Pay Up and Shut Up: How The CRTC Has Removed Canadians From Broadcast and Internet Policy – Michael Geist
June 6, 2024
Last December, I appeared before the CRTC as part of Bill C-11 hearings, where I emphasized the need for the Commission to pay attention to competition, consumer choice, and affordability. My takeaway from that appearance was that “my intervention met with skepticism from some Commissioners who see their role as guardians of the broadcasting system on behalf of longstanding beneficiaries with little regard for the impact on consumers or the risks to competition.” It turns out that was a pretty good read of the situation as this week’s Bill C-11 streaming ruling acts as if consumers, competition, and affordability are irrelevant issues that are at best someone else’s concern. The result is that Canadians has been largely removed from broadcasting and Internet policy at the regulator, expected to pay up and shut up.
Stakeholders are still processing the decision, but my general sense is that it has fallen flat with much of the creator lobby and sparked genuine anger among streaming services. There have been rote statements of support that have come at the urging of Canadian Heritage, but the government touted a billion dollars in new money, not the $200 million estimated by the CRTC. That isn’t chump change, but the allocations are so micromanaged that the Canada Media Fund, which has a program budget of over $350 million, could see as little as 0.5% of streamer revenues. Given the costs of production, this is not the game changer that was promised. Bigger winners include the news production side of Rogers and Bell, who get more money from services that have nothing to do with news, and BIPOC and Indigenous creators, who get specific allocations. But this new money comes at a price: increased fees for consumers and the potential for reduced or stalled investment by streaming services left unsure if their spending “counts” for the purposes of government policy. Much like Bill C-18, there are a few winners, more losers, and many left to wonder if years of lobbying was worth the trouble.
