AbriefregardingBillC-18,theOnlineNewsAct AnActrespectingonlinecommunicationsplatformsthatmakenewscontentavailabletopersonsinCanada April272023

ExecutiveSummaryCommunity,campus,andIndigenouslicensedbroadcastersareacrucial partofthenewsecosysteminCanada. Theyareamongthelastbroadcastersprovidingimmediate,reliable,andlocal newstoawiderangeofunderservedcommunities. C-18isanimportantpieceoflegislationdesignedtoensurethosenewsoutletswhoserveCanadiasinthiswayareappropriatelycompensatedbytheinternetserviceswhoprofitfromthoseCanadians.Unfortunately,giventhecurrentlanguage,thereisachancethemorethan235broadcasterswhofall intothiscategorywill notreceivesupportfortheirrole.

Webelievetwosmalladjustmentstothelanguageintheproposedactwouldbetterguaranteenot-for-profitmediaisabletofairlyparticipateindiscussion. IntroductionAcrossCanadatherearemorethan235licensedcommunity,Indigenous,andcampusradiostations.Theyoperateinalmosteveryprovinceandterritory.Theyemploymorethan500staffsupportedbycloseto7,000volunteers.Thesestationsarenot-for-profitandgovernedbyavolunteerboardofdirectorselectedbyandresponsibletothecommunitiestheyserve.Asaresult,ALLinvestmentsincommunityradiogodirectlybackintothecommunitytheyserve.

Morethan2.5millionCanadianslistentocommunitybroadcastersonaregularbasis 1 ,andthecritical importanceofcommunityradiotrulycameintofocusduringthepandemic,whenwesawa16%increaseinlistenersasCanadianssoughtoutreliablesourcesoflocal information. Thesestationsareacritical sourceofreliableandimmediatelocal news.Throughspokenword,newscasts,long-forminterviews,andcoverageofcivicissues,theyprovidevital accesstocommunitylevel information.

Community-basedbroadcastersproducecontentinmorethan65languages, includingmorethan11Indigenouslanguages, spokenbyCanadiansfromcoasttocoasttocoast.Morethan35stationsserveOfficial LanguageMinoritycommunities.Morethan95servecommunitieswithpopulationsoflessthan50,000people. ThesearetheonlybroadcasterswillingtoinvestinunderservedCanadiancommunities. TheimpactofGoogleandFacebookontheirabilitytoservethesecommunitieshasbeensignificant,andaswedemonstrateinthisdocument,theseonlinenewsprovidershavebenefitedsignificantlyfromtheircontent.

Inthisbriefwewill discusstheextentoftheimpactonthesestations,wewill detail theimportanceofbeingincludedinthetextoftheproposedlegislation,andwewill outlinehowthislegislationwill dolittletoaddressthechallengesfacinglocal newsprovidersoutsideofthemajorurbanareas. 1 https://abacusdata.ca/wp-content/uploads/2022/10/National-Campus-and-Community-Radio-Association.pdf 2/11

ImportancetoCampus,CommunityandIndigenousnot-for-profitRadioUNESCOrecommendsthatcommunitymediabefundedasitskeytothesuccessofsustainabilityanddevelopmentofthemodernworld.Canadaisoneoftheonlymoremodernizedcountriesthatdoesnothavenational fundingandsupportprograminplacetoassistitsnon-profitmediawithmeetingitsmandatedpoliciesunderitslicense 2 . Campus/CommunityRadioinCanadaisheavilyintegratedwithlocal news,informationandentertainmentbynatureoftheorganization'smandateandCRTClicensecategory.

Stationsarerequiredtoair15%(onaverage,19hours)oflocallyproduced,spoken-wordprogrammingeachweek 3 .Thisistheequivalentofapproximately95hoursofproductiontime(averaging5/1ratioofbroadcasttopre-production 4 ).Theyareoftentheonlysourcesofanytypeofnewsorinformationinacommunity;especiallywhenthosecommunitiesareonlyservicedbytheradiostationandnoothertypesoflocal media. Thisisbecomingincreasinglycommonwiththeamalgamationofcommercial broadcasters–oftenleavingthecommunitiestheyonceservedwithnolocal voice 5 .Infact,C/Cradioistheonlyradiosectorseeinggrowthduetodemand,withanaverageof5to7newstationsyearlyforthepast5years.

