Brad Danks says Canada’s media policy rewards production, not ownership
Brad Danks, CEO of OUTtv Media Global, argues that Canada's media policy, designed for the broadcast era, is now out of sync with opportunities in global streaming and AI. The article claims the existing system prioritizes production volume over IP ownership and distribution, leading to a "managed decline" rather than fostering a competitive Canadian media sector. It suggests that while past policies aimed to cross-subsidize Canadian content, the changing landscape of streaming and AI necessitates a redesign of market incentives to retain value within Canada.
Key Takeaways
- Canada’s original bargain used BDU licensing and broadcaster fees to cross-subsidize Canadian content production, with broadcasters once paying US networks and studios more than $1 billion a year.
- Danks says Netflix’s 2010 arrival exposed the limits of the broadcast-era model, and he points to a Canadian linear TV crossover below 50% as the old majority slips away.
- He cites US viewing data showing streaming overtook broadcast and cable in 2025, while Canada is expected to lag by a few years, with crossover likely between 2028 and 2030.
- The current system rewards spending, hours produced, and creative jobs filled, but not owning content, building distribution power, or retaining IP and audience relationships in Canada.
- CRTC data shows profits in Canadian TV have dropped sharply over the past decade even as programming spend stays high.
Why It Matters
The immediate implication is that Canada’s policy incentives still favor production activity even as streaming and AI shift value toward IP, distribution, and direct audience relationships. Danks argues that this leaves Canadian media “optimised for managed decline,” because money and rights can flow to non-Canadian platforms while domestic profits weaken. The competitive issue is whether Canada keeps routing capital through incumbents whose main business is communications, not global media. One concrete signal to watch is the coming Canadian crossover from linear TV to streaming, which Danks places between 2028 and 2030.
Read full article at cartt.ca