Catching Up on MediaPolicy – MPs whip and clip the CBC – Meta’s deadline – Big Tech’s bad week – bar fights as CanCon

CBC-Radio Canada Outlets across Canada

November 30, 2024

The devil makes work for idle hands and lately MPs from the filibuster-becalmed House of Commons amuse themselves by summoning CBC Presidents before the Heritage Committee. Once in the dock, prosecutorial MPs flay the witness and then video clip for their social media posts.

I call it, “whip and clip.”

On Thursday Heritage MPs had the incoming CBC President Marie-Philippe Bouchard before them.

Some MPs had trouble with their facts. Not without justification, MP Kevin Waugh cited the public broadcaster for raking in $400 million in advertising revenue that could otherwise be available to private media. The true dollar figure is $270 million; Google and Facebook have the rest.

MP Jamil Javani claimed that CBC English language television has a 2.1% share of viewing audience. The CBC’s percentage for prime time viewing in television, excluding its all-news and documentary channels, is more than twice that at 5.2 %. By comparison, Canadian private broadcasters collectively take 26%, a wide array of specialty channels are at 53% and US networks are at 13%.

Conservative MPs dwelled upon the bonus payout for senior CBC executives. Bouchard defused the situation by agreeing to review the payments, make her review transparent, and gently reminded MPs that the correct term is “variable pay” (the at-risk performance pay that is part of every senior manager’s compensation package in the modern world).

MP Niki Ashton from northern Manitoba assailed the CBC for its retreat from local television news. She’s not imagining that: in response to the deep Liberal budget cuts during the 1990s, the public broadcaster closed stations and reduced coverage across Canada. The coverage-killing budget cuts didn’t stop there: between 2013 and 2023, the CBC responded to Parliament’s austerity by reducing its spending on television programming in English Canada by 40% in real dollars as it shifted resources to online news.

Bouchard’s reply to MPs was noteworthy: local news will be a “big focus” as the incoming CEO. Last month the CBC announced it was spending its $7 million of “Google money” on hiring 25 journalists in underserved markets.

***

In a previous post I did the CRTC an injustice by accusing Commission staff of “twiddling around” in its investigation of whether Meta is offside by selectively waving some news items through its block of Canadian news content. 

I said that because the Commission appeared to be too patient in allowing Meta lawyers to rag the puck in response to the CRTC’s demand for the details on the porous news block, details which the regulator intends to make public in the course of its inquiry.

Last Monday the Commission fired off another letter to Meta and, if you read for nuance, you will conclude that the CRTC has lost patience with Mr. Zuckerberg’s demands to keep his explanation a secret and is ready to post Meta’s unredacted explanation of its news block.

Meta has until tomorrow to play ball or else. Else what, we shall see. Once Meta’s statement of defence is public, the next step will be a decision from the CRTC on whether to investigate further. 

***

There may never have been a busier week for Big Tech lawyers responding to legislation and lawsuits around the world.

Here’s a quick run down:

  • Australia passed a law banning kids under 16 years old from having their own social media accounts (WhatsApp and YouTube excepted). The ban takes effect a year from now —-an eternity in political time—- as the thorny issue of age verification gets sorted out. The debate over the legislation was the occasion for Elon Musk to tweet accusations of censorship, a rebuke from the CEO of the Australian public broadcaster Kim Williams and then Musk responding by unleashing a troll storm against Williams.
  • The Australian government dropped its version of our Bill C-63, the Online Safety Act. Its “misinformation bill” was destined to fail in the Australian upper chamber where the government does not enjoy a majority.
  • The Canadian Competition Bureau has filed suit against Google for allegedly abusing its market power in digital advertising. Having cleared Google of this very charge in 2013, it seems likely the Bureau has more evidence in hand as a result of the ongoing anti-trust trial against Google in the US. 

***

The Globe and Mail’s Cathal Kelly is a born-with-the-muse columnist who just happens to write about sports.

His cheeky take on Canadian content and retired hockey enforcer Paul Bissonette is delightful (provided you aren’t squeamish about bar fights). 

***

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Catching up on MediaPolicy – CRTC’s Netflix plan – breaking up Google? – Meta’s news ban defiance -more CBC debate

November 23, 2024

This week MediaPolicy published a report of the CRTC’s announcement on November 15th laying the groundwork for how Netflix and the other foreign video streamers will contribute to Canadian content under the Online Streaming Act.

Released on a Friday, the announcement flew quietly under the radar of the daily news cycle, possibly because there is no immediate price tag attached to Netflix’s future obligations to make or license Canadian shows.

Last June the CRTC imposed on the foreign streamers $140 million worth of annual contributions to Canadian television subsidy funds for news, drama and kid’s programming: last week’s much anticipated announcement might end up being worth five times as much in streamers’ programming budgets for Canadian content.

