Report Proposes Changes to Canadian Media Regulations

A new report from Canada’s Broadcasting and Telecommunications Legislative Review Panel has proposed major changes to the regulatory framework for media and communications companies, including making CBC/Radio-Canada advertising-free and requiring streaming services to invest in local content.

Created in 2018 by the Ministers of Innovation, Science and Economic Development Canada and Canadian Heritage, the six-member panel, chaired by Janet Yale, was tasked with reviewing the Broadcasting Act, the Telecommunications Act and the Radiocommunication Act.

“Advanced technology is transforming the ways we communicate, entertain and inform ourselves as well as driving economic opportunities and new business models that enhance competitiveness domestically and internationally,” said Yale. “These unprecedented opportunities also expose us to significant risks including the growing—and global—threat of privacy breaches, the spread of harmful content and the impact of Big Data on all dimensions of our lives. A Canada where everyone benefits from the social, creative and economic potential this new world presents requires a legislative framework that responds to the challenges of today, while also being flexible enough to address the unknown challenges of tomorrow. Our recommendations for reform are practical and actionable providing the legislative powers and regulatory tools necessary to seize the opportunities and address the risks of the digital age.”

Key recommendations include applying CRTC jurisdiction to all companies providing media content services to Canadians—”whether online or through conventional means, whether foreign or domestic, whether or not they have a place of business in Canada.” This new model, the report says, “recognizes the realities of a borderless, online world: one in which Canadians now access media content based on what is relevant to them, not the means of delivery or the nationality of the media content service provider; and one in which service providers compete directly and actively to attract Canadian audiences and benefit from Canadians’ subscription revenues, advertising revenues and personal information.”

Companies serving Canadian consumers should be obligated to invest in local content and promote the discovery of Canadian content, the report continues. “We want to be clear that we are not recommending that Canadian content be supported by the so-called ‘Netflix Tax’—charging consumers an extra levy on subscriptions to such services as Netflix. It is more appropriate to establish a regime that requires such online streaming services that benefit from operating in Canada to invest in Canadian programming that they believe will attract and appeal to Canadians. This approach would ensure a meaningful contribution to Canadian cultural policy objectives and the production sector. It need not result in higher prices for consumers.”

The report also identifies the need to strengthen Canadian producers’ ability to retain the commercial rights to their shows and make it easier for broadcasters to adapt their business models to create and produce Canadian content. It also calls for the merger of Telefilm Canada and the Canada Media Fund into one institution that supports screen-based content.

Another key recommendation is making CBC-Radio Canada advertising-free over the next five years, beginning with news content.