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Netflix in Canada—All in the name of ‘modernizing’ broadcasting: Peter Menzies

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From the MacDonald Laurier Institute

By Peter Menzies

Canada’s content czars are stuck in the past and trying to drag everyone back with them

Next week, the Canadian Radio-television and Telecommunications Commission (CRTC) will go live with its efforts to wrestle the internet and those who stream upon it into submission. Whether it fully understands the risks remains unclear.

There are 127 parties scheduled to appear before a panel of commissioners at a public hearing in Gatineau starting November 20. The tone-setting opening act will be Pierre-Karl Peladeau’s always-scrappy Quebecor while the UFC will throw the final punches before the curtain drops three weeks later.

The list of presenters consists mostly of what those of us who have experienced these mind-numbing hearings refer to as “the usual suspects”—interests whose business plans are built around the Broadcasting Act and the requirements of related funding agencies.

The largest Canadian companies will ask the CRTC to reduce its demands upon them when it comes to feeding and watering Big Cancon: the producers, directors, actors, writers, and other tradespeople who make certified Canadian content.

Quebecor, for instance, will be arguing for its contribution to be reduced from 30 percent of its revenue to 20 percent—a draw it proposes be applied to designated streamers. More money from foreign companies and less from licensed domestic broadcasters will be a recurring theme.

But there will also be a new slate of actors—those with business models designed to entertain and attract consumers in a free market—who will be staring down the barrel of CRTC Chair Vicky Eatrides’ stifling regulatory gun for the first time.

Disney+ is set to take the stage on November 29. Meta, the Big Tech bete noire that refused to play along with the Online News Act, is up on December 5.

But the big day will almost certainly be November 30 when Netflix locks horns with the Commission and what appear to be its dangerously naive assumptions.

More than half the streamer’s 30-page submission is dedicated to detailing what it is already contributing to Canada.

Some examples:

  • $3.5 billion in investment;
  • Thousands of jobs created;
  • Consumers are 1.8 times more likely to watch a Canadian production on Netflix than they are on a licensed TV network;
  • Le Guide de la Famille Parfaite—one of many Quebec productions it funded—was in Netflix’s global top 10 for non-English productions for two weeks.

Netflix is insisting on credit for what it already contributes. It has no interest in writing a cheque to the Canada Media Fund and takes serious umbrage with the CRTC’s assumption it will.

“The (hearing) notice could be understood to suggest that the Commission has made a preliminary determination to establish an ‘initial base contribution’ requirement for online undertakings,” Netflix states in its submission. “The only question for consideration would appear not to be whether, but rather what funds would be the possible recipients of contributions.

“Netflix submits that this is not an appropriate starting point.”

It gets worse. The CRTC is considering applying some of the non-financial obligations it imposes on licensed broadcasters such as CTV and Global to the streaming world.

Executive Director of Broadcasting Scott Shortliffe told the National Post recently that “Netflix is clearly producing programming that is analogous…to traditional broadcasters” and that it could be expected to “contribute” in terms of the shape of its content as well as how it spends its money.

In other words, the CRTC’s idea of “modernizing” broadcasting appears heavily weighted in favour of applying its 1990s way of doing things to the online world of 2023.

If that’s the case, the Commission is entirely unprepared to deal with the harsh truth that offshore companies don’t have to play by its rules. For decades, primary CRTC hearing participants have been dependent on the regulator. In the case of broadcasters like CTV and cable companies such as Rogers, their existence is at stake. Without a license, they are done. Which means they have to do what the Commission wants. But if the regulatory burden the CRTC places upon the offshore streamers doesn’t make business sense to them, they are free to say, “Sorry Canada, the juice just isn’t worth the squeeze. We’re outta here.”

This is most likely to occur among the smaller, niche services at the lower end of the subscription scale. The CRTC has to date exempted only companies with Canadian revenues of less than $10 million. Any company just over that line would almost certainly not bother to do business in Canada —a relatively small and increasingly confusing market—if the regulatory ask is anything close to the 20 percent commitment being suggested.

