Corus proposes contribution framework at CRTC, says time to regulate streamers is now

Those who stand to benefit from the Online Streaming Act want the CRTC to act as quickly as it can while those who may be forced to pay are urging caution. The commission is now half way through its hearings into the changes to the contribution regime necessitated by the act. Wednesday’s session began with Corus Entertainment Inc. tabling its proposals for a new funding scheme. The radio and television broadcaster suggests online video programmers pay 20 per cent initial base contributions, online audio programmers fork out four per cent and online distributors should make five per cent contributions. Corus’s executive vice president for networks and content was disdainful of foreign streamers attempting to dodge their economic responsibilities. “We agree with them that equitable does not necessarily mean the same but equitable also does not mean that you get to enter the regulated system on your own terms,” Troy Reeb said. “International streamers enjoy significant structural competitive advantages and they have had the better part of a decade to prepare for Canadian regulations. They should not be allowed to delay any further.” Corus, parent company of Global TV, endorsed the notion of using contribution monies to bolster local news programming. Quebec’s oldest private broadcaster also supports quick action. RNC Media Inc. is celebrating 75 years in operation. It worries about how much longer it can continue. “We need to make changes to the current rules and conditions. We need to act urgently, we need oxygen,” CEO Robert Ranger stated in French. “We have already made important and often difficult structural and operational decisions to ensure our survival.” He urged funds be used to support the independent local news fund, saying the industry is in an unprecedented crisis. RNC’s radio and television stations have lost a vital outlet to reach their audience due to Meta Platforms Inc.’s ban on Canadian news on Facebook and Instagram. Ranger suggested the CRTC could reinstate its spoken word fund to support broadcasters. Digital First Canada made its debut at a commission hearing Wednesday. The lobby group for digital creators had a different view of the media landscape in Canada. “I have the honour of sitting in front of you today, not to talk about an industry in crisis, or one that needs saving, but one that is thriving both domestically and globally,” executive director Scott Benzie told the panel. “I’m here to speak to you today about an opportunity to support something that is working and in the worst case scenario, talk you out of doing some harm.” His members have chosen a different approach, one that bypasses traditional broadcasters to use upstarts like YouTube. He said he was glad the legislation had a carve out for digital creators and concentrated instead on the distribution services. “To be clear, we support having platforms in Canada contribute and we think they should do more,” he opined. The association for those platforms asserted they are already doing their part when it comes to supporting Canadian talent. Kirsten Donaldson is vice president of legal for the Digital Media Association (DiMA). Seventy per cent of the revenues its members collect are paid out as royalties, she explained to the regulator. “Like other participants in this proceeding, we have called on the commission to evaluate the contributions streaming services already make to the Canadian system before deciding whether it is appropriate to impose an initial base contribution,” she stated. Music streamers operate on the thinnest margins of anyone in the industry, she maintained. They pay a greater percentage of royalties than commercial radio stations do. Spotify Technology SA is one of those streaming services. It says the CRTC is being “premature” in its handling of the file. “We are proud of the success of the Canadian music ecosystem we have helped build,” Nathan Wiszniak, the company’s campaign manager, told the committee. “Thanks to the payments of streaming services, the record labels and artists of the Canadian recording industry earned nearly 80 per cent of their revenue from streaming last year.” He said the company already supports native talent through 100 all-Canadian playlists. He cautioned that the CRTC is moving too quickly on reconfiguring the contribution regime. David Errington is president and CEO of Accessible Media Inc., which broadcasts to the disabled community. He advocated for funds for specialized groups. He estimated that a five per cent levy on the $5 billion streaming industry would raise $250 million. Five per cent of that total, or $12.5 million, should be earmarked for equity-seeking organizations, particularly those representing Indigenous, Black, or disability groups. — Reporting by Paul Park at ppark@thewirereport.ca and editing by Phalen Tynes-MacDonald at pcreed@thewirereport.ca

Corus proposes contribution framework at CRTC, says time to regulate streamers is now

News | November 30, 2023

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Corus proposes contribution framework at CRTC, says time to regulate streamers is now

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