In what seems to be turning into a bitter rivalry, the Motion Picture Association has not used the word socialism today over Canada’s regulatory movement, but they are coming very close. The studio and the trade association of streamers warned that “new rules” and financial contributions decided today by the Canadian Commission for Canadian Radio-television and Telecommunications for broadcasters “undermine the open, market-based system.”
So, as the Stanley Cup playoffs progress, it’s not just the NHL’s Montreal Canadiens and Carolina Hurricanes who are skirmishing in Canada and the USA.
“The Motion Picture Association strongly condemns the CRTC’s decision to impose unprecedented, unnecessary and discriminatory investment obligations on American broadcasters operating in Canada,” said MPA CEO Charles Rivkin on Thursday in a quick response to the Great North’s rise.
While Legacy TV is on hiatus, Rivkin and company executives are upset about a measure under the Internet Broadcasting Act passed in 2023 that would have Netflix, Disney+, Amazon Prime Video and others fork over 15% of their revenue to the Big North for “Canadian and native content.”
Based on where the majority of viewers in Canada and elsewhere get their entertainment today, the Commission emphasizes that their latest move is to “ensure that traditional and online broadcasters contribute to the creation of Canadian and indigenous content in a balanced manner that reflects their size and business models.”
“Contributions will be restructured so that Indigenous broadcasters contribute 25% of their annual revenue to support Canadian and Indigenous content and benefit from greater flexibility in how they meet this requirement,” the CRTC announced Thursday after months of study and population across the world’s second-largest country. “For large broadcasters, this will provide relief as their current requirements range from 30% to 45%.
As part of the broader broadcasters’ move, the CRTC also mandated “clear expectations for the availability of Canadian and Indigenous content to be made available and visible to viewers.” Focusing on application design, scrolling selection and algorithms, the independent agency says “this will make it easier for people to find this content on the platforms they use, while giving broadcasters flexibility in how they meet new expectations.”
That didn’t win MPA, which has Disney, Netflix, Prime Video & Amazon MGM Studios, Sony, Universal, as members, and the possibility of merging Paramount and Warner Bros. Discovery.
“This burdensome framework unfairly targets global broadcasters with requirements that directly violate Canada’s obligations under the United States-Mexico-Canada Agreement,” noted Association chief Rivkin, nodding to the continental tariff free trade agreement currently being negotiated.
“The decision also undermines the open, market-based system that has helped fuel investment, job creation, and creative partnerships in North America,” MPA’s CEO continued to flag capitalism. “American studios and streaming services are the leading foreign investors in Canadian film and TV – bringing content to Canadian audiences and sharing Canadian news with the world. This decision triples the cost of doing business in Canada and will fuel market inflation, making other investments and innovation less attractive. For years, the MPA has been making it clear that the Canadian Broadcasting Legislation is the government’s way of broadcasting of Canada to reconsider this approach.”
Introduced in the 1960s and 1970s, the much-maligned CanCon proved one of the few obstacles to American media dominance that Canada (a nation where most of the population lives within miles of the border) has been able to put up. Even though the percentages and point system, as well as simulcast rules, can seem silly and out of touch with the reality of innovation and investment, CanCom has created global hits such as the Hockey romance series for Crave and HBO. Hot Competition.
Obviously you know that you have a problem selling in the south with the new rules and coming to the small house will not cut it CRTC CEO Vicky Eatrides tried to put a positive view of the Stateside saying that “today’s decisions are about building a strong broadcasting system.” Without commenting on the long-running disputes, some of which are currently in court, between CanCon and American media companies, Eatrides added: “We are taking action to ensure stable funding for Canadian and indigenous content, and to help make it easier to find.”
With the MPA likely to take its grievances to Canada’s hard-hitting White House, the CRTC’s CEO may soon find one of his own.
