Only foreign streamers should be paying contribution, CRTC told

Major broadcasters think that there should be a flexible contribution regime for Canadian programming – just so long as they don’t have to pay into it. The CRTC is continuing its hearings into the ramifications of the Online Streaming Act. Tuesday’s session began with an appearance by Rogers Communications Inc. Senior vice president for regulatory affairs Dean Shaikh outlined his company’s plans for a new contribution scheme. It believes the contribution rate should be reduced to two per cent, with thresholds of $50 million for video services and $25 million for audio services. Thirty per cent of the funds raised should be directed towards local news production. Streamers affiliated with existing Canadian broadcasters would be exempt from paying into the fund, according to the Rogers plan. “Our proposal is specifically designed to be an initial investment by foreign and unaffiliated online undertakings in the Canadian broadcasting system, which is consistent with the clear purpose set out in the notice,” Shaikh told the panel. “It does not reflect the final base or the flexible and intangible contributions that will be considered in the next phases.” Rogers was followed by Cogeco Inc. Its presentation concentrated on the private radio market. The firm operates 21 radio stations across Quebec with an audience of five million listeners. “In spite of the undeniable importance that the radio has in our social and democratic fabric, its sustainability is more than ever threatened,” Caroline Paquet, president of Cogeco Media said in French. “Indeed, the unbridled growth of nonregulated online entities as well as the important digital presence that is subsidized by Radio Canada has been detrimental to the private commercial radio over the last few years.” She cited commission figures that show ad revenue for radio has declined by 20 per cent over the past five years. Paquet, too, called for the contribution level to be lowered and asked that radio be considered as a beneficiary of the funds. It currently is not. “All we do is pay and never get anything in return,’ she stated according to a translation. With print newspapers and television stations closing frequently, many areas are in danger of becoming media deserts without a robust radio system to provide news and entertainment, she added. The afternoon sitting was given over to Paramount Global. The Canadian subsidiary of the United States’ oldest film studio. It operates Paramount+, a subscription service; and Pluto TV, a FAST network. Paramount Global is a member of the Motion Picture Association of Canada (MPA Canada). Two of its executives who appeared at Tuesday’s hearings were part of the MPA Canada delegation which presented last week. “In particular we agree with MPA Canada's position that an initial base contribution is based on the false premise that Canadian broadcasting undertakings are the only ones contributing to the Canadian broadcasting system,” Doug Smith SVP of streaming and content licensing asserted. “We also agree with MPA Canada that there is no urgency to establish a mandatory base contribution before the commission fully considers and establishes the overall contribution framework in the months ahead.” Smith and his team outlined the wealth of Canadian programming it shows on its two channels. Forcing Paramount to contribute to a broadcasting fund would mean diverting cash currently used to support Canadian producers, they maintained. “We view our Canadianness and our desire to work with Canadian talent as our greatest strength,” Smith said. “Our concern is that an initial base contribution will divert financial resources away from these projects described today.” He said Canadian producers have switched their focus from telling Canadians their own stories to telling Canadian stories to the world. Paramount is part of that process, he added. –Reporting by Paul Park at ppark@thewirereport.ca and editing by Phalen Tynes-MacDonald at pcreed@thewirereport.ca

Only foreign streamers should be paying contribution, CRTC told

Broadcast | November 29, 2023

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Only foreign streamers should be paying contribution, CRTC told

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