Canadian Heritage Committee on Feb. 22nd, 2021

[Anthony Housefather, Liberal, Mount Royal, QC]

Thank you very much.

Marci, over to you.

[Marci Ien, Liberal, Toronto Centre, ON]

Anthony, thank you so much for sharing your time. I appreciate it.

Ms. Stewart, I have a couple of quick questions for you, if I might. I had a 30-year career in broadcasting and I was an only, or one of a couple, the whole time. I know that your members have stories to tell. I want people to hear what it feels like, specifically post-George Floyd, to be the only person in a newsroom having to share that story, report on that story and give perspective on that story, and highlight the need for more people of colour and more Black journalists in this country and representing the newsrooms in it.

[Nadia Stewart]

It's an isolating experience to be the only one in your newsroom. It can be a lonely and difficult challenge whenever you expose the problems that you're going through and you're either gaslighted or outright ignored. This is a big part of the reason we're here today to speak about the changes that we want to see, because we hear from the Black journalists we encounter that this has to stop.

The only reason I believed I could do this work, I could be a journalist, was that growing up I used to see Andria Case on the news in Toronto. For me, that is the power of one. It takes just one Black journalist in a newsroom to make a difference so that other young journalists can see that they can do it too. That's the only reason I knew I could do it too. We need more than one. It's been only one for too long, and it's been only one in too many newsrooms across the country for no good reason. This is why we're fighting for change. This is why we're speaking. This is why we're advocating, because we know that better representation is about the audience and it's about representation across the country, but if we don't start or if these companies don't start better reflecting Black journalists and Black youth across this country, then they're going to have a tough time inspiring them and getting them into their newsrooms.

[Marci Ien, Liberal, Toronto Centre, ON]

Mr. Chair, if I might, I'd like to ask one more question quickly.

You made the distinction, Ms. Stewart, between racial parity and gender parity and why that is such an important distinction to make.

[Nadia Stewart]

A lot of companies were quick to note that there has been progress in terms of equity around gender parity. That has not worked out well for Black people, especially for Black women. In the end, gender parity just meant more white men and more white women. We still have not seen more women of colour, especially, from our perspective, more Black women. We're still not seeing them in leadership positions. We're still not seeing them on air and in the newsroom.

If you want to celebrate gender parity, that's great, but we have to get past that, because for us gender parity has not meant that we're more visible.

[The Chair, Liberal, Scott Simms]

Thank you, Ms. Stewart.

Mr. Champoux, you have the floor for two and a half minutes.

[Martin Champoux, Bloc, Drummond, QC]

Thank you very much, Mr. Chair.

Earlier, my colleague was saying that television viewing habits are changing a lot.

Actually, my children do not understand the concept of conventional television at all. When we pick a channel, they wonder why they can't choose something other than what is being broadcast at that time. So habits are certainly changing.

Frankly, I think we need to regulate digital broadcasters somehow if we are going to save our industry. We are adding requirements, but we are also asking them to contribute to producing content. We want more money for our original Quebec and Canadian productions. We also want to increase discoverability.

My question is for the representatives from the Canadian Media Producers Association.

In your opinion, will more discoverability and more quality production on digital platforms enable our industry to make it, to become healthy again and to remain competitive, instead of just struggling along?

Large U.S. productions will still be available, whatever the discoverability and the money invested. What do you think?

[Reynolds Mastin]

We are confident that would be a giant step forward in that direction to ensure that those players who are operating in our marketplace, who are based outside of our borders and who are accruing very significant benefits from the Canadian marketplace will invest back in that marketplace.

We know that they are hoping that these new rules will require them to produce productions that are less Canadian than they are today when the rules apply to them. One of the things we say in our conversations with our Hollywood streamer and studio friends is that, when it comes to investing back in our industry, we are asking them to partner with Canadian producers and Canadian creators for shows that are a little more Canadian rather than less Canadian, which is what they are seeking through their advocacy efforts with you.

