Conflicting views on the introduction of initial base contributions in the CRTC’s proposed regulatory framework took centre stage on the first day of the Commission’s three-week hearings on Monday (Nov. 20).

The Canadian Media Producers Association (CMPA) and the Motion Picture Association – Canada (MPAC) presented differing perspectives on how contributions to the Canadian system should be made and allocated.

In the case of the CMPA, the association proposed a base contribution of no less than 5% of revenues for both domestic broadcasters and foreign-owned online undertakings. Based on an estimate that the total new contributions from domestic and foreign-owned streamers would bring in an additional $250 million, the CMPA proposed that 20% of that total, or about $50 million, should be directed to registered funds from equity-seeking organizations, including the Indigenous Screen Office and the Black Screen Office.

The CMPA went on to propose that 80% of the remaining contributions should be made to the Canada Media Fund (CMF), with the remaining 20% directed to other funds, including a minimum contribution of $20 million to Telefilm Canada. This slightly differs from the CMF’s proposal earlier in the day that it should receive 80% of the total contributions.

In regards to access to these funds, CMPA president and CEO Reynolds Mastin said that there should be a “fair and equitable approach” and that any contributors should be able to access those funds, as long as they’re subject to criteria.

Representatives of MPAC, which included Paramount, Netflix and The Walt Disney Company, argued that an initial base contribution would not be an equitable approach, since their business models differ from those of Canadian broadcasters.

“We feel as though we haven’t had a chance to demonstrate to you, and have the Commission assess, the totality of our contributions, and the proposal around an initial base contribution seems to presume that there aren’t any, and there’s been free riding of some sort, and we don’t think that’s the case,” said Paramount’s Keith Murphy, SVP, government relations and regulatory counsel.

The representatives also argued against making contributions toward the CMF. Stéphane Cardin, Netflix’s director, public policy, Canada, highlighted how the current framework of the fund is limited in terms of the genres it supports, which are currently comedy, drama, documentary, and children’s and family content. He added that Netflix Canadian originals such as Blown Away have not been able to qualify for support.

“There are a number of limitations with that fund. It’s good news that apparently flexibility is coming, but that flexibility is coming in 2025,” said Cardin, referring to the CMF’s recently announced plans to modernize its funding model.

“We urge the Commission to reject calls to try and force square pegs into the round holes created many decades ago, and set aside dated ideas of how contribution models produce desired outcomes for Canada,” stated MPAC president Wendy Noss (pictured above).

FilmOntario and the Toronto International Film Festival also presented their case to the CRTC on Monday. The organizations called for support for Canada’s creative sector, with TIFF CEO Cameron Bailey emphasizing that additional support will help the festival grow its market presence and bring the world to Canada.

The CRTC’s hearing process will continue to Dec. 8.