CCR Update

Thursday, June 24, 2004 Mixed reactions to CRTC’s proposal to increase advertising minutes to boost Canadian dramaReaction to the CRTC’s proposal to give broadcasters additional advertising minutes in exchange for producing and promoting Canadian TV drama runs the gamut from calls for other incentives for producers to congratulations for its “creative efforts” in providing economic incentives to broadcasters.” The Canadian Film and Television Production Association (CFTPA) in its June 22 comments reiterates its view that the best way to provide more high-quality Canadian drama is re-introducing mandatory spending requirements. The producer’s association also calls for the additional advertising revenues for broadcasters to be calculated transparently, reported annually and made available to producers. On the other hand, the Canadian Association of Broadcasters (CAB) congratulates the CRTC for offering incentives to broadcasters to meet the gap between the cost of licensing Canadian drama and the advertising revenues that are derived from its broadcast, but suggests that the approach is too limited. The CAB notes that the CRTC’s approach is aimed at providing incentives to the largest national conventional broadcasters who provide the majority, but not all, of first-run Canadian drama. The CAB says that the CRTC must widen its focus so as to “find means to engage all broadcasters involved in the value chain of Canadian drama in increasing the audiences” to homegrown drama. For a more detailed overview of industry reaction to the CRTC’s proposal, see the upcoming issue of Canadian Communications Reports.Dalfen says incentives better than regulation in motivating broadcasters to invest in Canadian programmingCRTC chair Charles Dalfen explained during his speech at the Banff Television Festival why the commission’s approach to boosting Canadian drama is to establish a system of incentives rather than introduce regulatory requirements, as called for by many unions. “It’s our experience that regulation works well in establishing clear minimum levels of performance – for example, in requiring a specified percentage of Canadian content hours. But regulation has been less successful in motivating licensees to invest in the success of their Canadian programming,” he said in his June 14 address.He clarified that the incentive of extra advertising minutes (CCR, May 6/04), would also apply to Canadian children’s drama, whether live action or animation. “I mentioned earlier our success with children’s programming – a success that’s well-deserved because it’s top-quality programming. Let’s build on that so that our children can grow up watching drama that reflects their own Canadian reality – drama that tells Canadian stories and expresses Canadian values,” he said.He further noted that existing regulatory requirements on Canadian content and priority programming would remain in place, unchanged, while the results of the incentive program are assessed.Several specialty channels ask CRTC for permission to broadcast in HDThe Sports Network, The Discovery Channel as well as Ten Broadcasting Inc.’s Hustler Channel and X Channel have applied to the CRTC for the right to broadcast in high-definition (HD). The applicants tell the CRTC that the programming would be the same as that on the analog version of their channels, but that some programming would be in HD (Broadcasting Public Notice 2004-42). Comments are due July 26. Also on the HD front, Global Television Toronto was granted on June 9 its transitional digital TV licence (Broadcasting Decision 2004-202), and CTV Inc. launched CTV HD West on June 1. CTV HD West is modeled after CTV’s Vancouver-based station. The network launched CTV HD East last year (CCR Update, Nov. 19/03).CAB opposes Vidéotron’s high-definition applicationThe Canadian Association of Broadcasters (CAB) is opposing a request by Vidéotron ltée to operate and distribute a high-definition (HD) programming channel that it would create by compiling HD programming from various licensed TV stations on a single channel. The CAB argues that Vidéotron intends to make use of a TV station’s signal on the proposed HD channel, without obtaining the consent of the broadcaster. “In effect, Vidéotron would be expropriating for its own commercial use, without any compensation, HD content for which the originating broadcaster has acquired exclusive broadcast rights,” writes the CAB to the CRTC. The association also notes that when two separate HD programs are available on different Canadian TV stations at the same time, Vidéotron proposes taping one and rebroadcasting it at another time. But the CAB notes that contracts restrict the number of times a given program can be broadcast and Vidéotron’s proposal could potentially but the broadcaster in breach of its program supply contract. The CAB also calls Vidéotron’s application “premature” since the commission has not completed development of its HD policy guidelines. Instead, the CAB urges the CRTC to have Vidéotron seek commission authorization to distribute all Canadian HD programming services on separate dedicated channels as part of its digital service. That is the approach adopted by other distributors.In its application to the CRTC, Vidéotron asks for the right to distribute the HD programming until Sept. 1, 2007, unless before that date all television stations serving Quebec are broadcasting in A/53 format, and in HD format when HD programs are available (CCR, May 6/04).CRTC grants new Class 1 cable licence for Montreal areaThe CRTC has granted a Class 1 cable licence to Southwest One Broadband Services Inc. to serve the Pointe-Claire area