Foreign competitors such as Netflix, Google TV, Apple TV, and Hulu have internationally known brands, sophisticated technologies, marketing expertise, and very, very deep pockets. These foreign content providers remain exempt from regulation under the CRTC's new media exemption order. This exempt status needs to be reconsidered for the following reasons.
First, the Canadian broadcasting rights market is threatened as a result. Foreign providers either own or have the power to acquire rights to the world's most popular content.
Moreover, non-Canadian entities have no Canadian content or exhibition requirements. They make no financial contributions to the Canadian production industry. Canadian producers are negatively impacted by revenue being diverted from regulated services to exempt non-Canadian services.
And by consuming valuable capacity, over-the-top providers threaten to undermine our significant network investments and impact the quality of service offered to our ISP customers.
Finally, consumers will ultimately suffer, with fewer Canadian choices.
Private companies are responding by investing, diversifying, and innovating. The government and the CRTC must also respond by asking whether they want a Canadian broadcasting system. If the answer is yes, we need to put appropriate rules in place.
Until recently, the rules against licensing non-Canadians ensured that Canadians were well served by their broadcasting system. Given the ability of new technologies to reach across borders and ride on Canadian telecommunications networks, foreign ownership rules are becoming increasingly incapable of ensuring the continued sanctity of our broadcasting system and its benefits to Canadians. We need a new approach that ensures that non-Canadian providers are at least subject to symmetrical regulations and financial obligations. We need the government and the CRTC to simply ensure a level playing field.
We are ready to compete and we have confidence in the future of the Canadian broadcasting system. Consolidation is an essential and inevitable part of that future. Government and regulatory policy must support the strength of integrated Canadian competitors and eliminate any advantages of non-Canadian over-the-top content providers.
Mr. Chairman, thank you. We look forward to answering your questions.