Nocommercial mediaclassifications(TV,PrintorRadio)hasminimummandatesforitsparticipationtoholdalicense,whichmeansthatcommunityandpublicmediaorganizationsareheldtoahigherstandard,withfewgovernmentfundingsources,anddecliningindustryresources(CanadianContentDevelopmentfunds).IntherecentCRTCdecisionregardingthecommercial broadcastingpolicy,itconfirmedthat“Onradio,newsisoftenintroducedregularlyduringprogramsheardthroughoutthebroadcastdayforthebenefitoflistenersjoiningin,withoutnecessarilybeingpartofanewsbulletinoraregularlyschedulednewscast.” 6 Paragraph3(1)(d)(iii)oftheActstates,inpart,thattheCanadianbroadcastingsystemshouldreflectthelinguisticduality,multicultural,andmultiracial natureofCanadiansocietyincludingthespecial placeofIndigenouspeople.Thecultural diversitypresentinmanyCanadiancommunitiesplacescampusandcommunitystationsinapositiontomakeastrongcontributiontothereflectionofthatcultural diversity,especiallybyprovidingexposuretonewandemergingartistsfromunderservedcultural groups,namelyethnocultural minorities,Indigenouspeopleandpersonswithdisabilities.Campusandcommunitystationsarealsowell placedtoprovidespoken-wordprogrammingthatreflectstheperspectivesandconcernsofdiverseculturalgroups,includingofficial languageminoritycommunities.TheCommissionacknowledgesthesignificantroleplayedbycampusandcommunitystationsinprovidingthird-languageprogrammingtotheethnocultural communitiesresidentwithintheirserviceareas 7 . 7 https://laws-lois.justice.gc.ca/eng/acts/b-9.01/ 6 https://crtc.gc.ca/eng/archive/2022/2022-332.htm 5 https://anserj.ca/index.php/cjnser/article/view/288/197 4 https://crtc.gc.ca/eng/archive/2010/2010-819.HTM 3 https://crtc.gc.ca/eng/archive/2010/2010-499.HTM#50 2 https://www.cbaa.org.au/sites/default/files/4_3CMedia_Issue_8_gordon.pdf 3/11

ImpactsofInternetGiantsTheimpactofGoogleandFacebookonthebottomlineofcommunityradiocannotbeunderstated. Accordingtoourdata,inthelast5years,communityradiostationshaveseenamaterial negativeimpactonadvertisingrevenue. Community,Indigenous,andcampusradioreliesprimarilyonadvertisingfromsmall andmediumsizedbusinesses. TheseSMEshavesufferedfromtheimpactofCOVIDaswell asfromtherecentriseininflationandinterestrates. Whilecommunityradiostationsofferveryreasonableadvertisingrates,theycannotcompetewiththebargainbasementratesofferedbyinternetadvertising.

Theneteffecthasbeenthatpotential advertisingrevenuehasbeencannibalizedbyGoogleandFacebook. Specifically,datacollectedfromourmembershipoverthelast4yearsofannual returnsshowsareal valuedeclineinaveragelocal salesof8%between2019and2022. National saleshaveincreased,butareexpectedtoreturntopre-pandemiclevelsasthegovernmentisnolongerpurchasingCOVID-basedinformationthroughoursector. Advertisingmakesupabout25%ofenglish-basedtotal revenues,andcloserto80%ofrevenueifthestationisnotconnectedtoacampusorcommunity.

Notethatgovernmentadvertisinginoursectorpeakedinthelate2010’s,andhasdeclinedtoalmostzeropurchasesoutsideofhealthandsafetyawareness.Thisincludespurchasesofadvertisingonalmostall traditional canadian-ownedbroadcastersandnetworksoutsideofdigital. Giventhelowoperatingbudgetsofsomanyofthesestations(theaverageisjustover200thousanddollarsayear)theneteffectoflosingcritical advertisingdollarshasbeenamplifiedamongcommunitybroadcasters.

