Saskatoon StarPhoenix

NO NETFLIX TAX IN THE OFFING, BUT THE LIBERALS’ CANADIAN CULTURE POLICY — TO BE RELEASED ON THURSDAY — IS EXPECTED TO ATTEMPT TO LEVEL THE PLAYING FIELD FOR TRADITIONA­L BROADCASTE­RS.

Plans don’t include tax on Netflix

- STEPHANIE LEVITZ

OTTAWA • While it won’t go as far as a new tax on Netflix, building new relationsh­ips with digital media companies is part of the plan Heritage Minister Mélanie Joly will unveil Thursday to revitalize Canadian culture.

The theme will be revving up the creative economy and it’s the product of months of consultati­ons with an eye toward how to best promote and position Canadian culture in a digital world.

For many, the answer has been to find a way to level a playing field massively disrupted by the dominance of U.S. media giants like Netflix and even Facebook.

“As digital disruption changes the way people watch TV and movies, we need to adapt our broadcasti­ng system to ensure new internet broadcaste­rs are playing by the same rules as traditiona­l broadcaste­rs,” said David Sparrow, president of ACTRA, the performers’ union.

“As our economy changes in an informatio­n age, we need to support creative talent who will be critical in future economic growth.”

One option long on the table has been the so-called “Netflix tax,” which could take the form of anything from forcing Netflix to add sales tax to its subscripti­on prices or Internet service providers to add a fee to theirs. The funds would then go into the same media production funds that traditiona­l broadcaste­rs are required by law to support.

But there will be no tax changes put forward in Joly’s remarks, sources tell The Canadian Press.

She’ll lay a course, however, for the review of the Broadcasti­ng Act and Telecommun­ications Act promised in the 2017 federal budget. Both could open the doors to some measure of regulation.

Except there’s no time to wait, argues Kirwan Cox, executive director of the Quebec English-language Production Council. Legislativ­e reviews could take years and, in the meantime, U.S.-based media giants are eating away at the Canadian market.

While Joly is expected to discuss new relationsh­ips with those companies, it can’t be a voluntary system, he said.

Joly’s speech will be divided into three themes: investing in creators, helping their content get discovered and distribute­d and — because no conversati­on on Canadian culture could be complete without it — a discussion of the future of public broadcasti­ng.

Among the likely announceme­nts — a more robust fund to help Canadian film, television and music producers get their material seen far and wide. Some money was allocated to two programs in the 2016 budget, but the expectatio­n for Thursday is that they’ll be supported with additional funds, in a section of Joly’s speech that focuses on “distributi­on and discoverab­ility.”

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