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Broadcast content producers want the CRTC to impose a levy on Internet Service Providers (ISPs) to support Canadian content. As broadcasting moves to the Internet, ACTRA feels that this levy is necessary.
Stephen Waddell, ACTRA's national executive director, explains, " 'we believe not only does there need to be shelf space for Canadian content in broadcasting, but there has to be incentives for that production [on the Internet].' "
ACTRA claims that since half of the traffic on the Internet is composed of broadcast content, the CRTC needs to recognize that the Internet makes up an " 'element' " of the broadcasting system. Waddell points out, " 'when ISPs distribute broadcasting, in that sense, they are acting as broadcasting distribution undertakings.' "
Waddell says, a fund where ISPs contribute an annual fee should only be 2.5% of total revenues, which would raise $70-80 million a year. This will not likely add an extra financial burden on BDUs, which already contribute 5% of their revenues to the Canadian Television Fund, since their profits have been on the rise.
The Canadian ISP Alliance, which represents Rogers, Bell Canada, Bell Alliant, TELUS, EastLink, Cogeco, MTS Allstream, Quebecor Media, Shaw and SaskTel, opposes a mandatory contribution, saying that it contravenes both the Broadcasting Act and Telecommunications Act. The Alliance says that ISPs do not engage in " 'broadcasting' " or operate as " 'broadcast undertakings' " as spelled out in the Broadcast Act. The submission argues that " 'ISPs are telecommunications service providers that have been, and continue to be, appropriately regulated under the Telecommunications Act.' "
Source: Tech Media Reports, 07/16/2008
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