Blue Ant says contribution regime should be flexible

Foreign streamers must pay their fair share of contributions to the Canadian broadcasting system, but should be able to choose how they do it, the CRTC was told Friday. The commission was wrapping up the second of three weeks of hearings into modernizing the broadcasting landscape. Blue Ant Media Inc. led the morning session. Its CEO, Michael MacMillan, said foreign undertakings should be contributing five per cent of their revenues immediately. But they should have the option of making monetary contributions or through Canadian Programming Expenditures (CPE). “Under no circumstances should Canadian broadcasters be required to make any new or incremental contributions as they are already making significant contributions to the system including via their CPE obligations,” he cautioned. Monies raised should be distributed to existing production funds rather than new entities, the CEO stated. MacMillan urged the regulator to change the regulatory requirements for existing broadcasters. The system has changed, he said. While at one time, American production houses were eager to licence their shows to Canadian networks, now many hold back so they can stream the content on their own channels. Scott Garvie, EVP of business and legal affairs at Canadian producer Shaftesbury Films Inc., worried about the future of broadcasting. “Will there be anything Canadian about that system when we’re done?,” he asked. “Change brings opportunities but also the real risk of unintended consequences.” Shaftesbury, which produces the Canadian TV shows Hudson & Rex and Murdoch Mysteries among others, called on international streamers to make base contribution donations. Garvie was critical of the presentation earlier in the proceedings by the Motion Picture Association of Canada. It made him feel as though Canadians were once again regulated to being hewers of wood and drawers of water, he asserted. Amazon.com Inc.’s Prime Video is one of the largest international streamers. It appeared at the afternoon sitting of the panel. Head of Canada, Australia and New Zealand Magda Grace said the company does not favour channeling money into legacy funds. “It’s our view that any contribution framework should be in line with the minister’s final policy direction to be flexible, adaptable and use tools that are based on incentives and outcomes,” she said. “We encourage the CRTC not to apply any mandatory contributions until the full scope and scale of contributions made by online undertakings has been assessed, data driven outcomes have been set and a flexible framework to recognize varied contributions and different business models is built.” There are different ways for the commission to achieve its goals, she added, without imposing monetary requirements on foreign streamers. The Alberta Media Production Industries Association suggested a siloed fund should be established just to service streamers. Edmonton filmmaker Connie Edwards proposed a $10 million threshold for contribution and a rate of five per cent. – Reporting by Paul Park at ppark@thewirereport.ca and editing by Phalen C. Tynes-MacDonald at pcreed@thewirereport.ca

Blue Ant says contribution regime should be flexible

Broadcast | December 4, 2023

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Blue Ant says contribution regime should be flexible

Broadcast | December 4, 2023

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