In an editorial published in last Monday The press +Pierre Karl Péladeau is worried about the future of our television.
And he’s right when he’s worried. If more than anyone could believe that our television will be saved after the passage of the online streaming law, it is far from the case.
In about 18 months, Netflix, Amazon and other digital giants may be forced to contribute to our broadcast system. But how?
Depending on the form of their contribution, this can be beneficial or detrimental. Pierre Karl Péladeau is therefore quite correct when he writes “that it would be irreparably damaging for the government to impose obligations on foreign platforms to broadcast Canadian content, instead of requiring them to contribute to a fund dedicated to content production is”, original Canadian original text.
Obliging the digital giants to contribute 2%, 3% or even 5% of their income, as Videotron, Bell and the other Canadian cable companies are required to do, would at best be an inconsequential nuisance. The monthly manna they draw from their Canadian subscribers is such that this puncture would almost go unnoticed. On the other hand, this form of obligation would lead to additional competition for our broadcasters.
ANOTHER ADVICE
It’s the CRTC that determines what obligations Netflix and the company have. The CRTC is also conducting an extensive consultation with Canadians (yes, we’re still being consulted!) that will last through the summer of 2024.
If all goes as planned, the regulations that will come into effect later would come into force at the end of next year.
As no doubt every other broadcaster in the country hopes, PKP wants Netflix, Disney+ and co. to contribute to a fund dedicated to the production of Canadian content.
Like the media fund, for example, which already exists and which our cable distribution partners pay into. Currently, independent producers receiving support from this fund must be Canadian and produce programs for which they own the intellectual property.
If media fund requirements and Canada’s content rules for receiving tax credits remain as they are today, it means the digital giants are contributing to the fund without being able to benefit from it themselves.
UNTIL DOWN IS AMERICAN
As for tax credits, they would only be entitled to those granted for the use of Canadian labor and services. This was the case, for example, with the feature film Until Doom, which was fully funded by Netflix, which owns the intellectual property.
Even though everything is Quebec, the film is not Canadian as defined by current regulations.
Next winter, the CRTC consultation will enter its most critical phase. We then discuss the nature of the digital giants’ contribution and, just as importantly, a new definition of Canadian content.
In English Canada we would like this definition to be more permissive, which is not quite the case in Quebec.
My pinky tells me that until then, Quebecor’s big boss will have more golden opportunities to put his hand to the pen if he wants his take on the future of our television to prevail!
