Maintaining Diversity in a Digital Economy

Submitted by Independent Broadcast Group / Le groupe de diffuseurs independant 2010-07-13 20:00:14 EDT

Theme(s): Canada's Digital Content, Digital Infrastructure

Executive Summary

Independent Broadcast Group/ Le groupe de difuseurs independants (IBG/GDI)'s comments will focus on the aspects of the Government of Canada's consultation document related to Digital Media and Creating Canada's Digital Content Advantage. Specifically, the submission addresses the following points:

1. A successful digital strategy for Canada will build on and leverage the existing strong base in the audio-visual sector, as represented primarily by the Canadian broadcasting system. Such a strategy should seek to achieve, in ten years time, a strong Canadian digital media system, across all forms of digital media and distribution, that is even more diverse and competitive, domestically and internationally, than it is now.
2. Modern, forward looking rules and regulatory certainty will help to propel innovation and growth in digital media. These rules and regulations need to be designed to promote diversity — in all its forms — and need to take into account that different industry participants have different needs and capabilities, and different roles to play. It is imperative to a rich broadcasting system to have a range of players including large, medium and small broadcasters.
3. The Government's policies in the areas of funding for Canadian content (through the Canada Media Fund and other mechanisms), and the digital over-the-air broadcasting transition, are two areas, in particular, that need to take into account these different participants, roles and capabilities.
4. Other rules and regulations need to be pointed towards achieving tangible results in creating a more diverse and competitive digital economy in ten years. For example, copyright laws need to assist rights holders and users to make full use of content in a digital environment. Statutory reform in the communications sector, such as the combination of the various communications statutes, is not as important now as is addressing more immediate concerns. For example, among these concerns is the appropriate role of Internet Service Providers in the emerging digital media system.
5. Special attention needs to be given to promoting competition and innovation in digital media by small and medium-sized industry participants. The objectives should be to encourage and enable capital investments, and, just as importantly, to preserve a truly competitive environment in the face of the potentially negative consequences of media consolidation and vertical integration among the dominant players. Government policy should ensure fair access to existing and new distribution networks by small and medium-sized enterprises, as well as by consumers and other content providers.

Submission

July 13, 2010

Independent Broadcasters Group (IBG)
Le groupe de diffuseurs indépendants (GDI)

Maintaining Diversity in a Digital Economy
Consultation on a Digital Economy Strategy for Canada

1. Independent Broadcasters Group/ Le group de diffuseurs indépendant ("IBG/GDI") represents the interests of a group of independent specialty, pay and conventional television services. This submission is filed, specifically, on behalf of Aboriginal Peoples Television Network Incorporated, Channel Zero Inc., Ethnic Channels Group Limited, Fairchild Television Inc., Stornoway Communications Inc., ZoomerMedia Limited and TV5 Québec Canada.
2. IBG/GDI's members are directly involved as communicators and innovators in Canada's digital economy. IBG/GDI's members truly reflect Canadian diversity. Together, the members of IBG/GDI:
   • own and operate some 27 different television services, including both satellite-delivered and conventional over-the-air services, in a multitude of languages (including English, French, Aboriginal-languages and numerous other languages),
   • provide programming that is of interest and meets the needs of Canadians of all ages,
   • broadcast high quality programming that is truly reflective of Canada's rich ethno-cultural diversity,
   • operate an ever increasing number of digital services offered on-line and using mobile technologies directed to all segments of the Canadian population,
   • employ hundreds of Canadians throughout Canada - in all regions,
   • commission or produce countless hours of original Canadian productions for television and newer digital platforms,
   • create economic activity for other Canadian businesses of all kinds.

