Cancon expected to take centre stage at September broadcast hearing

The volume and quality of independently produced Canadian programming is expected to get a major boost as a result of the CRTC’s decision to shift from individual broadcast licences to a single group licence for integrated corporations. Television and film producers are also lauding a new rule that will force broadcasters to negotiate terms of trade, or risk not having their licences renewed. The CRTC begins a public hearing Sept. 29 (2009-411) in Gatineau PQ to consider how it can harmonize the rules and obligations governing all conventional, pay and specialty services controlled by an ownership group. The new licensing rules will take effect when the next round of renewals get underway in April 2010. Norm Bolen, the new president and CEO of the Canadian Film and Television Production Association (CFTPA), says he’s optimistic the new rules will result in more Canadian programming, particularly from independent producers. He notes that last week’s notice of consultation for the September hearing makes it clear that Canadian content is still a key objective of the broadcasting system. For example, the commission upheld that 75% of priority programming should be done by independent producers. Broadcasters had proposed the elimination of the priority programming requirements, with some licensees suggesting the priority programming categories be broadened to include programs such as Canadian awards shows, the Olympics and reality television. The CRTC disagreed for now, although the issue will undoubtedly come up again at the September hearing. The Writers Guild of Canada says it was also pleased the CRTC rejected broadcasters’ request to reduce or eliminate priority programming as a way of weathering the tough times. “Eliminating Canadian programming is not the solution for Canadian broadcasting; it is its death knell,” the WGC said in a statement. The CFPTA’s Bolen agreed, saying the CRTC got many things in the decision right: “For instance, they upheld the condition of licence for Rogers City TV stations that they broadcast 100 hours of Canadian feature films per year. That’s something they were very concerned about because the City TV stations have pretty well stopped buying Canadian films and were just playing old films to fulfill their licence conditions but not enough to replenish their inventory,” says Bolen, who was previously executive VP of content for Alliance Atlantis Communications. The CFTPA also wanted the CRTC to take a tougher stance on terms of trade – framework agreements between broadcasters and independent producers that determine the length of the licence, exclusivity, new media/VOD rights and revenue sharing for program rights. Negotiations with the major broadcast groups, notably CTVglobemedia, Canwest Global and Rogers Broadcasting, have stalled for the past year, and the CFTPA had asked that commission staff intervene as mediators. The regulator disagreed, saying it preferred that the parties involve negotiate an agreement. However, it has warned broadcasters that it will not consider group licence renewals for broadcasters until such agreements are in place. “We’ve had seven negotiating sessions (with broadcasters) and got nowhere. The commission is now saying they’re not going to renew anyone’s licence unless they reach a terms of trade agreement with the producers,” says Bolen, adding there needs to a clear regulations governing the relationship between broadcasters and independent producers. The WGC agreed, saying that “defining a distinct rights market in which multiple exploitations of programs are compensated fairly will allow those who create successful programming the chance to see royalties”. Group-based licensing is expected to ease the regulatory load both for licensees and for the CRTC by eliminating the need to hold a public consultation on every broadcast property a corporation owns. It will also give licensees some flexibility in proportioning their Canadian content obligations across several properties. However, the CRTC stressed that this flexibility “should result in greater support for Canadian programming, including original programming, particularly in categories that continue to be under-represented in the Canadian broadcasting system, such as drama and documentaries.” Currently, Canadian Programming Expenditure (CPE) requirements are not uniform through the television sector – most pay and specialty services have spending obligations, but over-the-air stations haven’t had a CPI obligation since 1999. The CRTC is recommending that “all elements within a group contribute financially to the creation and acquisition of Canadian programming” which it said “could result in higher-budget productions” with larger Canadian audiences and more export markets. As part of its submission to the hearing, the CFTPA is drafting a proposal for a single CPE requirement for corporate groups, including their over-the-air stations. “We think the best way to ensure that good Canadian content gets made is to ensure that a certain percentage of revenue is spent on Canadian content, and as the business grows they spend more. If the business declines they spend less,” says Bolen. “We also want to ensure that it doesn’t all get spent on low-quality magazine shows or studio interview shows. There should be certain base obligations with regard for drama, comedy and kids programming.”

Cancon expected to take centre stage at September broadcast hearing

News | 07/13/2009 3:36 pm EDT

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