Thank you very much, and good afternoon. Thank you for having us here with you today.
I would like to begin by acknowledging that we are gathered here on the traditional, unceded territory of the Algonquin Anishinabe people.
As mentioned, I am joined by the Scotts today. Scott Shortliffe is our head of broadcasting, and Scott Hutton is head of consumer, analytics and strategy. We are very pleased to be here to update the committee on the implementation of the Online Streaming Act.
Before getting into committee members' questions, perhaps I could share a brief overview of the CRTC, some of the work we are doing, and some of the detail on our progress.
I'll start with a quick overview of the CRTC. As you know, the CRTC is an independent, quasi-judicial tribunal that regulates the communications sector in the public interest. We hold public consultations on telecommunications and broadcasting matters, and we make decisions based on the public record.
The commission consists of nine members. There is a chairperson, a vice-chair for broadcasting, a vice-chair for telecommunications, and six regional members who are located across the country. The commission is supported by a team of expert staff who help us make informed decisions.
We are moving quickly to make those decisions, because we know that Canadians and businesses need certainty. At the same time, we are consulting broadly before making these major decisions. We are listening to diverse voices to better understand how changes in the communications landscape affect Canada's broadcasting system.
I know that we're here to talk about broadcasting. However, let me just briefly touch on some of our other priorities, such as promoting competition and affordability in telecommunications and empowering consumers.
In our meetings with Canadians, people spoke about the critical need for high‑quality Internet and cellphone services to find employment, access health care and education, feel safe and stay connected with loved ones. They also spoke about the consequences of not having a reliable connection. Those stories are troubling.
To address these issues, we've helped provide Canadians with more choice for Internet and cellphone services. We've allowed competitors to sell plans using the networks of large telecommunications companies. We're seeing positive movement in the market. For example, according to Statistics Canada, prices for cellphone services decreased by 16.7% between 2023 and 2024.
At the same time, we want to ensure that we have a healthy and innovative industry. We've put measures in place to make sure that companies keep investing in high‑quality networks.
Making sure that Canadians have access to high‑quality networks and a variety of choices is a significant part of the equation. The other part is making sure that Canadians can easily find these choices and switch to plans that meet their needs without the risk of unexpected high bills.
Last year, the Canadian Radio‑television and Telecommunications Commission, or CRTC, launched a comprehensive consumer protections action plan to address these issues. This is a crucial area of our work that will remain a focus for the CRTC.
That is a small glimpse into our work on the telecommunications side, but I know that this committee wants to focus on broadcasting.
As you know, Parliament gave the CRTC a major task when it entrusted us with implementing the Online Streaming Act. The act requires us to modernize Canada's broadcasting framework and ensure that online streaming services make meaningful contributions to Canadian and indigenous content. Modernizing the decades-old regulatory framework is no small task. The changes that are required are substantial, and they are complex.
Given this responsibility, we responded within days of the passage of the bill by launching a regulatory plan to facilitate participation and to increase transparency, and we have been making progress on that plan. We have launched 15 public consultations and have held four public hearings. At just those four public hearings, we received over 1,000 written interventions and heard oral presentations from over 300 interested parties.
We know that, following these public proceedings, people are very interested to see our decisions. We have issued seven decisions so far that start to set out the foundation of the future broadcasting framework, and other major decisions are coming very soon.
One of the first key decisions was on base contributions, which helped bring online streaming services into the broadcasting system. That decision was based on over 360 written submissions and over 120 presentations that we heard during a public hearing that lasted three weeks.
Based on the evidence provided, the CRTC determined that online streaming services should make initial contributions to the broadcasting system and that those contributions should be directed to areas of immediate need, which include local news on radio and television, French-language content and indigenous content. The decision will result in an estimated $200 million annually flowing into the broadcasting system.
That decision was just the beginning. Over the summer, we issued two additional decisions to support local news on radio and television, particularly in smaller markets, where there are fewer options. We know how important news is. We hear this from Canadians across the country, and we're sure that committee members do, as well.
As well as issuing those decisions in June and August, we have also been busy holding public hearings.
The first hearing, in May, was three weeks long and focused on the definition of Canadian content for television and streaming. We heard a wide range of views on how the system can better support and promote our stories and on the investments needed to encourage a variety of productions and business, broadcast and distribution models.
We also heard about tools needed to support certain types of Canadian programming. We considered complex issues such as the impact of artificial intelligence and the role of intellectual property in the broadcasting sector.
The second major hearing, in June, explored the dynamics among the different types of players in the Canadian broadcasting system. What we heard will help us create a sustainable model for the delivery and discoverability of diverse Canadian and indigenous content. The results of this hearing will help ensure equitable access to the broadcasting system and promote a fair and competitive marketplace with an updated dispute resolution framework.
Lastly, the third hearing, which wrapped up earlier this week, focused on radio and audio streaming services. We heard a variety of views on how to define Canadian content for music. We also considered the major changes in the industry and the impact of streaming services.
These three recent public hearings are key to ensuring a modern and sustainable broadcasting system for Canada.
The decisions flowing from these consultations and others will be issued in the coming weeks and months. In fact, within days you will see a decision that helps address the administrative burden on radio stations, so stay tuned.
To wrap up, we are doing work on multiple fronts. I touched on a few of those fronts, but the list is long.
As we continue to prioritize the implementation of the legislation that has been entrusted to us by Parliament, we are also taking action in other areas—such as the Online News Act, the service outages and the broadband fund—and making it easier for people to participate in CRTC proceedings.
Again, we're moving quickly, because we know that Canadians and businesses need certainty. At the same time, we are consulting broadly. As a quasi-judicial tribunal, we know that better decisions are made when we listen to individuals, when we listen to businesses and when we listen to organizations that bring diverse perspectives to the conversation. We are always listening to what Canadians need, and we know that committee members are, as well.
We look forward to your questions. Thank you.