You can read MediaPolicy’s take, here.

***

There are times when the impact of American public policy initiatives on Canadian media policy dwarves anything we might do north of the 49th.

As you may recall, the trial judge in an anti-trust suit begun by the Trump White House and several states against Google resulted in a legal ruling declaring Google an illegal monopoly in Search and search related advertising. 

Following up, the collective of Attorneys Generals spearheaded by the federal DOJ have now tabled remedial requests to the trial judge. 

Just for starters, they are requesting that Google divest its Chrome web browser and its Android mobile operating system. And there are important requests focussing directly on bootstrapping would-be competitors to Google in the Search market by giving them “catch-up” access to Google’s treasure trove of consumer data. Radical stuff for radical times.

There is a useful news summary from the New York Times. But if you can afford the time for a ten-minute read, I recommend Matt Stoller’s excellent explainer.

As I read Stoller’s piece, it easily came to mind how unlikely it is that Canadian news publishers would have successfully pursued the news licensing payments in the Online News Act if instead of Google’s monopoly on search referrals there was robust competition in the Search Engine market.

***

More than a few times MediaPolicy has raised the question of how Meta is getting away with its selective ban on Canadians news content, its response to our Online News Act

The Heritage Minister raised the same question publicly but she is constrained by the fact that it’s the CRTC’s jurisdiction to investigate it.

It’s possible that federal cabinet considered but dismissed the idea of sending the CRTC a policy directive asking the Commission to look into why Meta permits the sharing of some news items, but not others, and why it has flat-out restored news posting privileges to outlets such as Narcity.

The Commission is twiddling around on this one. In early October it asked Meta to explain the rhyme and reason for allowing some news content on its Facebook and Instagram platforms while banning the vast majority of news organizations.

Meta filed a letter in response and, according to a Canadian Press story, it appears that Menlo Park submitted something, but it’s not clear what. And beyond whatever details of its selective ban it provided, Meta has claimed confidentiality and opposes the public release of its answers to the Commission.

This minor legal drama will play out in the fifth dimension of regulatory time.

Meanwhile the public is still in the dark as to whether the Commission thinks there is a basis for playing hardball with Meta by, for instance, officially designating its platforms under the Online News Act so that banned news organizations can file an “undue preference” complaint and get equal treatment to Meta’s favoured news outlets.

***

I’m pleased that so many followers of this blog liked Richard Stursberg’s guest column on the CBC, his advice for the incoming CBC President Marie-Philippe Bouchard. It’s now the most popular post in MediaPolicy’s short history. 

Now there’s an interesting column from The Hub’s Managing Editor Harrison Lowman in which he identifies the “defund the CBC” problem as the public broadcaster’s news curation and journalism culture. His bottom line: fix it, don’t destroy an important Canadian institution and a vital provider of news journalism.

Lowman’s piece —-clearly not toeing the Conservative Party line—- was immediately disputed by The Hub’s Editor-At-Large and former Harper policy chief Sean Speer. 

Speer’s says his support of defunding the CBC is not founded on an allegation of biased news reporting. Gosh no. It’s about the CBC’s declining audience share (him citing poor television viewership numbers, but ignoring strong digital and radio numbers). His colleague Lowman is just being “nostalgic” about the CBC.

***

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Catching up on MediaPolicy – local news poverty is dangerous – a new CEO for CBC? – Jeff Elgie’s big idea – the Bowie vibe

October 21, 2024

Last week I was in Charlottetown attending a conference on local news. 

I posted a brief summary of the keynote speech delivered by Steve Waldman here.

Waldman is the American journalist who heads the Local News Project and the Report for America intern program. If you want to place him in the Canadian constellation of public journalism, consider him an American counterpart to our Ed Greenspon or Margo Goodhand. The headline graphics above and below are from Waldman’s slide deck.

Waldman’s pitch, and the idea behind the conference, was that saving local news journalism is job one. 

The argument he makes is that there is a great deal of evidence in the US suggesting that towns and rural areas living in news poverty —with too few or no community news outlets — are ripe for misinformation circulating on social media and also political polarization when searching for news on more partisan sources at the national level. 

There is a connection, he says, between being underinformed or misinformed about local events, issues, and politics and on the other hand the rising national tide of political polarization where citizens sort themselves into tribes and stop listening to each other. 

One should be cautious about copy and pasting Waldman’s analysis from the US to Canada, but his view will strike many as true.

***

The National Post scored some of outgoing CBC President Catherine Tait’s e-mails, commenting on the Conservative “defund the CBC” campaign, through an access to information request. Alas, her comments weren’t very juicy. 