Ditto if the CRTC goes down the road Shortliffe pointed to. It would be absurd to impose expectations on unlicensed streamers that are similar to those applied to licensed broadcasters. For the latter, the burden is balanced by benefits such as market protection granted by the CRTC.

For streamers, no such regulatory “bargain” exists. Too much burden without benefits would make it far cheaper for many to leave and sell their most popular shows to a domestic streamer or television network.

The Online Streaming Act (Bill C-11), which led to this tussle, was originally pitched as making sure web giants “contraibute” their “fair share.”

So, as it turns out, was the Online News Act (Bill C-18).

That legislation resulted in Meta/Facebook getting out of the news business and Google may yet do the same. As a consequence, news organizations will lose hundreds of millions of dollars. Many won’t survive.

Eatrides and her colleagues, if they overplay their hand, are perfectly capable of achieving a similarly catastrophic outcome for the film and television industry.

Peter Menzies is a Senior Fellow with the Macdonald-Laurier Institute, a former newspaper executive, and past vice chair of the CRTC.

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EU investigates major pornographic site over failure to protect children

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From LifeSiteNews

By Jonathon Van Maren

Pornhub has taken down 91% of its images and videos and a huge portion of the last 9% will be gone by June 30 because it never verified the age or consent of those in the videos.

Despite an aggressive PR operation to persuade lawmakers that they have reformed, Pornhub is having a very bad year.

On May 29, it was reported that the European Commission is investigating the pornography giant and three other sites for failing to verify the ages of users.

The investigation, which comes after a letter sent to the companies last June asking what measures they have taken to protect minors, is being carried out under the Digital Services Act. The DSA came into effect in November 2022 and directs platforms to ensure “appropriate and proportionate measures to ensure a high level of privacy, safety, and security of minors, on their service” and implement “targeted measures to protect the rights of the child, including age verification and parental control tools, tools aimed at helping minors signal abuse or obtain support, as appropriate.”

According to France24: “The commission, the EU’s tech regulator, accused the platforms of not having ‘appropriate; age verification tools to prevent children from being exposed to pornography. An AFP correspondent only had to click a button on Tuesday stating they were older than 18 without any further checks to gain access to each of the four platforms.”

Indeed, Pornhub’s alleged safety mechanisms are a sick joke, and Pornhub executives have often revealed the real reason behind their opposition to safeguards: It limits their traffic.

Meanwhile, Pornhub — and other sites owned by parent company Aylo — are blocking their content in France in response to a new age verification law that came into effect on June 7. Solomon Friedman, Aylo’s point man in the Pornhub propaganda war, stated that the French law was “potentially privacy infringing” and “dangerous,” earning a scathing rebuke from France’s deputy minister for digital technology Clara Chappaz.

“We’re not stigmatizing adults who want to consume this content, but we mustn’t do so at the expense of protecting our children,” she said, adding later, “Lying when one does not want to comply with the law and holding others hostage is unacceptable. If Aylo would rather leave France than apply our law, they are free to do so.” According to the French media regulator Arcom, 2.3 million French minors visit pornographic sites every month.

Incidentally, anti-Pornhub activist Laila Mickelwait reported another major breakthrough on June 7. “P*rnhub is deleting much of what’s left of the of the site by June 30,” she wrote on X. “Together we have collectively forced this sex trafficking and rape crime scene to take down 91% of the entire site, totaling 50+ million videos and images. Now a significant portion of the remaining 9% will be GONE this month in what will be the second biggest takedown of P*rnhub content since December 2020.”

“The reason for the mass deletion is that they never verified the age or consent of the individuals depicted in the images and videos, and therefore the site is still awash with real sexual crime,” she added. “Since the fight began in 2020, 91% of P*rnhub has been taken down — over 50 million images and videos. Now a huge portion of the last 9% will be gone by June 30 because P*rnhub never verified the age or consent of those in the videos and the site is a crime scene.”

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Jonathon’s writings have been translated into more than six languages and in addition to LifeSiteNews, has been published in the National PostNational ReviewFirst Things, The Federalist, The American Conservative, The Stream, the Jewish Independent, the Hamilton SpectatorReformed Perspective Magazine, and LifeNews, among others. He is a contributing editor to The European Conservative.

