Praise Canada

Dr Eric Crampton
Insights Newsletter
6 October, 2023

As a proud Canadian, I am occasionally compelled to draw Kiwis’ attention to the wonderful service that my homeland provides to the world. 


The election here has been tedious. But if it has made you despair, just look North.


They’re setting up a regulatory regime for podcasters. I’m not kidding.


How has this come about?


Canada takes an utterly bizarre approach to cultural policy.


Most governments subsidise cultural industries to at least some extent. New Zealand has various subsidy schemes to support local film and television production.


But Canada does things a bit differently. Rather than burden taxpayers transparently, they do it opaquely as a requirement for broadcasters. If you want access to the airwaves, comply with Canadian content regulations. 
 

Canadian radio stations must play at least 35% Canadian content; broadcast television, 55% - both with some exceptions.  


Over generations, this simply became the way things are done. If the government wants more Canadian content, it imposes obligations on broadcasters. Even satellite radio wound up covered. The Wikipedia article on Canadian Content makes for darkly amusing reading. 


It isn’t costless. New Zealand has traditionally auctioned broadcast spectrum. The government can use that revenue to pay for other nice things. It would earn less at auction if it required every broadcaster to play Dave Dobbyn twice an hour.  


But people now enjoy streaming services and podcasts rather than broadcast media. How will government ensure Canadian content in that kind of context? Regulation! 


Last week, the Canadian Radio-television and Telecommunications Commission (CRTC) set a new rule under Canada’s Online Streaming Act. Streaming services that earn more than $10 million in Canadian revenue must register with the Canadian government. The requirement includes podcasts, social media services, adult content websites, and online news services.  


Why do they need to register? So the CRTC can ensure that the Broadcasting Act’s objectives, like having a balance of perspectives and sufficient Canadian content, are achieved.  


If Joe Rogan’s podcast earns enough revenue in Canada, he could be subject to Canadian content regulations. Or he could decide to block Canadian listeners.  


As for applying any of this to online pornography – well, it’s fun to laugh at from across a wide ocean. 


So, if Wellington deciding to spend hundreds of millions of dollars on a town hall rather than fixing the pipes is too depressing, just look North.  


At least we’re not Canada.  

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