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News

Who’s covered and who’s not in the CRTC’s first proposals for regulating streaming services

OTTAWA — Now that the newly passed Bill C-11 gives it authority over streaming video and audio services, the Canadian Radio-television and Telecommunications Commission is overhauling its rules “to modernize the broadcasting system and ensure that online streaming services make meaningful contributions to Canadian and Indigenous content.”

Here’s what you need to know about a blizzard of paper the CRTC released today about its plans, starting with key numbers.

News

Who’s covered and who’s not in the CRTC’s first proposals for regulating streaming services

Only platforms with revenues over $10M a year should be made to contribute, commission says

By David Reevely
The CRTC has issued a proposal on how it should apply the new Online Streaming Act to platforms such as Netflix and Spotify. Photo: Phil Barker/Future via Getty Images
May 12, 2023
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The CRTC has issued a proposal on how it should apply the new Online Streaming Act to platforms such as Netflix and Spotify. Photo: Phil Barker/Future via Getty Images

OTTAWA — Now that the newly passed Bill C-11 gives it authority over streaming video and audio services, the Canadian Radio-television and Telecommunications Commission is overhauling its rules “to modernize the broadcasting system and ensure that online streaming services make meaningful contributions to Canadian and Indigenous content.”

Here’s what you need to know about a blizzard of paper the CRTC released today about its plans, starting with key numbers.

3: The number of consultations the commission kicked off at once. One is about which streaming services will be treated as broadcasters; a second considers the technical requirements for registering. The third—the biggie—is about how broadcasters will be made to contribute to Canadian culture.

Talking Points

  • Canada’s broadcast regulator has kicked off three separate consultations on how it should apply the new Online Streaming Act to platforms such as Netflix and Spotify
  • Only platforms with more than $10 million in revenue would be covered in its proposals, and how they would be made to contribute to Canadian culture could vary widely

$10 million: The annual revenue threshold where the commission proposes to make online streaming services register as entities that must make “a material contribution” to broadcasting in Canada.

0: Number of individual creators and users the CRTC proposes to regulate. Video-game services and services whose only offering is one-time purchases or rentals would also be exempt.

(A different) 3: Main ways the commission thinks streaming services and broadcasters could contribute.

One is by putting money into existing programs such as the Canada Music Fund and the Independent Local News Fund, which support content creation (the CRTC calls this a “base requirement”).

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The second is by supporting particular types of work themselves, such as their own French-language programming, national cultural content like award shows, and internships (known as a “flexible financial requirement”).

The third is through “less quantifiable commitments” such as promoting Canadian or Indigenous content, making archival material available on demand or meeting other policy objectives (“intangible requirements”).

The idea is to tailor contributions to each platform’s capabilities, resources and reach, in a way that reflects its “unique role in the Canadian broadcasting system.”

June: The consultations have different deadlines for initial written submissions, but all are next month.

Nov. 20: The planned date for a public hearing on the proposed rules for broadcasters’ contributions, the only consultation for which a public hearing is scheduled, at least for now.

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Waiting for Pablo: The CRTC has moved ahead without a promised “policy direction” from Heritage Minister Pablo Rodriguez and the government on how the commission is to apply the Online Streaming Act. That will get its own public consultation and it’s where industry players have been focusing their attention.

There’s evidence, though, that Rodriguez and CRTC chair Vicky Eatrides—who started her job only in January—are aligned: a cordial exchange of open letters between them all but says so. Eatrides publicly welcomed the passage of Bill C-11, noting that the commission can tweak its plans to match any instructions it gets.

#Bill C-11 #Broadcasting Act #CRTC #Pablo Rodriguez #streaming #Vicky Eatrides

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Photo: Phil Barker/Future via Getty Images

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