Online streaming giants should be forced to pay 2% of their annual revenue to Canada to support Canadian and Indigenous content and help level the playing field for local broadcasters, Rogers Communications executives said at a Canadian Radio-television and Telecommunications Commission (CRTC) hearing on Tuesday.
The Toronto media and telecommunications company noted that Rogers and its Canadian competitors are held back by an “oppressive” regulatory structure that does not apply the same rules to new digital companies that have disrupted the industry.
In the short term, Rogers has asked the CRTC to create a temporary information fund to help subsidize private television and radio stations using 30% of the contributions it asks these online services to make.
“We operate in an information-heavy regulatory environment,” recalled Colette Watson, president of Rogers Sports and Media.
“It’s really hard to continue planning for the future when we’re stuck in 1995 with a system. »
The company’s presentation took place during the second week of public consultations by the federal broadcasting regulator in response to the Online Streaming Act, which received royal assent in April.
This law aims to update federal legislation to require digital platforms such as Netflix, YouTube and TikTok to contribute to and promote Canadian content.
The commission is exploring the possibility of requiring streaming services to make an upfront contribution to the Canadian content system and putting them on an equal footing with local companies, which are already required to support Canadian content.
Dean Shaikh, Rogers’ senior vice president of regulatory affairs, said the company was losing subscribers and viewers to online competitors.
“The outcome we’re looking for here is that we can compete with online broadcasters,” he told CRTC members.
“We are not looking for protections, but for the same flexibility that could be afforded to online broadcasters. »
According to him, Ottawa’s adoption of the online streaming law and its implementation by the regulatory authority “constitute a means of modernizing the regulatory framework for broadcasting in Canada, which should have been put in place since a long time “.
“Our proposal is based on the clear expectation that the board will take meaningful action to alleviate the direct financial obligations of Canadian ownership groups,” Shaikh said.
“It is no longer fair or sustainable for the Canadian broadcast industry to be the primary source of funding for all stakeholders in the system. »
Rogers’ proposed 2% contribution would apply to “unaffiliated foreign and Canadian online companies that have a significant impact on the Canadian broadcasting system.” These companies are defined as online video and audio content distributors with annual revenues in Canada of at least $50 million and $25 million, respectively.
The company clarified that it did not want the mandatory contribution to apply to content creators on social media, but rather to the platforms that host them.
Shaikh also added that Rogers wasn’t necessarily hoping the CRTC review would result in “hundreds of millions of dollars in new direct subsidized funding for Canadian content production.” While this is not a crisis situation for the company, its local news division is in a more difficult situation.
“The importance of local information cannot be overemphasized,” he told the council.
“Not only is it essential to our democracy, but it is also a key differentiator between the traditional system and the online system. This is one of the elements that we hope will encourage Canadians to stay in the system. »
The comments echo a presentation last week by BCE, owner of Bell Media, which also called on the CRTC to create a news fund providing money to broadcasters through contributions from foreign insta-video artists.
Last month, Rogers closed its CityNews Ottawa radio station and laid off newsroom staff, citing declining audiences and regulatory challenges.
The CRTC hearing, which is expected to last three weeks, is expected to hear from companies including Spotify, Netflix and Amazon in the coming days.
