TWO WEEKS AFTER THE DEADLINE for filing comments with the Broadcast and Telecom Legislative Review panel – and on the eve of this week’s CMPA Prime Time conference in Ottawa, Netflix made its submission public.
Stephane Cardin, Netflix’s director of public policy, Canada, told the Canadian Press that since he was going to be on a panel with other stakeholders which had made their positions public, it was appropriate to do so. Bell Media, Corus Entertainment, CBC, CMPA and BTLR panel chair Janet Yale will be with him on the panel on the first day.
(That said, neither Bell nor Corus have made their submissions available yet to Cartt.ca, despite our repeated requests.)
It’s unclear who Netflix believes it can convince with its intervention in such a crowd. Cardin should know, he was at the Canadian Media Fund until recently. Cartt.ca, after reading more than 30 submissions that were made available to us was able to determine that only a very few issues found consensus.
Amending the Rights of Way disposition in the Telecom Act to allow deployment of 5G is one. Make those who benefit by broadcasting in Canada, contribute in Canada is another: That is, there must be payments to the CMF, CPE contributions and exhibition contributions for anyone in the Canadian audiovisual marketplace. We’re not talking unanimity here, but very large consensus.
The consensus on those issues predates the deadline for intervention so Netflix knows what it is up against because as the biggest name in streaming, it is the lightning rod for many frustrations in the ever-changing entertainment sector.
Going to the CMPA annual conference using the CMPA data to tell Canadian Producers the BTLR "panel is conducting its review during the so-called ‘golden age of content," could backfire. Netflix, to some, has become the personification of what's now wrong in the Canadian video market because it can bypass the regulatory system to offer directly to Canadians programs they want.
The sector is thriving, says Netflix’s BTLR submission
- Over the last five years (2012-13 to 2016-17), total film & TV production volume in Canada increased 44%; Canadian content production was up 23%.
- In 2016-17 alone, foreign investment in Canadian television production grew 39.8% (over 2015-16) to reach an all-time high of $851 million.
- Foreign sources were tied with Canadian distributors as the top sources of financing for English-language TV fiction—each providing 22% of financing—more than provincial tax credits (18%), federal tax credits (11%) and public and private broadcasters (14% combined).
“The emergence of on demand, online audiovisual services over the last decade has enriched Canada’s production sector, without government intervention. We do not subscribe to the theory that a ‘regulated investment’ is more valuable than a consumer and market-driven one,” argues the Netflix submission.
“It is imperative that the Panel clearly identify what problems it is trying to solve and ensure that proposed ‘solutions’ address them without undermining the natural investments and growth that new media are already delivering in Canada.” – Netflix
The company is providing free advice to the panel: “In its review, we urge this Panel to take a holistic view of the health of Canada’s audiovisual industry.
“The reflexive assumption that those new models create challenges, rather than opportunities, is unsupported. Indeed, the data show audiovisual market-driven growth — not contraction — as new media gain popularity and viewership. To this end, it is imperative that the Panel clearly identify what problems it is trying to solve and ensure that proposed ‘solutions’ address them without undermining the natural investments and growth that new media are already delivering in Canada,” reads the submission.
“In this rapidly evolving market, it’s not clear what purpose would be served by regulating foreign, global online services as ‘broadcasters’ in Canada. Regulating them is not likely to alter the behaviour of Canadian broadcasters with respect to Canadian scripted drama and kids’ content. Foreign sources are already outspending Canadian broadcasters on English-language Canadian fiction. Rather, global demand for CanCon from online sources is more likely to stimulate a market-based response and is already helping to create better financed CanCon coproductions for Canadian and global audiences.”
On the discoverability problem, the company raised an interesting ongoing issue that is not Netflix-specific, noting “with any prominence proposals focused on certified CanCon is that there is no reliable or comprehensive way for Netflix to assess whether a movie or TV show is certified CanCon. This is especially true for acquired content. Some specific challenges are:
- There is no readily accessible database of certified CanCon that allows online services to electronically, and reliably, cross-reference content libraries.
- Metadata embedded in acquired content do not generally include a CanCon indicator.”
Another Netflix argument worth hearing, is the treatment by which foreign content owners have long benefited. “For decades, many foreign broadcasters (now numbering over 200 including many U.S. services) have been distributed by Canadian BDUs, with CRTC approval, like ABC, NBC, CBS, CNN, PBS, BBC and Black Entertainment. Those foreign broadcasters benefit from dedicated channels and joint marketing with Canadian services, without any regulatory obligations for Canadian content (whether quotas, contributions to funds or spending requirements). Would they, too, become subject to regulation,” asks Netflix?
Answered with free advice: “A future-oriented legislative framework ought to be grounded in the reality that the internet has become the global platform for communications and commerce. This has enabled unprecedented economic growth, innovation, competition, choice, open access and freedom of expression for Canadians as citizens, consumers, creators and entrepreneurs.”
The submission closes saying: “Rather than seek to ‘harness’ online services, we believe policy should, as a first principle, seek means that do not rely on regulation to unleash creativity, investment and exports, and encourage the Canadian industry to seize the opportunities, both local and global, that online distribution offers, to ensure the continued success of Canadian content online.”
We will have more to come as we continue to read and analyze the 30-plus submissions we have received after asking the companies or groups. Those who have told us no, we’re not sending our submission? Bell Canada, Corus Entertainment and SaskTel. Those from whom we haven’t yet heard an answer despite repeated requests? Amazon.
Click here then here then here then here and then here for the prior three stories we've published on the submissions. We also did separate stories on the CRTC and CBC submissions as well as one stemming from the BTLR panel appearance at a Toronto conference.
We also intend to break down the submissions in more detail by the issues, and not just by companies/organizations, in the coming weeks. Please email us directly if you have any story ideas or angles you think we should be pursuing on this topic. Your email will be kept confidential.
Original artwork by Paul Lachine, Chatham, Ont.
