Rogers’ network ‘our contribution’ to content ecosystem: VP

OTTAWA — The billions of dollars Rogers Communications Inc. says it’s plowing into developing networks of the future are its contribution to the country’s struggling Canadian content system, the company’s vice-president of regulatory affairs said Wednesday. Pamela Dinsmore was addressing demands by content creators to have internet service providers (ISPs) contribute to the survival of the industry, a message which content players were on hand to preach to an audience at the International Institute of Communications (IIC) annual conference in Ottawa. “To be fair, I think that the network is our contribution,” Dinsmore said as a panelist discussing the government’s review of the communications legislation. “We are building out a 5G network...it’s going to cost billions and billions of dollars. “We allow all these different players to ride along and most of them aren’t contributing anything to that expense as we know, especially the online players,” she said. Earlier this year, the CRTC released its government-requested report on programming distribution models, which recommended having all players in the system -- foreign digital services and ISPs alike -- make ‘equitable’ contributions, not necessarily money, to the broadcasting system. Part of the idea is that because content drives internet consumption, the latter should contribute to the former. But some worried that the report would lead to a possible ISP tax to help give lift to content players, despite CRTC chairman Ian Scott asserting that their recommendations have no tax or new money involved in the “contribution.” “It doesn’t end,” Dinsmore said, referring to the calls for an ISP levy. She added the broadcasting and telecommunications acts have two different purposes, and having to go after the ISPs would reduce the affordability of internet for consumers. Dinsmore said a contribution-type requirement can also be more obvious than others. She used the example of Netflix Inc. being clearly in the broadcasting arena. But with other “fangs” like Facebook Inc. and Alphabet Inc.’s Google, it would be more difficult because the government would have to figure how much content they put out versus everything else that they do. “Generally speaking, I think it’s not difficult for sales tax, it’s not that difficult for corporate tax, it’s probably a more difficult exercise when it comes to contribution,” she said. Earlier on Wednesday, on a previous panel, an ominous prediction was made by Stephen Stohn, president and executive producer at Skystone Media Inc. “Unfortunately, I’m very much afraid it is now too late,” he began. He noted that the existential winds will wallop Canadian broadcasters before a review panel set-up by the federal government to review the communications legislation is done -- it began consultations last month -- which he guessed would produce a final product by 2020 if not later. “In internet time, that is an eternity,” Stohn said, “and it may well be, the Canadian broadcasting system has been decimated in the meantime. “Very possibly, no more CTV, no more Global, no more lots of broadcasters. All it will take is one existing U.S. powerhouse like ABC, CBS, NBC, to decide to bypass the Canadian broadcasters and to themselves use digital streaming to broadcast and secure advertising for all their content in Canada and then it is game over. “Cancopalypse is arriving.” Part of the solution, he said, is to remove the digital media exemption, which allows digital entities to skirt CanCon obligations. On Tuesday, CRTC chairman Scott told a Senate committee that move would require the over-the-top providers to be licensed, meaning they have to be Canadian, while many are not. But there was no shortage of recommendations on this Wednesday, as Stohn offered another possible answer to a catasptrophe he said is a matter of when, not if. To help the faltering CanCon system, it's necessary to go after ISPs, which he called the “holy grail.” “That’s what we need to be moving towards. It’s very, very difficult right now because the ISPs are so powerful -- they will fight it tooth-and-nail.” — With reporting by Ahmad Hathout at ahathout@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

Rogers’ network ‘our contribution’ to content ecosystem: VP

Broadcast | October 31, 2018

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Rogers’ network ‘our contribution’ to content ecosystem: VP

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