The Chair of the Canadian Media Producers Association (CMPA) is concerned that the federal government has “sold out” to the interests of American Big Tech.
Canadian Heritage announced Wednesday morning it was reversing course on the Online Streaming Act, asking the CRTC to review its May 21 decision compelling foreign streamers earning more than $25 million in Canadian revenue annually to contribute 15% to Canadian programming expenditures (CPE). At the same time, Canadian Identity and Culture Minister Marc Miller announced $600 million in new taxpayer funding “to provide stability and immediate support to Canada’s audio and audiovisual sectors.”
While Miller cited concerns about the new requirements imposing costs that “could ultimately fall on Canadian consumers through higher prices,” CMPA Chair Kyle Irving, an Emmy-winning producer and partner in Winnipeg’s Eagle Vision, said since U.S. streamers entered Canada a decade ago, they’ve consistently raised their prices year-after-year anyway.
“Make no mistake, this will continue regardless of any government action,” said Irving, in a statement. “The question we must ask is should U.S. streamers, who’ve made tens of billions from Canadian audiences, also be required to invest in Canadians telling Canadian stories?”
“We’re still reviewing this morning’s developments, but with this announcement we are concerned that the federal government has sold out Canadian culture in favour of big U.S. tech interests,” Irving continued. “If the DST [Digital Services Tax] file taught us anything, it is that concessions with nothing in return, only result in demands for more concessions.”
ACTRA, which represents more than 30,000 professional performers working in recorded media in Canada, expressed shocked at the federal government’s decision to dismantle contribution obligations for foreign streaming giants, calling it “a significant step backwards for our industry’s future.”
“We endured years of debate to finally get an Online Streaming Act that would require billionaire-owned streamers to pay the bare minimum into Canadian culture,” said ACTRA National President Eleanor Noble. “We thought we were finally there. Instead, today’s decision lets billionaire streamers and studios completely off the hook. Rather than requiring wealthy media companies to modestly invest in Canada’s cultural ecosystem, Ottawa has chosen to transfer that responsibility to Canadian taxpayers under the guise of ‘consumer protection.’”
“This backdoor ‘subscription increase’ does not benefit Canadian consumers – it appeases American corporate interests, Noble added. “Our industry was assured that culture would not be a bargaining chip in North American free trade negotiations, but this decision proves differently.”
Rogers, CAB ‘encouraged’
The Canadian Association of Broadcasters (CAB), meanwhile, which has long voiced concerns about the fairness of the Online Streaming Act due to broadcasters shouldering the lion’s share of CPE requirements, said it’s encouraged to see the government take action to help ensure that the Act treats Canadian broadcasters equitably.
“From the outset of the discussions around the Online Streaming Act, Canada’s broadcasters have asked that there is fairness between their obligations and those of streaming services,” said CAB President Kevin Desjardins. “We believe that the government’s announcement today is an important step to moving the implementation of these new rules forward in a balanced and expeditious manner.”
“We cannot allow these important investments in vital Canadian media, including local and national news, to be delayed any further. We are hopeful this announcement will address the concerns of broadcasters and streamers equally, immediately, and for the long term.”
Rogers also released a statement saying it was pleased to see the minister take “swift and decisive action to put the CRTC on the correct path to modernizing Canada’s broadcasting regulatory framework.”
“At a moment when Canadian companies are competing with the world’s largest streaming giants, the rules must reflect that reality,” said Rogers spokesperson Zac Carreiro. “The CRTC’s framework would have introduced complicated and onerous new expenditure quotas with no meaningful relief to Canadian broadcasters, while placing a much lighter set of obligations on American streamers. Today’s fiercely competitive environment demands the immediate reduction or elimination of the mandatory financial contributions and inflexible expenditure requirements imposed on Canadian cable companies and broadcasters.”
“We will work with the Government and the CRTC to deliver a truly equitable framework – one that gives the Canadian broadcasting sector the same financial relief and flexibility extended to foreign streamers, so we can invest, compete, and respond to the needs of Canadians.”
