Moving Forward: A Canadian Digital Economy Strategy that Fosters A Diversity of Canadian Voices within A Global Context

Summary

On Screen Manitoba is an innovative membership–driven non–profit association that leads, builds and represents the Manitoba screen–based media industry. In its submission, Moving Forward: A Canadian Digital Economy Strategy that Fosters A Diversity of Canadian Voices within A Global Context On Screen Manitoba contends that A Canadian digital economy strategy that adopts as its core principles access, cultural sovereignty and that is flexible and innovative in its approach to stimulate growth through investment in content, training and market development reflects the primary tenants of Canadian Communications policy and practices while building on economic potential. In particular the document emphasizes that a successful strategy would ensure that:

• All Canadians in all regions have access to affordable, reliable high speed broadband service;
• All Canadians, in all regions, in both official languages and including Aboriginal, and ethno–cultural communities will have the opportunity to develop and produce their own stories in their own languages for local, national and international audiences;
• All Canadians in all regions, and all sectors, have access to policies, practices and programs that stimulate innovation and industry growth through aligned multi–level government investment in content development and creation, in training and up–skilling and in market development and expansion.

Canadian communications policy, practices and programs, along with federal and regional agencies and industry measures have facilitated the growth and development of a vibrant content creation industry that contributes significantly both to the economy (over 160,000 quality jobs nationally) and to Canadian culture and identity. On Screen Manitoba notes that continued government investment, in both legacy and emerging content formats, that encourages adaptation to new financial, marketing and distribution models will build on past successes. On Screen Manitoba agrees that government investment should support Canadian businesses, creators and talent; but that, all stakeholders must work together to find a new and flexible perspective on Canadian content that allows it to flourish beyond the geographic borders of Canada and to reach beyond Canadian audiences.

Manitoba content creators have the necessary skill and talent to compete nationally and internationally; and look forward to working with government and other stakeholders to identify new market triggers, financial models and measures for success. On Screen Manitoba points to new opportunities for market expansion within local, regional, national and international contexts through niche markets and potential new alliances with other sectors such as education and health. A Manitoba digital aggregator of content represents one such opportunity. Manitoba content creators see education playing an important role in forming the creative, problem–solving and entrepreneurial communicators and content creators of the future.

On Screen Manitoba recognizes the valuable investment federal and regional governments have made through their respective agencies and industry measures and looks forward to continuing to collaborate with government to adapt existing policies, practices and programs to the exigencies of the digital economy. A successful digital economy strategy will foster the diversity of voices creating Canadian content and arm the content creation industry with the necessary investment opportunities, marketing and distribution tools to succeed in a global context.

Submission

On Screen Manitoba is an innovative membership–driven non–profit association that leads, builds and represents the Manitoba screen–based media industry. Its membership represents the full spectrum of individuals and organizations (production companies, labour groups, distributors, broadcasters, suppliers and exhibitors) that make up the industry in Manitoba. Membership totals just over 300 and reaches more than 1,500 individuals working in the sector.

Building a Canadian Digital Economy Strategy

In Canada, well–developed telecommunications systems that connect urban rural and northern communities have long been understood as a means to support business, provide information, deliver services and to create a sense of national identity. Recent rapid advances in digital technology and the general acceptance and use of these new technologies by Canadians are leading to a significant shift in how screen–based content creators finance, develop, produce, market and distribute their stories. Manitoba screen–based content producers, like their counterparts across Canada, are in a period of transition. Traditional models for financing, marketing and distributing are no longer fully functional, but new models are not yet proven. During this period of transition, screen–based content producers will need to collaborate closely with key stakeholders, including government, to develop flexible policies, practices and programs that can adapt to the rapidly evolving context of the digital economy.

A successful Canadian digital economy strategy, that will ensure Manitoba screen–based content creators flourish, is one that:

• All Canadians in all regions have access to affordable, reliable high speed broadband service;
• All Canadians, in all regions, in both official languages and including Aboriginal, and ethnocultural communities will have the opportunity to develop and produce their own stories in their own languages for local, national and international audiences;
• All Canadians in all regions, and all sectors, have access to policies, practices and programs that stimulate innovation and industry growth through aligned multi–level government investment in content development and creation, in training and up–skilling and in market development and expansion.

