Evidence of meeting #121 for Industry, Science and Technology in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was content.
A recording is available from Parliament.
4:25 p.m.
Liberal
Terry Sheehan Liberal Sault Ste. Marie, ON
Thank you very much.
My first question will be for Tim. When will the next series for Lost in Space be out? I went through that series very quickly.
4:25 p.m.
Voices
Oh, oh!
4:30 p.m.
President, National Office, Directors Guild of Canada
Season 2 was ordered two weeks ago. I was sitting in Netflix's office when it happened. It's a crazy lobby. It's so busy. Three of the four walls are The Crown, and we had a little cardboard thing for Lost in Space in the corner. I'm hoping that'll change.
4:30 p.m.
Liberal
4:30 p.m.
President, National Office, Directors Guild of Canada
It shoots in Vancouver with a great Vancouver crew.
4:30 p.m.
Liberal
4:30 p.m.
Liberal
Terry Sheehan Liberal Sault Ste. Marie, ON
Just for copyright—good.
Thank you very much. That leads me to my next question. I'm trying to figure out how Netflix, versus, say, a traditional movie process, compensates the artist. Is it similar? Is it different? I noted that Netflix is up to about $8 billion in projected spending in future years. It was around $6 billion last year, or the year before, so obviously it's expanding. Could you explain if there is a difference in how the compensation would work?
4:30 p.m.
President, National Office, Directors Guild of Canada
Netflix engages in three kinds of business, or two, really. One is as a rebroadcaster of existing works. It will do deals with whoever the rights holders are for existing movies and series.
In terms of original work, which is, as you say, the $8 billion a year that it's planning to spend worldwide, that's almost the same.... I would say that's exactly the same contracting process as any form of contracting that happens now in the linear universe, which is to say that they either hire a producer who then engages people like me and everyone else—writers, etc.—to provide their services, or they act as a studio and remain a full owner of the show and produce it themselves.
Of course, there's a raging debate internally in all of those organizations as to whether they want to be studios or merely broadcasters, which is an interesting term to use for an SVOD service. They are acting exactly as broadcasters in terms of contracting and getting the work produced.
4:30 p.m.
Liberal
Terry Sheehan Liberal Sault Ste. Marie, ON
The compensation they receive through the copyright laws in Canada is the same.
4:30 p.m.
President, National Office, Directors Guild of Canada
In other words, the compensation I receive?
4:30 p.m.
President, National Office, Directors Guild of Canada
We're in collective bargaining. It's in constant definition, but the format is almost identical to the linear universe.
4:30 p.m.
Liberal
Terry Sheehan Liberal Sault Ste. Marie, ON
Okay.
Thank you for answering that, because things have changed. The pirates were in the theatres with their long coats, trying to keep their cameras steady, and putting these on the Internet, and then—
4:30 p.m.
President, National Office, Directors Guild of Canada
I might add one thing, by the way. That contract includes a clause that purchases assumed moral rights the artist may have in the work. There's a recognition embedded in that contract, in both the linear space and the digital space, that we are in fact the original owners of the audiovisual material.
4:30 p.m.
Liberal
Terry Sheehan Liberal Sault Ste. Marie, ON
That's interesting. That just brings me to the difference. The Internet was a curse and a blessing at the same time for the creative economy. In essence where things have changed is that the pirates are on the Internet, but the creative industry is also on the Internet. I was just trying to draw a comparison, because we have Netflix and we have Spotify. We heard some testimony that some weren't satisfied with the compensation on Spotify. That was what we heard recently, so I'm just trying to pull that out.
When we talk about the Internet and the pirates who are on there—John, perhaps you were talking about this—is there a particular country or area that is known to do this?
4:30 p.m.
International Vice-President and Director of Canadian Affairs, International Alliance of Theatrical Stage Employees
Canada.
4:30 p.m.
International Vice-President and Director of Canadian Affairs, International Alliance of Theatrical Stage Employees
When the whole camcording issue—
4:30 p.m.
Liberal
4:30 p.m.
International Vice-President and Director of Canadian Affairs, International Alliance of Theatrical Stage Employees
Yes, the camcorder in the theatres. What was one of the largest centres for that? Montreal.
4:30 p.m.
Liberal
4:30 p.m.
International Vice-President and Director of Canadian Affairs, International Alliance of Theatrical Stage Employees
No. That has dropped off. There were major quality issues and a whole bunch of other issues.
