Canada will suffer if Hollywood movies go online, unless CRTC intervenes: ACTRA

A potential move by Hollywood producers to distribute films online could further shrink the market for Canadian films unless the CRTC adopts protectionist regulations, the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) told the commission during day one of the new media hearing. "If you see that development as imminent, then it puts pressure on these guys to get the regulation right here in Canada," says Garry Neil, a policy issues manager for ACTRA. "We only have less than one per cent of screen time that is occupied by Canadian movies. So it's pretty tough, we are already dominated by Hollywood feature films. It will just be a continuation of the dominance." In an interview with Canadian New Media, ACTRA national director Stephen Waddell says Hollywood studios - in an attempt to reduce distribution costs - are already negotiating to move films online, adding that it could soon make the DVD obsolete. "It's expensive , it involves packing, whereas online there's very little additional cost and no packaging involved, so it's natural evolution in our view," says Waddell. The issue is critical for the domestic film industry because Hollywood producers have always considered Canada as part of the domestic U.S market for film releases, says Neil. As proof, Neil says this is even woven into collective bargaining agreements for actors in the U.S., where they have to agree that films they star in will be distributed in Canada and that they will not seek additional payment for this distribution. Neil warns that the CRTC has to move fast because U.S film studios have already signed deals for online distribution. What's pending, he adds, is an agreement to make sure that when films go online, they are secure. However, he says "it's a matter of a very few days" before Hollywood producers get the assurance. To stem the tide, Neil wants companies that stream videos regulated in the same manner as broadcasters who carry their signals on cable or satellite. Additionally, ACTRA says Canadian content should be strengthened and a fund created to boost the production of new media content. ACTRA made its case today with the help of Canadian stars Colin Mochrie, Charlotte Arnold, and Bruce Dinsmore. The actors stressed that new media constitutes part of broadcasting and therefore should be regulated under the Broadcasting Act. They called for online games to be included for regulation under the Broadcasting Act, the creation of a fund to support the production of new media content through the imposition of a 3% levy on ISPs, which would raise an estimated $99 million annually. The Canadian Conference of the Arts, which was the first organization to appear, also called for the regulation of online content. National director, Alain Pineau, told the commission that "broadcasting is broadcasting regardless of the distribution platform." The hearing continues tomorrow with five organizations, including the Canadian Independent Record Production Association and the Society of Composers, Authors, and Music Publishers (SOCAN), presenting arguments. There will be a break on Thursday and Friday with the hearing resuming on Monday, Feb. 23 and ending on March 9. Some 56 organizations are expected to appear for the hearing.

Canada will suffer if Hollywood movies go online, unless CRTC intervenes: ACTRA

Broadcast | February 17, 2009

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