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National Post

Give us more leeway than broadcasters on Canadian content, big streamers tell CRTC

OTTAWA — A group representing big foreign streamers told a CRTC hearing Friday that those companies shouldn't be expected to fulfil the same responsibilities as traditional broadcasters when it comes to Canadian content. Article content Article content The Motion Picture Association-Canada, which represents large streaming companies such as Netflix, Paramount, Disney and Amazon, said the CRTC should be flexible in modernizing its definition of Canadian content. Article content Article content The regulator is holding a two-week hearing on a new definition of Canadian content. The proceeding is part of its work to implement the Online Streaming Act — and it is bringing tensions between traditional players and large foreign streamers out in the open. Article content Article content It's also happening in the context of trade conflict with the United States. U.S. business groups and tech companies have warned the CRTC's efforts to change CanCon rules could worsen trade relations. Netflix, Paramount and Apple pulled out of the CRTC hearing on the first day. Article content MPA-Canada argued Friday the Online Streaming Act, which updated broadcasting laws to capture online platforms, sets a lower standard for foreign online services. Article content 'The contribution standard applied to Canadian broadcasters is much greater and reflects their existing obligations,' the group said in their opening remarks. Article content 'This difference was intentional as Parliament rejected calls to impose the same standard because 'it is just not realistic' to expect foreign online undertakings operating in a global market to contribute in the same way as Canadian broadcasters.' Article content Article content While the hearing is focused on the definition of Canadian content, the CRTC has also heard debate about financial contributions. Article content Article content Earlier Friday, Corus urged the CRTC to require traditional broadcasters and online players to pay the same amount into the Canadian content system. The broadcaster, which owns Global TV, said both should contribute 20 per cent of their revenue toward Canadian content. Article content Currently, large English-language broadcasters must contribute 30 per cent of revenues to Canadian programming, and the CRTC last year ordered streaming services to pay five per cent of their annual Canadian revenues to a fund devoted to producing Canadian content. Article content Foreign streaming services are fighting that rule in court. MPA-Canada is specifically challenging the portion of the contribution that is directed to local news, though Apple, Amazon and Spotify asked for and were granted a pause on their entire payments until the court process plays out. Article content MPA-Canada argued Friday online services 'should be allowed to fulfil their obligations through direct spending on production where that is consistent with their business model — not forced to pay into funds or into a program acquisition model that is inconsistent with how their services operate.'