[Martin Champoux, Bloc, Drummond, QC]

In a few seconds, in your opinion, will it be easy to negotiate and impose these regulations on the digital giants?

[Reynolds Mastin]

It may not be easy but I think that there's a recognition, even amongst these players, that the days where it was a free-for-all for them and they could behave as they pleased is no longer acceptable to Canadians.

[The Chair, Liberal, Scott Simms]

Thank you very much. I hate to cut you off.

Ms. McPherson, you have two and a half minutes.

[Heather McPherson, NDP, Edmonton Strathcona, AB]

Thank you, Mr. Chair.

I'm going to go back to the Canadian Media Producers Association, as well.

One of the benefits of going last is that I can ask you to follow up with whatever comments you feel haven't been raised so far. I thought maybe I should start with Mr. D'Oliveira because he has been cut off a number of times.

Coming from Alberta, we have a thriving industry that is suffering in terms of our creative content development. I'm wondering if he can start by talking a little about how the strengthening of these codes of practices, how the strengthening of the terms of trade, will actually help Alberta organizations as they create content.

[Damon D'Oliveira]

What I would say is that as a racialized producer primarily the content that I have made has been specific to Black and queer communities. I feel that this is a great moment, and the CMPA strongly supports a fully inclusive broadcasting sector that reflects the diversity of Canada, especially equity-seeking and sovereignty-seeking communities, including indigenous peoples and Black and racialized peoples, people with disabilities, across a broad spectrum.

This would reach across the country. This would reach to Alberta, as well. I do feel that if we are able to control our content, control our IP.... What I have been able to do as a producer in Canada is that I have taken the revenues that my company has earned and I have put that into additional content, so I am now working with a much broader spectrum of people. My development slate over the last five years since doing The Book of Negroes has grown considerably, and I feel that if that ability or the ability to control our underlying IP is taken away, it will reduce our capacity to do so.

If we get the support through Bill C-10 to retain control of our underlying work, we can generate a lot more content in this country and feed all of the growing domestic and international streaming platforms.

[Heather McPherson, NDP, Edmonton Strathcona, AB]

Thank you.

Mr. Mastin, is there anything else that you'd like to add to that?

[Reynolds Mastin]

Just very quickly, the two things that we haven't touched on are one, proposed paragraph 3(1)(f), which relates to Canadian talent and making sure that our Canadian broadcasting system makes maximum use of Canadian talent. We would ask the committee to perhaps revisit the proposed language there. There have been concerns expressed by our partners who represent Canadian talent that potentially this new wording, however inadvertently, could result in a dilution of maximizing Canadian talent as a priority, so we would encourage you to revisit that.

The final thing we would encourage you to consider is whether or not we should retain the right that currently exists under the Broadcasting Act for Canadians and stakeholders to appeal CRTC decisions to the federal cabinet. That mechanism provides some degree of additional oversight and accountability for the CRTC, even though the bar has always been very high for an appeal to be successful, which is as it should be.

[The Chair, Liberal, Scott Simms]

Thank you, Mr. Mastin.

[Heather McPherson, NDP, Edmonton Strathcona, AB]

Thank you.

[The Chair, Liberal, Scott Simms]

We're going to have to suspend. Before I do, I want to thank the Canadian Association of Black Journalists, the Canadian Media Producers Association and the Racial Equity Media Collective for joining us with some wonderful testimony. We thank you so much.

Folks, we are going to suspend to set up our next witnesses. Thank you.

[The Chair, Liberal, Scott Simms]

Welcome back, everyone—that was a nice, quick transition, wasn't it?—as we make our way through testimony once again. Of course, we are talking about Bill C-10, which passed second reading in the House and is here at the Standing Committee on Canadian Heritage.

