Canadian Heritage Committee on Nov. 6th, 2018

[Jonathan Frantz, Producer, Kingulliit Productions, Isuma Collective]

Thank you, Lucy.

What has made Isuma possible, in addition to making fantastic films, is the ability to create a sustainable business enterprise in the very remote community of Igloolik, which has a population of only 2,000. It's about five hours north of here.

Through the work of Norman Cohn and Zacharias Kunuk, they figured out a way to create a collective group of companies and non-profit agencies to support the whole process of production from start to finish. They've incorporated for-profit companies, have a non-profit agency that is now recognized by the CMF as a broadcaster, and recently started a distribution company.

It's that fabric of relationships between the organizations that lets Isuma be the largest non-government employer in Igloolik, larger than mining activity and other new forms of economic opportunities in the north, while creating a product that supports Inuit culture and language.

We've now recently started to export this model of indigenous and locally produced production to other nations within Canada. We're working with the Haida Nation and recently launched a film called Edge of the Knife, which is in the Haida language, a language spoken by only 24 people left in the world. It's been getting a lot of international and national news coverage on the success of its ability to help restore that language. It's been reaffirming for Isuma to see that this is a model that can be expanded and applied to other areas.

Part of the challenge we're currently facing is the ability to get our content out to indigenous audiences. There are very few distributors in the marketplace and very, very few who support the type of work we do. Indigenous-language subtitled films don't meet the typical standards for investment by distribution companies, and if you don't have a distributor, you're not eligible to apply for Telefilm financing.

The Canadian government has been very great in creating a production capacity—production support—for films, but we feel that there's a bit of a lag in the ability to get films to market. What we're trying to do is look for resources, partners and opportunities to get these important films to the audience members who care about them the most.

Currently, Isuma Distribution is pulling together money. We have very good support from local government agencies. We have created a hybrid system using Internet distribution through our own website—IsumaTV—and through iTunes, and we're in talks with Netflix. We do a lot of community tours to take the films to these remote communities with a professional projection kit so that we can provide the theatrical community screening environment and, again, so people can celebrate the films where they matter most. We also host film screenings in small independent theatres, recognizing that it's not commercially viable to try to sell weeks of a run for a theatre that sits 600 people, but it's very viable for a small 50-seat theatre to run a few days here and there.

That's what we're hoping for more support on. A big part of the ability to distribute these films in remote communities is improved Internet connectivity. The north faces one of the most expensive and poorly served Internet connections within Canada. It's 10 times the price and one-tenth of the speed of the Internet you get down south, so there is no ability for these consumers and audience members to easily access the content that we're creating.

I'll leave it at that for now. Thank you very much for your time.

[The Chair, Liberal, Julie Dabrusin]

Thank you.

I have a question for the committee members, just as a possibility. We have 10 minutes left. I was going to propose that we could do five minutes for each party. It would take us five minutes over, but it would give everybody a chance to get five minutes in. Do I have agreement to proceed that way?

[Some hon. members]

Agreed.

[The Chair, Liberal, Julie Dabrusin]

Perfect. We are going to begin with Mr. Hogg, please, for five minutes.

[Gordie Hogg, Liberal, South Surrey—White Rock, BC]

Thank you.

Thank you very much for your submissions. There seems to be some common themes among each of the three presenters, and I wonder if you've heard these comments from each other before.

The big issues appear to be promoting, preserving and protecting the arts that each of you are specifically engaged in. Do some commonalities exist? As we're trying to look at methods of supporting and promoting the things you're doing, do some common themes run among all three of your groups, and if so, what might those be?

[Jean La Rose]

Hearing from everyone, I think certainly from our end here at the table, the big issue for us is finding opportunities to expose the content we create, and it's defining ways to expand the opportunities we currently have.

When it comes to the remuneration model, as we said earlier, you usually generate some remuneration when you have an opportunity to send the material around and generate some revenues for it. In the case of indigenous-language programming, those opportunities are few and far between and they're sometimes restricted to a community. With subtitling we can broaden it—and we certainly have—but again, the challenge is to bring it to wider audiences to generate, hopefully, new revenues to create new content.

