Senators Amend Online Streaming Bill to Prohibit CBC from Publishing Sponsored Content

Senators Amend Online Streaming Bill to Prohibit CBC from Publishing Sponsored Content
People walk into the CBC building in Toronto on April 4, 2012. The Canadian Press/Nathan Denette
Peter Wilson
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A Senate committee has amended Bill C-11, an Act to amend the Broadcasting Act, to prohibit the CBC from broadcasting or publishing sponsored content.

Senators on the transport and communications committee, which is currently conducting a review of the legislation, voted in favour of the amendment on Dec. 8.

‘The Corporation [CBC] may not enter into any contract, arrangement or agreement that results in the broadcasting or development of an advertisement or announcement on behalf of an advertiser that is designed to resemble journalistic programming,” read the amendment, introduced by Sen. Percy Downe.

Downe said after introducing the amendment that “the cheapening of journalism is a problem inherent in sponsored content.”

“If a private broadcaster newspaper wants to conduct business in that way, that’s literally their business, but the Canadian Broadcasting Corporation is a different entity with a mandate that goes beyond the bottom line and should act accordingly,” Downe said during the committee meeting.

If passed by the Senate and given royal assent, Bill C-11 will amend the Broadcasting Act to give the Canadian Radio-television and Telecommunications Commission (CRTC) power to regulate online content available to Canadians through major streaming platforms such as Netflix and Spotify.

Introduced by Heritage Minister Pablo Rodriguez, the legislation’s stated objective is to promote content produced and monetized by Canadian creators.

Downe said his amendment to the legislation will “permanently close the door” on the possibility of the CBC publishing sponsored content, while the Liberal government’s Senate representative said the federal government did not support it.

“The government is of the view that this amendment is not appropriate in the context of this bill,” said Sen. Marc Gold.

Associate assistant deputy heritage minister Thomas Owen Ripley told the Senate committee last week that there is always a clear distinction between news and sponsored content published by the CBC.

“There is a larger debate here about the funding model of the corporation,” Ripley said. “But the reality is  right now the corporation is funded on the hybrid model, where it receives a parliamentary appropriation, but it is also free to pursue other revenue streams, which includes advertising.”

Sen. Fabian Manning, who voted in favour of the amendment, called it an “opportunity” to ensure that Canadians can rely on the taxpayer-funded media outlet.

The same Senate committee recently voted down a proposed amendment to Bill C-11 that would’ve exempted content creators making less than $150 million annually from the regulating authority of the CRTC under the legislation.