I'll be very quick. Thank you, though. I do have a tendency to go on and on.
Our second policy initiative focuses on this changing landscape. In an era where increased ancillary exploitation such as digital and on-demand services are coupled with plateaued theatrical movie going, the film industry is facing major and complex challenges. Whereas Canadians used to enjoy films primarily on the theatrical screen, they are now increasingly opting for their television or mobile screens. While DVD sales once used to be a lucrative source for films, we are now seeing their ongoing decline, replaced by digital sales.
The 1988 film distribution policy is in many ways responsible for the success of the Canadian feature film industry. However, in light of the advent and the ubiquity of over the top services like Netflix, it is also out of date and out of step with the Canadian reality. Twenty-seven years ago it made sense to limit the scope of the distribution policy to theatrical releases and video sales, as those were the only two mediums that existed for audiences. That is no longer true today, as Canadian consumers are increasingly opting for digital media and television in order to watch feature films.
CAFDE recognizes that the issue of digital and OTT services is an incredibly complex one, but it is nevertheless a pressing matter that must be addressed. As it stands, OTT services like Netflix effectively operate beyond the bounds of the Canadian regulatory system, undermining many of the tenets that the film and television industries are based on.
CAFDE understands how multi-faceted and truly complex an issue this is. Without studying the matter further, any potential progress that could be made risks getting buried under unsubstantiated rhetoric. As such, we are of the opinion that this matter should be further studied in transparent and comprehensive consultation with all key stakeholders in order to come up with an innovative solution that will ensure a strong Canadian feature film industry.
I thank the committee for allowing me to speak today. I'm sorry for going overtime.