Itisthereforecritical thatbillssuchasC-18includethesestationsandensurethattheinternetgiantscontributetotheirabilitytogeneratenewsandcompensatethesestationsforthelostrevenueassociatedwiththeiradvertising. Similartotheimpactonnewspapersthroughthelossofclassifiedadvertising,theimpactofsocial mediaandinternetadvertisingoncommunityradiostationshasbeensubstantial. CommunityNewsonSocialMediaAlmostall campus,communityandIndigenousradiostationsusemultiplesocial-mediaplatformsasawaytosharenewsandinformationwithlisteners,especiallyinremoteandruralcommunitieswhichhavenoaccesstootherlocal informationsources.

AgreatexampleofthisisCFTA,TantramarRadioinAmherstNovaScotia. ItsFacebookpagenotonlyhighlightsimportantlocal newsandinformationfromthestation,butincludesupdatesfromemergencyservices,thetownofAmherstandmuchmore. Thepageitselfhasalmost5,000followersinatownoflessthen10,000,anditisonlyoneofmorethan235stations. Yes,thecontenttheypostgetstraction,butonlineplatformsbenefitmateriallyfromthisrelationship. 4/11

Communityradiostationshaveleveragedcanada-info.catopromotetheirnewscontentonline.Thissitehasseenasignificantincreaseinfollowersoverthelast5years. Inthattimemorethan10,000articleshavebeenpostedtothesiteandrepostedtoonlinenewssitesbymanyofour292,000users. Wehavebeenquestionedastowhetherornotthesearticleshavebenefitedonlinenewsprovidersandwecansayunequivocallyyes. Whilewedonothaveaccesstoaggregatedataforall communitystations,wedoknowviaanalyticsforcanada-info.cathat43%ofonlineusershavearrivedatoursitebecausethearticleswerepromotedbyusersonsocial media,and,ofthose,96%havecomefromFacebookdirectly.

PositiveAmendmentstotheActWerecognizetheimportanceofC-18andsupportthegoalsasoutlinedintheAct.Webelievetherearestill changesnecessarytoenhancetheopportunityforall Canadianstobenefitfromaccessinglocal newsandinformation. Theinclusionofcommunityradioinsection21(1)isasignificantstepforward. Theinitial draftofC-18reliedonlyonQCJOcertificationwhichisonlyforprintmedia,designedfortaxcredits,andadministeredbytheCanadaRevenueAgency. Communityradioisnot-for-profitandthereforewouldhaveall beenexcluded. FollowingthesecondreadingintheHouseofCommons,thesectionwasamendedtothefollowing: (

a) is a qualifiedCanadianjournalismorganizationasdefinedinsubsection248(1)oftheIncomeTaxAct, oris licensedby theCommissionunderparagraph9(1) (b)oftheBroadcastingActas a campusstation, communitystationor nativestationas thosetermsaredefinedinregulationsmadeunderthatActorothercategoriesoflicenseesestablishedby theCommissionwitha similarcommunity mandate; Thisamendmentwastheonlyonesupportedbyall parties.

Itisparticularlyrelevant whenweconsidertheinclusionofcommunitybroadcastersintheproposedfinal draftofC-11whichnowincludesthefollowingdefinition: communityelement includes the element of the Canadian broadcasting systemas part of which members of a community participate in the production ofprograms that are in a language used in the community including a not-for-profitbroadcasting undertaking that is managed by a board of directors elected by thecommunity; (élément communautaire) Specifically, (5. 1) Subparagraph 3(1) (i) (iv) of the Act is replaced by thefollowing: 5/11

(iv) provide a reasonable opportunity for the public to be exposed to theexpression of differing views on matters of public concern and to directlyparticipate in public dialogue on those matters including through the communityelement. Communityradiostationsmustbeeligiblebecausetheyserveapopulationthatisnotprofitableandhasbeenabandonedbycommercial andpublicbroadcasters. Rural Canada,multiculturalcommunities,Indigenouscommunities,andOfficial Languageminoritycommunities.

