Rogers wants to use web, mobile and VOD to take larger slice of production subsidies

Rogers Communications Inc. is hoping to score a much larger slice of the production subsidy pie by encouraging the new Canada Media Fund (CMF) to increase its funding for digital media content on web, mobile and video on demand platforms. Public and private broadcasters warn, however, that such a move would draw much-needed funds away from the production of television programs. The Canadian Television Fund (CTF) is soliciting input from various stakeholders on a policy guideline for the CMF which becomes operational April 1. The move follows a CTF consultation process launched in July for feedback on issues such as eligibility criteria for performance envelops, programming allocations, marketing, and returns on investments. The CTF has received 54 written submissions. One of the more contentious issues expected to be how funding is allocated in what the CTF calls the “convergent stream”. To be eligible, the CTF recommends that applicants must produce on at least two platforms, including television. As well, the CTF suggests that for a television production to be eligible, it must have an original “value-added” component distributed on the web or mobile platform. Rogers disagrees, saying if funding is restricted to productions on linear platforms, the move would rob Canadians of choice. In short, Rogers submits that you don’t need to have a television program to tap into funding under the convergent stream. Although Rogers Media also owns broadcast properties, the company notes that it has received “a very limited amount” of funding from the CTF (about $5 million). Rogers is also a significant provider of VOD services, which it describes as “an important second window for the broadcasting system”. “Linear television channels (i.e. convention television, specialty, pay and pay-per-view television services) should be considered as one of the platforms on which eligible convergent content would have to be distributed. Additional eligible platforms should include VOD, broadband and mobile platforms given their increasing reach and popularity with Canadians,” Rogers writes. CBC-Radio Canada warns that limited production funding should not be diverted away from traditional TV broadcasters, which continue to reach more Canadians than new platforms. “Traditional television broadcasters have the most significant connection to Canadian audiences,” the CBC writes in its intervention. “Given the relative cost of Canadian programs and the scarcity of funds, BPEs (Broadcasters Performance Envelops) should be reserved for traditional broadcasters which have the potential to make the biggest impact with Canadians.” Private broadcasters agree. The Canadian Association of Broadcasters says funding from the convergent stream should be used to support broadcasters who make their content available on other platforms. "The Broadcast Performance Envelopes should support linear television and video content on a second platform—VOD, online or mobile…The Second platform could be online (streamed or other), VOD, or mobile (streamed or other). The second platform content could be identical to the television content, it could be original content, unique to the second platform, but based on the television program, the CAB writes. There is also disagreement on whether content on new platforms can replicate what’s already on television, or must provide some value-added original content, as the CTF suggests. Rogers says such value-added content makes sense for some productions, but that it may be “too early” in the transition process to digital to compel everyone to adhere to it. It notes that the requirement may also not work for productions such as one-off specials, limited series and low-budget programs. It recommends that producers be eligible for funding, as long as they commit to broadcast their program on multiple platforms. “Rogers believes that the policy requirement that content be distributed on additional platforms must have “value-added” original content should be revisited,” states Rogers. “In our view, such a requirement, at this time, would represent an inefficient use of limited funding for Canadian programming and would not mirror the realities of the commercial marketplace.” CBC also sees the value-add condition as being too stringent, saying it should be left to producers and broadcasters to determine how best to connect with the largest Canadian audiences. In addition, It argues that putting traditional TV content on other platforms “is already a value-added experience for Canadian audience since it enables them to watch content when and where they want it.” The Bell Broadcast and New Media Fund concurs, saying the definition of value-added should rest with broadcasters. “Any content that appears on a non-TV platform, which has been endorsed by the broadcaster, should be considered value-added,” it writes. Under this definition, behind-the-scene sites, trivia, and games deemed by the broadcaster to enhance and promote a TV program, all qualify. The deadline for submitting comments was on Sept. 4, although the CTF isn’t expected to render a decision until March 10, 2010.

Rogers wants to use web, mobile and VOD to take larger slice of production subsidies

Broadcast | September 21, 2009

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