Members of the Canadian feature film community sent a letter outlining concerns and “strong opposition” to the recent Canadian Radio-television and Telecommunications Commission’s (CRTC) June 4 decisions surrounding the Online Streaming Act.

The two-hundred and six-five (265) signatories – made up of actors, directors, writers, producers and other film professionals – note that the “entire Canadian film industry has been left out in the cold by the CRTC.” And refers to how 5% of base contributions collected from foreign streamers will be directed to the Canada Media Fund, the Indigenous Screen Office Fund (ISO), funds for Black and racialized creators (ISO, BSOF) and the Broadcast Accessibility Fund, as well as certified production funds (CIPF) and the Independent Local News Fund. “All content producers and creators affected by the presence of foreign platforms in Canada, with the exception of the film industry, will therefore see their funding redistributed.”

The signatories acknowledged that while feature films can be financed by independent funds, or by the ISO, BSOF or CISF, it noted that these funds have no obligation to allocate any money towards feature film production.

Another comment included the CRTC’s decision to include revenues from single transaction services but that it neglected to acknowledge that a large majority of these revenues come from feature films, and that transactional video-on-demand (TVOD) is part of the traditional chain of exploitation. “Canadian feature-film productions become direct contributors to, but not beneficiaries of, royalty payments,” the comment read.

Set in bold type in the body of the letter, the signatories ask the CRTC to “immediately review the allocation of basic contributions provided for in paragraphs 113 et seq. of the draft order to include theatrical production, so that a minimum of 20% of the sums collected as royalties be paid to Telefilm Canada, which must devote them entirely to supporting the production of feature films, in the linguistic proportions dictated by the CRTC in its decision.”

The letter also requests that the CRTC clarify wording in the Online Streaming Act to “clearly exclude amounts paid by platforms as acquisition fees for Canadian productions. Only amounts dedicated to the production of original Canadian works should be counted as contributions.”

In an emailed statement to Playback Daily, a spokesperson for the CRTC said, “The June 4^th decision is a major step forward in the implementation of the Online Streaming Act (formerly Bill C-11). The Online Streaming Act, which amended the Broadcasting Act, requires the CRTC to modernize the Canadian broadcasting framework and ensure that online streaming services make meaningful contributions to Canadian and Indigenous content.

“The funding will be directed to areas of immediate need such as local news on radio and television, French-language content, Indigenous content, and content created by and for equity-deserving communities, official language minority communities, and Canadians of diverse backgrounds. This decision is based on an extensive public record, which includes more than 360 detailed submissions and a three-week public hearing during which the CRTC heard from over 120 groups.

The CRTC will soon be launching more public consultations on the amended Broadcasting Act and will continue to publish decisions as they are made. The CRTC will continue to balance consulting widely with moving quickly to build a new regulatory framework.”

This current crop of comments isn’t the first time that industry members have spoken out on the CRTC decision. Wendy Noss, president of the Motion Picture Association – Canada, said in a statement earlier this month, that it “reinforces a decades-old regulatory approach designed for cable companies.”

While others in the industry commended the changes. ISO CEO Kerry Swanson told Playback Daily that the 5% allocation to the ISO (which roughly equates to 10% of overall contributions from audiovisual streaming services) is “in line with what we were hoping for.”

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