This document provides an overview of Canadian media policy and regulation. It discusses key themes such as the political and economic forces that shape media industries and how media systems are shaped by policy and economics rather than naturally occurring. It then covers specific Canadian policies including Canadian content regulations for television and radio, the political climate of deregulation, issues with telecommunications policy including Canada's mobile oligopoly, and controversies around over-the-top services and zero rating. The document outlines the various regulatory institutions in Canada and their roles in enforcing legislation and regulating the media landscape.

1. MEDIA POLICY AND
REGULATION
Introduction to Media & Society
Dr. Vincent Manzerolle
November 6, 2017
1

2. Housekeeping
• Assignment #2 DUE November 20 in class and via Blackboard by 4pm.
• Don’t forget to include media literacy info sheet that was distributed last
week!
• Final Exam is December 20, 7pm; location TBD.
• It will be comprehensive.
• 80 multiple choice Qs, 2 hours.
• Wrap-up from last week re: theories of technology and tech change.
2

3. Themes for next few weeks…
• The political and economic forces that shape and constrain media
industries.
• Issues of power and control. “Who wins? Who loses? Who decides?”
• Media systems are not natural or inevitable.
• They do not just fall from the sky. How our media systems
have been shaped, or can be shaped, depends on things such
as policy and economics.
10

4. This week…
• Overview of the Canadian media policy and regulatory landscape.
• Canadian content regulations for television and radio, including
the recent controversies surrounding over-the-top services.
• The political climate of “de-regulation.”
• Telecommunications policy/regulation, including the problems of
Canada’s telecom oligopoly and the recent controversy of zero
rating.
11

5. Canadian media policy overview
Why regulate? Why intervene?
• Significance of media for culture, economics, politics, society.
• Recall Canada’s three challenges:
1. Large geographic area.
2. American influence.
3. Uniting diverse regions and cultures.
12

6. Canadian media policy overview
Why regulate? Why intervene?
• Additional justification: frequency (spectrum) allocation.
• Important implication that the “airwaves” belong to the public.
13

7. Canadian media policy overview
Regulatory institutions:
• Royal Commissions who study policy issues and
make recommendations. Important example
from the textbook: Aird Commission of 1929
and CBC.
14

8. Canadian media policy overview
Regulatory institutions:
• Government legislation (law) – for example,
the Broadcasting Act and Telecommunications
Act.
15

9. Canadian media policy overview
Regulatory institutions:
• Canadian Radio-television and
Telecommunications Commission (CRTC) who
enforces legislation and regulates day-to-day
practices.
16

10. Canadian content regulations
• Canadian Content (CANCON)
• Most prominent media policy issue in
Canadian history.
• Broadcasting Act sections 3(1)e and 3(1)f.
See box 8.4 on page 216.
17

11. Canadian content on TV
Canadian content qualifications:
• Produced internally by Canadian television channels.
• Independent programs certified by CAVCO. Points system, detailed
on page 219, includes: director (2), screenwriter (2), lead
performers, director of photography, art director, editor.
18

12. Canadian content on TV
Canadian content quotas:
• Traditional broadcast network television: 50% of
programming from 6:00-11:00pm. (Note: recently
changed in 2015.)
• Specialty cable channels: 35% of all daily
programming.
• In addition, the CRTC has expenditure
requirements. For example, traditional
broadcasters must spend a certain amount of
money on “priority programming,” such as drama.
19

13. Canadian content on radio
Canadian content qualifications:
• “MAPL” system: Music, Artist, Performance, Lyrics.
• Need 2/4 for a song to qualify as Canadian.
Canadian content quotas:
• 35% of music from 6:00am-6:00pm.
• However, lower quotas in Windsor! We are in a unique radio
market. Windsor radio stations directly compete with American
(Detroit) stations, so Canadian content rules are lowered to create
a more level field.
20

14. Technology challenges – over-the-top services
• Long-standing Canadian content regulations are challenged by
digital, internet, streaming, and mobile technologies.
• The textbook refers to internet-streamed media as “over-the-top”
broadcasting.
• Consider Netflix and television.
22

15. Netflix and Canadian broadcasting regulations
• In 2014, the CRTC held hearings on the future of television
regulation in Canada, called “Let’s Talk TV.” Netflix became the
hot topic. (it still is)
• Rogers complained about Netflix having an unfair advantage.
• Netflix refused to participate and hand over data to CRTC.
• But here’s the thing: the CRTC has the right to regulate internet-
distributed television under the Broadcasting Act, but for now,
chooses to exempt such services based on a 1999 “new media
exemption” ruling.
23