His insights have been featured on CTV, Global News, and the CBC, as well as over twenty radio stations. He regularly speaks on a variety of social issues at universities, high schools, churches, and other functions in Canada, the United States, and Europe.

He is the author of The Culture WarSeeing is Believing: Why Our Culture Must Face the Victims of AbortionPatriots: The Untold Story of Ireland’s Pro-Life MovementPrairie Lion: The Life and Times of Ted Byfield, and co-author of A Guide to Discussing Assisted Suicide with Blaise Alleyne.

Jonathon serves as the communications director for the Canadian Centre for Bio-Ethical Reform.

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Natural gas pipeline ownership spreads across 36 First Nations in B.C.

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Chief David Jimmie is president of Stonlasec8 and Chief of Squiala First Nation in B.C. He also chairs the Western Indigenous Pipeline Group. Photo courtesy Western Indigenous Pipeline Group

From the Canadian Energy Centre

Stonlasec8 agreement is Canada’s first federal Indigenous loan guarantee

The first federally backed Indigenous loan guarantee paves the way for increased prosperity for 36 First Nations communities in British Columbia.

In May, Canada Development Investment Corporation (CDEV) announced a $400 million backstop for the consortium to jointly purchase 12.5 per cent ownership of Enbridge’s Westcoast natural gas pipeline system for $712 million.

In the works for two years, the deal redefines long-standing relationships around a pipeline that has been in operation for generations.

“For 65 years, there’s never been an opportunity or a conversation about participating in an asset that’s come through the territory,” said Chief David Jimmie of the Squiala First Nation near Vancouver, B.C.

“We now have an opportunity to have our Nation’s voices heard directly when we have concerns and our partners are willing to listen.”

Jimmie chairs the Stonlasec8 Indigenous Alliance, which represents the communities buying into the Enbridge system.

The name Stonlasec8 reflects the different regions represented in the agreement, he said.

The Westcoast pipeline stretches more than 2,900 kilometres from northeast B.C. near the Alberta border to the Canada-U.S. border near Bellingham, Wash., running through the middle of the province.

Map courtesy Enbridge

It delivers up to 3.6 billion cubic feet per day of natural gas throughout B.C. and the Lower Mainland, Alberta and the U.S. Pacific Northwest.

“While we see the benefits back to communities, we are still reminded of our responsibility to the land, air and water so it is important to think of reinvestment opportunities in alternative energy sources and how we can offset the carbon footprint,” Jimmie said.

He also chairs the Western Indigenous Pipeline Group (WIPG), a coalition of First Nations communities working in partnership with Pembina Pipeline to secure an ownership stake in the newly expanded Trans Mountain pipeline system.

There is overlap between the communities in the two groups, he said.

CDEV vice-president Sébastien Labelle said provincial models such as the Alberta Indigenous Opportunities Corporation (AIOC) and Ontario’s Indigenous Opportunities Financing Program helped bring the federal government’s version of the loan guarantee to life.

“It’s not a new idea. Alberta started it before us, and Ontario,” Labelle said.

“We hired some of the same advisors AIOC hired because we want to make sure we are aligned with the market. We didn’t want to start something completely new.”

Broadly, Jimmie said the Stonlasec8 agreement will provide sustained funding for investments like housing, infrastructure, environmental stewardship and cultural preservation. But it’s up to the individual communities how to spend the ongoing proceeds.

The long-term cash injections from owning equity stakes of major projects can provide benefits that traditional funding agreements with the federal government do not, he said.

Labelle said the goal is to ensure Indigenous communities benefit from projects on their traditional territories.

“There’s a lot of intangible, indirect things that I think are hugely important from an economic perspective,” he said.

“You are improving the relationship with pipeline companies, you are improving social license to do projects like this.”

Jimmie stressed the impact the collaborative atmosphere of the negotiations had on the success of the Stonlasec8 agreement.

“It takes true collaboration to reach a successful partnership, which doesn’t always happen. And from the Nation representation, the sophistication of the group was one of the best I’ve ever worked with.”

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