrambling to provide a national voice on the Web if the country doesn’t get serious about its commitment to digital media and better communications infrastructure, the head of the National Film Board (NFB) told the Commons heritage committee Thursday. Speaking before the House Standing Committee on Canadian Heritage, Tom Perlmutter, chair and film commissioner of the NFB, said the fast-paced changes brought about by social media like Facebook and YouTube are propelling new media toward a “tipping point,” in which countries with ubiquitous broadband systems and frameworks for digital media production will have secured their places online. But those that have not will be left behind. Perlmutter noted that there are now one billion Internet users—20 per cent of the global population—and that 24.5 million Canadians go online per month. He pointed to an Ipsos Reid survey published earlier this year indicating for the first time that people spend more time online than watching TV. Many of the Canada's most popular websites are American, he said, such as Google, Yahoo, and Wikipedia. The impacts of social media and “Web 2.0” could be incremental, allowing countries to slowly improve their digital media infrastructure and regulatory frameworks, but he cautioned the changes could come suddenly, leaving the laggards struggling to catch up. “We have no way of knowing what that look like in five years,” he said of the Web and its impacts on Canadian cultural institutions. He called on the federal government to invest in broadband infrastructure to support faster Internet speeds. “Change becomes quantitative,” he said, noting that higher broadband speeds lead to more compelling and immersive Web experiences. Canada hasn’t kept up with broadband speeds, Perlmutter said. Singapore, he said, provides 1 Gbps Internet service—far faster than Canadian broadband connections. Rod Bruinooge, Conservative MP for Winnipeg South, suggested that Singapore’s higher population density provides the economy of scale necessary for widespread, high-speed Internet access. But Perlmutter said Singapore “still made a decision to massively invest,” adding that if the move weighs heavily on Canada’s national balance sheet, so be it. “There’s going to be a cost to that,” he said. “But that’s part of the cost for being Canadian.” Perlmutter told the committee that Canada has a poor track record of helping Canadian innovation thrive at home. “We have that potential,” he said, pointing out that Flikr, the Web photo-sharing site, was started by Vancouver-based Ludicorp, but Yahoo bought the company, essentially transforming it into a U.S. firm. Ian Kelso, president and CEO of digital media association Interactive Ontario, told the committee Thursday that Flikr—and other Canadian tech darlings like Club Penguin (now owned by Walt Disney Co.) and BioWare (owned by Electronic Arts Inc.)—should be considered Canadian success stories because such firms often maintain staff in Canada and founders usually stay to start up other businesses. Kelso said the federal government should consider digital and interactive media as distinct from traditional broadcast media because it’s more immersive, user-focused, and relies on a different set of technological skills and economics. It’s important that Canada does not create “cycles of dependence” that have trapped traditional content creation, Kelso said. He said the government should rethink broadcasting, telecom and immigration regulations to support digital media production and entice overseas talent to Canada. But Richard Paradis, president of Quebec-based research company Groupe CIC, cautioned the committee that convergence under the existing rules could allow “conflicts of interest,” in which broadcast distribution undertakings that also have broadcasting and newspaper publishing operations can favour their own media channels over others. Paradis said loosening the foreign ownership restrictions for Canadian media would be “pretty disastrous.” Allowing foreign control could hinder Canadian content production and dilute the nation’s voice on the global stage, he said. The Conservative government has pledged to open the door to foreign investment in the Canadian telecom sector. Trevor Doerksen, CEO of Calgary-based mobile video platform provider MoboVivo Inc., also appeared before the committee Thursday, and said that Canada could not produce a platform like YouTube partly because Canada’s venture capital community is too small. The Canadian Heritage standing committee has been studying digital media since last fall, exploring questions about the nation’s educational system, copyright laws, broadcasting rules and telecommunications infrastructure with respect to Canadian culture in new media. The committee is scheduled to hear from more witnesses in May. news@thewirereport.ca

Hurtling toward online content ‘tipping point,’ Canadian voices could be drowned out, Perlmutter says

News | 04/30/2010 3:10 pm EDT

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