Heated Rivalry creators defend Canadian streaming law targeted by White House

The creators of the globally successful Canadian television series Heated Rivalry publicly supported the Online Streaming Act at a media industry conference in Ottawa on Thursday. The Act, which aims to regulate online streaming platforms, has become a point of contention with the United States, identified as a “trade irritant” by U.S. officials.

A Hit Show Weighs In

Jacob Tierney, the show’s creator, emphasized the importance of preserving the legislation. “People have got to negotiate the way they’ve got to negotiate, but I think it would be really, really bad if we lost it,” he stated. Heated Rivalry, initially developed for Bell Media’s Crave and later picked up by HBO Max, has achieved international recognition, with its stars appearing at events like the Golden Globes, U.S. late-night talk shows, and Milan Fashion Week.

The Five Percent Contribution

Tierney argued that the Act’s requirement for large foreign streaming platforms to contribute five percent of their Canadian revenue towards Canadian content isn’t overly burdensome. Currently, these platforms are legally challenging this contribution requirement in court. Brendan Brady, another key creative force behind Heated Rivalry, encouraged streamers to view the Act as an opportunity.

Did You Know? The CRTC has ordered large foreign streaming companies to contribute five per cent of their annual Canadian revenues to funds devoted to producing Canadian content.

Brady suggested that entering the Canadian market provides streamers with a “global platform to create more Heated Rivalries.” He urged them to embrace the potential benefits rather than framing the Act as a negative.

Broader Industry Concerns

The Prime Time conference took place amidst ongoing challenges to Canadian content contribution and disclosure rules implemented through the Online Streaming Act. The legislation itself updates broadcasting laws to include online platforms like Netflix. U.S. Trade Representative Jamieson Greer raised concerns about the Act in December, citing its impact on U.S. digital service providers ahead of a review of the Canada-U.S.-Mexico Agreement (CUSMA).

Expert Insight: The defense of the Online Streaming Act by the creators of a globally successful show highlights the potential benefits of the legislation for Canadian content creation. The ongoing legal challenges and trade concerns suggest a complex negotiation is underway, balancing national cultural interests with international trade agreements.

Artificial Intelligence Minister Evan Solomon also addressed the conference, stating, “We hear you,” in response to concerns raised by creators regarding the Act. Federal Court temporarily paused payments required under the Act in late 2024, estimated at a minimum of $1.25 million annually per company. Additionally, a group of streamers launched a challenge to a CRTC decision requiring them to disclose financial information.

Frequently Asked Questions

What is the Online Streaming Act?

The Online Streaming Act updates Canadian broadcasting laws to include online platforms like Netflix.

Why is the U.S. concerned about the Act?

U.S. Trade Representative Jamieson Greer identified the Act as a “trade irritant” due to its impact on U.S. digital service providers.

What is the five percent contribution requirement?

Large foreign streaming platforms are required to contribute five percent of their annual Canadian revenues to funds supporting Canadian content production.

As legal challenges continue and negotiations unfold, the future of the Online Streaming Act remains uncertain. It is possible that the Act will be amended to address concerns raised by the U.S. and streaming companies, or that the current requirements will be upheld by the courts. Further challenges to the Act’s provisions could also emerge, potentially leading to further delays or modifications. The outcome of these developments will likely shape the landscape of streaming content in Canada for years to come.