In The Line, Peter Menzies outlines the state of play in the continued efforts of the federal government to pass C-18, a bill that will massively benefit certain media outlets … or convince the “tech giants” to pull out of the Canadian market altogether rather than pay the blackmail:
News Media Canada’s persistent campaigning finally produced its Holy Grail — Bill C-18. All might have been well for Torstar, Postmedia and Le Devoir except that once the flesh was thrown on the bones of the Act, broadcasters that aren’t facing economic peril heard the dinner bell and came running.
The result, according to the Parliamentary Budget Officer, is that Bill C-18 is expected to produce $329 million in annual revenue for Canadian media (for context, that’s less than the Calgary Herald, Edmonton Journal, Edmonton Sun and Calgary Sun were bringing in between them 20 years ago). Of that, $249 million will go to broadcasters, few of whom are on a fiscal ledge and a good many of whom have contributed to the demise of local newspapers. Remarkably, the CBC, already receiving $1 billion in taxpayer funding, will get the most of that cash, followed by CTV (Bell), Rogers, Videotron and others. The newspapers and start ups will have $80 million (a little more than what the Edmonton Journal and Edmonton Sun used to make in combined annual profit) to fight over.
And very few of those previously mentioned startups — run by mostly young and often female innovators — trying to find a sustainable business model for good journalism can expect anything more than a token pay off. No. They will have to go to the little kids table and see what they can find on the children’s menu of subsidies.
It is distressingly obvious that while so many were tricked into believing this was the most progressive Canadian government ever, it is in fact, a slave to the status quo; as staunch a defender of the corporate establishment as the Toronto Club could wish for. With the 21st century and all its opportunities staring it in the face, Justin Trudeau’s government has not only turned its back on innovation, it has put its thumb on the scale in favour of failed business models that long ago ran out of ideas.
Yet there may be a final twist in this tale.
Bill C-18’s particulars are, as Meta/Facebook’s Kevin Chan put it to a Parliamentary committee last week “globally unprecedented”. For all its sins — and for all we know there are a few more skeletons rattling around in its closet — Meta is unlikely to pay up. Sure, it can cover the Canadian shakedown; what it can’t afford though is to pay every other country in the world that makes the same demand. So Meta says it may simply stop serving up news links which, when you think about it, is a better idea in the long run than permanently entrenching its dominant market position
So while the publishers of those blank pages appear to have bullied even the Conservatives into supporting this travesty, they are still left to ponder:
“Imagine if Facebook wasn’t there.”