APTN has also set up a distribution arm that we are working with a lot of our indigenous producers to bring that content to. MIPCOM, MIPTV, MIP Cancun, all those opportunities around the world create totally new venues for our productions, and it's good to hear that Isuma is doing the same. Maybe there are ways we can work together.

Certainly from the point of view of the regulation, what seems to happen is a stronger opportunity for indigenous peoples in the country to have that content made available. There needs to be both the legislative and the policy work done to give us that range of opportunity right now. The Broadcasting Act, for example, refers to the special place of indigenous people, or aboriginal in the case of the act. What is a special place?

As resources become available—we're one of the richest countries in the world, and if we're saying we don't have the resources, then I have to guess we'll never have them. I think the role of this committee and Parliament and the government is to find ways to put some action behind those words and give us opportunities to reach out to the rest of the world and be able to tell our stories to everyone.

I'll leave others the opportunity to speak.

[Jonathan Frantz]

You don't have to look too far to see examples where film and television have been used to preserve culture and language. The French-Canadian film industry is very strong and has a unique identity. That was created a while ago with the Parti Québécois and then the creation of SODEC and investment of serious money and long-term commitments.

We're a small independent group and have a very successful track record of film production, but we're still functioning in this unofficial status year by year, trying to access money to keep things going. If there was a more stable income, a long-term commitment to focus on indigenous language and see media as a modern tool to promote so many of these values that I think we all share, it would be tremendously valuable.

[Élisabeth Schlittler]

As far as SACD is concerned, I might add that since we represent authors, we are more interested in the Copyright Act. I am not currently discussing models. We truly need legislation to give us leverage and the chance to negotiate without having to go to court. That is what we need to guarantee that our authors get paid now. Legislation is what can truly help us.

We also have to give some members of SACD-SCAM, the directors, the recognition that they currently aren't getting. We think that with some legislation we could achieve our goals.

[The Chair, Liberal, Julie Dabrusin]

That brings you to the end of your time. You only have 15 seconds left.

[Gordie Hogg, Liberal, South Surrey—White Rock, BC]

I will just say something really quickly.

You've each made reference to the principles or values that I think reflect us as Canadians, wanting to ensure there are successes in the multicultural nature of our country and particularly the heritage each of you bring. I look forward to being able to find some of the ways those values and principles become operationalized, whether it's the Copyright Act or a number of others. If there are commonalities, which I was trying to get at, and you made reference to some of them, those are the pillars we need to build on in our work. Thank you for that.

[The Chair, Liberal, Julie Dabrusin]

Mr. Blaney.

[Steven Blaney, Bellechasse—Les Etchemins—Lévis, CPC]

Thank you, Chair.

This is an interesting conversation.

Welcome, Mr. La Rose. We know APTN. It is part of our media environment. You said that you launched two radio stations. Do you have a presence on digital platforms? Do you have a strategy for extending your channel's reach and also with regard to the related royalties and copyright? Can you comment on that briefly?

[Jean La Rose]

The APTN channel is very present on digital and online platforms. We provide a large part of our programming online. We're trying to expand the distribution of our products online. We're looking to establish a partnership with a major distributor or with another distributor that would broadcast our programming around the world.

In terms of radio, our goal is certainly to create opportunities for our songwriters and musicians to receive copyright royalties, which currently isn't happening.

From a legislative perspective, it may be worthwhile to look at SOCAN, which pays royalties only to artists who have joined the organization. The artists must join the organization, but not all Indigenous artists are aware of this. We're working on encouraging Indigenous artists to join the organization, which many of them have never done before. If SOCAN could be required to take a proactive approach and to ensure that the creators join the organization in order to receive their royalties, it would certainly be very beneficial to our community.

Mr. Bridges can tell you more about our digital activities, but also about royalties and availability.

