Canada's Broadcasting Bill will require DSPs to invest in local content production

By Emmanuel Legrand

Canada's government has unveiled a new Broadcasting Bill that echoes attempts in other countries to have global video streaming services contribute a share of their revenues generated locally to support the production of local content and also respect content requirements.

  Bill H-10 also calls for a revamping of Canada's broadcasting regulator the Canadian Radio-television and Telecommunications Commission (CRTC) to have a say in the regulation of digital services. The law will create a new category of “online undertakings” within the Broadcasting Act that will apply to streaming services and broadcasters webcasting their progammes online. The Broadcasting Act has not been updated since 1991.

  The Bill is viewed as an attempt to make non-domestic services generating revenues from the Canadian market contribute in return to the production of local content and pay taxes in the country. 

Cultural sovereignty

  "This is about our cultural sovereignty. It's about investment and jobs. It's about equity," said Canada's Heritage Minister Steven Guilbeault (pictured, below). "We are asking these large and wealthy companies to invest in Canadian artists, in the same way Canadian broadcasters already have regulatory obligations.

  International services could be asked to allocate up to 20% of their local revenues to the production of local content (TV shows, films and music). According to CRTC's estimates, revenues generated by streaming services are in the region of CA$5 billion ($3.77bn), so up to CA$1bn could end up funding local content. 

  Netflix announced in 2017 that it was planning to invest a minimum of CA$500 million over five years in original content produced in Canada, but the new bill would codify the volume that should be invested. A spokesperson for Netflix said the streaming service was "reviewing the legislation and remain committed to being a good partner to Canada’s creative community while also investing in local economies.”

A matter of fairness

  In an interview with CBC, Guilbeault said the purpose of the bill is not to ask companies like Netflix "to do things they’re not already doing,” but rather "putting a regulatory framework on how those investments should be made in light of things we’re already asking from Canadian broadcasters.” 

  He also tweeted: “A modernised law will require all companies that want to access the Canadian market, especially the digital market, to contribute to the production of our stories. For our economy, this means more investment & jobs.” 

  “What we offer is not a luxury, it is a matter of fairness. Without modernising the #BroadcastingAct, web giants will continue to benefit from regulations that favour them at the expense of Canadian broadcasters,” he wrote.