Tait’s replacement is due to be announced by the Heritage Minister any day now: LaPresse and Le Devoir had stories claiming it will be Marie-Philippe Bouchard. She is currently the CEO of the Canadian broadcasting consortium TV5 Unis that partners with global francophonie broadcaster TVMonde. She was at CBC-Radio Canada for 26 years before that.

Bouchard’s reputation precedes her, at least in Québec, where reaction to her possible appointment was roundly positive.

Appointing Bouchard to replace Tait would fall in line with the important tradition of alternating between Québec and English Canada.

Peter Menzies raised the obvious question: it’s the current state of English-language CBC that needs review in response to Pierre Poilievre’s promise to defund CBC but not Radio-Canada, so why not pick someone from another province?

The answer may be that she spent 12 of her 26 years at CBC working as legal and regulatory counsel for both sides of the corporation. You can expect the question to be raised again if Bouchard is appointed.

***

A notable absence from the Charlottetown local news conference was Jeff Elgie, CEO of the expanding Village Media chain of local digital media sites.

Elgie has seemingly defied gravity for the last ten years by growing from one local site in Sault Ste. Marie to more than thirty in Ontario. Along the way he’s built a popular proprietary publishing system and even added a legislature news bureau. 

I interviewed Elgie back in March and it is one of the most popular posts in MediaPolicy’s short history (he’s only got a 100 or so employees, so it’s not what you think).

Besides launching his first Toronto site in the next weeks, his next big idea is “Spaces,” a social media platform for chat groups moderated by community hosts. 

I just signed up, so wait for a report.

***

My recommended read is for media nerds only. Doug Shapiro has another crystal ball blog, this time about the impact of Generative AI on video creation. It has the feel of David Bowie’s famous 1999 “tip of the iceberg” prognostication about the Internet.

Here’s a teaser from Shapiro’s “GenAI as a New Form” about what might lie below the water line:

***

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Catching up on MediaPolicy – Libs not splitting the online harm and hate bill – Conservatives would regulate algorithms – Netflix and US music streamers jump into Canadian politics

September 28, 2024

The House of Commons is back in full swing and media policy issues are coming thick and fast. 

For at least the next few months, it might be a good idea to rename this blog MediaPolitics.ca.

I say that because the politicization of media policy issues —- the linking of minor events to allegations of catastrophic policy failure —  is spinning around the turntable at 78 rpm. 

***

I just attended a conference organized by Taylor Owen of the Max Bell School of Public Policy focussing on policy issues embedded into the Liberal government’s Bill C-63, the Online Harms Act

The Bill earned publicity when it was tabled in the House last February by folding in tougher criminal sanctions against hate communications and reinstating the right of individuals to file human rights complaints as a consequence of online hate.

But the core of the bill is legislating a generic “duty to act responsibly” for social media platforms such as InstagramSnapchat, and TikTok.

Platforms will be required to reduce online harms through safety plans that re-engineer data-driven algorithms responsible for driving harmful content and Internet predators to unsuspecting users. User tools and settings are other ways for platforms to make their services safer. Take-down orders are limited to revenge porn and sexual exploitation of children.

Justice Minister Arif Virani is the bill’s sponsor in the House but, he informed the crowd, he has no intention of giving ground to suggestions that he split off the hate crime provisions of the Bill to enable the safety plan core of the legislation to pass the House with less resistance from Pierre Poilievre’s Conservatives.

Online hate, said Virani, is what silences Canadians belonging to vulnerable, maligned communities and discourages their participation in online speech. 

Online racist hate, he continued, radicalized the murderers who targeted those same Canadians. The rest of us of should find more empathy for those Canadians, he suggested, choosing his words more diplomatically than I have paraphrased. 

Those who advocate for splitting the hate provisions off into another Bill (I’m one such advocate)  see only another Conservative filibuster in House committee proceedings, previously the fate of the Netflix Bill C-11 (twice in the House and arguably a third time in the Senate).

On the other hand, Virani may be looking the Leger and Nanos opinion polls that demonstrated a high level of support for getting tough on hate crimes and haters. If the Conservatives try to block the government bill, they are going to wear it at election time.

The Conservatives may have figured out that their habitual opposition to regulating the Internet won’t cut it when it comes to online harassment, bullying, and sexual exploitation of minors. 

That’s why they just tabled a private member’s bill, C-412, An Act to enact the Protection of Minors in the Digital Age.

Here’s the Leader of the Opposition’s branding:

Beyond the bombast, the CPC bill is a serious piece of legislation, but of a different (and smaller) footprint than the government’s C-63. 

The Conservative bill requires social media and gaming platforms to design their tools, settings and recommendations of content and contacts to protect children, and only children, from harm. 

