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Will U.S. streaming companies play ball with the CRTC?: Peter Menzies

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From the MacDonald Laurier Institute

By Peter Menzies

Domestic streamers have to live with the rules the CRTC comes up with, not so when it comes to global streamers

The fundamental weakness in Canada’s Online Streaming Act will be exposed for all to see on Nov. 20, when the Canadian Radio-television and Telecommunications Commission (CRTC) comes face-to-face with American streaming companies.

For the first time, the regulator will be dealing with companies that, if they don’t like the rules and the financial burden the CRTC imposes, are free to leave the country.

To be clear, neither Netflix, Disney+ nor any other company has yet suggested they are prepared to quit Canada. There have been no threats to do anything similar to what Meta did and Google might – stop carrying news – in response to the Online News Act. But there is nothing that compels foreign companies from continuing here if CRTC decisions make it no longer sensible for them to do so.

That shapes the conversation in a way that the commission, which commences a three-week-long hearing Nov. 20 involving 127 intervenors, isn’t accustomed to. Throughout its history, the primary players in CRTC procedures have always been captives of “the system” – domestic companies that depend for their existence on a commission license or rely upon the regulator’s decisions for their sustenance. They may not like the rules the CRTC comes up with, but they have to live with them.

Not so when it comes to global streamers that, as it turns out, are global.

Netflix’s base here is robust – 6.7 million subscribers – but that is just 10 per cent of its U.S. audience and only 2.8 per cent of its global subscriber base. According to its submission to the CRTC, it has already invested $3.5-billion in film and TV production since launching here in 2010 – roughly equivalent to the Canada Media Fund’s spend over the same period. And, it claims, people are 1.8 times more likely to view a Canadian production on Netflix than on TV. Let that sink in.

Disney+ makes similar arguments. It has 4.4 million Canadian subscribers out of a global total of about 147 million (down significantly this year). It points out that it has invested $1.5-billion in Canada, which is one of its top four production markets. As it gently states in its submission to the CRTC: “We encourage the commission to adopt a modernized contribution framework and a revised, modern definition of a ‘Canadian program’ that provide sufficient incentives for global producers and foreign online undertakings to continue to bring large-scale productions to, and make capital investments in, Canada.”

Large domestic companies that have been forced by regulation to contribute to the production and airing of certified Canadian content, meanwhile, argue for their “burden” in that regard to be reduced and shifted onto the backs of foreign companies.

In its submission, BCE Inc., which has a current profit margin of 21.2 per cent, describes the broadcasting system as in crisis, accuses streamers of having “contributed precious little to the Canadian system” and calls for its contributions to be reduced from 30 per cent to 20 per cent of the media division’s revenue – a figure it believes should be applied to all offshore streamers with more than $50-million in Canadian revenue.

BCE Inc. goes on to argue that if the commission takes its advice and forces the streamers to pay 20 per cent of their revenue directly into Canadian content funds, an additional $457-million – growing to $678-million by 2026 – will pour into the pockets of ACTRA, the Writers Guild and others involved in the creation of certified Canadian TV and film content.

And that, right there, is where Netflix, with a profit margin of 13 per cent clears its throat. Politely but firmly, it says the CRTC appears to have already made up its mind that streamers should be paying into funds and “submits that this is not an appropriate starting point.”

The decade prior to the introduction of the Online Streaming Act was by far the most prosperous in the history of the Canadian film and television industry, including in terms of Canadian content production.

Most of that growth took place beyond the reach of the CRTC, which was in charge of an increasingly irrelevant system upon which many legacy companies had grown dependent. But instead of fostering what was working, the government chose to sustain what wasn’t.

So now, as with the Online News Act, it’s playing at a table where it no longer holds all the cards.

Peter Menzies is a senior fellow with the Macdonald-Laurier Institute, a former publisher of the Calgary Herald and a previous vice-chair of the Canadian Radio-television and Telecommunications Commission (CRTC).

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Canada Scrambles To Secure Border After Trump Threatens Massive Tariff

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From the Daily Caller News Foundation

By Jason Hopkins

The Canadian government made clear its beefing up its border security apparatus after President-elect Donald Trump threatened to impose sweeping tariffs against Canada and Mexico if the flow of illegal immigration and drugs are not reined in.

