By Sheila Copps
First published in The Hill Times on February 4, 2019.

OTTAWA—Netflix just hiked its Canadian prices by three dollars a month.

That represents an increase of almost 30 per cent and it barely made a ripple on the consumer outrage meter.

Can you imagine the public pushback if Rogers or Bell were to hike their prices by almost 30 per cent?

There would be parliamentary inquiries demanding that the big broadcasting behemoths stop their greedy exploitation of Canadians.

But the biggest behemoth of all is Netflix, and it is fighting tooth and nail to remain outside the Canadian media regulatory framework.

Netflix insists that it should not be subject to the same regulations as other content carriers. The usual suspects are lining up on both sides of the Canadian content issue.

The debate on Cancon is almost as old as the beginning of radio.

Back on Sept. 11 in 1929, the Royal Commission on Canadian Radio Broadcasting issued a report that established the first blueprint for how the public airwaves would remain in public hands.

Known as the Aird Report, its conclusions, as follows, have survived the test of time. “The commission therefore emphasizes the idea of broadcasting as a ‘public service’ and recommends that Canada establish a national broadcasting company that will produce programs of ‘high standard.’ It also advocates setting up a chain of high power stations which will be funded by revenues from receiver licence fees, advertising sales and government money.”

In 1932, the first regulatory body was established by law, the Canadian Radio Broadcasting Commission, which was accorded the authority to control all broadcasting and to set up a national radio service. Four years later, a new Canadian broadcasting act abolished the CRBC and established the Canadian Broadcasting Corporation. The act gave the CBC the power to issue licences and also set up a bilingual radio service.

Fast forward two decades and the arrival of television prompts another update of the regulations.

In 1951, the Royal Commission on National Development in the Arts, Letters and Sciences chaired by Vincent Massey, extended the examination of radio to television broadcasting. Included in the study was a recommendation to align television’s technical signal requirements with those of the United States, opening the door to the first cross-border exchange of program signals in the world.

The Broadcasting Act was passed with a mandate to “safeguard, enrich, and strengthen the nation of Canada from sea to sea.”

Throughout its history, the fight between supporters and opponents of CANCON has been eerily repetitive.

Supporters point out the need for Canadian spaces to tell Canadian stories while opponents say we should not interfere with the role of the free market.

The players may change, but the arguments remain the same.

Michael Geist, a longtime cancon opponent, holds the Canada research chair in internet and e-commerce at the University of Ottawa law faculty.

He has built a career on opposing Cancon, and was a key critic when as minister; I pushed for more regulation and the establishment of a national television fund which morphed into the Canada Media Fund.

Just last week, Geist penned a doomsday scenario for The Globe and Mail in which he claimed that broadening the definition of Canadian broadcaster would force consumers to pay for a digital wall consisting of new taxes and regulations.

Nothing could be further from the truth.

Geist built his argument on the fact that the Canadian content industry is alive and well and making plenty of creative product for viewers.

But he neglects to point out the health of the domestic industry is prompted by the same regulatory framework he denounces.

Contributions from cable and television providers and government subsidies meant the fund invested $352-million into Canadian content this year.

The tax system was also instrumental in encouraging foreign companies to hire local by offering tax relief for employment of Canadian workers.

Geographic proximity to the United States and the relative discount of the Canadian dollar make Canada an ideal destination for Hollywood productions looking to maximize their return on investment.

Industrial productions are thriving. But they should not be mistaken for Canadian content.

The beauty of Netflix’s financial model is that it films universal stories that are designed to avoid highlighting a single, identifiable country.

Exempting Netflix from the rules that govern everybody else makes no sense.

Geist claims consumers would be victims in a Netflix Cancon world.

On the contrary, consumers will benefit from more content.

Netflix should play by the rules that govern everyone else.

Those rules have obviously been working.

Sheila Copps is a former Jean Chrétien-era cabinet minister and a former deputy prime minister. Follow her on Twitter at @Sheila_Copps.

