Key Takeaways
- The Online Streaming Act is likely to be sacrificed in trade talks with the United States in order to preserve Canada’s supply management system.
- The act was the result of lobbying by the TV, film, and cable industries to "level the playing field" by placing all audio and video internet content under the authority of the CRTC.
- The CRTC has become mired in procedural delays and has failed to fully implement the act, making it easier to abandon if necessary.
- Abandoning the act would likely result in more layoffs in the TV and radio newsrooms, but the cost of trying to keep the legislation would be much higher.
Introduction to the Online Streaming Act
The Online Streaming Act was passed in the spring of 2023, with the goal of placing all audio and video internet content under the authority of the Canadian Radio-television and Telecommunications Commission (CRTC). The act was the result of lobbying by the TV, film, and cable industries, which wanted to "level the playing field" by replacing declining revenue from a five-per-cent levy on domestic cable revenues with something similar derived from offshore streaming services such as Netflix and Spotify. However, given the current trade talks with the United States, it appears likely that the Online Streaming Act will be sacrificed in order to preserve Canada’s supply management system.
The CRTC’s Role in Implementing the Act
The CRTC has made it clear that it intends to regulate the streaming world with the same vigour it has applied to the declining television and cable worlds. However, the regulator has become mired in procedural delays and has failed to fully implement the act. Despite a 50-per-cent staff increase since early this century, the CRTC has put broadcasters in a state of stasis through license auto-renewals, while other matters, such as disputes once efficiently resolved in months, are dragging on for several years, often at great commercial cost. The CRTC has also allowed itself to be lured into the business of using its new authority as a means to create additional funding mechanisms for broadcaster-based newsrooms.
The Consequences of Abandoning the Act
Abandoning the Online Streaming Act would likely result in more layoffs in the TV and radio newsrooms. Many TV and radio newsrooms, other than the CBC, are already a shell of their former selves. TVA responded to the November budget with layoffs, and with the streaming act’s future now uncertain and the CRTC’s regulatory lassitude at its peak, more layoffs appear inevitable. However, the cost of trying to keep the legislation would be much higher, and the unrest within the cultural and creative sectors can be eased by writing more cheques from the Treasury to make up the difference in lost revenue.
The Trade Talks and the Future of the Act
The United States has put the Online Streaming Act on the table in trade talks, along with the Online News Act and supply management. Prime Minister Mark Carney has reaffirmed that supply management is not on the table, but it appears likely that the Online Streaming Act will be sacrificed in order to preserve the supply management system. The world is unfolding almost exactly the way the Online Streaming Act’s critics had predicted it would since it was first introduced as Bill C-10 in late 2020. The good news for Mr. Carney is that the legislation in question is really all about the money, and any unrest within the cultural and creative sectors can be eased by writing more cheques from the Treasury to make up the difference in lost revenue.
Conclusion
In conclusion, the Online Streaming Act is likely to be sacrificed in trade talks with the United States in order to preserve Canada’s supply management system. The act has been plagued by procedural delays and has failed to fully implement its goals. Abandoning the act would likely result in more layoffs in the TV and radio newsrooms, but the cost of trying to keep the legislation would be much higher. The future of the act is uncertain, but one thing is clear: the Canadian government will have to make a choice between preserving the supply management system and keeping the Online Streaming Act.