16. Netflix and Canadian broadcasting regulations
• The internet is not a “wild west.” Internet-distributed content is
already subject to, and benefits from, various laws and
regulations.
• Canada is not alone. The European Union has recently considered
a 20% quota on Netflix and Amazon in the EU.
• Netflix gets away with a lot – not even subject to sales tax in
Canada!
26

17. 27

18. Political climate of de-regulation
• A broad political climate, emerging during the 1980s and still
prevalent today.
• Politicians calling for the business domination of all social affairs
with minimal government intervention.
• “Free market” mechanisms emphasized.
• An ideological shift, viewing government and public
regulation as heavy-handed.
28

19. Political climate of de-regulation
• Two driving forces:
1. Privatization. Removing government from any service that
private companies can provide, from transportation to health.
2. De-regulation. Removing rules that allegedly hinder businesses,
innovation, consumer choice, etc.
29

20. Political climate of de-regulation
• Critics suggest this political climate of privatization and de-
regulation benefits corporations and corporate elite, but not
citizens.
• Is de-regulation re-regulation by market forces? See box 7.6 on
page 202.
30

21. Privatization and media
• CBC under constant threat of cuts, major job losses.
• Fully “privatizing” the CBC would mean cutting off all
government/ taxpayer funding and forcing it to compete as any
other media business.
• However, more recently, the Liberal Party pledged to reverse this
trend.
31

22. De-regulation and media
• De-regulation can be seen in the loosening of Canadian content
regulations in recent years. Fewer government “rules” to
supposedly create a free, open, and competitive marketplace.
• To address Rogers’ complaints about Netflix, in 2015 the CRTC
decided to loosen quotas on traditional television rather than
apply Canadian content rules to Netflix.
32

23. Telecommunications policy
• De-regulation problems/failures in Canadian media are best
illustrated with telecommunications (telecom).
• Telecommunications = media “pipelines.” For example: cable and
satellite providers, internet service providers, mobile/cellular
providers.
• Important legislation: Telecommunications Act.
• General Canadian policy approach: reliance on market forces as
much as possible; hence, telecom already thoroughly de-regulated
in Canada.
33

24. De-regulatory failure: Canada’s mobile oligopoly
• De-regulation has not brought competition to Canadians.
• Instead, the “big 3” mobile providers (Bell, Rogers, and Telus)
enjoy an oligopoly.
34

25. De-regulatory failure: Canada’s mobile oligopoly
• Ability to fix prices, be anti-competitive with high prices.
• For example, in January 2016, Bell, Rogers, and Telus all
announced price increases of $5 per month within a few days!
• Illusion of competition with “sub-brands” (Virgin = Bell, Fido =
Rogers, Koodo = Telus).
35

26. De-regulatory failure: Canada’s mobile oligopoly
• Market forces do not always bring competition,
especially with massive infrastructure costs of
telecom.
• Setting up a new mobile network in Canada is not
easy – remember, Canadian challenge of
geographic size!
• As such, de-regulation, as re-regulation by market
forces, cannot alone be trusted to serve
Canadians.
36

27. Zero rating controversy
• Data/bandwidth caps on home internet, mobile plans.
• Some internet and mobile providers offer promotions where select
services do not count against monthly data/bandwidth.
• Exempted data is counted as zero, hence “zero rated.”
37

28. Zero rating controversy
• Zero rating is a threat to net neutrality by treating some data
differently.
• See box 8.2 on page 211 for more on net neutrality.
• Net neutrality not just about throttling, or “fast” and “slow”
lanes.
38

29. Zero rating controversy – the CRTC takes action!
• Bell used to offer its mobile customers streaming of Bell-owned TV
channels for $5 monthly, with streaming not counting towards
data.
• The CRTC ordered Bell to stop this as of April 2015.
• Bell tried to appeal the decision to Federal Court, lost in spring
2016.
39

30. 40

31. Final thoughts
• Key grassroots lobbying organization: OpenMedia.ca
• Check out their website, get involved in these issues
41

32. 42

33. 43

34. 44

35. 45

36. 46

37. 47

38. Key concepts, examples, names
Concepts:
• Canadian content regulations for TV and
radio
• Copyright
• De-regulation
• Frequency/spectrum allocation
• Net neutrality
• Over-the-top services
• Privatization
Examples:
• Canada’s “big 3” mobile oligopoly
• Netflix and Canadian content controversy
• Zero rating controversy
Names:
• Aird Commissiom
• Broadcasting Act
• Telecommunications Act
48