Canadian producers reap benefit of mega mergers, but can it last?

Communications mergers can be a boon for Canadian producers. The recent mega-deals by CanWest Global Communications and BCE Inc produced hundreds of millions of dollars in new money for several new initiatives, including the production of independent Canadian programs. Such benefits are mandatory under CRTC rules, but only for seven years. With fewer and fewer hot broadcast properties up for grabs, independent producers could be facing lean times ahead as lucrative benefits packages become a thing of the past. The Canadian Film and Television Production Association worries that Canadian sources of funding for content production could dry up, leaving independent producers to look outside of the country. And foreign investors, in all likelihood, would want a say in what stories are told and how they are told. The CFTPA is telling its members to make the most of the huge influx of production dollars while they last, but not to expect it to continue past the five-to-seven-year period covered by the various benefits packages. In CanWest’ case, the benefits package has spawned the creation of the Western Development Fund – $23.9 million worth of Canadian content development, production, and promotion. This will provide independent producers with grants, licence fee top up funding, and equity investment. It will be directed largely to priority prime time productions. Approximately 30 per cent of all funding will be dedicated to children’s programming, new media and documentaries. Such funds tend to have a life span beyond the normal licence period, since they normally are set up to be self- sustaining. BCE has promised to spend $140 million dollars on the development and production of new Canadian priority programs. The benefits package provides funds for an additional 175 hours of original programming to be premiered on the CTV network. The large influx of money into the production system was welcomed with open arms. But like the Canadian Television Fund its existence is finite. There is always the possibility that it will fuel greater production, especially of a dramatic nature. But the creation of a "hit" Canadian dramatic series could be cut off after seven years, popular or not, because the benefits package has come to an end and there is no requirement to renew the commitment. There is nothing to compel BCE and CanWest to renew commitments made in their purchases of CTV and WIC properties, respectively. In fact, there would not have been any reason to expect Global, CTV or any other broadcaster to volunteer such a commitment to Canadian content. The CRTC sees these significant benefits packages as a new domain. Senior officials at the commission don’t know what will happen in seven years. They expect the system will return to the pre-benefit levels at the end of the proposed term. For them, a true benefit has to be over and above normal expenditures. The complication arises when the benefit results in additional programming to the basic requirements, as stipulated in the Television Policy Regulations. At the end of the licence period, the CRTC does not have the authority to require these additional commitments in programming to continue. Tangible commitments such as opening additional news bureaus, may be a different matter. There could be an expectation that the bureau would remain open into the next licence periods. There is always the hope that the influx of such large commitments would stimulate the production industry, making it stronger and more able to stand on its own. But in the end, the person who writes the cheque is going to have a great deal to say about what will get produced. If Canadian independent producers end up getting funding from foreign sources then stories like The Pit Pony and Sheldon Kennedy Story may never get told again. Elisabeth Ostiguy is president of Emerson Communication Inc and teaches a course on broadcast regulation

Canadian producers reap benefit of mega mergers, but can it last?

Broadcast | April 11, 2001

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