Market Failure In Canada

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Throughout the years, the government seeks to promote Canadian content by strengthening and editing media policy. Due to Canada's small population, the market for Canadian media faces obstacles such as market failure.Market failure does not mean that the market is at a failure but it occurs when the market cannot support sufficient domestic media to generate profit. There are many factors that influence market failure. Market failure can be a result of not reaching everyone who might wish to consume it. Another factor that leads to market failure is the skewed competition. Due to the transport of American media to Canada, Canadian content doesn't receive much attention from Canadians. In the perspective of economist Peter Grant and Chris Wood …show more content…

The Massey Commission is a three-year long report established in 1949 which lists recommendations to enrich and promote Canadian culture. It covers different areas to enhance Canadian culture in Arts, education and culture. In Policy source 1, it specifically discusses ways to preserve and promote Canadian content on Radio Broadcasting. It outlines problems that are hindering the success of reaching Canadian audiences to consume Canadian content. For example, because Canada is a large country the transmission of Canadian radio channel does not reach some Canadian citizens. Also, due to close proximity to the United States, the transmission of American channels easily reaches Canadian audiences. The government tries to find solutions to phase out American content by creating more of Canadian content. On the 'Development of Canadian Talent' section in Policy source 1,the Massey Commission recommends to the Board of governors of the Canadian Broadcasting Corporation to develop radio programs in cities other than Toronto and Montreal. The result of over-centralization is most likely due to the avoidance of market failure. Which lead to an unfair expenditure amount of $1,302,595 towards the artists fees for Toronto and Montreal and a total …show more content…

Therefore, there shouldn’t be an interference in governments, politics and business interest. In policy source 7, titled Public Broadcasting in Canada: Time for a New Approach (2007), CBC’s president, Mr. Robert Rabinovitch presents to the Standing Committee on Canadian Heritage the role and mandate of the national public broadcaster. The elements of public broadcasting include but not limited to: access for all taste, interests and needs; diversity within content; non-commercial, non-profit, non-government; independence from governments and funding which ensure autonomy for public service broadcasters. If these mandates are profoundly catered to the public’s interest, then why does Canada experience market failure? Mr. Rabinovitch tries to take a new approach at viewing public broadcasters. He believes that with the rise of new technology and globalization, public broadcasters has not diminished, yet needs to evolve. He requests the government to review new principles to mix public/private systems, ensure programming independence, create distinct Canadian content and provide access to serve Canadian citizens. He also supports his arguments by acknowledging that Canada was ranked number one to benefit from public service broadcaster in the Nordicity study. His solution to meet the mandates successfully is by

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