By SHEILA COPPS

First published on Monday, October 2, 2017 in The Hill Times.

OTTAWA—Canada’s culture wars will never end. Nor should they.

Heritage Minister Melanie Joly struck the right tone Thursday when she set out a plan to increase content on multiple platforms without imposing new taxes.

The last thing the Liberals need these days is to open another tax front while Finance Minister Bill Morneau is busy garnering front-page headlines on that file.

And Netflix has been embraced by Canadians as their go-to platform of choice when it comes to sassy, critically acclaimed cinema that crosses all genres. The newly announced deal will actually put more Canadian bums in virtual seats, which is ultimately the goal of any culture minister.

Critics argue that Canada should follow the French and British example by introducing on tax on the international streaming giant.

Some say $500-million over five years is peanuts when you look at the $6-billion annual world production budget of Netflix.

But Joly’s partnership will vault the company to a place of prominence in Canadian cultural investments. And the initial dollars could grow once Netflix establishes a beachhead in Canada.

Anytime a politician can increase cultural funding agreement by $100-million a year, it is a win-win for all concerned.

After all, the origins of the Canada Media Fund were voluntary. The original Canada Television Fund, was established by the government in concert with funding from cable and satellite providers. It replaced the cable fund, which voluntarily financed additional television content in return for a distribution monopoly.

Over time, demand for content creation grew and when the Liberal government created the CTF back in the nineties, it topped up growing private-sector funding with $100-million in public monies.

Meanwhile, new satellite entrants negotiated various “voluntary” contributions in return for licence approvals. The Bell Fund is celebrating its 20th anniversary this year and has contributed $200-million in financing for Canadian media productions.

Netflix was not the first content provider to decide to make voluntary contributions nor will it be the last. At the end of the day, the carrot is always better than the stick and government always has the option to tax,

The Netflix decision to set up a production facility in Canada will also mean more Canadians will find jobs on the creative side, which is certainly a plus for our economy.

The beauty of Canada’s voluntary contribution model, is that it enhances the opportunity for multiple project funding sources, with most of the money going to small and medium-sized producers focused on Canadian content in costly areas of television like drama, and documentaries.

Unlike the tax credit system, which is calculated by how many Canadians are actually employed in a production, the Media Fund focuses on supporting content creation for multiple platforms and targeted communities.

To date, the fund has financed 108 aboriginal productions, and also works to support regional and official language minority language filmmakers.

In its heyday, the previous fund was the single most successful job generator of any government program. For every dollar invested by the taxpayer, $7 of additional creative sector funding followed, and cultural jobs rapidly became the fastest growing job sector for young people.

Joly has widened her reach and the partnership with Netflix will certainly be used as an example to get other international media giants, including Google and Facebook to the Canadian cultural table.

The establishment of a new Creative Industries Council which Joly will co-chair with Innovation Minister Navdeep Bains, will focus more government attention on the value of creative investments.

Last week’s announcement may not be embraced by all, but it is a far cry from the days of the previous Conservative government when the dirty word of Canadian culture did not pass the budgetary lips of a single finance minister for years.

The minister’s promised retooling of the Canadian Broadcasting Corporation is also long overdue. During Tory times, at least one board member simply refused to even attend meetings and most were chosen to downsize the place.

In the world of international cultural content, it is about time the CBC broadened its mandate, and worked directly with Radio Canada International to establish a Canadian presence on the world stage.

The British Broadcasting Corporation has spread its wings worldwide. There is no reason the CBC cannot do the same.

And with the first stop on the minister’s cultural roadmap already logged, the timing could not be better.

CBC and Netflix could be a powerful Cancon combination. And creators will welcome an international Netflix platform.

Sheila Copps is a former Jean Chrétien-era cabinet minister and a former deputy prime minister. Follow her on Twitter at @Sheila_Copps.