ItisalsoimportantwhenoneconsiderstheimportanceofcommunitybroadcastingtoruralCanadianswhere 92ofthe177communityandcampusstations,or52%,areinrural Canada(populationunder50k)and78%ofthe54Indigenousbroadcastersareinrural communities. EachofthesestationsislicensedbytheCRTCafteranexhaustive,multi-yearlicensingprocess.

Aspertherequirements,thesestationsareall mandatedto 8 :● Beanon-profitcorporationwithaboardofdirectorselectedfromthecommunitytheyarelicencedtoserveand;● Airaminimumof15%oftotal airtimeofspokenwordprogrammingthatisdefinedas: ContentSubcategory11:News Therecountingandreportingoflocal,regional,nationalandinternationaleventsoftheday orrecentdays,withparticularemphasisonthetopicality oftheeventsorsituationsselected,orontheconstantupdatingofinformation,orbothaswellasbackgroundmaterialaboutcurrenteventswhenincludedinnewscastsbutexcludingweather, trafficandsportsandentertainmentreports.

All communityradiostationsprovidenewsandinformationinsomeformoranother. Thespokenwordprogrammingoftenreferstocivicinformationandengagement. Duringthepandemiccommunitybroadcastersweredeemedessential workers,andservedtoprovidelocal communitieswiththenewsthatwaspertinenttotheiraudiences. Asanexample,ifyouliveonCortesIsland,BC,andgetyournewsfromtheCBCyouwouldhavenoideaaboutlocal servicesinthecommunity.

Thestationheld3-hourweeklytownhall broadcastsdirectinglistenerstoclinicsattherighttime,providingthemostup-to-dateandreliableinformation,notfromDr.TheresaTaminOttawa,butfromlocal healthofficialslocatedinMansonsLanding 9 .Thiswascommonacrossthecountry;forexampleinPontiac,QuebecwhereCHIPFMputmicrophonesinthelocal municipal meetingsothatcitizenswhowereconfinedtotheirhomeswereabletobepartofthecivicprocessbecauseofcommunityradio.

AstheSenateconsidersBill C-18theOnlineNewsActitiscritical thattheamendmentstosection27bemaintained. 9 https://www.islandhealth.ca/our-locations/hospitals-health-centre-locations/cortes-health-centre 8 https://crtc.gc.ca/eng/archive/2010/2010-499.HTM 6/11

MisinformationabouttheAustralianModelTheMinisterofCanadianHeritage’sBillC-18ismodeledontheNewsMediaandDigitalPlatformsMandatoryBargainingCodeinAustralia.WhilewerecognizethatC-18hasbeenimproved,thelivedexperienceintheAustralianlegislationhasbeentoexcludealmostallofthe455communitybroadcastersinthatcountry. ItisimportanttoensureSenatorshaveaclearunderstandingofsomeofthemisinformationthathasbeencirculated. OnSeptember23rd,Mr.

RodSims(Professor, CrawfordSchoolofPublicPolicy,TheAustralianNationalUniversityappearedasanIndividualintheHouseofCommonsHeritageCommitteemeetingandfinishedhisopeningstatementbysaying:“onlythelargemediaplayersgotdealsandthesmallerplayersmissedout.Thisisjustsimplyfalse.”Hewentontostatethat“Wehavemanysmallermediabusinesses,especiallysmallregionalandruralnewspapersanddigitalnatives.EssentiallyallofthemgotadealfromGoogle,andmostofthemgotadealfromFacebook.” Thisstatementisincorrectasitdoesnotincludecommunityradioas “small media.” Infact,themajorityofthe“small media”SimsreferstoareownedbyRupertMurdoch.

Small andmediumcommunityradiostationsandothermediagroupswerenearlyall leftoutofthenegotiationprocessasperTheDigital NewsReport:Australia2022 10 .Thereportindicatesthatofthe455communityradiostationsinAustralialessthanadozenhavebeenabletonegotiateanysortofdeal withGoogleorFacebook. ThisissupportedbyconversationswithJonBissett,CEOoftheCommunityBroadcastingAssociationofAustralia. GiventhatwehavereachedouttoFacebook/MetaandGoogleonseveral occasionstoattempttohaveaformal conversation,wehaveyettoevenreceivearesponsefromeitherentity.