Trump in November announced on social media that he would impose a 25% tariff on all products from Canada and Mexico unless both countries do more to limit the level of illicit drugs and illegal immigration entering into the United States. In response, Canada Prime Minister Justin Trudeau met with the president-elect at his residence in Mar-a-Largo and his government has detailed what more it’s doing to bolster immigration enforcement.

“We got, I think, a mutual understanding of what they’re concerned about in terms of border security,” Minister of Public Safety Dominic LeBlanc, who accompanied Trudeau at Mar-a-Largo, said of the meeting in an interview with Canadian media. “All of their concerns are shared by Canadians and by the government of Canada.”

“We talked about the security posture currently at the border that we believe to be effective, and we also discussed additional measures and visible measures that we’re going to put in place over the coming weeks,” LeBlanc continued. “And we also established, Rosemary, a personal series of rapport that I think will continue to allow us to make that case.”

Trudeau’s Liberal Party-led government has pivoted on border enforcement since its first days in power.

The Royal Canadian Mounted Police (RCMP) — the country’s law enforcement arm that patrols the border — is preparing to beef up its immigration enforcement capabilities by hiring more staff, adding more vehicles and creating more processing facilities, in the chance that there is an immigration surge sparked by Trump’s presidential election victory. The moves are a change in direction from Trudeau’s public declaration in January 2017 that Canada was a “welcoming” country and that “diversity is our strength” just days after Trump was sworn into office the first time.

While encounters along the U.S.-Canada border remain a fraction of what’s experienced at the southern border, activity has risen in recent months. Border Patrol agents made nearly 24,000 apprehensions along the northern border in fiscal year 2024 — marking a roughly 140% rise in apprehensions made the previous fiscal year, according to the latest data from Customs and Border Protection.

“While a change to U.S. border policy could result in an increase in migrants traveling north toward the Canada-U.S. border and between ports of entry, the RCMP now has valuable tools and insights to address this movement that were not previously in place,” read an RCMP statement provided to the Daily Caller News Foundation. “New mechanisms have been established which enable the RCMP to effectively manage apprehensions of irregular migrants between the ports.”

Trudeau’s pivot on illegal immigration enforcement follows the Canadian population growing more hawkish on the issue, public opinion surveys have indicated. Other polls also indicate Trudeau’s Liberal Party will face a beating at the voting booth in October 2025 against the Conservative Party, led by Member of Parliament Pierre Poilievre.

Trudeau’s recent overtures largely differ from Mexican President Claudia Sheinbaum, who has indicated she is not willing to bend the knee to Trump’s tariff threats. The Mexican leader in November said “there will be a response in kind” to any tariff levied on Mexican goods going into the U.S., and she appeared to deny the president-elect’s claims that she agreed to do more to beef up border security in a recent phone call.

Trump, who has vowed to embark on an incredibly hawkish immigration agenda once he re-enters office, has tapped a number of hardliners to lead his efforts. The president-elect announced South Dakota Gov. Kristi Noem to lead the Department of Homeland Security, former acting Immigration and Customs Enforcement Director Tom Homan to serve as border czar and longtime aide Stephen Miller to serve as deputy chief of staff for policy.

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Electric-vehicle sales show modest spark

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From Resource Works

Fuel-powered cars still outsell EVs in Canada by almost 7:1

While the federal government pushes electric vehicles (and other zero-emission vehicles), Canadians seem to be somewhat less enthusiastic about them.

Ottawa calls them all ZEVs and says: “Canada is committed to decarbonizing the country’s transportation sector and becoming a global leader in ZEVs. As such, the Government of Canada is aiming for 100% of new light-duty sales to be zero-emission by 2035.”

However, even with rebates offered by Ottawa and eight provinces and territories, Canadians are proving a little reluctant to make the switch—especially to pure battery-only electric vehicles (EVs).

For example, in the second quarter of this year, Statistics Canada reported sales of 511,173 new motor vehicles, the largest number since the third quarter of 2019, prior to the COVID-19 pandemic.