Unlike the government bill, there are no safety plans in the CPC bill for adults, not even for revenge porn or hate (although both are currently subject to criminal sanctions: the Conservative Bill would increase prisons sentences for revenge porn).

Leaving little work for a future regulator, the CPC bill gives explicit instructions to Internet platforms on what they must or must not do to protect children through safety settings that children and their parents can control or disable:

5 (1) Every operator must provide any parent of a user whom the operator knows or should reasonably know is a child, as well as that user, with clear and readily accessible safety settings on its platform, including settings to

(a) control the ability of other individuals to communicate with the child

(b) prevent other individuals from consulting personal data of the child that is collected by, used or disclosed on the platform, in particular by restricting public access to personal data;

(c) reduce features that increase, encourage or extend the use of the platform by the child, including automatic displaying of content, rewards for time spent on the platform, notifications and other features that could result in addictive use of the platform by the child; 

(d) control personalized recommendation systems, including the right to

(i) opt out of such systems, while still allowing content to be displayed in chronological order, with the latest published content displayed first, or

(ii) limit types or categories of recommendations from such systems; and 

(e) restrict the sharing of the child’s geolocation and notify the child and their parent when their geolocation is being tracked.

Default settings

(2) The operator must ensure that the default setting for the safeguards described in subsection (1) is the option that provides the highest level of protection.

It’s shrewd retail politics and allows the Conservatives to say “limiting screen time,” “protect children,” and “parents’ rights” all in the same sound bite.

What seems to have slipped under the radar is that their bill authorizes interference with algorithmic recommendations, previously the centrepiece of the Conservatives’ opposition to the Online Streaming Act.

What’s next for these bills is subject to the whirlpool of Parliamentary politics. It’s not clear when (or if) the Conservative bill might be cleared for mandatory debate by MPs sitting in the House Justice Committee. The same committee has yet to schedule the government’s bill. 

***

The battle over the Netflix Bill C-11 continues to flare. With an election in the air, the foreign streamers are engaged.

This week Netflix announced it was pulling training and development funding — vaguely described as $25 million spent over the last few years— from Canadian creator projects such as the Pacific Screenwriting Project and the imagineNATIVE film festival. Netflix gave the Globe and Mail a statement blaming its cancellations on the CRTC’s cash levy on foreign streamers to support financing subsidies to Canadian news and entertainment programming. 

Netflix is already appealing the CRTC’s  $52 million annual cash levy to the Federal Court (my estimate based on 3.5% of $1.5 billion in annual Canadian revenue). 

Netflix had previously told the CRTC it would support a 2% charge, but strenuously objected to any of its cash going to the Independent Local News Fund. 

Netflix had also pitched to the CRTC that its training and development deals with various Canadian creative organizations ought to be deducted from the cash levy (training funds are also not deductible from the 5% levy paid by Canadian cable companies). 

The CRTC has enveloped Netflix’s 3.5% levy like this:

  • 0.5 % ($7.5M) to the Canada Media Fund for CanCon television series
  • 0.5% to the Indigenous Screen Office to support television productions 
  • 0.5% shared by the Black Screen Office, the screen fund for BPOC creators and the Broadcasting Accessibility Fund
  • 0.5% shared by funds supporting producers in official language minority communities in Québec and English Canada, as well as diverse communities; and
  • 1.5% ($22.5M) to support newscasts at independent local stations.

[The list above has been revised and corrected from the original blog post]

Netflix’s grievance is that it ought to be given special regulatory treatment to deduct training and development funding of Canadian recipients of its choosing. (There is no public information available on whether there are strings attached to their funding).

The door is not closed on Netflix making its argument to the CRTC, however. When the Commission completes its regulatory assessment on Netflix and the other video streamers by setting expectations of direct spending on Canadian shows for their services, the streamers can make the same pitch to deduct training and development commitments.

In the same fighting spirit, the US-based music streaming lobby group Digital Media Association is launching a Canadian online petition campaign (see photo above), accompanied by messaging on its services guiding Canadians to the petition. The “Scrap the Streaming Tax” site threatens consumer price increases expressed in a vocabulary similar to the Conservative Party’s “scrap the Carbon Tax.”

Google did a similar campaign two years ago to mobilize opposition to Bill C-11. Canadian cable companies also launched a “Stop the TV tax” campaign in 2009.

***

Here are two new information releases that you can nerd out on.

The CRTC released its “what we heard” report that summarizes public comments on whether and how to revise Canadian content rules for video entertainment. This is a first step towards a public proceeding on possible revisions to CRTC rules that accredit video programming for regulatory compliance.

The Commission also posted for comment an application from APEM, the French-language song publishers’ organization, asking the CRTC “to collect data from the main online music streaming services and to make them public in order to provide the entire sector with a status report on the listening, showcase and recommendation of musical selections in Canada.”

***

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