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MEDIA POLICY AND

REGULATION
Introduction to Media & Society

Dr. Vincent Manzerolle

November 6, 2017
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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.
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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.
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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.
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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.
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Canadian media policy overview

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

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

Regulatory institutions:
• Canadian Radio-television and
Telecommunications Commission (CRTC) who
enforces legislation and regulates day-to-day
practices.
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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.
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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.
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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.
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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.
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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.
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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.
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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!
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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).
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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.
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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.”
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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.
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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.
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Final thoughts

• Key grassroots lobbying organization: OpenMedia.ca

• Check out their website, get involved in these issues
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Key concepts, examples, names

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