CBC head calls for a review of Canadian content rules for private broadcasters

Michael McCabe, the president and CEO of the Canadian Association of Broadcasters, in an Oct. 24 speech pumped the role private broadcasters were playing in contributing to the goverment’s cultural objectives of bringing more Canadian programming to television. But on the same day, Robert Rabinovitch, president and CEO of the Canadian Broadcasting Corp., had a radically different message. In a speech at the C.D. Howe Institute, he called for a review of the role of Canadian content regulation for private broadcasters. An edited excerpt of his speech follows. The lesson in this is that CBC delivers more Canadian programming than any other Canadian conventional broadcaster and delivers the largest audience to Canadian programming. But let’s not be naïve. We can do it because we get funding from Parliament and can afford to take more risks. At our core, we are not motivated by making money. Our motivation as a public broadcaster is to make quality programming about Canadians for Canadians only. ..Private broadcasters must focus on return on investment — ROI or EBITDA...And the economics of Canadian programming are not conducive to a good rate of return — the business case just isn’t there. When you do Canadian programs well — Da Vinci’s, 22 Minutes, Air Farce — there is a market, but by private standards it is a limited market. Canadian content is costly when you compare it to purchasing American programming, which is in effect dumped. For example: Buying the simulcast rights for a one-hour, popular American sitcom costs between $100,000 and $125,000 per hour; the most successful series can generate revenues of $350,000 to $400,000 an hour — that’s three to four times the cost. Producing an hour of distinctively Canadian drama can cost more than $1 million per episode; broadcasters pick-up almost a quarter of those costs. Yet a successful Canadian drama series can only generate revenues ranging from $65,000 to $90,000 per hour. On this basis then, the broadcaster pays $250,000 for Canadian drama, sells a maximum of $90,00 in ads, and therefore loses about $160,000...the business-like thing to do for private broadcasters is to import and simulcast American programs, and schedule your Canadian content where it will hurt you the least...Taxpayers pay broadcasters through very significant tax benefits that would be the envy of any industry and through CTF grants to produce Canadian programs...Over 50 per cent of the cost (of Canadian programming) is paid by taxpayers directly or indirectly. As well, the evidence suggests that these funds are not increasing viewership for Canadian content. Although supply of Canadian produced programs has gone up and the number of digital channels has increased dramatically, the viewing of Canadian programs remains constant at approximately nine per cent. More disconcerting, recent CRTC figures show that the private sector’s audience share for Canadian programming during prime time has actually been dropping — this, in spite of some commendable offerings. In fact, the only English-language outlets whose share of prime time viewing of Canadian programs has gone up are CBC Television and CBC Newsworld. Even with tax breaks and subsidies, distinctive Canadian programming is not a viable option for private broadcasters. So in order to stay in business, private broadcasters and independent producers must produce programs for export. Export means Canadian television ceases to be distinctive and ceases to tell Canadian stories. Canadian product becomes indistinguishable from U.S. product...To put it bluntly even with massive government subsidies the model does not work. We must review the role of Canadian content regulation for private broadcasters. This idea is not new. Fifteen years ago, a group supportive of Canadian content made a bold and innovative proposal to the Caplan-Sauvageau Task Force. Their proposal? Why not limit the demands for Canadian content for private broadcasters, assess their revenues and use these to fund Canadian programs? Their proposal was never seriously considered. In fact, it was dismissed as cynical. Well, perhaps it is time to start thinking radically again — and not treating innovative suggestions as cynical. Maybe the time has come to let the private broadcasters off the hook. Maybe Canadian programming would be much better if not everyone had to do it - and those who have to and want to do it get appropriate funding.

CBC head calls for a review of Canadian content rules for private broadcasters

Broadcast | November 9, 2001

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

CBC head calls for a review of Canadian content rules for private broadcasters

Broadcast | November 9, 2001

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Trump’s trade rep targets Online Streaming Act, Online News Act, raising questions about future of Canada’s cultural exemption

Producers challenge 20 per cent copyright threshold in new CanCon policy

Streamers challenge CRTC decision to publicly disclose financial information

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us