Executive Summary

3. IBG/GDI's comments will focus on the aspects of the Government of Canada's consultation document related to Digital Media and Creating Canada's Digital Content Advantage. Specifically, this submission addresses the following points:
   • A successful digital strategy for Canada will build on and leverage the existing strong base in the audio-visual sector, as represented primarily by the Canadian broadcasting system. Such a strategy should seek to achieve, in ten years time, a strong Canadian digital media system, across all forms of digital media and distribution, that is even more diverse and competitive, domestically and internationally, than it is now.
   • Modern, forward looking rules and regulatory certainty will help to propel innovation and growth in digital media. These rules and regulations need to be designed to promote diversity - in all its forms - and need to take into account that different industry participants have different needs and capabilities, and different roles to play. It is imperative to a rich broadcasting system to have a range of players including large, medium and small broadcasters.
   • The Government's policies in the areas of funding for Canadian content (through the Canada Media Fund and other mechanisms), and the digital over-the-air broadcasting transition, are two areas, in particular, that need to take into account these different participants, roles and capabilities.
   • Other rules and regulations need to be pointed towards achieving tangible results in creating a more diverse and competitive digital economy in ten years. For example, copyright laws need to assist rights holders and users to make full use of content in a digital environment. Statutory reform in the communications sector, such as the combination of the various communications statutes, is not as important now as is addressing more immediate concerns. For example, among these concerns is the appropriate role of Internet Service Providers in the emerging digital media system.
   • Special attention needs to be given to promoting competition and innovation in digital media by small and medium-sized industry participants. The objectives should be to encourage and enable capital investments, and, just as importantly, to preserve a truly competitive environment in the face of the potentially negative consequences of media consolidation and vertical integration among the dominant players. Government policy should ensure fair access to existing and new distribution networks by small and medium-sized enterprises, as well as by consumers and other content providers.

The Objective Should be to be Even Stronger and More Diverse in 10 Years

4. IBG/GDI agrees wholeheartedly with the observation made in the Government's consultation paper that digital media - the creation, selection and distribution of digital content to Canadians - is, at least, equally important to the Canadian digital economy as the wires, spectrum and devices Canadians' use to access content. Fortunately, Canada already has a strong base in digital media: a modern and diverse audio-visual broadcasting sector that is already deeply engaged in digital media.
5. A successful digital strategy for Canada will build on and leverage the strength of this existing base. The objective for the strategy in digital media should be to achieve, in ten years time, a strong Canadian digital media system, across all forms of digital media and distribution, that is even more diverse and competitive, domestically and internationally, than the Canadian broadcasting system is now. The starting point should be, though, to build on what we have already achieved.