of Montreal (Broadcasting Decision 2004-204). However, the commission denied the applicant’s request to be relieved of the requirement to distribute local priority TV channels CJNT-TV and Global’s CKMI-TV-1 Montreal.CRTC releases report on implementation of Official LanguagesThe CRTC has established a goal of promoting access to both English- and French-language TV services throughout Canada for minority official language communities and to encourage broadcasting licensees to continue efforts to increase production and broadcast regionally produced programs reflecting the realities of those communities. The goal was spelled out in the CRTC’s 2004-05 action plan for the implementation of the Official Languages Act. The plan was produced as a result of the commission being added in August 2003 to the list of designated federal institutions under the official languages accountability framework. The move was recommended on Feb. 3, 2003 by the House of Commons Standing Committee on Official Languages (CCR, Feb. 13/03).Increasing availability of Canadian content and programming one of CRTC’s objectivesThe CRTC has explicitly stated as one of its objectives the increased availability of Canadian content and programming that reflects Canadian creative talent and Canada’s linguistic and cultural diversity, as well as the country’s national, regional and community characteristics. The aim is spelled out in the CRTC Three Year-Work Plan, which covers the period from April 1, 2004 to March 31, 2007. Another priority is to increase access to a variety of innovative, high-quality communications services, at reasonable prices, that meet consumers’ needs and reflect their values.CTV Inc. is most watched broadcasterCTV Inc. finished the season ending June 6 as the most-watched broadcaster in prime-time in all three key demographics: adults 18-34, adults 18-49 and adults 25-54, as well as overall viewers, the network announced June 21. The title of most watched broadcaster is confirmed by both BBM and Nielsen Media Research data. “It’s the first time since the advent of electronic measurement that CTV has captured number one status overall and in all three adult demos in the same season, signaling a dramatic changing of the guard in Canadian television,” reads a CTV media release. In the adult 18-34 demographic, BBM reports CTV with a lead of 22% more viewers than Global (Nielsen shows 21%), in the adults 18-49, BBM indicates a 37% lead (Nielsen shows 34%), and in adults 25-54, BBM shows CTV with a 47% lead (Nielsen shows a 46%). In total audience, BBM reports a CTV lead of 59% (Nielsen shows 54%) over Global with 1.173 million viewers to Global’s 738,000. The numbers reflect Monday to Sunday primetime, collected from June 9, 2003 to June 6, 2004.Newfoundland Capital subsidiary to purchase Thunder Bay radio stationNewfoundland Capital subsidiary Newcap Inc. has signed an agreement to purchase CJUK-FM (known on the air as Magic 99.9) in Thunder Bay from Big Pond Communications (2000) Inc. Newcap currently owns HOT 105FM in that market. The sale still needs CRTC approval.Cossette launches new business unit specializing in branded contentCossette Communications Group has announced the creation of a new business unit, Ricochet Branded Content, to specialize in branded content. Based in the group’s Montreal, Toronto and New York offices, Ricochet will serve the North American marketplace. Ricochet staff will identify which platform (television series, magazine, video game, etc.) is most effective based on a client’s objectives and specific target market. They will supervise a creative team that develops the synopsis of the film, magazine editorial, etc. and manages all aspects of production, and oversees the re-purposing of content on different platforms.Alliance Atlantis announces 2004-05 programming schedules for its specialty channelsAlliance Atlantis Communications Inc. released on June 16 the highlights of its 2004-05 broadcast schedule across the company’s specialty channels. “During the 2004-05 broadcast year Canadians can anticipate another blockbuster year of stellar programming from Alliance Atlantis as we continue our steadfast commitment to investing in the production of new, original Canadian programs, such as the highly anticipated season five of Trailer Park Boys and the brand new Design Rivals and Style Rivals,” said Alliance Atlantis COO Phyllis Yaffe. “In addition we will also bring the world’s best entertainment to our channels via our relationships with our programming partners with acquisitions like HBO’s Six Feet Under, Food Network’s Iron Chef America and the BBC’s The Office.” Six Feet Under and Trailer Park Boys air on Showcase; Design Rivals will be broadcast on HGTV and Style Rivals on the Life Network. History Television will look at military inventions with everyday applications in the Canadian premiere of Tactical to Practical, and Gina Gershon hits the road with a rock band on the Independent Film Channel.Global announces TV lineup for 2004-05 broadcast yearGlobal Television Network announced on June 9 its programming slate for both Global and CH for the 2004-05 season, much of it featuring reality TV and lifestyle shows. The Canadian shows include The Block, a reality/renovation series focusing on four couples that move into a block of units in a rundown apartment building; Last Chance for Romance, a documentary about couples experiencing relationship problems; The Temps, a new reality show that sets the stage for a group of unsuspecting hired temps as they cope with absurd office antics; as well as the return of Train 48 and Zoe Busiek: Wild Card. The new U.S. acquisitions for