Canada’s film distributors have asked the Canadian Radio-television and Telecommunications Commission (CRTC) to incentivize presales for domestic feature films in its new regulatory framework.

The Canadian Association of Film Distributors and Exporters (CAFDE) appeared at the CRTC’s market dynamics hearing on Friday (June 27), represented by Vortex Media CEO Justin Rebelo and Elevation Pictures co-president Noah Segal.

In his opening remarks, Rebelo said the Commission could incentivize the production of Canadian theatrical feature films by introducing a 150% credit for film presales, to be applied to Canadian programming expenditure and discoverability requirements. He also recommended that streaming services be required to devote 30% of their homepage “carousel” to Canadian content.

Rebelo said the 150% credit rule for film presales existed for pay TV channels prior to the Let’s Talk TV hearings in 2017, when the channels were combined with specialty, and funds were then funneled into TV production.

“That has had a significant impact in the pre-buying of feature films in this country,” said Rebelo. “Pay television was the backbone of funding of Canadian films.”

Segal told commissioners that film sales at the broadcaster level is “at an all-time low globally,” and that CAFDE’s recommendations are simply to bring in streaming services to the system.

A 2024 study commissioned by Telefilm Canada showed that 98% of film viewing in Canada happens at home, with digital platforms accounting for 71% of film consumption. Broadcasters accounted for 18%.

CAFDE also recommended introducing mechanisms to track the discoverability of Canadian content on online and traditional platforms, and ensure data transparency in the broadcasting system.

Representatives from Apple Canada told commissioners on Thursday (June 26) that sharing data with programmers can be difficult, especially if they don’t have the right metadata.

On Friday, Segal argued that the metadata issue is a simple fix for content providers as long as platforms are clear on what they need. He also disagreed with the notion that data-sharing can be difficult, pointing to Netflix’s top 10 charts, which break down weekly views and hours viewed for films and series in their global top 10.

“If Netflix is doing it, I’m pretty sure they all can do it,” he said.

Fair market access

On Thursday, Vancouver-based Telus Communications called for more market fairness in sports content in Canada. In its written submission, Telus claimed that vertically integrated (VI) companies such as Bell and Rogers have limited access to their online services, limiting competition for smaller BDUs in Canada.

Jordan Mador, director, integrated financial planning and AI strategy at Telus, pointed to live sports as key content for access in the market, which is currently dominated by Bell’s TSN and Rogers’ Sportsnet.

Daniel Stern (pictured), associate general counsel for Telus, argued that, following the Rogers/Shaw merger, the companies are now in competition nationwide for customers, leading to anti-competitive behaviour toward smaller BDUs.

Nova Scotia-headquartered BDU Eastlink made a similar argument in its submission to the CRTC, noting that VI companies are incentivized to “deny competitors access to key content and to leverage their content to increase rivals’ operating costs.”

Representatives for indie sports broadcasters Game+, operated by Anthem Sports & Entertainment, and OneSoccer told commissioners on Friday that they have found it difficult to secure a place in the sports market in Canada. For channels that do manage to get carriage, they’re not easily discoverable on linear.

OneSoccer consultant Laura Mellanby recommended that all BDUs carry a minimum number of indie services, arguing that “market forces alone” won’t drive support for those channels. David Kines, president of Hollywood Suite and Game TV, called for an incentive-based model for discoverability, since “just being available isn’t enough.”

The final week of the market dynamics hearing begins on July 2 with appearances from CBC/Radio-Canada and the Canadian Media Producers Association.