6. Canada's television broadcasters, of all sizes, are, without a doubt, the engine for the production and presentation of digital audio-visual Canadian content for broadcasting and other distribution in Canada and internationally. Spending by Canadian television broadcasters (including CBC/SRC) on Canadian programming exceeded $2.4 billion in the 2009 broadcast year as reported in the CRTC's annual statistics. This audio-visual content remains, by far, the most significant professionally-produced Canadian audio-visual content available to Canadians and around the world. At this point, almost all television broadcast productions, whether produced in-house or by independent producers, are produced in a digital format, and increasingly in high definition.
7. Our broadcasting system has proven its ability to grow and prosper over decades of investment, growth and technological change and to flourish alongside the United States - one of the strongest audio-visual content producing countries in the world. Our system has maintained and grown a Canadian presence in all areas of broadcasting, and has also, over that time, helped to preserve an outlet for expression in both English and French, and now, increasingly, in Aboriginal languages and "third" languages. Canadian television broadcasting services now provide programming in almost every imaginable genre, across all commercially available distribution platforms (both recognized broadcasting platforms and emerging digital and interactive platforms), and for audiences from a wide range of backgrounds and diverse interests.
8. IBG/GDI's members have made significant contributions to the success of the Canadian broadcasting system. Our members include world firsts in Aboriginal broadcasting and multi-faith broadcasting; services that contribute directly to Canada's linguistic duality and provide a window on the vitality of the French language in Canada and throughout the world; services that offer a range of third-language programming directed to many different cultural groups in Canada; programmers that offer Canadians access to Canadian programs to serve their particular interests (reflecting the role of niche programming services in our system); and services that provide important editorial diversity in news and information programming at the local, regional and national levels.
9. In the digital media sector, preserving and enhancing this kind of diversity should be a key policy objective. Diversity in the audio-visual sector includes a number of different ideas including: diversity of editorial voices, diversity of programming (e.g. genres and content), diversity of ownership, diversity of representation (i.e. linguistic and ethno-cultural diversity) and diversity of access to service for all Canadians including those with disabilities.
10. Also, the broadcasting system as we now know it is already characterized by the kind of intense competition that can help to spur economic and technological innovation. There are, literally, hundreds of television services - Canadian and non-Canadian - and other competitive programming choices available to Canadians. All of these services compete with each other for viewers, advertising revenue, access to distribution networks, programming rights and in the many other areas that enterprises compete.
11. Commentators have observed that television broadcasters already generate a great deal of the high-quality audio-visual content that is accessed on-line, and have noted that continued support for this kind of content could strengthen Canada's presence in the international on-line digital media economy, even as detailed domestic regulation of television content becomes less tenable.^{Footnote 1}
12. The highly-regarded Canadian communications lawyer, Peter S. Grant, summed up the potential role of film and television in the on-line world succinctly in his paper, Reinventing the Cultural Toolkit: Canadian Content on New Media. After observing that many people forget the "obvious truth" that most of the high quality content available on the Internet and on mobile devices was originally produced for other platforms, such as theatrical exhibition, or conventional, specialty or pay TV, he continues:

