Bell, Corus offer 1% raise in baseline spending on PNI

BCE Inc. and Corus Entertainment Inc. are recommending the CRTC revise the minimum standard for spending for programs of national interest (PNI) and boost it to six per cent of the previous year’s revenues, which they say will translate into a windfall of millions of dollars to Canadian content producers. “This will set a floor for PNI spending that is tens of millions of dollars higher for the large English-language television groups than what the Commission established in the renewal decisions,” Bell said in its submission, dated Nov. 1 but made public by the CRTC Tuesday. “For Bell Media alone, the increase represents approximately $27 million over the final two years of the licence term.” The broadcasters laid out those reconsiderations after the governor-in-council issued an order-in-council in August directing the CRTC to review its May 15 license renewal decision that included setting the minimum standard for spending on PNI at five per cent. Creative groups criticized that threshold in the aftermath of the decision, suggesting it would devastate Canadian content because it would cut spending to the tune of over $200 million over the five-year term. There were nearly 90 formal appeals to Heritage Minister Mélanie Joly to reverse the decision. Bell, Corus and Rogers Communications Inc. fired back with their own ad campaign in early August, urging against the reversal. In revising its applications, the OIC asked the groups to consider how the CRTC can ensure that “significant contributions” are made to PNI, music programming, short films and short-form documentaries. In an application dated Oct. 31, Corus agreed with increasing the baseline minimum spending for PNI to six per cent, which it said would translate to “tens of millions of dollars.” However, Rogers said it wants to maintain the level at five per cent, arguing that no groups should be required to spend above their historical levels. Rogers increased its spending to five per cent from 3.8 per cent in 2013, it said. Rogers suggested that Bell and Corus are able to give a little on PNI because their programming relies on dramas, comedies and other scripted content, which means they tend to exceed their PNI spending anyway. The CRTC does not yet have percentage figures for Bell and Corus’ PNI spending, spokeswoman Patricia Valladao said. A report prepared by analyst Mario Mota for groups representing the creative sector during the initial consultation on the licence renewals included an analysis of historical spending on PNI for the then-proposed Bell Media English group and Corus group, based on PNI requirements that were in place at the time, which found both groups spent an average of eight per cent. But Rogers also said it wants to reverse the PNI split — which is currently at least 75 per cent to independent productions and 25 to affiliated productions — so that the groups could have more flexibility to own content and to direct funding to the latter. The result of that, it said, would have “little impact” on the independent production sector. That’s partly because at $14 million a year, its PNI spending is a “fraction” of what Bell and Corus spend on PNI and other independent production, Rogers said. “In light of the intense competition we are facing from regulated and unregulated players, we believe it would be extremely unfair to increase our regulatory obligations,” Rogers said about increasing the minimum PNI threshold. Otherwise, it said, it would take a hit on local programming, which it said is a large portion of its Canadian programming expenditure (CPE) spending. While not as drastic, Bell and Corus also recommended the portion of PNI going to independent productions be cut, but to at least 50 per cent. The reasoning is similar: there is a need for broadcasters to be able to be more nimble in order to compete in a new digital world and against unregulated streaming services. In September, Heritage Canada shied away from any major regulatory changes to that effect, instead extending its hand in a peace offering to form a $500-million deal for Netflix Inc. — part of its Creative Canada strategy — to spend on content in Canada. Bell pointed out in its submission that there are still more questions than answers about the Netflix deal, including whether the $500 million is more or roughly what the over-the-top service was going to spend anyway. Furthermore, Bell and Rogers suggested that the CRTC expand the funding categories considered under the PNI umbrella to include music, short films and short-form documentaries. “Those that operate television services in these genres would benefit, while those that do not, such as Rogers, would have no requirement to fund a category of programming that does not form part of their programming strategy,” Rogers added. The May decision also standardized requirements for CPE at 30 per cent. While Rogers would like to see that remain, Bell and Corus said it should be reduced by two per cent. However, all three English-language groups did find some common ground, as all requested to shorten the licence term from five to three years — or through to 2020. The reasoning for the shortened term relates to the changing media landscape, with Rogers noting that it would like to see how things change as a result of the government’s Creative Canada consultations. Li Robbins, spokesman for the Writers Guild of Canada (WGC), said the organization is still reviewing the revised applications. Meanwhile, the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) did not respond to a request for comment in time for publishing. The CRTC issued a press release Tuesday asking the public to comment on the new proposals. — With reporting by Ahmad Hathout at ahathout@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

Bell, Corus offer 1% raise in baseline spending on PNI

Broadcast | December 8, 2017

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