Mr. Speaker, I would like to share my time with the MP for Scarborough Southwest.
I am very pleased to rise today to speak to the Online Streaming Act, the modernization of Canada's broadcasting system and the importance of ensuring that the stories told by Canadian creators remain a centrepiece of the modern broadcasting landscape.
At the core of this problem is a simple reality that we are all familiar with: The way Canadians consume content has changed at lightning speed. The Broadcasting Act was designed for a world of television, radio and cable channels and prime-time audiences. This world has not disappeared entirely, as shown by the millions of Canadians who gathered to watch the Montreal Canadiens during the playoffs. However, it is a thing of the past for most of the Canadians consuming content nowadays.
Children no longer run off to get a snack during the commercial breaks, as we did when we were kids. They bring their phones with them and watch whatever they want, whenever they want, provided their parents let them. This change has had some huge benefits. Canadians can access content from around the world more easily than ever before. We can watch Korean dramas, Mexican heist dramas, British bake-offs and singing competitions from around the world. American movies, TV shows and music are also widely available in Canada, and Canadians continue to consume this content extensively every day. There is no denying this reality. This is not necessarily a problem in and of itself. Canadians value choice, and the Online Streaming Act does not take that choice away from them.
The act ensures that, in this new content-rich environment, Canadian stories are also supported and showcased. It incorporates the key online streaming services that operate and generate revenue in Canada into a modernized accountability framework. Just as traditional broadcasters have long been expected to contribute to Canadian culture, so too must today's broadcasters.
Through the Online Streaming Act, the House modernized the Broadcasting Act to ensure that foreign streaming companies support our creators, our stories and Canadian music for generations to come. The act establishes a fair and simple regulatory framework under which comparable broadcasting services are subject to similar regulatory requirements.
The government has made it clear that the Online Streaming Act and the CRTC's implementation of regulatory measures are consistent with Canada's trade obligations, including those under CUSMA. The Online Streaming Act was drafted with Canada's international obligations and commitments in mind.
I want to emphasize that the act is not intended to discriminate against non‑Canadian services. It applies to all undertakings that provide online broadcasting services to Canadians. It is not a matter of nationality, but rather of participating in the Canadian broadcasting system and profiting from it here at home. Far from being discriminatory, the act does exactly the opposite. It requires each company to contribute appropriately to the creation and presentation of Canadian programming, in proportion to its presence and importance in the system. It is a matter of fairness.
If a business generates income in Canada, it is expected to contribute fairly and equitably. That is why it is misleading to claim that the act targets U.S. companies. In reality, it aims to create a fair, flexible framework for online streaming services operating in Canada that complies with Canada's international commitments.
Although it requires the CRTC to ensure that online streaming services contribute significantly to the broadcasting system, it does not put U.S. content streamers or creators at a disadvantage. In fact, Canadian streamers are still expected to spend a higher percentage of their revenues on Canadian content than foreign streamers.
In the not-to-distant past, online streamers were not required to support Canadian music or stories while contributing to other major broadcasting objectives.
Under the CRTC's Canadian programming expenditure framework, Canadian broadcasting ownership groups are subject to a 25% Canadian programming expenditure requirement, while unaffiliated and non-Canadian online broadcasting ownership groups are subject to a 15% requirement, which includes the 5% base contribution. The framework applies to groups operating in Canada with annual Canadian broadcasting revenues of $25 million or more. This means that small businesses, such as local stations that are often the only sources of information in regional areas, newly launched television services, or specialized streaming television services targeting small audiences, will not be subject to this requirement.
It is also important to remember that Canadian broadcasters have long been subject to significant spending and programming obligations and that their obligations to contribute to the system remain in place. Those that generate the most revenue, the major players that are increasingly capturing the public's attention, will be expected to contribute more and will serve as major windows into Canadian and Quebec culture. Only the major players who can afford to do so are expected to make proportional contributions.
The new regulations do not penalize streaming services for operating in Canada. Why would they? The reality is that foreign broadcasters have enriched the broadcasting landscape and provided opportunities for Canadian talent. It is a question of fairness. If a company benefits from its operations in the Canadian market, if it reaches Canadian audiences and if it earns significant revenue from Canadian subscribers and viewers, it is entirely reasonable that it should contribute to the sustainability of the system in which it operates. This is not a radical idea.
For decades, Canada maintained an outdated broadcasting policy; it recognizes that culture is not simply a commodity like any other. Broadcasting helps shape the way people understand their country, their communities and one another. It ensures that Canadians can see and hear themselves reflected in the programming available to them. Now more than ever, we need to hear stories that come from here. We need to see ourselves on screen.
Our government will never stop supporting Canadian artists and culture. It is high time to pass Bill C-11 and bring it into force as soon as possible.
I want to talk about Quebec. It is getting harder and harder for French-language content to break into American channels. We do business with the giants of this world, but the giants of this world are centred on the English language. Bill C‑11 will ensure that we get a fair shake when it comes to our content and promoting the French language in Canadian content. For Quebeckers who want to showcase and promote francophone culture, I can attest that this bill is up to date and good for the Quebec community, the Canadian community and the community that wants to promote Canadian content and see it reflected in our young people, in our future and in young audiences currently consuming the major networks' products.
Bill C-11 is here to stay and here to make us work for our future.
I look forward to answering questions.