    This leads me to my first observation. Namely, that if you want to support national content on new media, start by supporting national content on the traditional media because that content will later be made available on the Internet. In other words, to the extent that your broadcasting policies expand the choices, range and varieties of expression in traditional media, that pluralism will carry through to the Internet. In that sense, the Internet can serve as a "force multiplier" for policies that support national content in other media.^{Footnote 2}

13. A successful digital economy strategy would see policies put in place that build on the established strength of the dynamic and growing digital broadcasting sector to position broadcasters at the forefront of digital media initiatives for cultural and economic reasons. As we stated above, looking forward ten years, our country's objective should be to build a digital media system that is stronger, more diverse and more competitive, nationally and internationally, and than our existing broadcasting system is now. The best path to achieve that objective is to build on the strengths of our existing broadcasting system.

Smart Regulation Should Promote Diversity and Recognize Differences

14. The consultation paper observes that participants in the digital media sector will face stiff and growing competition from other countries and that, to meet this competition, they will need modern rules and regulatory certainty.
15. It is important, in framing new rules and regulations to build Canada's digital content advantage, that particular attention be paid to reflect and build on Canadian diversity in the digital media sector. The broadcasting system is currently characterized by a mixture of large, mid-sized and smaller players who all compete together, but that play different roles, and have different strengths to bring to the digital economy.
16. For example, IBG/GDI's members include smaller and medium-sized broadcasters that have specific mandates to contribute to Canadian cultural and linguistic diversity in broadcasting and to reflect Canada's diverse ethnocultural population. Our members also include smaller commercial broadcasters that contribute directly to editorial diversity in news, information and public affairs programming and in entertainment programming. Our members are not part of large corporate groups with integrated media holdings and ownership interests in distribution and advanced broadband networks. Yet, our members often - if not typically - provide programming that is not readily available elsewhere in Canada - if it is available at all and preserve editorial diversity in the Canadian market in the interests of free and open expression of ideas of all kinds.
17. Smaller and medium-sized enterprises often target underserved audiences and provide more innovative programming and technical solutions because they are smaller and see opportunities in areas that are not well served by larger corporate groups. Developing clearer rules and incentives should take into account the circumstances of smaller and medium-sized enterprises, and the differing roles they play.
18. For example, the recent changes to the Canada Media Fund have had and continue to have an impact on enterprises that are active in Canada's audiovisual media industries. Some of the changes have been intended, it is understood, to reward successful programs that access these funds and to increase the role of these funds in spurring digital innovation. At the same time, the CMF continues to fund a wide range of Canadian programming and the activities of a large proportion of Canadian broadcasters.
19. The CMF is to be commended for having taken a balanced approach to promoting adoption of digital media and new technologies, while providing continued support to the large number of broadcasters and independent producers that rely on CMF funding to innovate and grow. CMF funding results in the production of many hours of diverse programming that, ultimately, reaches almost every sector of the Canadian population.
20. The popularity and success of this programming is important, of course, but it needs to be kept in mind that we have a rich Canadian broadcasting system now - that we can build on in the future - because it strives to provide programming to inform and entertain all Canadians. The decision for the CMF to fund programming in third-languages and the maintenance of the envelopes for Aboriginal-language and Francophone Minority programs reflect good policy decisions to support diversity in the broadcasting and digital media systems.
21. Supporting these kinds of diverse programming streams is very important to building Canada's digital advantage in a global market. In a global communications environment in which (in theory) all content can be accessed by everyone around the planet, Canada can find an advantage by creating attractive and distinctive content that reflects the differing characteristics of our country's population and our entrepreneurs. Maintaining and supporting diversity, at all its levels, in the digital media system will help to achieve this goal.
22. Just as policy should support and encourage this kind of diversity, it should also recognize that there is a diversity of capacity among various digital media enterprises. Not all enterprises have the same levels of resources to bring to bear.
