Catching up on MediaPolicy – End of the CBC? – Bell settles Warner Bros lawsuit – CRTC investigates Meta’s news ban – the Rage of Google

October 12, 2024

This week MediaPolicy published an interview with Chris Waddell, author of the 2020 book “End of the CBC?” Waddell is not advocating defunding the CBC, but recommends sweeping change.

The post’s viewing numbers are off the charts (for this modest blog) which tells me there is a real thirst for this kind of discussion.

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You will recall the reporting on the Warner Brothers Discovery studio and streamer allowing its content deals with Corus and Bell to lapse and making a new Canadian distribution deal with Rogers instead.

I think Rob Malcomson saw this coming. In 2021 the Bell regulatory executive told the CRTC that if it approved the Rogers-Shaw merger it would be giving Rogers the hammer in the Canadian market for content rights by granting Rogers 47% of the English Canadian market.

Three years later, Rogers shoved Bell and Corus aside and grabbed rights for a significant bundle of Warner Brothers Discovery (WBD) content that Bell and Corus had profited from over the years while investing in their own Canadian programming to build around that branded American content.

When BCE announced in response to the Rogers coup that it was suing its American business partner — Bell also buys WBD’s premium Home Box Office content for Canadian distribution on Bell Crave— all eyes were on the text of the non-compete agreement that Bell said restrained their Hollywood supplier from taking all that content to Rogers for two more years.

This week Bell announced the lawsuit was settled. The WBD deal with Rogers remains intact.

In exchange, Bell says it gets “expanded content” from WBD. The announcement then lists some big shows that, as far as I can tell, it already offers in its Crave/HBO package. Bell was unable to clarify whether it really meant to say “extended access,” in terms of pushing out further the undisclosed expiry date on HBO content. The press release says the new deal “ensures Crave subscribers have continued access to a vast library of premium content for the foreseeable future.”

The more enigmatic paragraph in the announcement was that Bell is “strengthening and deepening our relationship with Warner Bros. Discovery, marking a significant milestone as we move forward together. With our commitment to develop co-productions, and the extended pipeline of extremely valuable content for subscribers, we’ve ensured Crave is well-positioned for continued growth and success.” (Emphasis added).

Throughout the Parliamentary and regulatory journey of the Online Streaming Act, Bell has pushed for regulatory “incentives” that might induce the global streamers to partner with Bell in financing big budget Canadian productions and then distributing them with a bigger payoff for Bell. The partnership idea found favour in the federal government’s cabinet instructions to the CRTC on implementation of the new Act.

Perhaps Bell’s settlement with WBD is part of that strategy.

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The CRTC must be feeling the heat from MediaPolicy or the federal Liberals —you can guess which— on Meta’s porous ban on Canadian news, designed to shield the social media company from liability for licensing payments to news outlets under the Online News Act, Bill C-18.

Last week the Commission told Meta to explain why some Canadian news content continues to appear on Facebook and Instagram without Meta self-identifying as a digital news intermediary, subject to the legislation. Meta’s response was due yesterday.

Michael Geist has an interesting blog post arguing a couple of points.

The first is that news posts on Meta platforms originating from entities that might not qualify as “news outlets” operated by “eligible news businesses” under C-18 would therefore not be “making news available” as defined by the Act. It would follow that Meta would not be carrying on any news hosting making it liable for licensing payments. 

This begs the question of what Canadian news organizations fall outside the definition of “news outlets” as defined in C-18, a deep but fascinating rabbit hole to dive down. Is that Rebel News? Narcity? The Conversation? MediaPolicy?

The other point Geist argues is that screen shots of Canadian news stories originating from bona fide news outlets, but uploaded by citizens to Meta platforms, may fall outside the definition of “news content” because —this is going to bake your noodle—-the ownership of the screen shot news has migrated from the news outlet to the citizen as a consequence of “user rights” under copyright law and therefore is no longer content from news outlets liable for licensing payments under the Act.

Go figure.

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There are two recent news items about governments regulating social media platforms that seem to go together well. 

The New York Times has an explainer about the big wins rung up in the US by NetChoice, Big Tech’s lobby coalition, relying on expansive First Amendment free speech rights.

On the other hand, government regulation came out on top in Brazil: a court order shut down Elon Musk’s X platform for a month after he refused to moderate content advocating a military coup. Musk relented. The migration of Brazilians from X to rival platforms seemed to have done the trick.

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The US Department of Justice’s trust-busting case against Google, ruled in August by the US Third Circuit federal court to be an illegal monopolist under the Sherman Act, is now at the remedy stage where consequences will be considered. The DOJ’s last great anti-trust victory was over AT&T and it resulted in the court breaking up the telecommunications giant in a court remedy known as “structural separation.”

Matt Stoller provides a good summary and predicts a no-holds-barred political fight in the near future, enticingly headlined “The Rage of Google.”

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Howard Law

I am retired staff of Unifor, the union representing 300,000 Canadians in twenty different sectors of the economy, including 10,000 journalists and media workers. As the former Director of the Media Sector and as an unapologetic cultural nationalist, I have an abiding passion for public policy in Canadian media.

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