Timothy M. Denton

Success Through Understanding Technology

Timothy Denton's Blog

Commentary and insights on policy issues in telecommunications and the Internet.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Tags
    Tags Displays a list of tags that has been used in the blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Team Blogs
    Team Blogs Find your favorite team blogs here.
  • Login

It won't hurt a bit

Posted by on in Industry News
  • Font size: Larger Smaller
  • 1 Comment
  • Print

Proponents of a tax on Internet connectivity to support Canadian programming production will never quit.

Their arguments are:

It should be done.

It will not hurt a bit.

1. It should be done. Canada has always supported cultural production from taxes, so why not this tax?

  • Internet service providers are not broadcasters, so there is a legislative problem and probably a constitutional one. Attempting to spread the Broadcasting Act - which says thou shalt not publish without permission of the state - to the Internet involves a massive expansion of the licensing power of the Canadian state over what is published, and will likely not survive a Charter challenge. Nor, shall I add, the popular revolt.
  • The tax is likely superfluous. The Internet allows a direct relationship between cultural production and the market. A very large number of hours of scripted television is under development, way more than the broadcasting era. The only explanation why risk takers are financing¬† more television development is that the Internet is now making possible a much more discriminating relationship between what is produced and what is watched than was possible in the pre-Internet era.

My advice would be to anyone: wait until we see what the dimensions of the problem are. If there is a specific problem that Canadian programming cannot reach a market, or even allowing, for the sake of argument, that Canadian entertainment programming should be subsidized more, let us see how this Internet-driven market works before we launch possibly futile gestures that enrich a small group of largely-Toronto based entertainment producers and their employees.

We are entering a period when we no longer need quasi-soviet methods of subsidizing television production, as we did in the past. (allowing for the legitimacy of subsidizing Canadian arts, which I do).

I once did a back of the envelope calculation of the amount of funds going to Canadian production through the various media funds and the CBC. If the CBC is about a billion and the media funds $600-$800 million, then something approaching the cost of a large destroyer is being spent every year on Canadian culture. The figures are rough. But if spent on the Navy, we would at least have a significant fleet.

2. It will not hurt a bit.

  • That very much depends on the size of the tax and the means whereby it is procured. If it is generated by trying to extend the Broadcasting Act over Internet Service Providers, that is the equivalent of dropping a nuke on a mouse: a vastly disproportionate extension of state authority over what we communicate to subsidize the production of television programming. (When I say television I do not mean "television" in the sense of the Broadcasting Act, I mean video entertainment sent over the Internet. Television has four syllables, the other, thirteen).
  • Remember the naval fleet we are not building, if you want to visualize the cost. Or remember the quality of most Canadian television programming, if you want to remember why you hate subsidizing more of the same.

That Prime Minister squashed the idea of an Internet tax shows that these guys are clever and value their survival.


Trackback URL for this blog entry.

Timothy Denton is a lawyer by training who practices principally in telecommunications and Internet policy and domain name issues, with a strong concentration on explaining what the technology is and what it means.


  • Guest
    Mr Hm Wednesday, 05 July 2017

    What do you think about data-mining and profiling people via various ways such as via their set-top box and/or via DPI then funneling all that information from everyone who has a BDU license to a data broker who in turn matches it to other household/subscription data sets and then other 3rd party data sets then either giving it or allowing access to it for programming productions and advertisers to make money in various ways from these very rich profiles on people (be it behavioural advertising or other)?

    This seems to be happening now. Going on at the CRTC now. Is it a tax? They are not asking for consent. Thoughts?

Leave your comment

Guest Tuesday, 07 April 2020
You are here: Home Timothy Denton's Blog It won't hurt a bit