23. For example, although the CMF recognizes diversity in the system through its funding activities, there is no doubt that the mandated requirement for broadcasters to licence programming for distribution on a second platform (i.e. a specific "digital media component") is an onerous obligation for smaller broadcasters that access the CMF and, ironically, weakens their ability to advance in the digital marketplace. This is because all funding received by broadcasters from the CMF already goes directly to the production of audio visual programming. The CMF requirement that such programming be complemented by a second digital platform requires broadcasters to divert funds that would otherwise have been spent on producing the best audio-visual product possible, into supplementary digital media activities that are, as of yet, unproven in the marketplace. Smaller broadcasters have limited resources to make up the difference in funds diverted from the main production activities to digital media projects. Moreover, the fact that the CRTC does not permit broadcasters to include expenditures on digital media activities towards the broadcasters' regulated Canadian program expenditure ("CPE") obligations makes these digital platform expenditures even more onerous. It is not possible to count these expenditures towards the fulfillment of CRTC regulatory requirements, so they end up creating an additional total regulatory burden.
24. The Government's objective to encourage digital media is understandable; but, a better approach, especially for smaller broadcasters, would be to impose a requirement that focuses on ensuring that audio-visual productions that are funded by the CMF are accessible to Canadians in a digital format and on an online environment (for example by streaming or downloading). Expenditures on digital media should count towards broadcasters' CPE obligations. At this point, the most important consideration in moving Canadians forward in digital media is to find ways to make that content accessible and rewarding the rights holder. This is the primary challenge that broadcasters, especially smaller broadcasters, face.
25. A second area of concern with CMF's funding guidelines, as they evolve, relates to the potential for a programs supposed "popularity", measured in terms of a "mass audience", to outweigh other factors in determining funding eligibility. There are two issues with this approach. First, giving funding priority to mass audience programming will, by definition, further disadvantage programming that is targeted to audiences that are not well-served by the mainstream and to whom Canadian specialized services are directed. There is no single, monolithic "audience". Minority and niche audiences should also be taken into account in determining whether a program is popular and has been a success. Second, care needs to be taken that placing emphasis on audience popularity does not simply perpetuate advantages that are built into the system that favour larger media companies which may enjoy, for example, favourable carriage terms on cable or satellite due to their ownership or market power. If some smaller independent services enjoyed similar channel placement and carriage terms - not to mention cross-promotional opportunities - they too would have the ability to garner larger total audience share. Third, traditional audience measurement techniques consistently under-report certain audiences, such as Aboriginal Peoples, older viewers and minority ethno-cultural groups, and therefore do not provide a completely accurate picture of the popularity of certain programming streams. More research and perhaps different audience measurement tools are needed to more accurately reflect Canada's diverse population. As noted above, CMF's policies have taken a balanced approach so far, but increased pressure to direct more funding to the largest players that garner the largest "bulk" audience should be resisted. Such an approach would ultimately harm smaller independent players and reduce diversity in our system.
26. There are other questions regarding the interaction of CMF funding and CRTC regulation that should also be looked at to ensure that they promote Canada's digital advantage, and do not create disincentives for small broadcasters to allocate resources to, and innovate in digital media. The CRTC's announcement (as a part of the group-based licensing regulatory framework in Broadcasting Regulatory Policy CRTC 2010-167) that it will not count CMF licence fee funding towards broadcasters' CPE obligations for regulatory purposes could have a profound impact on the small broadcasters' health, unless adequate adjustments are made by the CRTC to the CPE requirements applicable to individual broadcasters.
27. Another pressing issue facing the digital media industry, apart from the CMF, is the transition from over-the-air analog to digital transmission facilities. As the government is aware, the CRTC has mandated transition for all analog overthe- air facilities in Canada's largest urban centres and provincial and territorial capitals by August 31, 2011. Broadcasters are working very hard to meet this deadline, but it is proving to be a challenge on many levels. It is not, perhaps, surprising, that smaller independent broadcasters are finding the demands of making the transition within this mandatory time frame to be challenging. Smaller independent broadcasters do not have the same level of resources as the larger broadcast groups do to make substantial capital investments in new digital transmission facilities, and do not have the "economies of scale" of larger broadcasters to help alleviate the burden.
28. Government policy could take account of these differences between the independent and larger broadcasting services in the mandatory transition markets by, for example, allowing additional latitude for independent broadcasters to make the transition or by granting exemptions. Also, in the interests of maintaining independent over-the-air television services in these communities, specific support could be provided to independent broadcasters to assist with the transition. Such support could represent the difference between independent broadcasters maintaining a presence in these markets and continuing their contribution to local editorial and ownership diversity, or going dark.