[Steven Blaney]

Okay.

[Sky Bridges]

APTN is exploring how we can go beyond our current borders in terms of our current digital offerings which are on our website. It is an important strategy for us to move forward on that to offer an OTT offering such as an Netflix model.

It is imperative in terms of our looking five and 10 years from now as consumers demand and consume content in different ways. That landscape is very challenging on the financial side. It does not have the financial structure, security if you will, of linear television. We have to move forward on that in a respectful and risk management way.

[Steven Blaney]

Thank you. In short, you're concerned about opportunities, challenges and the need for support.

Ms. Schlittler, you said that collective societies must be given tools. In your recent remarks, you also emphasized the need to recognize copyright ownership for screenwriters and directors. Can you elaborate on this issue?

[Élisabeth Schlittler]

Here's an example. As it stands now, as soon as we approach a television channel to obtain rights, if the channel refuses to negotiate with us, we must take legal action in order to negotiate, because the act doesn't require the channel to appear before the Copyright Board of Canada.

[Steven Blaney]

Do any countries have this requirement enshrined in legislation?

[Élisabeth Schlittler]

Yes. Italy and France include this requirement in their legislation. The French legislation specifies who must be paid and how and deals with collective management through proportional remuneration.

I wouldn't necessarily go that far for Canada. However, the Canadian legislation must really help us in this area so that we can avoid legal proceedings and expenses. For the time being, it isn't doing so.

[Steven Blaney]

Thank you.

[The Chair, Liberal, Julie Dabrusin]

Mr. Nantel, you have the floor.

[Pierre Nantel, NDP, Longueuil—Saint-Hubert, QC]

Thank you, Madam Chair.

Thank you all for being here.

Ms. Schlittler, about two years ago, I had the opportunity to meet your director general, Mr. Rogard. The goods and services tax, or the GST, storm imposed on over-the-top television services in Canada really started during this meeting. He was right. By imposing the GST on online content providers, we ensure that we know who's doing what and to what extent.

Thank you very much. We appreciate your recommendations.

In both cases, your two organizations can vouch for the importance of discoverability. Mr. Bridges mentioned the low copyright royalties paid by music streaming services. However, in both cases, I think that the success of APTN, a channel that I know much better, is tied to the fact that its programming isn't confined to a given station on my Vidéotron terminal. It's part of the package, and I see it come through. Are content creators concerned about discoverability within this wealth of content, given the drop in copyright revenues per play or per view? We also mustn't forget to preserve our market share. Wouldn't you agree?

[Jean La Rose]

Discoverability remains an issue for APTN, because it's one thing that CRTC hasn't mandated. Our channel may be part of the skinny basic packages or may be one of the mandatory channels in some locations. However, in other places, we're relegated to channels 300, 400 or 500.

[Pierre Nantel, NDP, Longueuil—Saint-Hubert, QC]

Really?

[Jean La Rose]

Often, people see a great deal of snow before finding us, and it's easy to get lost in a snowstorm.

Discoverability is really very important. I believe that APTN is one of Vidétron's first 10 to 15 channels. We're grouped with other channels in Rogers' skinny basic package. This helps a great deal with our discoverability. However, other distributors relegate us to the 300-level channels, and the skinny basic television package includes channels 1 to 50. Sometimes, no one can find us.

This greatly affects our revenues. Unfortunately, Numeris doesn't measure APTN's audience. Instead, it measures a Canadian audience in which our audience may or may not be included. Often, when Numeris has trouble forming a group to collect certain audience data, as was the case last spring in the west, it simply doesn't measure the data. In these situations, no data on APTN is available, which could theoretically indicate that no one was watching us. Yet this is far from the case.

The negative consequences are undeniable. For the sake of our companies and our national or cultural sovereignty, it may be necessary to ensure that all our creations are sufficiently promoted so that the audience can discover them more quickly and easily. This would result in much higher royalties for all the artists and people who contribute to content creation.