A digital economy strategy that adopts as its core principles access, cultural sovereignty and that is flexible and innovative in its approach to stimulate growth through investment in content, training and market development reflects the primary tenants of Canadian Communications policy and practices while building on economic potential.

On Screen Manitoba supports government measures that work to ensure ACCESS:

• Access for all Canadians in all regions to affordable, reliable broadband service on a variety of devices in both official languages;
• Access to Canadian content through regional and national aggregators specialized in supporting the production, distribution and promotion of Canadian content that reflects the diversity of the Canadian population as expressed through Aboriginal, Francophone, Anglophone and other ethnocultultural communities;
• Access to Canadian content within a global context.

Affordable, Reliable Access to High Speed Broadband for All Canadians in All Regions

From fur–trading routes to the National Railway to the TransCanada Highway, Canada has a long tradition of using a transportation model to understand and develop communications systems. With a sparsely populated, sprawling and highly diverse geography and population, Canada has a vested interest in ensuring access to efficient two–way communications systems. Rapid penetration of the telephone throughout Canada, then satellite and fibre optic technology in the 80's, and initial penetration of Internet connections made Canada a leader in communications systems into the 1990's. More recent studies suggest that while digital media and digital communications systems are becoming ubiquitous in urban centres, the 20% of Canadians who live in rural settings have unreliable and often slow Internet connections whether provided by dial–up, cable, wifi or satellite. Predictors of Canadian household Internet connectivity include higher education and higher income a typical pattern for penetration of new technology; however in light of the importance of the emerging digital economy, Government investment and regulatory measures are required to ensure that all Canadians in all regions have affordable, reliable access to high speed broadband service. Whether dealing with delivery of government services, social services, instruction, digital media and content or conducting business, access to a high speed pipeline is essential. In regard to the digital divide separating higher income from low–income households, regardless of education, programs that offset the cost of accessing broadband services could speed up universal accessibility.

In concrete terms, we must ensure that rural and remote communities are not left behind in terms of access to advanced networks. Priority areas for attention in all regions are:

• Affordable, reliable high speed broadband services throughout the country with multiple connections for community access points such as schools and libraries.
• Subsidies and grants to support the cost of accessing broadband services for schools, libraries, community access points, SMEs (small to medium enterprises), non–profits and low income communities/households.
• Promotion of standards to ensure inclusivity and support for innovation that encourages partnerships between ICT specialists, education specialists and content creator specialists to explore systems and learning tools that facilitate the inclusion of all people regardless of their abilities.

Ensuring Canadian Voices are heard locally, nationally and internationally –– Canadian Cultural Sovereignty

Understanding that communications systems represents the framework, or pipeline for transmitting and receiving information, Canadian communications policy and practices have led to the development of a strong infrastructure that supports the creation of Canadian screen–based content. This is documented in the establishment of the National Film Board of Canada in 1939 to produce and distribute Canadian films. The creation in 1967 of the Canadian Film Development Corporation later to become Telefilm Canada further refined the role of the NFB as a public producer and distributor of Canadian animation, documentary and now digital media. Telefilm subsequently came to play a key role in developing Canadian independent content creators across Canada. Later, industrial measures such as the introduction of the Film and Video Tax Credit in 1995 to replace the Capital Cost Allowance Tax Credit served to leverage investment and boost employment. The establishment in 2001 of the Canada Feature Film Fund has led to increased film production and thousands of jobs as it invested $570 million and leveraged some $2.4 billion in total financing.

Concurrently the Canadian government supported the development of Canadian content for radio and television broadcasting through the creation in 1932 of the Canadian Radio Broadcast Commission, which became the Canadian Broadcasting Corporation (CBC) and the Société Radio– Canada in 1936. A separate agency, the Broadcast Board of Governors (BBG), was created in 1958 to regulate broadcasting issues as an independent party that could consider private and public broadcast concerns. In 1968 the Broadcast Act passed parliament: the BBG became the Canadian Radio–Television Telecommunications Commission (CRTC), CBC was named public broadcaster, foreign ownership was regulated and Canadian content regulations were introduced. The introduction of Canadian content and foreign ownership regulations was understood to be crucial to maintain and develop Canada's cultural sovereignty. To a large extent it was a reaction to the strong broadcast and film industry in the United Sates, which arguably was having and will continue to have a significant impact internationally due to the size and economic force of the U.S. American content was of particular concern to Canada, as a young and small nation just developing a national identity, The essential spirit of Canadian Communications policy is one that recognizes the importance of:

• Democratic access to resources,
• Representation of multiple voices,
• Government cooperation and collaboration with Canadian content producers.