Itisthereforecritical thatthislegislationtakeastepfurthertoensurethatcommunityradiobroadcastersareappropriatelycompensatedfortheimpactthesecompanieshaveontheoverall healthofthebroadcastingsystemandforthenewscommunityradiobroadcasterscontinuetoprovidetounderservedcommunitiesacrossCanada. AdditionalAmendmentswhichwouldfurthersupportcommunitynews.WeareconcernedthatdespiteourinclusioninSection21,thatFacebookandGooglewill notbewillingtonegotiatewithusinanequitablemannerforanumberofreasons. TheAustralianexperienceisaprimeexample.

InAustralia,therearemorethan455communitybroadcasters.ThehighnumberisduetothefactthattheAustraliangovernmentprovidesoperational supportforthosestationsandhasdoneanadmirablejobofensuringthattheyareincludedinallaspectsofbroadcasting. However,nearly2yearsaftertheyimplementedthelegislationuponwhichC-18hasbeenmodeled,lessthan15haveevenhadconversationswithFacebookandGoogleandnonehavereceivedanyfinancial support.

WhileC-18isdifferentinensuringthatwearerecognizedundersection27,wearealsoconcernedthatsection11(1)(a)(v)allowsthe 10 https://www.canberra.edu.au/research/faculty-research-centres/nmrc/digital-news-report-australia-2022 7/11

digital operatorstoreachagreementswithasignificant portionanddoesnotdefinewhatthatmeans. Existing:11

(1) The Commission must make an exemption order in relation to a digitalnews intermediary if its operator requests the exemption and the followingconditionsaremet: (

a) the operator has entered into agreements with news businesses that operatenews outlets that produce news content primarily for the Canadian newsmarketplace and the Commission is of the opinion that, taken as a whole, theagreements satisfy the following criteria: (

v) they ensure a significant portionof independent local news businessesbenefit fromthem, they contribute to the sustainability of those businesses andthey encourage innovative business models in the Canadian news marketplace” Itmayverywell allowtheoperatorstoobtainanexemptionwithouteverhavingspokentoacommunityradiostation. Sofar,aftermanyattemptstocommunicatewithbothcompanies,wehavereceivednoresponsewhatsoever. Weareawarethatmanymajormediaoutletshavealreadyreachedagreementswhosedetailsarebeinghiddenfromtherestofthesmallermediaoutlets.ThereforeweareappealingtotheSenatetoamendsectionsection11(1)(a)(v)inthefollowingmanner: Proposed:11

(1) The Commission must make an exemption order in relation to a digitalnews intermediary if its operator requests the exemption and the followingconditionsaremet: (

a) the operator has entered into agreements with news businesses that operatenews outlets that produce news content primarily for the Canadian newsmarketplace and the Commission is of the opinion that, taken as a whole, theagreements satisfy the following criteria: (v) “they ensure a significant portion of independent local news businesses,whichmust includeorganizations licensedbytheCommissionunderparagraph9(1) (

b) of theBroadcastingAct as acampus station,communitystationor nativestation, benefit fromthem.” Wefurtherproposethatsection31(1)(2)bemodifiedduetothewordexclusively. Communitybroadcastersarethelastbroadcastmediaoutletsinthemajorityofcommunitieswheretheyoperate. ThisisparticularlytrueinOfficial MinorityLanguageCommunities,inruralcommunities,andinIndigenouscommunities.

Assuch,theyservemanyrolesincludingbeingtheprimarysourceoflocal newsandinformation,butalsoasahubforartsandculture,anemergencyservice,aconnectionpointforresidents,ahomeforimmigrantcommunitiesandculture,andofcourse,asatraininggroundforfuturebroadcasters. Currently,thosenewsbusinesseswhocanapplytothecommissionunderC-18aredefinedasfollows: 8/11

Existing: ApplicationtoCommission 31

(1) If the operator is of the opinion that a news outlet identified under section30 by an eligible news business or group of eligible news businesses should not bea subject of the bargaining process, it may apply to the Commission for adetermination of the issue. Determination

