Online Streaming Act clears final hurdle as it becomes law

Both the CRTC and Canadian Heritage will hold public consultations on how to implement the newly modernized Broadcasting Act.

Canada’s film and TV industry reached a long-awaited and historic policy moment on Thursday (April 27) with the passage of Bill C-11 into Canadian law.

Also known as the Online Streaming Act, the bill was created as a modernization of the Broadcasting Act, with the intent to level the playing field between traditional broadcasters and foreign-owned streaming services in Canada.

Bill C-11 cleared its final hurdle at the Senate on Thursday (April 27), and shortly after received Royal Assent from Governor General Mary Simon.

“Today, we are standing up for our stories, our artists, our producers and our creators,” said Minister of Canadian Heritage Pablo Rodriguez in a statement. “We’re standing up so that Canadians have even more opportunities to see themselves in what they watch and listen to. With this legislation, we are ensuring that Canada’s incredible talent has a bigger and brighter stage online. They tell our stories, they make our voices heard, they contribute to our economy, and they make our culture what it is: strong, diverse and unique. Today, we stand up because our stories matter and our artists who tell them matter.”

Bill C-11 was first tabled on Feb. 2, 2022, and marks the first time the Broadcasting Act has been amended since 1991, according to Canadian Heritage. An earlier version of the bill, C-10, was tabled on Nov. 3, 2020, but died on the order paper when the 2021 federal election was called.

Now that the bill is passed, the industry is eagerly awaiting a policy direction from Rodriguez to the Canadian Radio-television and Telecommunications Commission (CRTC) on how the amended Broadcasting Act should be interpreted and implemented.

The policy direction draft will be published in the Canada Gazette, Part I and subject to public consultation, according to a news release from Canadian Heritage, with details on how to participate to be made available on the Heritage website. A final policy direction will be published once the consultation concludes.

The CRTC, meanwhile, is moving forward on public consultations ahead of the publication of the policy direction. CRTC CEO and chair Vicky Eatrides issued a statement Thursday that the Commission will “share our detailed plan and launch the first public consultations shortly,” adding that their approach will adapt “in light of any future policy direction.”

“The CRTC will establish a modernized regulatory framework where all players contribute equitably,” said Eatrides, noting that the CRTC “has no intention to regulate creators of user-generated content.”

“The views of all Canadians will be important at every step. We encourage everyone to participate, including traditional players and streaming services who will be regulated, as well as Canadians who will benefit from the modernized system,” she said.

Several industry stakeholders have issued statements since Bill C-11’s passage on critical topics to address within the policy direction.

The Canadian Media Producers Association (CMPA) pointed to the much-criticized section 3(1)(f), which sets different standards for use of Canadian creative talent between domestic broadcasters and foreign-owned online undertakings. “This flaw must be addressed in the pending policy direction to the CRTC, or Bill C-11 risks reinforcing, rather than reducing, the ongoing pressures faced by the domestic production sector,” read the statement.

The CMPA also pointed to positive provisions in the bill, which “ensure that producers can significantly and equitably benefit from their own stories.”

“We are on the precipice of a pivotal moment in Canadian broadcasting history,” said CMPA president and CEO Reynolds Mastin. “It took 30 years before the Broadcasting Act was updated. Since we don’t know when this opportunity will present itself again, it’s important that we get it right.”

Online platform TikTok said it is “committed to working collaboratively” with the government on the policy direction as they “fight for the interests of Canadian TikTok creators,” in a statement to Playback Daily. “Without the legislative clarity they asked for, digital-first creators are now left to simply hope that the government keeps its promise not to regulate user-generated content.”

Directors Guild of Canada president Warren P. Sonoda called for Minister Rodriguez to “commit to filling pending vacancies at the Commission with those who represent the views of creatives and creators.”

Documentary Organization of Canada executive director Sarah Spring stated the policy direction should point to “the important role of documentary films, the importance of Indigenous, Black and racialized content creators in shaping our cultural output, and the importance of holding all companies to the same regulatory standard, be they foreign owned and controlled or Canadian.”

Canadian Association of Broadcasters president Kevin Desjardins said there is an urgent need for a “new regulatory framework that reflects the realities of the modern media landscape and creates a fair and equitable marketplace for Canada’s broadcasters.”

A significant part of the future consultations will be the definition of Canadian content. The Canada Media Fund (CMF) has held its own consultation process around the topic, and is planning to publish a “What You Said Report” on the findings in the coming months. The CRTC has previously stated it is closely monitoring the CMF’s consultations.

“As the country’s largest funder and catalyst for Canadian content creation, the CMF has an important role to play throughout this process,” said CMF president and CEO Valerie Creighton. “We look forward to working closely with the industry, including streamers and digital-first creators, and the government to ensure that new regulations maximize this sector’s incredible potential.”

A change to the definition of Canadian content was one of the six Senate amendments rejected by the House of Commons, out of the total 26 proposed modifications. The rejected change would have reduced the prominence of factors such as ownership by Canadian independent producers or participation of Canadian key creatives to add flexibility to the definition.

Other amendments rejected included a much-debated change to the exemption around user-generated content, which removed a rule that programming that “directly or indirectly generates revenues” could be regulated. A motion to insist on the amendment was put forward in the Senate, with the majority of senators voting against it.

Additional amendments rejected by the House included a ban on advertorial content on CBC and an age-verification requirement for online undertakings.

Pictured (L-R): Reynolds Mastin, Minister Pablo Rodriguez and Erin Haskett