Heritage committee, CMPA, call for CRTC consultation on foreign, online broadcasters

The Canadian Media Production Association (CMPA) and the House of Commons heritage committee are among voices now calling on the CRTC to open a proceeding to look at the emergence of foreign-owned digital broadcasting players like Netflix Inc. In a report tabled Monday, which looks at the impacts of private television ownership changes and the move towards new viewing platforms, the Commons heritage committee recommended that the CRTC hold a hearing on non-Canadian over-the-top providers to determine whether and how they should support Canadian cultural programming. The CMPA said Wednesday that it supports the idea. In February, the CMPA met with film and television industry leaders and representatives from major Internet service providers (ISPs) to look at ways for online broadcasters to make monetary contributions to the Canadian broadcasting system. The meeting looked at the power of the CRTC to attach new conditions to its new media exemption order to require foreign-owned players like Netflix to pay contributions into the Canadian broadcasting system. The Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) has also said online content services should contribute to the Canadian broadcasting system. CMPA president and CEO Norm Bolen said in an interview that the organization has been working with industry players to understand the potential impact of over-the-top players on the system. Bolen said online broadcasters should be required to contribute to Canadian content creation. “I think the heritage committee is endorsing the idea that we need to pay attention,” he said. “I believe this will become a significant public policy issue.” He added that the issue should be dealt with on its own and not wrapped into the CRTC’s vertical integration hearing this spring. The CRTC is holding invitation-only meetings with key broadcasting and telecom industry stakeholders in Ottawa on Wednesday and Thursday this week, where online broadcasting is expected to be a major issue. As part of those meetings, Bolen will be participating in a discussion Wednesday with Netflix representatives to talk about his group's position. “I'm not assuming that they would be automatically not prepared to make a contribution. Perhaps they would like to acquire some significant Canadian content,” he said. “My optimistic hope would be that we could actually negotiate some arrangements with them to help us to address these issues.” ISPs and major Canadian communications companies have also weighed in on the issue. In December, Shaw Communications Inc. appeared before the committee to call for the reconsideration of the exempt status for foreign content providers under the CRTC's exemption order for new media broadcasting undertakings. Shaw said non-Canadian players have access to the world's most popular content, yet have no Canadian content funding or exhibition requirements. Rogers Communications Inc. also told the committee it should consider the regulation of online broadcasters as part of its vertical integration hearing in June. Netflix is one of the main foreign players operating in Canada, but Bolen said Hulu and Amazon could soon join the ranks. In a previous interview, Steve Swasey, a spokesman for Netflix Canada, said Netflix voluntarily provides significant amounts of independent, Canadian content on its site and continues to add it to its library. The heritage committee's report also recommended that the federal government consider the issue of fair terms of trade between independent producers and vertically integrated companies when reviewing the Canada Media Fund (CMF). The CMPA, which appeared before the heritage committee in December, said at the time that vertical integration and consolidation in the broadcasting industry has led to an imbalance between vertically integrated broadcasters and independent producers. Bolen said that the CMF can be used a vehicle to promote fair terms of trade. When the CMF invests in programming, it ties guidelines and regulations to the funding. For example, the CMF can limit the licence term to a certain number of years. Bolen said another expectation could be compensation for digital rights. “It's about the Canada Media Fund putting in safeguards to ensure that broadcasters can't just dictate to the producers. The broadcasters now control the funding envelopes at the CMF ... They have all the leverage,” he said. On Tuesday, the government announced in its budget that it would give the CMF $100 million in stable funding per year. Bolen said that when the government transfers that money to the CMF, it can tell the fund how it expects the money to be allocated. “The Heritage Department has a great deal of ability to influence how the CMF puts its guidelines together and how it spends money,” he said. Bolen said the government could recommend that the CMF support fair terms of trade between producers and broadcasters when allocating funds. The committee report also recommended: that the government ensure that publicly-funded Canadian content be available on as many distribution platforms as possible; that the CRTC establish deadlines for the country's communications system to be fully accessible to persons with disabilities; and that the government reaffirm the importance and necessity of Canadian control and ownership of Canadian broadcasting. The committee report was not unanimous, however. The Bloc Québécois wrote a dissenting report, arguing that the recommendations do not reflect the industry in Quebec. The Bloc said Quebecor Media Inc., one the province's top industry players, should have appeared before the committee. “As Quebecor and other important Quebec stakeholders were unable to testify, the report and its recommendations reflect the experience and vision of Canada only. This report does not address Quebec’s issues and problems,” the Bloc members of the committee wrote. The party added that federal jurisdiction over arts, culture, telecommunications and broadcasting policy should be transferred to the Quebec provincial government. kfournier@thewirereport.ca

Heritage committee, CMPA, call for CRTC consultation on foreign, online broadcasters

News | 03/23/2011 7:13 pm EDT

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