Of those 511,173 vehicles, 445,231 (87.1%) were traditional carbon-fuel cars, vans, and light trucks. Meanwhile, 65,733 were EVs (12.9%). Thus, fuel-powered cars outsold EVs by a ratio of 6.8 to one.

Among the 65,733 EVs sold, 48,511 were pure battery-only vehicles, while 17,222 were hybrid models with both electric and carbon-fuel drives.

This is not quite what Ottawa had hoped for.

(Incidentally, 51.6% of all new EV registrations were in Quebec, followed by Ontario at 21.9%, and British Columbia at 18.5%. In the Statistics Canada survey, the numbers for BC also include the territories.)

When market research company J.D. Power surveyed new-vehicle shoppers in Canada, respondents who said they wouldn’t consider an EV cited high prices, concerns about travel range, and challenges with charging the battery as key reasons.

J.D. Ney of J.D. Power notes that mainstream vehicle buyers are less wealthy and more practical, making them harder to persuade to switch from gas-powered cars.

“If I make a mistake buying an EV or it doesn’t suit my lifestyle, that’s a $65,000 problem. It’s the second-biggest purchase that most Canadians will make. And so, I think they are rightfully cautious.”

As of March 1 (the latest figures available), Canada had 27,181 public charging ports located at 11,077 public charging stations across the country.

Of those 27,181 charging ports, 22,246 are “standard” Level 2 chargers, while 4,935 are fast chargers.

This means Canadians with battery-electric vehicles often face challenges finding an available public port, and, if they do find one, it could take hours to recharge their car from low to 100%. Most ZEV drivers opt instead to “top up” their batteries, but even that can take many minutes.

The availability of fast chargers in Canada is on the rise, with EV manufacturer Tesla adding more “superchargers” that can be used by non-Tesla owners if their vehicles are equipped with the right plug-in adapter or if the owners purchase a suitable adapter.

Electric vehicles are also improving their range, with some models now able to travel as much as 800 km before needing a major recharge. The average range is 435 km, although some older ZEVs still have ranges in the low hundreds.

Potential ranges drop, however, in Canadian cold weather. Some EVs can lose up to 30% of their range in freezing temperatures, and charging times can also increase in the cold.

The concerns and caution of customers have resonated with EV manufacturers.

As CBC News reported: “Just a few years ago, carmakers were investing billions of dollars into their electric lineups and pledging they would soon stop building gas-powered cars.

“But customers aren’t going fully electric as quickly as predicted, so many companies are making adjustments to better meet demand.

“General Motors has scaled back its electric vehicle production this year and will build an estimated 50,000 fewer EVs. Ford is shifting its strategy, stalling plans for an electric SUV and building a hybrid version instead.

“These companies are still losing money on EVs. Despite all that, the carmakers insist they’re still committed to the cause.”

In April, Honda announced plans to invest $11 billion in electric vehicle and battery plants in Ontario. The project aims to produce 240,000 EVs annually, with production expected to begin in 2028.

At the same time, construction of a $7-billion EV battery plant in Quebec could take up to 18 months longer than originally planned, according to the Quebec government.

Production at the Northvolt plant was slated to begin in 2026 to compete with Chinese-made batteries. However, while construction continues, a review by Northvolt could result in a reassessment of the timetable. This review followed Northvolt’s bankruptcy filing in the U.S.

Here in Canada, Ottawa began in August imposing a 100% tariff on Chinese-made EVs. The aim is to protect the domestic EV market from inexpensive Chinese imports. But President-elect Donald Trump proposes a 25% tariff on all imports from Canada, including Canadian-made EVs and parts. This is causing huge concern for firms planning to build EVs and/or EV parts in Canada for export to the U.S.

Returning to EVs: The federal government’s goals are for 20% of new cars sold to be ZEVs by 2026, 60% by 2030, and 100% by 2035.

Carmakers, however, have said those goals won’t be achievable unless Ottawa does more to boost charging infrastructure and address EV affordability.

“We have all of the ingredients for Canada to succeed in this sector,” says Brian Kingston, president of the Canadian Vehicle Manufacturers’ Association. “I’m convinced we’ll continue to see growth in EV adoption, but we do have to address some of those barriers to demand.”

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