Policy Should Focus on Tangible Results

29. The consultation paper notes that the rise of digital media and new and more powerful communications networks has challenged our existing legislative framework. Some people have advocated, as a response, combining the Broadcasting Act and the Telecommunications Act (and, one supposes, the Radiocommunication Act), and possibly also overhauling copyright laws to better reflect digital realities.
30. It is not immediately apparent what changes to these statutes are required or would be appropriate. It is also unclear whether this kind of legislative overhaul could be accomplished within a realistic time frame to actually make a difference on the rapid evolution of digital media.
31. A better approach would be, instead, to focus on achieving certain specific tangible results working within, and perhaps adapting as required, the existing legislative and regulatory framework for digital media.
32. In the area of copyright, for example, the Government has recently tabled Bill C-32, which proposes substantial changes to many areas of copyright. The scope and impact of those changes, many of which are detailed and specific to digital technological developments, are beyond the scope of this consultation. However, the cumulative impact of these changes, if they are implemented, will likely be to create additional complexities for enterprises active in the digital media sector. Consequently, government policy, in addition to updating the Copyright Act, should also consider how to modernize the administration of copyright - including the tariff-setting and administration mechanism - to facilitate the use and authorized dissemination of copyrighted works.
33. It is well-known in the industry that the use of copyrighted works, at this time, exposes media enterprises to a quagmire of rights, exceptions, tariffs (most of which are retroactive or unsettled), and representative agencies. With this framework in place - if it can be called a "framework" - it is almost a miracle that any content is placed into the digital on-line environment. The overall complexity of the administration of copyright in a digital environment is its greatest weakness, and perhaps one of the most significant factors that holds Canadians back from innovating with digital media.
34. In addition, therefore, to updating Canada's copyright legislation, policy makers should look as well at how accessing copyrighted works can be made administratively simpler for authorized users and, as a corollary, how copyright holders can more efficiently enforce their rights against unauthorized users. There is no doubt that improving the efficiency of administration of copyright in the Canadian market (by, for example, further streamlining or consolidating the tariff-setting process and having rights holders simplify licensing processes) would significantly enhance our strength as producers and distributors of content in the global marketplace.
35. Similarly, with respect to legislative reform in the communications sector, it could be expected that proposals to reform the broadcasting or telecommunications regime would result in wide-ranging consultations with stakeholders and the presentation of many different competing visions of how these frameworks should reflect digital media. In some ways, this would be sterile debate because the principal statutes regulating the sector, the Broadcasting Act and the Telecommunications Act, were intentionally framed by Parliament to be technologically neutral in anticipation of the kind of technologies that we are developing today. The fact is - to be realistic - such a debate is most unlikely to result in tangible legislation in the near term (say, within the next three to five years). Canada's experience with bringing forward legislated copyright reform provides an indication of how challenging implementing legislative change can be, even when there is strong impetus for that reform (which there is not in the communications sector).
36. Instead, a better approach would be for specific proposals to be considered as they are required and in response to identifiable concerns. For example, on July 7, 2010, the Federal Court of Appeal released its decision (responding to a reference from the CRTC) on the question of whether Internet Service Providers (ISPs) should be considered to be engaged in broadcasting in their provision of access to the Internet. The Federal Court of Appeal determined that ISPs are not broadcasters when they provide Internet access services. (We note, however, that the question was narrowly defined for the Court.) This Court decision opens the door for the Government to consider specific legislative amendments to address the question of how ISPs should be regulated in a digital environment. These amendments would be focused on the specific role of ISPs (as that role becomes increasingly similar, and interchangeable even, with the role of cable and satellite distributors), and could be framed to deal with the set of issues associated with ISPs. This would not require extensive amendments to, or a combination of the Broadcasting Act, the Telecommunications Act and the Radiocommunication Act, but would instead involve more surgical amendments, if desired.
37. Overall, at this point in time, rather than consider broad legislative reform in any particular area touching on digital media, the better policy approach would be to allocate limited government resources towards achieving tangible results on the ground.

Promotion of Competition and Investment

38. The consultation paper has described the Government's role in supporting a successful digital media sector as putting in place a framework for the marketplace in which "creators, inventors and entrepreneurs have the incentives to innovate, the confidence to take risks and the tools to succeed." Implicit in this statement is the need to maintain a strong and competitive marketplace in which the "private sector will bear the risks and reap the rewards", as stated in the discussion paper.
39. Small and medium-sized enterprises are well aware of the challenges of competing in the existing digital marketplace. A key risk that small and medium-sized enterprises face, at this time, is the risk posed by the domination of the marketplace by a few, large consolidated media companies and the associated potential for anti-competitive practices. The CRTC's recent review of the policy implications surrounding the convergence of digital media presents a thoughtful summary of the issue arising from increased consolidation:

    Digitization and convergence have been key elements in the creation of the global village. Canadian corporations that wish to retain a significant presence in the Canadian marketplace, as well as having a place on the world stage, may find it advantageous to grow in scale and scope, including through mergers and acquisitions, in order to remain competitive globally. Consolidation can have the effect of reducing competition in the marketplace, resulting in monopolies or oligopolies. This may compromise the Commission's legislated objectives to achieve affordable pricing, universal access, innovation and a diversity of content choices and sustainable competition. Consolidation may impede consumers' choice and the ability of the market to discipline the largest service providers; therefore, regulations may continue to be necessary to ensure a diversity of Canadian voices and a strong competitive environment. [Emphasis added]

