Platforms could pull out of Canadian market if regulated: Google

Alphabet Inc.’s Google already contributes to the Canadian creative system by providing the infrastructure for users to upload and share their content and enabling them to earn revenue from it, the company is telling the federal review of Canada’s communications legislation. In outlining its arguments against bringing online services into the regulatory system for broadcasting, the company told the expert panel in charge of the review that any new regulatory model “must also recognize that different platforms contribute to Canada’s creative ecosystem in different ways.” Open platforms like its video giant YouTube contribute by allowing Canadians to reach global audiences at no cost to them, it said, which is something that requires billions in infrastructure investment. It also outlined it has a revenue-sharing model and other monetization features that enable some of those creators to build “self-sustaining businesses,” as well as promotional programs, some of which highlight Canadian users and resources like various programs and workshops. In 2017, in a company first, YouTube began highlighting Canadian content on its website through the YouTube Spotlight Canada program. Later that year, the Canada Media Fund (CMF) used the platform to release classic Canadian programs. Early last year, a conference heard that competition in the over-the-top (OTT) space is driving a trend of increasing ad-supported video-on-demand services. The CMF listed YouTube as an example. “While these contributions may be different than a broadcaster or a BDU, they represent massive investments that are available to all Canadian creators, supporting the diverse range of Canadian content available on the platform.” It said imposing the broadcast regulatory system on open internet platforms would have a number of negative effects, including potentially cutting Canadians off from access, since “some platforms will simply refuse to offer service to Canadians if it means they will be subject to Canadian broadcast regulatory requirements, while others will likely pass the cost on to consumers, increasing prices and reducing accessibility.” The company also highlighted broadband access, noting that internet service for many rural and lower income Canadians is limited. “To facilitate this, and to further competition in the wireless and wireline markets, we support the adoption of the flexible telecommunications regime that would readily permit the introduction of new services, such as Mobile Virtual Network Operators, and allow for more flexibility in spectrum management.” Comments to the review were due Jan. 11, though the more-than-2000 submissions won’t be posted publicly by the panel in charge of the review until June 30. In the meantime, various companies and organizations, including the CRTC and CBC/Radio-Canada, have been making their comments public.

Platforms could pull out of Canadian market if regulated: Google

Brief | January 16, 2019

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Platforms could pull out of Canadian market if regulated: Google

Brief | January 16, 2019

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