We're into our second hour now. We are going to hear from the Association des réalisateurs et réalisatrices du Québec, Gabriel Pelletier, president, and Mylène Cyr, executive director. We also have, no stranger to this committee, from the Canada Media Fund, with Valerie Creighton, who is the president and chief executive officer, and Nathalie Clermont, vice-president, programs and business development. Finally we have from the Indigenous Screen Office, Jesse Wente, who is the executive director.

Thank you so much, everyone, for joining us. We'll give you five minutes. I have a little bit of flexibility, but not a lot given the time. We're going to start, of course, with the Association des réalisateurs.

Mr. Pelletier, you have the floor for five minutes.

[Gabriel Pelletier, President, Association des réalisateurs et réalisatrices du Québec]

Good afternoon, Mr. Chair and members of the committee.

My name is Gabriel Pelletier, and I'm the president of the Association des réalisateurs et réalisatrices du Québec (ARRQ). Joining me today is our executive director, Mylène Cyr.

The ARRQ is a professional association with almost 800 members. They are freelance filmmakers who mainly work in French in Quebec in film, television and online. They assemble, coordinate and direct the creation of audiovisual works on set and in the editing room.

I will now give the floor to Ms. Cyr.

[Mylène Cyr, Executive Director, Association des réalisateurs et réalisatrices du Québec]

Thank you, Mr. Pelletier.

Members of the committee, it's a pleasure to meet with you.

We support Bill C-10, which confirms that online broadcasting is covered under the Broadcasting Act and sets out how the Canadian Radio-television and Telecommunications Commission (CRTC) should regulate online undertakings. That being said, Bill C-10 needs to be improved to ensure that essential aspects of the current Broadcasting Act are not eliminated and that certain shortcomings are addressed. Given the limited time available to us today, we would like to make only two recommendations on matters that are particularly close to our hearts.

First, the requirement to make predominant use of Canadian creative resources must be maintained. Already, over the past 10 years, the foreign location and service production in Canada has grown from 30% to 52% of total production, while independent production of programs recognized as Canadian has decreased from 48% to 35% of total production. The foreign location and service production was 78% U.S.-based, with production almost exclusively in English.

We do not want any new version of the Broadcasting Act to endorse foreign location and service production as a substitute for truly Canadian production. This is why we do want the act to make predominant use of Canadian creative resources. By retaining the text of the current act, the CRTC could continue to tailor this requirement to online undertakings according to their nature, as the wording of the act already provides the CRTC with this possibility by stating: “unless the nature of the service provided by the undertaking... renders that use impracticable.”

The floor is yours again, Mr. Pelletier.

[Gabriel Pelletier]

Second, we need to reinforce the purpose with respect to original French-language content. If the text of the Broadcasting Act is not strengthened in this regard, major online companies, such as Netflix, Amazon Prime and Disney+, will be able to continue to present content dubbed or subtitled in French, with little or no original French-language content.

Ten days ago, Netflix's co-chief executive officer stated that his company has spent more than $2.5 billion in Canada since 2017. With that amount, Netflix has produced only one film and five shows in French. Their combined budgets account for only about 0.3% of the $2.5 billion. Clearly, the production of original French-language Canadian content is not a priority for either Netflix or other foreign companies whose track record is worse.

Programming overall is not much better, as Netflix has less than a dozen Canadian series or films in French. Requirements therefore must be imposed on these online undertakings so that Canadians can see original French-language content. This is not a matter of imposing quotas in the act, but rather of developing appropriate objectives to ensure that original French-language content represents a significant proportion of Canadian programming.

These are two of our recommendations, which overlap with those of the Coalition for the Diversity of Cultural Expressions. As one of its founding members, we support the coalition. Canadians' increased use of online services during the pandemic reminds us of the urgency to act to correct the inequities afflicting our broadcasting system. We therefore urge members of the committee and the government to move Bill C-10 forward quickly so that it can be passed as soon as possible.

Thank you for your attention, Mr. Chair and members of the committee. We are available to answer any questions you may have.