The establishment of the Canada Media Fund in April 2009 and now the current consultation process that is taking into consideration the important role that Canadian content and its creators will play in the digital economy demonstrates the federal government's forward–looking approach to the digital content and digital media sector and its commitment to support the industry as it adapts.

The above federal agencies and initiatives along with regional agencies such as Manitoba Film and Music (MFM) and regional initiatives such as the Manitoba Film and Video Production Tax Credit and Manitoba's investment in training and up–skilling have contributed to strengthening and developing quality Canadian content and an independent production sector that makes significant regional and national contributions to the economy. Over the five years from 2002 to 2007 the industry in Manitoba has contributed a total direct and spin–off Gross Domestic Product (GDP) of $365 million and generated 8,000 person years of employment, which translates into 1,654 direct and spin–off full–time equivalent jobs each year on average. Nationally, recent Canadian Media Production Association (CMPA formerly CFTPA) figures indicate the industry employs more than 160,000 artists, technicians and other cultural workers and generates billions of environ mentally friendly economic activity. Moving forward into the digital economy the combined knowledge and expertise of the existing infrastructure must be mined and then refined and adapted to the emerging digital economy. In his presentation, The End of the Century of Mass Media, 1912–2012: What happens next? media consultant Kenneth J. Goldstein of Communications Management Inc. states: "the fundamental reality about media in the 21^st Century is that technology now threatens to challenge media's role as intermediary — because content–producers, other consumers, and advertisers will all be able to send media–like content directly to consumers." Goldstein points to a few key trends that are reducing the market for traditional media:

• Advertisers are developing competitive media (branded content) and reach consumers directly — this makes them creators and commissioners of content.
• The shifting viewing habits are especially evident for "Generation Y," they are distinct in their ease with new and old media and inhabit a world of 'three–screens' — television, computer and mobile device (cell phones, iPod/iPhone, game consoles).
• "For the first time in history, on a mass scale, the means of production and distribution for information and entertainment products are finding their way into the hands of the consumers."
• "While consumer–generated–media will be important, they may not have as important an impact on the economics of the traditional media as will advertiser–generated–media."
• "New media rarely completely replace old media, but new media do limit the growth of old media."

The infrastructure that Canada and the regions created over decades has led to a vibrant independent production industry in Canada and in Manitoba. The existing national and regional infrastructure provide a starting point and a competitive advantage for realizing the potential of Canadian content within the global context of the digital economy. A key characteristic of the digital economy is the lack of borders — interactive digital content can be produced by partners situated anywhere in Canada, or anywhere in the world. Government investment and regulation will need to reflect and support the concept of an open playing field to ensure that all regions and voices in Canada have the opportunity to thrive. Stimulating growth in the Manitoba screen–based production industry will require a high level of collaboration between independent producers, private and public stakeholders, regional and federal governments to develop, pilot, refine and adapt Canadian policies, practices and programs that support content creation and industry development.

Creating Canada's Digital Content Advantage

To foster the ongoing adaptation of a highly creative and competent industry to the demands of convergent media within the digital economy, On Screen Manitoba recognizes that content creators (writers, directors and producers) will need support to develop new skills in concept creation, financing, marketing/promotion, distribution and market development and expansion.

• Each idea for a content project must now be considered in terms of its viability and format on various distribution platforms: movie theatre, traditional television, web broadcast, VOD, DVD, streaming video, mobile devices, etc. This also requires exploring best practices for each platform — each platform represents the opportunity to tell the story differently or to involve audiences in stories in different ways.
• Each platform is related to a different financing structure and accesses different audiences with different viewing patterns.
• To maintain the high quality of independent Canadian screen–based products, it will be essential that producers be able to raise financing from the copyrights they hold, and that creators be compensated appropriately for their work. Support for developing new financing and marketing models are key, but structures that ensure rights holders can fully exploit their rights and that the content creators, artists and technicians who work with them are compensated will attract creative and innovative workers to the sector.

