Gaming companies bristle after review panel suggests they’re broadcasters

A meeting with individuals leading the federal government’s review of communications legislation caught the video game industry off-guard, when the panel members’ questions suggested the gaming industry could be brought into the broadcasting system. The Entertainment Software Association of Canada (ESAC) said in its submission to the panel’s consultation that it was “surprised” by the direction its conversation with three panel members took at a Sept. 28 meeting in Toronto. “By the end of the consultation, the Panel members made it very clear that it was incumbent upon us to explain why video game developers and publishers should not be considered broadcasters,” it said in the document, obtained by The Wire Report. The panel members and support staff pointed out at the meeting that video game companies are eligible for funding from the Canada Media Fund (CMF), even though the industry doesn’t pay into the fund, and asked how the sector can operate without stronger Canadian content regulation while video games are classified as cultural products, the submission outlined. “They suggested that the narrative sophistication and audio-visual presentation of games has evolved to the point where the lines are blurred between games and other mediums like film, and asked what differentiates games from other cultural industries,” it said. ESAC, whose members include companies such as Microsoft Corp., Nintendo Co., Ubisoft Entertainment SA and Electronics Arts Inc., among others, said it strongly disagrees with the “suggestion that our members be considered broadcasters.” It said one of the reasons the Canadian video game industry has been successful -- ranking third in the world behind the United States and Japan, and with the largest video game industry in the world per capita -- is “due to our sector evolving in a fairly unregulated context.” The group also argued the funding it receives from the CMF is economic development funding, meant to help job creation “rather than act as a cultural subsidy.” It noted the CMF is able to recoup its investment and make a profit by getting back a portion of the revenues the funded video games make. Its position is that video games are creative endeavors but not cultural products, and the submission noted the industry pushed hard during the negotiations leading up to the United States-Mexico-Canada Agreement (USMCA) to ensure the cultural exemption in that agreement didn’t include video games. “If the video game industry was ever deemed to be a cultural industry that could or would be protected by cultural protections, it could result in other countries putting walls up to protect their own video game industries,” it said. “We do not need or want cultural protections that could result in our inability to sell our products abroad.” It also argued video games shouldn’t be considered broadcasting because they are fundamentally a software product. ESAC said it appreciates that “the Panel has been tasked with thinking outside the box during this review, but suggesting video games might be considered ‘programs’ and video game developers and publishers as ‘broadcasters’ is unjustifiable, not innovative.” Where the ESAC would like help from the government is with funding ways to promote Canadian-made games worldwide, through programs like the Creative Export Strategy, it said. ESAC said it initially asked for the meeting with the panel after the CRTC’s Harnessing Change report mentioned on-demand services where customers can rent or purchase video games. “We quickly connected with staff from the office of the Minister of Heritage to voice our surprise and concern to find our members being referenced in a report about broadcasting,” the submission outlined. Submissions to the panel’s consultation were due on Jan. 11, though they won’t be made public by the government for months. The publishing deadline is June 30. Companies and organizations have been releasing the documents they submitted in the meantime. — With reporting by Anja Karadeglija at akarad@thewirereport.ca and editing by Kyle Duggan at kduggan@thewirereport.ca

Gaming companies bristle after review panel suggests they’re broadcasters

News | January 28, 2019

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Gaming companies bristle after review panel suggests they’re broadcasters

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