CCA Bulletin 7/11
February 25, 2011
The CCA weighs in on private television
group-based licence renewals
Just the Facts
The Canadian Conference of the Arts (CCA) recently submitted a brief to the Canadian Radio-Television and Telecommunications Commission (CRTC) regarding group-based licence renewals for English-language television.
Why does this issue matter?
Television programming is the most consumed cultural product. TV is the format through which the government invests the most taxpayers’ dollars, both directly and indirectly. Television is also the most popular cultural form and according to the objectives of the Broadcasting Act, it should reflect Canadian realities and culture. Due to the consolidation of ownership in the audio-visual sector and the relaxed nature of past regulation, it is imperative that the CRTC set a proper course to ensure that Canadian programming is offered to Canadians across the various platforms now available. This is necessary because for the foreseeable future, traditional television programs will remain as the primary source of such programming.
Tell me more
Over the past 10 years, we have witnessed an increased concentration of ownership and power in the Canadian broadcasting and distribution industry. In 2001, we saw the transfer of control of TVA to Quebecor, the largest cable operator and internet provider in Quebec which now also offers competitive wireless services. In 2007, five Citytv stations were acquired by Rogers, which also operates three distribution platforms. In October 2010, the CRTC authorized the acquisition of Canwest Global by Shaw and the Commission most recently completed hearings regarding BCE’s acquisition of CTVglobemedia Inc.
On April 4, for the first time since its policy decision, the CRTC will hold a hearing to licence private television services, applying a group-based approach. Given the extreme concentration of ownership of broadcasting and distribution undertakings, it is imperative that the Commission looks at the broad picture and understands how best to achieve the cultural objectives set out in the Broadcasting Act, of which it is the custodian.
The CCA sees these hearings as an opportunity to correct the imbalance in the programming available to English Canadian audiences. Improvements can be made by implementing general Canadian programming expenditure requirements on traditional over-the-air broadcasters and specific requirements for programs of national interest. The Commission has defined programs of national interest as scripted drama, documentaries and Canadian awards shows. In its submission, the CCA focused on the following issues:
The need for a proper base for expenditure requirements
The CCA was disappointed with the CRTC’s decision to reduce Canadian content requirements to 55% over the broadcast day from the traditional level of 60%, but rejoiced in the decision to reintroduce expenditure requirements for Canadian programming, a policy that was abandoned in 1999 with disastrous results. The CCA opposes the position of all four of the large broadcast ownership groups, who have proposed that expenditure requirements be calculated based on an average of the revenues in each of the three previous broadcasting years, since this was a period of unusually low revenue by broadcasters.
Maintaining Canadian content requirements for specialty services
The CCA is strongly opposed to any suggestion that Canadian content requirements be lowered for specialty services, particularly now that ownership of over-the-air stations and specialty services has been consolidated. Those requirements ensured the sustained production of Canadian programming between 1999 and 2010, even when the CRTC’s disastrous policy of incentives led to over-the-air broadcasters investing less and less in Canadian production and spending more and more on US programs.
Establishing the proper levels for expenditure requirements
The CCA is recommending to the CRTC that Canadian programming expenditures be established as a minimum at 30% of total revenue for each group, with even the possibility of scaling upwards over the course of the five-year licensing period. This requirement will barely re-establish a reasonable equilibrium between what Anglophone broadcasters spend on acquiring foreign programming and what they spend on Canadian programs.
With regards to scripted drama, documentaries and Canadian awards show, the CCA believes that the proposed level of 5% is not sufficient. Instead, the CCA recommends that the Commission establish 10% as the proper level in year one for Shaw and Corus and have Rogers and CTV grow to a level 10% over five years.
Relying on the independent production sector
In order to ensure that there is a diversity of programming, the CCA believes that it is essential to have a strong independent production community in Canada. Accordingly, the CCA agrees with the Commission’s position that the services that are part of these groups be subject to a condition of licence. This would require having at least 75% of expenditures that are dedicated to programs of national interest allocated to independently produced programs. The groups should also commission production from all regions of Canada, commensurate with their presence in the respective markets in which they broadcast. In a similar vein, the CCA opposes the various proposals that would reduce or eliminate conditions of licences, requiring specialty services to acquire programming from independent producers. There is no justification for these proposals and they must be firmly rejected by the Commission.
Establishing exhibition requirements
Finally, the CCA notes that expenditure requirements must be accompanied by exhibition requirements. The CCA proposes that each traditional broadcaster be required to schedule at least two hours of drama or scripted comedy in the 8 to 11 pm time slot, Sunday to Friday, each week. This is the time during which most Canadians are watching television. Requiring broadcasters to schedule a minimum level of drama and scripted comedy will provide them with a strong incentive to help make these programs successful.
What can I do?
Find out more about group-based licensing and the CRTC, and follow the hearings on this topic once they begin on April 4, 2011.
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