Core elements in Canada's marketplace framework for digital media and content:

• Current core elements of Canada's marketplace framework for digital media continue to be the film and broadcast legacy aggregator structures including: the NFB, APTN, CBC / SRC, regional public/educational broadcasters, regional and national private broadcasters, private movie distribution companies, festivals, independent movie theatres and cinematheques, schools and libraries. All of which are working to adapt to the digital economy and the potential to reach their audiences through digital media technology.
• Emerging new core elements of Canada's marketplace framework include:
  • the consolidation of telecommunications–cable–satellite service providers MTS Allstream, Shaw TV, Bell and Rogers which are beginning to enter the programming business (such as Shaw TV with the purchase of Global TV) and MTS TV which provides some financial support for small budget local programming.
  • Online content aggregators such as YouTube, Current TV, Hulu, Vimeo, Joost.
  • Apps for hand held devices such as the NFB app for Apple's iPhone.

Manitoba screen–based content creators anticipate the following immediate and foreseeable future infrastructure investments to encourage the creation of digital media and content in both official languages and to reflect our Aboriginal and ethnocultural communities. These investments are designed to ensure success at home and abroad:

• Affordable, reliable, high speed broadband services for all Canadians in all regions to ensure citizens have access to Canadian content.
• Aligned regional and federal government investment in content development and creation through various mechanisms including equity investments, development grants, tax credit incentives and new incentives that support private investment in Canadian productions.
  • That existing regional and federal government agencies including: Telefilm, the Canada Media Fund, the NFB, CBC / SRC and Manitoba Film and Music continue to provide support for Canadian content, but that the market triggers for financial support be adapted to the reality of the digital economy.

• That new market triggers be identified:
  • On Screen Manitoba supports a proposal by the Canadian Association for Community Television Users and Stations (CACTUS) for creation of a "non–profit, non–commercial community access television broadcasting license class", with an associated Community–Access Media Fund (CAMF) providing operational resources to the holders of such licenses (the Broadcaster Delivery Undertakings such as Shaw, Videotron);
  • That private and non–profit content distribution systems such as online content aggregators be recognized as valid market triggers for Canadian content.
  • Although small compared to the film and broadcast sector as a whole, non–profit artist–run distribution centres act as a training ground for experimentation outside of market forces, representing important opportunities for innovation;
  • That these market triggers respond to the challenges particular to regional diversity and to Aboriginal, Francophone and ethnocultural communities;
  • That new market triggers take into account research and development of new markets and niche markets within regional, national and international contexts.

• That Canadian content regulations be adapted to continue to provide support for Canadian companies and Canadian talent but that these regulations be made flexible to take into account the imperatives of content production within a global rather than national context.
• Aligned regional and federal government support for customized training and up–skilling with a focus on first developing capacity and understanding of digital media through content creators (writer, directors, producers) including mid to senior career workers to take advantage of extensive experience and skills that can be adapted. All content creation workers will need ongoing training and up–skilling during this period of transition.
  • On Screen Manitoba points to the success of mentorship programs such as those run by Film Training Manitoba and the National Mentorship Programs run by the CMPA.
  • That incubators and pilot projects be supported within the context of training programs that aim to up–skill all workers including mid to senior career. It is crucial to include the mid to senior career participants as they bring valuable experience and skills in storytelling, creative concept development, problem–solving, teamwork, management and leadership, planning, marketing and communications — all skills that are essential to the digital context. Incubators and pilot projects will foster the development of:
    • Content creation models for convergent media;
    • Content creation for specific platforms;
    • New financial, marketing, distribution and market development/expansion models.
  • That the important role private and non–profit organizations play in innovation be recognized. The Manitoba screen–based production sector and the new media and gaming sectors are all dependent on non–profit associations and organizations to deliver high level, hands–on applied training and professional development. Moving forward these non–profits will require collaborative regional and national government support to develop new programs and delivery mechanisms to support content creators, distributors and aggregators as they adapt to the digital economy.
• That the Manitoba screen–based content creators be supported in their capacity to innovate using digital technologies. While innovation and excellence in the ICT sector is paramount to Canada's success in the digital economy, every sector of the Canadian economy from arts and culture to agriculture to health to manufacturing to education to the non–profit sector, all have a role to play in a national strategy to encourage innovation.

