Business News
RTC Public Hearings on New Media: Quebecor Media Sees No Justification for Regulating the Internet
Tuesday 09. December 2008 - Quebecor Media Inc. submitted a brief concerning new media today for discussion during public CRTC hearings in Gatineau beginning Feb. 17, 2009. The company maintains that there is no evidence or justification to support regulation of the Internet, to lift the current exemption orders or impose a tax on the revenues of Internet Service Providers to finance content production.
In the belief that the Broadcasting Act of 1991 does not provide a credible basis to justify regulatory action, the company finds that a regulatory approach is neither appropriate nor available to ensure that Canadian content has a presence in the virtual world where citizens have access to an impressive range of content offered by more than 185 million sites. Quebecor holds that the government, and ultimately the Parliament of Canada, have the responsibility to develop policies and determine appropriate ways to meet the challenges of the digital revolution, as well as the development of the Internet and new media.
Unproductive initiative
Quebecor Media believes that the Canadian footprint in the new-media broadcasting environment is significant and continues to expand rapidly. One indication is that the Canoe.ca network is among the top 12 Canadian platforms in terms of unique visits.
This expanding presence reflects major investments from companies such as Videotron to improve Canadians’ access to new media. In addition to the $1 billion committed to its network over the past five years, the telecommunications company will invest another $800 million for construction of a third-generation, mobile wireless telecommunications network. Quebecor Media sees this as one of the most significant contributions possible for distribution of Canadian content – all Canadian content, from all sources.
Quebecor believes that any attempt to impose regulation on new media like that governing traditional media would harm Canadian competition in the new-media universe and would isolate Canada from most democratic nations that have refrained from imposing a regulatory system in this area. “New media offers an exceptional opportunity to revitalise and renew Canada’s creativity, and offer new life for Canadian content, both in our markets and elsewhere,” can be read in the brief. “If there is a major role for the CRTC it is to continue relaxation of regulation of traditional media in order to encourage commercialization of Canadian content on the Internet and other multimedia platforms. We have to look this squarely in the face: it is regulation that, in fact, is the primary brake on the potential of traditional media to advance Canadian content.”
Taxing ISPs: a major strategic error
Quebecor Media opposes any plan to require Internet Service Providers to divert any part of their revenues to financing of content that they do not need and whose production and distribution are not part of their mission. Such an initiative would be unproductive and, in any case, illegal. To be avoided is any model along the lines of the Canadian Television Fund, whose limits in today’s world are demonstrated by governance rules and criteria that frustrate evolution toward a viable system for the medium and long term that could ensure sustained development in the sector.
The company noted that the Internet is the realm of “on demand” and “do it yourself,” where new forms of entertainment and communications are created on a regular basis. “There is competition between content produced by media professionals and by users, with the clear advantage so far to the latter.”
Quebecor Media reiterates that it does not wish the CRTC to take steps to intervene in the Internet universe and that it is up to the government, not a regulatory body, to eventually change, if appropriate, policy on Internet broadcasting.”