[The Chair, Liberal, Scott Simms]

Thank you very much, Mr. Pelletier.

Now we go to the Canada Media Fund.

Go ahead, Ms. Creighton. You have five minutes.

[Valerie Creighton, President and Chief Executive Officer, Canada Media Fund]

Thank you very much, Mr. Chair, and thank you to the members of the committee.

I'm Valerie Creighton. As the chair mentioned, Nathalie Clermont, our vice-president of programs and business development, is also on the line.

Your work on Bill C-10 is absolutely critical. It will shape the rules of the road for broadcasting in Canada, as well as how TV, film and digital media content is made, who sees it and whose stories are told.

Canada's television and digital media production industry has grown every year for the past 10 years. It creates thousands of jobs from coast to coast to coast, in cities and in towns—181,000 jobs in 2019 alone. Heartland, filmed in southern Alberta, generated 4,500 jobs and $460 million in economic activity over 10 seasons.

The content industry attracts investment in Canada by streamers, foreign production companies and foreign broadcasters. Jusqu'au déclin, or The Decline, a Quebec-led French-language feature commissioned by Netflix, has been seen by 21 million people.

Our industry showcases Canadian stories and talent to the world and we are on top of our game in that regard. Radio-Canada's C'est comme ça que je t'aime was the first and only television project invited to screen at the 2019 Berlin film festival. Diggstown, a Black-led Halifax production, was recently purchased by Fox for U.S. distribution. CTV's Transplant recently sold to NBC and was hailed by The New York Times as the best drama on television. As well, of course, Schitt's Creek won nine Emmys and recently received five Golden Globe nominations. This is unprecedented success, and these shows were made in Canada by producers, broadcasters and the CMF.

CMF is the largest screen content fund in the country. We provide approximately $350 million to independent producers and digital media companies annually. Our revenue comes from two main sources: 43% from the federal government, and 52% in contributions from the broadcast distribution undertakings, the BDUs, in a regulated percentage of revenues only from cable, satellite and direct-to-home subscriptions. When the CMF was created 10 years ago, the model was one-third government funding and two-thirds BDU. Today, the BDU contributions are declining as Canadians cut their cable cords or don't subscribe at all. As a result, the CMF's revenue from the BDUs declines every year.

In discussions around Bill C-10, it has been said that streamers like Netflix should contribute to the CMF like Canadian broadcasters do. However, to be clear, broadcasters do not contribute to the CMF. It's the BDUs such as Shaw, Rogers, Bell and Videotron that contribute, and their broadcaster assets are the ones that benefit. For example, this year Videotron contributed $22.3 million to the CMF. Its broadcast asset, TVA, triggered $25.2 million in CMF funding towards the financing structures of their projects.

Every dollar the CMF invests in production leverages four dollars, so this is not the time to lose that economic impact or stifle the creative growth of this industry.

How does all of this affect Bill C-10? In our view, it's in every way possible. We need modernized legislation, regulation and a modernized CMF to deliver programs in today's environment. Our system has become archaic. The orderly marketplace is a thing of the past, but the creative and economic potential for Canadian content has never been greater. Bill C-10 is a critical step to unlock change.

The CMF supports Bill C-10, but the bill and the CRTC direction requires clear language that prioritizes growth in direct investment in Canadian content production in English and French, Canadian ownership of intellectual property, a platform-agnostic approach to domestic and international content distribution, and indigenous content and content from under-represented groups, as proposed by the Indigenous Screen Office and the Racial Equity Media Collective.

We need to bring to this work a mindset of expansion, not contraction, for our stories, our creators and our industry to leverage the investment to date. With the right legislative language, we can achieve the phenomenal levels of success available to us in this new future.

Thank you, Mr. Chair and members of the committee.

[The Chair, Liberal, Scott Simms]

Thank you, Ms. Creighton.

Now we will go to the Indigenous Screen Office.

Mr. Wente, you have five minutes. Go ahead, sir.