(2) A news outlet is to be a subject of the bargaining process if the Commissionis of the opinion that the outlet is operated exclusively for the purpose ofproducing news content — including local, regional and national news content —consisting primarily of original news content that is (

a) produced primarily for the Canadian news marketplace; (

b) focused on matters of general interest and reports of current events,including coverage of democratic institutions and processes; (

c) not focused on a particular topic such as industry-specific news, sports,recreation, arts, lifestyle or entertainment; and (

d) not intended to promote the interests, or report on the activities, of anorganization, an association or its members. Giventhatcommunity,Indigenous,andcampusbroadcastersdomeetthecriteriain(2)(a),(b),(c),and(d),butthattheyalsoprovidecontentthatisnotnewsbutstill critical totheircommunity,webelievetheyoughttohavetherighttoapplytothecommissionfordetermination. Theyprovidecoreandcritical newscontentANDtheydootherthingsaswell andthewordexclusivelycouldbeusedtoexcludethesestations. Therefore,similartosection21(1)(a)weproposetosimplyaddthesamelanguageto31(2)asacategoryfordetermination. Proposed: ApplicationtoCommission 31

(1) If the operator is of the opinion that a news outlet identified under section30 by an eligible news business or group of eligible news businesses should not bea subject of the bargaining process, it may apply to the Commission for adetermination of the issue. Determination

(2) A news outlet is to be a subject of the bargaining process if the Commissionis of the opinion that the outlet is 9/11

(

i) an organization licensed by the Commission under paragraph 9(1) (b)of the Broadcasting Act as a campus station, communitystationor nativestation, or (ii) operated exclusively for the purpose of producing news content — includinglocal, regional and national news content —consisting primarily of original newscontent that is (

a) produced primarily for the Canadian news marketplace; (

b) focused on matters of general interest and reports of current events,including coverage of democratic institutions and processes; (

c) not focused on a particular topic such as industry-specific news, sports,recreation, arts, lifestyle or entertainment; and (

d) not intended to promote the interests, or report on the activities, of anorganization, an association or its members. ConclusionCommunityradioisacritical partoftheCanadianbroadcastingenvironment.Atatimewhen weseeall otherbroadcastersabandoninglocal news,information,stories,musicandarts,communityradio,asalways,continuestofocusonsupportinglocal voices. ItisourbeliefthatwithouttheproposedamendmentstoC-18theOnlineNewsAct,muchlikewhatwehaveseeninAustralia,communitybroadcasterswill beexcludedfromanysortofcompensationfortheimpactsofonlinenewsoutlets,andforthecritical roletheyplayinCanadianlocal andcivicjournalism.

Itisourintentiontoworkcollaborativelyandcollectivelytoinitiatethebargainingprocessonbehalfofall c/cstationsunders.23asa"groupofeligiblenewsbusinesses." Wewouldhopetoworkwithoperatorstoensurethatfundingsupportstheproductionofonlinenewsinordertoensurethereisagreateramountofcontentthatwill symbioticallysupportthegoalsofcommunitybroadcastersandonlinenewssources. C-18theOnlineNewsActisanimportantpieceoflegislationthatwill haveanimportantimpactonnewsgatheringinCanada. Itwill improveourcollectiveabilitytofightdisinformation,ensureourpopulationismakingdecisionswithaccurateinformationandultimatelyfightforourdemocracy.

Therearefew,ifany,newsproducersinCanadawhohavebeenabletomonetizetheironlinenewscontent. Thatdoesnot,however,diminishthecritical needforreliableandtrustworthysourcesofonlinenewstocountertheonslaughtofdisinformationthatalsocomesfromonlinesources. Itismademoredifficultbecausethoseonlinesourcesarealsoincreasinglytakingthemajorityofonlineprofits. Thereforeall partieswhomeaningfullycontributetotheproductionanddisseminationoflocal newsshouldbeallowedtobenefitfromsuchacritical pieceoflegislation. 10/11

TheOnlineNewsActmustreflectall elementsofthebroadcastingsystemwithequal measure.Theamendmentsproposedabovewill seecommunitybroadcastersrecognizedfortheirroleinahealthydemocracy. *** End of Document *** 11/11