Global and CH include Arrested Development, The Contender, House, Joey, Billionaire: Branson’s Quest for the Best and Savages.VisionTV registers explosive growth in 2003-04VisionTV says that the average minute audience in prime time to its channel during the 2003-04 season increased 66% to 41,900 from 25,200 a year earlier. In addition, VisionTV announced that the network’s average weekly reach grew to more than 1.6 million, a 15% increase over 2002-03, and the highest level in three years. The figures are based on Nielsen Media data. VisionTV attributed the viewership gains to a renewed and revitalized programming schedule. VisionTV senior VP of programming Chris Johnson says the network will continue to build on its success in 2004-05. To continue to appeal to audiences, the network is proposing to boost its Canadian program expenditure requirement, and has requested a two-cent increase in its monthly wholesale rate to meet that goal (CCR, June 21/04).CanWest refinances $911 million of senior bank facilitiesCanWest Global Communications Corp. on June 17 announced its wholly owned subsidiary CanWest Media Inc. has refinanced about $911 million of its existing senior secured credit facilities for an estimated savings of $4.5 million in annual interest. The refinancing, in which Scotia Capital acted as lead arranger, involved refinancing of existing term loans at current market terms and extension of maturity until August 2009.Rogers closes previously announced $250 million equity issuanceRogers Communications announced June 16 that it had closed the issuance of about 9.5 million Class B non-voting shares to RBC Capital Markets. The issue received a lukewarm reaction.CRTC approves radio licence for Priszm BrandsThe CRTC has approved a licence for an English-language radio network by Priszm Brandz Properties Ltd. to broadcast “Live from Wayne Gretzky’s” (Broadcasting Decision 2004-199). The sports talk programming has been operating under a temporary licence. Priszm is owned by John Bitove, who with XM has filed for a satellite radio licence (CCR, Feb. 27/04).CHUM inks deal that will bring its TV programming to SloveniaCHUM Television International has signed a two-year-deal that will see 3,000 hours of original CHUM programming aired in Slovenia. Ljubljana-based PRO PLUS has picked up a variety of music and entertainment productions for broadcast on its POP TV and Kanal A channels. All programs will air in Slovenian.Media coalition wants parties views on culture; CFTPA criticizes Conservative Party documentAn industry-wide coalition has challenged the federal political parties to make clear their policies for Canada’s cultural future. The Liberals and Conservatives remain frustratingly silent on the issue, while the New Democrat Party, the Bloc and the Green parties have been clear that they intend to preserve Canada’s cultural sovereignty, states a media release issued by the coalition. The coalition includes the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA), Communications Energy and Paperworkers Union (CEP), the Canadian Film and Television Production Association (CFTPA), the Directors Guild of Canada (DGC) and the Writers Guild of Canada (WGC).The CFTPA is criticizing the Conservative Party’s Policy Briefing Notes for Candidates. The document, made available to candidates on April 2, calls for severe restructuring of the CRTC, opening up the satellite policy to create an open market with the United States, and opening up our borders to all foreign programming. The responses from the political parties to three questions posed by ACTRA are available here.Japanese production wins Global Television Grand Prize at BanffThe $50,000 Global Television Grand Prize for best of the festival went to Children Full of Life: Learning to Care, from Japan’s public broadcaster NHK. It is the first time in the festival’s history that a Japanese program has won the grand prize and the first time that the family and youth category winner claimed the top honours. The second major cash award, the $25,000 NHK President’s Prize, went to HBO’s television adaptation of Angel’s America, which was cited for its creative use of high-definition technology. For the other winners, click here.INTERNATIONALSenate votes to overturn media ownership deregulationThe U.S. Senate voted 55-40 for a legislative amendment on June 22 that would overturn the year-old Federal Communications Commission (FCC) media ownership rules (CCR Update, June 11/03). The Senate’s bi-partisan measure will now go to a House-Senate committee. The initiative to overturn the rules faces significant hurdles, and doesn’t have enough Senate support to survive a presidential veto should it get to that point. The White House has repeatedly said it supports the FCC’s approach.In a separate amendment, the Senate also voted 99-1 to raise fines for off-colour broadcasting to $275,000 per incident up to a maximum of $3 million per day. The amendments were included in a Pentagon funding bill for defence programs.FCC releases report on status of competition in the TV distribution marketIn addition to increased choice for consumers, the Federal Communications Commission (FCC) finds more competition in the market for the delivery of video programming has catalyzed the development of cable TV technology, allowing for better services and increased quality. The view is contained in the Annual Assessment of the Status of Competition in the Market for the Delivery of Video Programming, released June 10 by the FCC. Comments on the report are due July 23, with the deadline for reply comments set for August 25.

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