Before we wrap up, I would like to make a short comment about the Canada Media Fund.
As you may know, the Department of Canadian Heritage's contribution to the fund expires at the end of this fiscal year. This program is crucial for underrepresented Canadian programming and the independent production sector. It is critical that it be renewed long term. As you may also know, we've been actively working with our colleagues in the creative sector in arguing before the courts that Internet service providers should be considered broadcast distributors under the Broadcasting Act.
Let me briefly explain why it is necessary to push so hard on this front.
Over time, Canadian audiences will increasingly migrate to platforms that are currently not regulated. As this trend accelerates, revenues earned within vertically integrated communications companies will shift from those generated by their traditional and cable satellite services to those derived from their Internet access services. Overall these companies could end up earning just as much, maybe even considerably more, from their customers' shift to broadband.
At the same time, they will end up contributing less and less to the Canada Media Fund, since their contributions are currently based solely on their cable and satellite revenues. Data already show the CMF revenue from BDUs flattening out, as Valerie suggested. This is not a positive trend for Canadian content, for the independent production sector, or for the thousands of jobs we sustain across Canada.
In closing, I offer four specific recommendations that we ask you to incorporate into your study.
One, recognize the imbalance that currently exists between independent producers and television broadcasters in the negotiation of rights and the detrimental effect this has on diversity and innovation in the system.
Two, recommend that the Minister of Canadian Heritage issue a policy direction to the CRTC, pursuant to section 7 of the Broadcasting Act, requiring the commission to ensure that broadcasters have taken all appropriate steps to reach an equitable arrangement with the independent production sector regarding the ownership and exploitation of program rights.
Three, support the renewal of the Department of Canadian Heritage's contribution to the Canada Media Fund on an ongoing basis. This will introduce much-needed stability in the funding system. It will also allow all stakeholders to plan long term and continue enhancing the effectiveness of the fund.
Four, endorse the proposal that all distribution platforms, including those that are currently not regulated, be required to make a financial contribution to a fund to support the creation of Canadian content.
With these key building blocks in place, I am confident that Canadian independent producers will be much better positioned to be able to contribute meaningfully to both our growing digital economy and our cultural future.
That concludes my presentation. I would be happy to answer any questions you may have. Thank you.