The Canadian Radio-television and Telecommunications Commission (CRTC) has launched phase one of its consultations to modernize Canada’s broadcasting system, following the passage of Bill C-11.
The consultations, which were first announced last week, cover a proposed framework from the CRTC on how traditional and online players will contribute to the system, the revenue thresholds to determine which online streaming services will be subject to requirements, and changes to the existing exemption orders around digital media.
The CRTC has proposed a flexible approach to contributions to the Canadian broadcasting system, which has been separated into three categories.
The first category is a base requirement, which would see broadcasting undertakings – described as traditional or online – contribute to specific funds, such as the Canada Media Fund or a Certified Independent Production Fund.
The second is called a “flexible financial requirement,” which would allow undertakings to choose “where to direct their contributions from among a number of options.” Examples given by the CRTC in the call for consultations issued on Friday include programs of national interest, such as French-language or local news programming, and spending on training programs.
The CRTC has indicated that Canadian programming expenditures “would more appropriately fit” into the flexible requirement. However, the actual requirements will be part of the second phase of consultations, scheduled for fall.
The third category is “intangible requirements,” which would look at contributions through “less quantifiable commitments” such as the promotion and discoverability of Canadian and Indigenous content, maintaining a certain percentage of CanCon on digital catalogues, or “other commitments proposed by an undertaking and deemed acceptable by the Commission.”
“The intent is that broadcasting undertakings or ownership groups could contribute to all three categories of contributions in a manner that is appropriate and reflective of their unique role in the Canadian broadcasting system,” wrote the CRTC in its Broadcasting Notice of Consultation, which is available on its website.
Another set of consultations centres on which online undertakings should be registered. The CRTC is calling for comments on what the exemption threshold should be (it has proposed a minimum of $10 million in broadcasting revenues), whether certain types of online undertakings should be exempt (such as those that solely provide video games, or video on demand [VOD] services that are transactional, not ad-supported or subscription-based), and any potential issues around an exemption order.
Finally, the CRTC is calling for comments on the current exemption orders, such as the digital media exemption order and for certain VOD services, and whether they need to be amended or repealed altogether under the modernized Broadcasting Act.
The deadline for comments on the proposed contributions framework is June 27, while the comments for the other two consultations are due on June 12. A hearing on the contributions framework is scheduled to begin on Nov. 20 in Gatineau, Que., and will focus on which broadcasting undertakings will apply to the framework, what the initial base contributions should be, and which funds will be the recipients.
The CRTC also emphasized in a news release that it “has no intention to regulate algorithms, or creators of user-generated content,” and will “adapt its approach in light of any future policy direction.” The Department of Canadian Heritage will hold its own public consultations on its policy direction to the CRTC at a later date.
“As we take on the task of modernizing the regulatory framework of the broadcasting system, we are focused on ensuring that all players contribute equitably to Canadian and Indigenous content,” said CRTC chairperson and CEO Vicky Eatrides in a statement. “We are starting the conversation today by looking at how streaming services can contribute. The views of Canadians will be important at every step of the process, and we encourage everyone to participate.”
A version of this story previously appeared on Playback.
