Netflix and MPA-Canada want C-11 to be flexible for global undertakings

Netflix Inc., and the Motion Picture Association - Canada (MPA-Canada), of which it is a member, told the Senate committee studying the Online Streaming Act, that it must be amended to provide flexibility for global players. The Senate Committee on Transportation and Communications continued its study of Bill C-11 Wednesday. “We support the thinking at the heart of C-11 – modernizing broadcast policy to create a flexible framework that will allow global streaming services to play to their strengths,” president of MPA-Canada Wendy Noss told the committee. Netflix’s director of Public Policy Stéphane Cardin, said the company continues to grow its presence in Canada. According to Cardin, Canada remains one of Netflix’s top production companies globally. He said since 2017, it invested more than $3.5 billion in Canada for films and series that launched on Netflix, including its own titles, licensing agreements with independent Canadian broadcasters and producers, and acquisitions of “numerous” French- and English-language classic films. Cardin added that Netflix promotes Canada’s filming locations through its “Netflix in Your Neighbourhood” website, promotes Canadian titles at conferences and launch events, and has a showcase of Canadian content collections. “Each of these models contributes to the system,” he said. Cardin said Netflix supports the bill “to the extent that C-11 aims to create a flexible framework that will enable the CRTC to recognize the different ways that individual online services contribute, to tailor conditions of service applied to online undertakings, and to modernize the definition of Canadian content” rather than transposing the current regulatory requirements on to online streaming services or using outdated definitions of Canadian content. Cardin noted that a lot of Netflix's Canadian productions do not qualify under the current definition, even though the majority or totality of key creative roles are held by Canadians. “We believe a new legislative framework should recognize that streaming services provide an unparalleled opportunity to promote Canadian stories to global audiences,” he said, adding that the company supports MPA-Canada's proposed amendments. Noss said MPA-Canada, which represents Netflix, Disney, Warner Bros. Discovery, NBC Universal, and Sony, wants the CRTC to create a modern, flexible definition for Canadian programs. The group proposed amending a section of the bill (10 (1.1.)), which outlines considerations the commission shall make when forming regulations to include that “no one factor shall be determinative.” According to Noss this would “expand opportunities for Canadian creatives to promote content made by, with, or about Canadians, and bring Canadian stories to the world.” She also said that the large global studios spent $5 billion in Canada in 2021, accounting for half production in Canada and 90 per cent of its growth. Noss also recommended that Section 3.1 of the bill – which reads “each broadcasting undertaking shall contribute to the implementation of the objectives of the broadcasting policy set out in this subsection in a manner that is appropriate in consideration of the nature of the services provided by the undertaking;” – be amended to stipulate that the act is “reflective of the fact that global, not just Canadian undertaking are included in the regulatory system.” Noss said that recognizing that global undertakings are included is necessary to foster equitable requirements for global online undertaking. “ This approach recognizes the fundamental differences in content strategies between streaming services with unique business models competing around the world, and Canadian broadcasters who operate only in a closed domestic market with access to legislative and regulatory benefits and protections,” she said. Finally, Noss proposed the committee update the section dealing with discoverability to ensure that it states that the CRTC cannot micro-regulate the appearance of the user interface of online undertakings “to ensure the CRTC will encourage competition, innovation, and promote choice and affordability for Canadian consumers.” — Reporting by Jenna Cocullo at jcocullo@thewirereport.ca and editing by Michael Lee-Murphy at mleemurphy@thewirereport.ca. Correction: An earlier version incorrectly quoted Stéphane Cardin as saying that Netflix had invested $3.5 million in Canada since 2017.

Netflix and MPA-Canada want C-11 to be flexible for global undertakings

News | 10/04/2022 5:14 pm EDT

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