Stakeholders can encourage investment, particularly at early stage, in the development of innovative digital media and content by developing policies, practices and programs that:

• Are flexible and easily adaptable to new forms of financing, emerging market triggers, non–traditional marketing and new measures of success that recognize both the cultural and economic role that screen–based content plays;
• That encourage federal–regional as well as private–public partnerships;
• That recognize and respond to demands of local, regional, national and international niche markets.

Looking beyond the immediate needs to train and up–skill creators, artists and technicians in the content production sector, On Screen Manitoba sees a very important role for education in nurturing future content creators. Successful market entrants in the digital economy will need strong technical digital skills but more importantly they will need to be:

• Skilled written, verbal and visual communicators as they will likely work at great physical distance from some team members.
• Creative thinkers, problem–solvers, team players, risk–takers, storytellers.
• Equipped with lifelong learning strategies and take an entrepreneurial approach to work and business.
• Creators and innovators require a rich and varied educational experience that exposes students to professional excellence while encouraging creative exploration in all areas of study including the arts and cultural industries.

The role of regional content aggregators
On Screen Manitoba sees opportunity for a concrete role for the Manitoba content creation sector in terms of the impact of the digital economy on the learning system in Canada. Currently Manitoba does not have a public education broadcaster; however, there is a perceived need in the education and screen–based content creation community for a regional content aggregator. Support for the development of regional aggregators would represent a new opportunity for a level playing field where regional content creators (from new to seasoned professionals) could showcase their work and forge new partnerships with the education, health and business sectors.

CONCLUSION

On Screen Manitoba recognizes that success in the digital economy will require a significant shift in our perspective on how to sustain and nurture Canadian content and talent. It represents an exciting opportunity for independent content producers, distributors and aggregators to promote Canadian content beyond the confines of Canadian geography and the Canadian audience. On Screen Manitoba notes:

• That Manitoban content producers have the necessary talent to compete globally and the digital economy is an exciting opportunity resulting in new financial, production, marketing and distribution models.
• That federal and regional policies, practices and programs have contributed significantly to the development of a strong infrastructure to support the independent content creation industry.
• That existing policies, practices, programs and infrastructure must become more flexible and adapt rapidly, but thoughtfully to the digital economy in a manner that respects the spirit of Canadian Communications policy.

On Screen Manitoba sees Canadian digital content and Canadian media contributing to Canada's prosperity in the digital economy through its confirmed cultural, social and economic roles.

• Providing content that is pertinent to the lives of Manitobans and/or of interest to markets globally;
• Supporting the development of content for other sectors such as education, training, professional development and up–skilling;
• Continuing to provide quality jobs and to attract investment to the Manitoba economy.

In more concrete terms On Screen Manitoba has identified the following key actions and points for consideration in a successful digital economy strategy:

• A Manitoba–operated aggregator of content pertinent to Manitobans, potentially, this aggregator would cut across various sectors such as health, education and lifelong learning. It would provide a venue where local stories are of high priority, where international content would be pertinent to Manitoban citizens (language, culture, theme) and where Manitobans would actively engage with interactive digital content both as users and creators;
• Aligned regional and federal government policies, practices and programs that address the challenges particular to the development, production, distribution and marketing of creative work by Manitoba creators, artists and technicians including those from Aboriginal, Francophone and other ethnocultural communities. This would include redefining market triggers, and considering support for production funding based on regional, linguistic and cultural realities;
• Continued government investment in customized training and up–skilling of content creators including writers, directors and producers as well as for the artists, technicians and other cultural workers that collaborate with them;
• Aligned regional and federal government investment in content development through a variety of measures including grants, equity investment, tax credits and measures to encourage private investment.

The Manitoba film and television sector is striving to adapt rapidly to the digital economy. This movement is largely due to proven need and the observation of successful models in other jurisdictions. As SMEs, Manitoba content production companies are generally considered well positioned to adapt quickly to the digital economy. Many of the workers in the production sector are self–employed and entrepreneurial in their approach. This fits the profile of the nimble small businesses that are succeeding in the digital economy. Aligned regional and federal government investment in legacy and emerging content formats that encourages adaptation to the exigencies of the digital economy marketplace while recognizing the challenges particular to the realities of regions, minority linguistic groups and Aboriginal and other ethnocultural communities are the essential components for a successful digital economy strategy. One that recognizes the important role Canadian content plays, and will continue to play, in the economy, and in the daily lives of all Canadians.