Executives at Bell Media parentco BCE said Canadian broadcasters are in “crisis” and called on the CRTC to address “this reality” before it proceeds to develop a regulatory framework regarding contributions to the broadcasting system.

The comments were part of day two of the in-person CRTC hearings in Gatineau, Que., about building a framework for contributions by traditional broadcasters and online streaming services to support Canadian and Indigenous content under the Bill C-11, or the Online Streaming Act.

“If we look at the streamers, they continue to grow and expand in Canada. Canadian producers are having some of the best years ever, according to the CMPA [Canadian Media Producers Association] annual reports, but broadcasters are suffering,” said Jonathan Daniels, VP, regulatory law at Bell Canada.

Daniels (pictured) said the state of broadcasters had been put “at the bottom of the priority list” in discussions about the implementation of the Bill C-11.

He stressed that traditional broadcasters needed urgent relief, and said a previous day’s suggestion that the streamers could do nothing in the interim that will “impact or help the broadcasters” was “just wrong.”

The BCE representatives were of the view that domestic online undertakings, including Bell Media’s Crave, should not be subject to the same new obligations as foreign-owned streamers until traditional broadcasters receive regulatory relief. They cited factors such as audiences moving from linear broadcast to streaming; U.S. and foreign studios keeping content for their own platforms; and a reduced ad-buying environment for broadcasters.

They also pointed to cuts in the news operations as difficult choices they had to make in response to the existing financial realities. BCE reported a $40 million loss in annual news operating costs this year.

“We think you can design the model in a manner that results in more money going into the system for news and for Canadian productions and, at the same time, reduce traditional broadcaster’s obligations,” said Daniels. “We’re not talking about taking money out of the system. We’re talking about redirecting, in a manner that makes us more financially viable.”

Daniels was asked by Adam Scott, CRTC’s vice-chairperson, telecommunications, whether Bell’s proposed solution was only delaying the “inevitable transition from the traditional broadcast model to one where it’s online streamers and producers.”

He responded that the model is changing, but added that Canadian broadcasters are trying to set “themselves up for successes.”

Bell said its proposed model would split contributions from streamers into four buckets: 60% would go to existing production funds, split 80-20% between the Canada Media Fund (CMF) and certified independent production funds (CIPF); 30% for a news fund based on the model similar to the Independent Local News Fund; 5% for equity-seeking funds such as the Indigenous Screen Office and Black Screen Office; and 5% for funds such as Broadcasting Accessibility Fund and Broadcasting Participation Fund.

Also taking the stage on the second day were representatives from Google and its video and social media platform YouTube. They argued that platforms such as YouTube do not fall under the same regulatory regime as broadcasting undertakings as it does not exercise programming control over content that users uploaded, and that the government’s final policy direction had recognized the distinction.

Google Canada’s senior counsel Arun Krishnamurthi said “professional content” such as music from a record label posted on YouTube falls within the scope of rulemaking.

“Accordingly, we believe that only professionally-labeled audio-only music on YouTube that has been broadcast in whole or in significant part on another service should be subject to this framework and that other uses of that commercial music necessarily fall outside the scope of this exercise,” said Krishnamurthi.

On the issue of base contributions, the Google reps said the Canadian revenues alone were not an “appropriate metric,” as YouTube was contributing to the success of the Canadian broadcasting system as a whole.

Also, appearing on the second day was the National Film Board of Canada (NFB) and representatives from the Directors Guild of Canada (DGC).

The NFB’s representative said the agency backed the $10 million exemption threshold for online undertakings, noting that the Crown corporation’s economic model meant it would never reach [that figure] in the short term. They said if the threshold were to come down, they would “have to look at other avenues.” The agency said it does, however, have a role to play when it comes to long-term availability and preservation of of Canadian and Indigenous content.

The DGC, led by executive director Dave Forget and president Warren P. Sonoda, recommended the Commission establish an initial base contribution for online undertakings of at least 5% — which is in line with the CMPA’s own recommendations — with 80% of contributions allocated to existing public funds and 20% to CIPFs.

The CRTC’s hearings will continue until Dec. 8.