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Speaker 1: You're listening to the Saturday Morning with Jack team podcast

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Speaker 1: from Newstalks AEDB.

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Speaker 2: Twenty two minutes too eleven on Newstalks, there'd be Netflix

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Speaker 2: and Paramount have asked Canadian courts to ditch a local

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Speaker 2: news funding rule. Now this rule is a little bit

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Speaker 2: different to the one that's being pursued by the government here,

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Speaker 2: but it could have big implications for news producers in Canada.

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Speaker 2: Our texpert Paul Steinhous is here with the details.

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Speaker 3: Hey Paul, Yeah, good morning Jack. It's a timely conversation,

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Speaker 3: isn't it, with the closure of news Hub. And it's

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Speaker 3: a really interesting one because it's called the Online Streaming

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Speaker 3: Act and it's in Canada, and they are basically going

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Speaker 3: after the biggest streaming services, those who pull in more

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Speaker 3: than twenty five million dollars Canadian worth of revenue and

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Speaker 3: who aren't affiliated with the domestic broadcasters, so they're the

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Speaker 3: real Netflixes of the world, the big internationals. Sure, and

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Speaker 3: they're going to take They're going to put five percent

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Speaker 3: tax on that revenue, which is a pretty large number.

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Speaker 3: They think they're going to pull in about two hundred

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Speaker 3: million dollars in funding, which they are then going to

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Speaker 3: go and put into what I assume is like in

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Speaker 3: New Zealand on a type fund, they're going to go

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Speaker 3: towards creating local content, supporting black and Indigenous creators. All

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Speaker 3: of this sounds good, and here's where it's weird. The

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Speaker 3: Motion Picture Association of Canada actually kind of says that

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Speaker 3: it's okay. They're kind of on board with it, and

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Speaker 3: I guess it's because they're probably going to be creating

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Speaker 3: content that could potentially end up on one of their services, right.

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Speaker 3: But what they're here, yeah, but what they're not interested

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Speaker 3: in is a component of that law where they need

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Speaker 3: to fund local news. Interesting, so about one point five

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Speaker 3: percent is actually of is going to be going to

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Speaker 3: local news production. And these studios are saying that this

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Speaker 3: news content mandate is unreasonable. That's the word they use.

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Speaker 3: They said, it's neither appropriate in consideration of the nature

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Speaker 3: of the services they provide, nor equitable. So what they're

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Speaker 3: really saying is that, hey, we're happy to maybe think

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Speaker 3: about helping out if it's going to be entertainment, but

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Speaker 3: if it's some that we're not going to put on

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Speaker 3: our service, don't really want to do it. And they've

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Speaker 3: gone to the court to say strike it out because

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Speaker 3: this is supposed to go into law September one.

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Speaker 2: Well, look here's the thing. It's you know, I'm sure

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Speaker 2: people would say, you have on that. Yeah, if I

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Speaker 2: put on. If I try and look at this critically,

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Speaker 2: you can see why they Netflix is actually, you know

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Speaker 2: what we don't. We're not competing with news. We're not

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Speaker 2: sucking people away from news. We're not hoovering up that

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Speaker 2: information like maybe Google and Meta are doing with their models.

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Speaker 2: We're quite different. We're just providing entertainment. And I think

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Speaker 2: there's probably a reasonable argument.

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Speaker 3: To be made. But I think that the big piece

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Speaker 3: that is probably the the core of this argument is

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Speaker 3: that news organizations don't typically outside of usually morning shows

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Speaker 3: in most parts of the world, don't typically make a

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Speaker 3: lot of money, and so they're actually like that content's

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Speaker 3: like the lost Leader, right, So I think, how else

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Speaker 3: are you going to fund new I actually think it's

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Speaker 3: quite an interesting kind of danced I've done. I really

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Speaker 3: like as well that they're targeting the big streamers and

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Speaker 3: not yet you know, the new kid on the not

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Speaker 3: the niche ones, but they've kind of.

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Speaker 2: Gone to be So Amazon is getting into the luxury

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Speaker 2: department store game by pairing up with Sex fifth Avenue.

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Speaker 3: This was a real surprise. Sex fifth Avenue is going

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Speaker 3: to be buying Neman markets. They've been competitors for years

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Speaker 3: and years. There's been a lot of consolidation in the

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Speaker 3: luxury space. The number of department store brands is dwindled.

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Speaker 3: In fact, one of the department stores period have. I

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Speaker 3: guess I've dwindled here in the States. But what was

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Speaker 3: really surprising to me was the line that said the

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Speaker 3: parent of Sex for Ab is in partnership with Amazon.

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Speaker 3: I thought, that's interesting. That's spending two point sixty five billion, right,

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Speaker 3: So effectively Amazon's buying into the parent company of SAX

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Speaker 3: together that they're buying Neman Marcus. And then even more

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Speaker 3: bizarre is that they've got sales Force as part of

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Speaker 3: this deal too. Like they are a very minor state,

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Speaker 3: but they don't usually do anything outside of sort of

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Speaker 3: software startups and things that are related to customer relationship

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Speaker 3: management world. So that was really surprising. But Amazon's Mijorready

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Speaker 3: stake is going to come with technology and logistical expertise.

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Speaker 3: Now that's interesting, right, because they've now basically put a

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Speaker 3: value on what they do and are bringing that into

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Speaker 3: the business deal. And I think another thing that kind

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Speaker 3: of underscored for me just how important the online market

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Speaker 3: is in this new venture is that the guy who

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Speaker 3: runs the online store for SAX, he's going to be

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Speaker 3: the CEO of this new combined company called sex Global.

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Speaker 3: So it's almost like they're saying goodbye in person. But

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Speaker 3: at the same time, in the press release, they actually

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Speaker 3: said they were most interested in this company because of

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Speaker 3: their large footprint, because they do believe that when you're

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Speaker 3: in the luxury market, it's a little different to when

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Speaker 3: you're just buying a T shirt with nine ninety nine,

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Speaker 3: you actually want a partner, the sales associate. You want

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Speaker 3: them to know what they're talking about, and chances are

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Speaker 3: you probably want to feel it, touch it, and maybe

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Speaker 3: try it on before you go and spend literally thousands

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Speaker 3: of dollars on some of these items. Yeah.

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Speaker 2: Fair cool, No, it'd be very interesting. Watch the space.

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Speaker 2: Thank you, Paul. That's our texpert. Paul's Steenhouse seventeen to eleven,

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Speaker 2: Non News Talks EDB.

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Speaker 1: For more from Saturday Morning with Jack Tame. Listen live

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