Government’s fate hinges on NDP support,
Throne speech pledge a boon to struggling media companies, advocate says
The federal throne speech offered a good news nugget for Canada’s media industry, after a long and costly struggle against content-poaching tech giants.
Canada will pass a new law forcing companies like Facebook and Google to pay for the stories, music and videos they take and post online, the throne speech said.
The two companies have a “digital duopoly” on advertising, shutting out local media that creates much of the content, and advocates for better regulations have long argued that Canadian publishing laws are antiquated, mainly written for the pre-digital era.
The government’s promise could make a huge difference for struggling media companies, said John Hinds, president and CEO of News Media Canada, a newspaper advocacy group.
“I think this really cements the commitment from the government,” Hinds said on Wednesday. “Up until now, (the government) has been conspicuously silent, although over the last couple of months, (Canadian Heritage Minister) Steven Guilbeault has taken it on.”
Read by Governor General Julie Payette, the speech said, “Web giants are taking Canadians’ money while imposing their own priorities. Things must change and will change. “The government will act to ensure their revenue is shared more fairly with our creators and media, and will also require them to contribute to the creation, production and distribution of our stories, onscreen, in lyrics, in music and in writing.”
Hinds said Guilbeault has indicated that the legislation could go to cabinet soon with legislation introduced in the spring.
That won’t be fast enough to protect radio and television stations, said Lenore Gibson, chair of the Canadian Association of Broadcasters. “Without immediate action this fall, Canada will see local television and radio closures across the country,” Gibson said.
While the broadcast association supports Wednesday’s promise, Gibson said new laws and regulations “take time — something private local television and radio stations do not have.” Gibson said private broadcasters are hoping for government support on “additional short-term measures.”
Hinds said he believes Australia’s plans for new legislation, which prompted threats to suspend services from Facebook and Google, are worth considering here. Australia’s law would force the digital giants to negotiate payments with news organizations.