SWG PL – Media/Multi-Media - Tailored Coverage for Canada’s Rapidly Changing Internet Media Market

May 27, 2020


New threats from the rapid changes in the media/multimedia industry are outpacing traditional insurance policies. In this market, coverage needs are constantly shifting as new trends emerge; meanwhile, Canadian rules and regulations struggle to keep up.

One important trend is the shift from cable and television broadcasting to internet media. By 2023, 50% of total advertising revenue will come from internet advertising. (1)

South Western Group’s Professional Liability for Media/Multimedia firms is tailored to meet the needs of Canada’s broadcasters, publishers, and a host of media-related firms.

Two Major Trends in Canada’s Media/Multimedia Industry

  1. Internet Access:

Canada's internet media market is already mature. Fixed broadband penetration is expected to increase slightly as the country sees a rapid migration from medium-speed to high-speed services. (2)

In addition, the number of cable TV subscriptions is dropping while IPTV is on the rise. Video now accounts for over 83% of all internet data content and is expected to grow to a volume of 63.5 trillion megabytes in 2023. (1)

This means that satellite, broadcast and cable providers are having to compete with over-the-top (OTT) media services that bypass more traditional television distributors, such as Hulu, Crave and AmazonVideo. Canada is one of the biggest markets for Netflix, which has taken over 70% of the market share revenues reaching an estimated 6.9 million by the end of 2017. (2)

  1. OTT Services:

Canada has a thriving market in video-on-demand (VOD) streaming services. As a country, we are the fifth-largest OTT video market in the world, after the US, China, Japan and the UK. Revenue grew to CAD$1.5 billion and is expected to continue to grow at a pace of 5.2% CAGR through 2022. (2)

As the media/multimedia industry changes, new challenges are emerging around the gathering, ownership and treatment of personal information. As media companies continue to push for individualization of consumer experience, it’s likely they will run up against limits and issues relating to the safety and privacy of personal data.

It behooves the government to create and enforce new regulations to keep up with these rapid changes so that consumers’ privacy is protected.

SWG PL: Media/Multimedia

SWG PL - Media/Multimedia Liability insurance is designed for publishers, broadcasters, and other media-related firms. The policy can be written on a claims-made form or occurrence basis and offers protection from claims arising from alleged defamation, invasion of privacy, infringement of copyright and trademark, plagiarism and errors or omissions arising from the content produced by media companies.

Coverage Highlights

Coverage is offered on an occurrence or claims made basis

Media Liability including Content Errors and Omissions (E&O) coverage

All-Risk” approach opens coverage to possible future liability theories

Emotional distress carve-back on BI/PD exclusion

Media coverage, including media entities and activities

Definition of claim includes monetary damages, non-monetary relief or injunctive relief

Media wrongful acts including; defamation, invasion of privacy, emotional distress, wrongful entry, false arrest, harassment, breach of confidentiality, copyright and trademark infringement, deceptive trade practices, conspiracy

Definition of matter includes, advertising, art, blogging, creative expression, data, entertainment, film, facts, fiction, graphics, information, literary composition, music, news, photographs, pictures, opinions, sound recordings, video, web-site

Definition of loss includes; coverage for punitive, exemplary or multiplied damages to the fullest extent permitted by law

Worldwide coverage

Broad definition of occurrence

Includes liability assumed under contract

Definition of insured includes: director, officer, partner, shareholder and employees, agent, leased or temporary employee, volunteer and independent contractors

Insured retains full control over content corrections / retractions

Confidential source coverage

Merchandising coverage

Deceptive trade practices and fraud coverage – if the underlying act was approved by counsel or authorized supervisor

Coverage for newsgathering activities where no utterance or dissemination of matter takes place

Does not contain a “buy-out” or “hammer” clause

90-day automatic coverage for acquisitions

60-day notice of cancellation / 15 days in the event of non-payment of premium

Primary / Excess Capacity

Extensions are available. Visit our website for more details.

Content is current as of the date of broadcast and is subject to change without notice.

Sources:

  1. https://www.pwc.com/ca/en/industries/entertainment-media/outlook-2019-2023.html
  2. https://www.newswire.ca/news-releases/canadas-entertainment-and-media-industry-revenue-to-grow-by-37-per-year-through-2022-686240701.html