Bell lays out contribution framework proposal at CRTC

BCE Inc. revealed more details on Tuesday on its proposal for how base contributions from online undertakings should be split in the new framework, putting particular emphasis on the creation of a news fund and dedicating portions towards equity-seeking groups and public policy objectives. The broadcaster started off the second day of the CRTC’s three-week long hearing into whether foreign streaming platforms should make initial base contributions to support Indigenous and Canadian programming. Repeating the arguments made in its interventions, Bell called on the regulator to lighten the regulatory burden on traditional broadcasters and hopes partnerships with the streamers will make CanCon production more sustainable. It also said the primary focus of the Online Streaming Act should be focused on Canadian-made content being marketed to Canadians, stating that although there are many productions made in Canada for global streaming services, there is often “nothing Canadian about .” The CRTC panel later saw appearances from professional producers’ and artists’ associations as well as Alphabet Inc.’s Google. Bell said that the 20 per cent it proposed to be contributed from online undertakings be split into four buckets: 60 per cent towards existing production funds including the Canada Media Fund (CMF); 30 per cent towards a news fund; five per cent towards production funds specifically set up to support Indigenous and equity-seeking groups; and the remaining five per cent towards supporting other public policy objectives like the Broadcasting Accessibility Fund (BAF), Broadcasting Participation Fund (BPF), capacity building for smaller creators, and offsetting mandatory distribution costs for TV services. “Of the three industry stakeholders affected by this legislation – foreign streamers, producers, and traditional broadcasters – only one is in crisis, Canadian broadcasters,” said Jonathan Daniels, VP of regulatory law at Bell. Like Quebecor Inc.’s Pierre Karl Péladeau the day before, Daniels described the state of the Canadian broadcasting landscape, saying the tight regulatory and competitive situation has forced Bell and other broadcasters to make “dramatic” changes, including layoffs and closing news bureaus. He stated that the crisis is mostly in the news sector and was critical of streamers, represented by the MPA on Monday, for not considering supporting the sector. “I never heard the word ‘news’ once, not once,” said Daniels. He highlighted how challenging it is to monetize news and noted the role that broadcasters have in its production, adding that streamers do not. This news fund would have a similar model to the Independent Local News Fund (ILNF) and would be limited to private broadcasters. Access to money from the fund would be based on their news expenses, meaning the more they spend on news production, the more they would be eligible to receive, explained Daniels. As content made by Canadians for Canadians, CanCon itself is also hard to monetize because of the country’s small population, said Bell. “The way you can invest more in Canadian content is to figure out ways to sell it internationally, because you can't monetize it in Canada,” said Daniels, adding that he does not think it is good public policy if they have to make “service productions” to sell to streamers and their global business models. “What we're trying to propose here is a way to grow the pie of production funds,” said Bell’s VP of content development and programming Justin Stockman. He said that this increase would make CanCon production more sustainable and lift the pressure to market internationally and, in the process, “water down the Canadianness.” Stockman added that through the new framework the CRTC should incentivize streamers to partner with Canadian broadcasters and producers. The National Film Board (NFB), which is exempt from the new regulations, outlined to the CRTC its role as a public producer and distributor dedicated solely to Indigenous and Canadian works. Suzanne Guèvremont, head of the board, discussed the NFB’s current focus on modernizing its NFB.ca platform as it works towards increasing its visibility across the country. She added that they are considering establishing free ad-supported streaming TV (FAST) channels in the future. The Association Québécoise de la Production Médiatique (AQPM), followed by other professional artists’ associations, including the Association des réalisateurs et réalisatrices du Québec (ARRQ), Guilde des musiciens et musiciennes du Québec (GMMQ), Société des Auteurs de Radio, Télévision et Cinéma (SARTEC), and the Union des artistes (UDA), spoke on behalf of producers and artists working in Quebec’s French-language programming industry. The associations, like Quebecor, support increasing funding towards French-language productions from all funds to 40 per cent, up from the CMF’s current one-third French, two-thirds English split. They also proposed a five per cent initial base contribution from online undertakings. AQPM said original French-language productions are facing an existential threat as the popularity of TV declines while unregulated online streamers grow. Quoting author and columnist Stéphane Laporte, AQPM said, “It is not just the Quebec television industry that is threatened with disappearing, it is the Quebec identity itself which is under threat,” according to a translation. The Directors Guild of Canada (DGC) echoed some of the sentiments shared by the Canadian Media Producers Association and Toronto International Film Festival yesterday, notably its recommendation for a five per cent initial base contribution from online undertakings, off-the-top funding towards Indigenous productions, and to reserve 20 per cent of funding for feature films and long-form documentaries. The guild expressed support for foreign online services triggering funding from public and independent funds, but emphasized the importance of program rights staying in Canadian hands, adding that the money from the funds should be distributed to Canadian producers, not the streamers. MediaSmarts, a non-profit organization focused on digital media literacy, presented to the CRTC its case for the new framework to provide funding for it and similar organizations, arguing that digital media literacy is required for the government to achieve its policy goals. “We believe that digital media literacy is fundamentally embedded in the Broadcasting Act,” said executive director Kathryn Hill. She explained that in order for Canadians to actively engage in the broadcasting system they need an understanding of the mechanisms at play. “For example, if Canadians are not equipped with digital media literacy to understand the effects of the algorithms used by a platform to recommend content, the programming cannot inherently serve their needs, their interests, or their aspirations” as written in the Act, said Hill. Google closed out the day’s proceedings, answering questions from the panel about its YouTube platform and how it fits into the Canadian broadcasting system. Only a small portion of YouTube's content falls under the new regulations, like professionally licensed music videos uploaded by record labels and catalogues of movies and TV shows available for purchase or rental, said the company, reiterating arguments made in its interventions. Most of YouTube’s content does not fall under the scope of regulation, said Google, noting the commissioning or control of programming is not part of its main business model. It said that the user-generated videos uploaded by creators should be considered part of a social media platform and not be considered. Like the streamers, Google agreed that setting initial base contributions before CanCon is clearly defined is premature. It also encouraged the CRTC to consider the intangible contributions it is already making, saying that as an equal opportunity platform with a low-barrier to entry, it has done a lot to assist Canadian creators in sharing, promoting, and monetizing their content. – Reporting by Phalen Tynes-MacDonald at pcreed@thewirereport.ca and editing by Michael Lee-Murphy

Bell lays out contribution framework proposal at CRTC

News | November 22, 2023

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Bell lays out contribution framework proposal at CRTC

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