Canada: New CRTC Reporting Requirements For New Media Broadcasting

Last Updated: August 20 2010
Article by Margot E. Patterson

The Canadian Radio-television and Telecommunications Commission (CRTC) has taken an important step forward to monitor new media broadcasting operations.

On Friday August 13, 2010, the CRTC issued Reporting Requirements for New Media Broadcasting Undertakings, Broadcasting Regulatory Policy CRTC 2010-582. New Media Broadcasting Undertakings ("NMBU"s) provide broadcasting services1 that are delivered and accessed over the Internet. The CRTC will be expanding this to include broadcasting services received on mobile devices using point-to-point technology; the related consultation process was initiated last year in Broadcasting Notice of Consultation 2009-330 and is ongoing.

The new reporting requirements are intended to allow the CRTC to monitor the development of broadcasting in new media. They will apply "as a starting point" to NMBUs that are affiliates of broadcasting licensees. "Affiliation" is not defined in the CRTC's recent reporting policy, but is defined in subsection 21(2) of the Broadcasting Distribution Regulations, SOR/97-555 to mean a person who is controlled by the licensee. The affiliated NMBUs will be required to report on certain revenues and expenditures relating to new media broadcasting. Reporting will begin next year, for the current broadcast year 2009-2010.

The Commission foresees that it may extend the requirements to unaffiliated NMBUs in the future.

A New Media Reporting Working Group will be struck this fall to allow interested parties to collaborate on the development of specific new media reporting standards and measures. The reporting requirements will inevitably change NMBUs' data collection and management processes relating to their online presence, in order to comply with the CRTC's standards.

Background

In its Regulatory Policy, Review of Broadcasting in New Media (Broadcasting Regulatory Policy CRTC 2009-329, June 4, 2009, the "2009 Regulatory Policy"), the CRTC maintained the status of NMBUs, which had been exempt from licensing since 1999. The CRTC had decided that some new media services were "broadcasting" within the meaning of the Broadcasting Act, but that regulating them would not contribute materially to the broadcasting policy objectives set out in the Act (see New Media, Broadcasting Public Notice 1999-84/Telecom Public Notice 99-14, May 17, 1999). In the 2009 Regulatory Policy, however, the CRTC amended the exemption order for NMBUs to impose reporting requirements as a new condition of exemption.

The CRTC then initiated Call for comments on the reporting requirements for new media broadcasting undertakings, Broadcasting Notice of Consultation CRTC 2010-97, February 18, 2010. A number of companies operating conventional and new media broadcasting undertakings, and industry associations representing creators, among others, participated in the consultations. Parties commented on the type and scope of the information to be provided, which undertakings would be targeted, and confidentiality issues.

What Type of Information and Who Must Provide It

Content creators and NMBU operators differed on the required type and scope of information to be reported. The Commission considered that "the ability to follow revenue trends and identify industry investment is critical in evaluating the importance of broadcasting in new media within the Canadian broadcasting system." The Commission announced that it would therefore establish "baseline metrics" relating to revenues, for example, advertising, subscription and other revenues; and expenditures, for example, administration, general and technical costs, and costs relating to program rights and production.

All NMBUs that are affiliates of licensed broadcasting undertakings will be required to report the above revenues and expenditures annually. A data form will be sent to these NMBUs in the first quarter of 2011 for the 2009-2010 broadcast year. To address confidentiality concerns raised during the consultation, the CRTC will publicly report information only on an industry aggregate level.

Potential Future Requirements

The Commission anticipates that it may become necessary in the future for NMBUs to report on the availability and consumption of new media broadcasting content, in addition to annual revenues and expenditures. Also, as noted above, the Commission may extend reporting requirements to unaffiliated NMBUs, "as the new media environment evolves."

Next Steps: Launch of a New Media Reporting Working Group

The CRTC has announced that it will strike a New Media Reporting Working Group to:

  • reach common agreement on the components of the NMBU revenue and expenditure definitions, in order to create the data collection form; and
  • contribute to the development of metrics to monitor the consumption and availability of broadcasting content in new media.

The Working Group will convene for a period of up to one year. Those interested in participating must submit a written request to the CRTC Secretary General by August 31, 2010, explaining their interest in developing NMBU reporting requirements. The Commission will then extend invitations this fall.

Comment

The contributions of the Working Group to the reporting requirement standards and measures will be very important. The data form will need to be developed by reference to existing operational and accounting practices and available information. Once the reporting requirements are in place in 2011, affiliated NMBUs will likely find they must adjust the ways they collect and organize revenue and expense information relating to their online operations, to meet the CRTC's data requirements. As the 2007 Internet royalty proceeding before the Copyright Board of Canada demonstrated (SOCAN Tariff 22, Internet, 1996-2006), accounting and data management practices vary considerably among broadcasters and others who post content online. Among other issues, the revenues and expenses attributable to "broadcasting," as opposed to other online activities, will very likely need to be addressed by the Working Group.

Organizations that will be subject to the reporting requirements, including those planning to launch services that will be affected, should consider participating in the NMWG. Given the intention of the CRTC to extend the reporting requirements more broadly in the future, those organizations that are not currently affected would be well served by monitoring developments.

Footnotes

1 The CRTC interpreted "broadcasting" in the new media context in its 1999 New Media decision, Broadcasting Public Notice CRTC 1999-84/Telecom Public Notice CRTC 99-14, May 17, 1999.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

Disclaimer

Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

Registration

Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

Cookies

A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

Links

This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

Mail-A-Friend

If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

Security

This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.