    By in large, this is an accurate picture of the situation in which Canada now finds itself.
40. For small and medium-sized players, the challenges of consolidation include challenges in dealing with competitors with significant cross-ownership interests at all levels of the digital media value chain, from acquiring digital media rights to accessing the networks on which that content is distributed, and all steps in between. The fact is that significant investment in digital media at this point in time often requires an assurance of access to the networks and portals operated by Canada's largest media conglomerates. Uncertainty surrounding the ability to obtain access is, without a doubt, a key limiting factor that holds back investment by small and medium-sized enterprises in digital media.
41. Policy makers should, therefore, continue to focus closely on the implications of continued media consolidation on access to the "essential facilities" required by all players in a digital economy. Without adequate protection for enterprises that do not control digital networks, there is a high risk that innovation and growth by small and medium-enterprises (which are often at the forefront of technological change and adaptation) will be suppressed. It is important to keep in mind that it is the perception of risk associated with the potential for anti-competitive behaviour that prevents new investments being made. The antidote to this perception is strong and definitive regulation in areas, such as network access, where the potential for the most damaging anticompetitive behaviour is highest.
42. Also, to offset the higher risks undertaken by small and medium-sized enterprises, government programs that encourage investment in digital technologies should provide enhanced support to this sector. Such programs could include, for example, focussed tax credits for small and medium-sized businesses, continued access to capital through the Business Development Bank and other federal programs, and even matching or special funds to encourage venture capital financing for early stage digital media projects.
43. Lastly, policy makers should continue to be mindful of the potential negative impact that some aspects of deregulation can have on small and medium-sized enterprises that are making the transition from the more regulated broadcasting environment, to the less regulated digital media environment. In particular, the CRTC has announced new distribution rules that will affect - and challenge - all Canadian broadcasting services currently distributed to Canadians by the largest cable and satellite networks. These rules will come into effect on August 31, 2011. On the one hand, the amended rules are intended to streamline regulation and enhance consumer choice. On the other hand, this step towards deregulation allows network gatekeepers more flexibility to select and package services and determine the mode of distribution for digital content. This type of deregulation at the gatekeeper level could affect the viability of small and medium-sized enterprises that generate content and, ultimately, reduce diversity in the market and consumer choice.
44. It is not yet clear how digital content providers will adapt in this new more deregulated environment. However, it is expected that over the course of the next year terms of carriage, regulatory obligations and other fundamental matters will be decided through negotiation and, perhaps, regulatory decision. A lighter regulatory burden could benefit all players in the broadcasting and digital media system, but it is important that the transition be carefully watched by policy makers to ensure that Canada continues to have as vibrant - or an even stronger and more diverse - digital media industry after it is complete. It would be counter-productive to lighten the regulatory burden on some players, if this results in a decrease in diversity and consumer choice.
45. As the CRTC has aptly noted in the quotation set out above, in some instances, it may be necessary to maintain regulation to ensure access and diversity in the system. The changes coming in August, 2011 to our distribution framework are going to put significant pressure on the system and it will be important for the Government and other policy makers to assess that pressure and respond, if necessary, to protect diversity, especially diversity and innovation created by smaller and medium-sized broadcasters that do not have same kind of market power as the larger players.

Conclusion

46. We appreciate this opportunity to participate in the Government's consultation.

Independent Broadcasters Group/
Le group de diffuseurs indépendant

Footnotes

1. ¹ Eli M. Noam, TV or Not TV: Three Screens, One Regulation? (2008). Report commissioned by the CRTC and available at http://www.crtc.gc.ca/eng/media/noam2008.htm#a33 The author is a Professor of Finance and Economics and Director, Columbia Institute for Tele-Information (CITI) at Columbia University. (back to footnote reference 1)
2. ² Presentation to Canadian Film and Television Producers Association Prime Time Conference, February 22, 2008 available at http://www.actra.com/actra/images/08Aug/CFTPA_Reinventing_Tool_Kit.pdf (back to footnote reference 2)

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