GATINEAU – The funding of big budget Canadian programming as well as the role of the U.S. TV channels in the broadcasting system were put under the microscope during the fourth day of the CRTC’s Let’s Talk TV policy hearing.
Rogers Communications, Shaw Communications and Cogeco Cable warned of significant negative consequences to the Canadian system if the commission removed US 4+1s (CBS, NBC, ABC, FOX + PBS) from basic cable packages. The CRTC’s proposal was certainly a bone of contention for Rogers with the company saying it would face the wrath of subscribers if these channels were removed from basic.
Phil Lind, executive VP of regulatory and vice-chair of the board at Rogers (who acknowledged he’s been to just about every TV hearing since the beginning of the Commission), said that the vast majority of the top 200 US programs are found on the Canadian dial, but said “no one knows where that somewhere is.” In a somewhat cantankerous tone, he characterized the CRTC’s rationale for an all Canadian skinny basic as a major problem, fundamentally flawed and would have a significant destabilizing effect on the company‘s offering.
“It is a wrong, wrong message.” – Phil Lind, Rogers
“If I have to go to subscribers and say ‘sorry we’re not giving 4+1 here, we can’t do it, we’re not allowed to do it’ … we’re going to have a lot of problems with that,” he said. “It is a wrong, wrong message.”
The removal of American specialty services such as AMC, A&E and others from the basic package would also cause substantial harm. David Purdy, senior VP of content at Rogers, noted that AMC is considering an OTT service and if unavailable in basic may decide to enter Canada via the Internet.
“We think AMC, A&E, TLC, these are the types of services that could either come in over the top or do a deal for all their content with Netflix. We lose them from the ecosystem, we lose I think part of the reason the number of people stay with us today,” he said.
Shaw Communications agreed with Rogers that moving the US 4+1s out of a basic cable package may have unintended consequences. The company acknowledged that it would be great to “downplay the role” US networks have played in the Canadian system, but it’s simply impossible.
“As long as those US services are in this country, we’re stuck. We must adhere to their schedules, we must play to their game,” said Barb Williams, senior VP of content at Shaw. “All that happens if you so called weaken them is that overall the opportunity we have to take advantage of them being in the country is lessened.”
Besides, Canadian broadcasters are still going to have to negotiate for the rights to American programming regardless of whether the US 4+1s are in basic or not.
“All that happens is we’re still beholden to their schedule, we’re still beholden to buying that content and paying handsomely for it, and yet at the end of the day we won’ even get the full value of them being in a strong position,” added Williams.
THE FINANCING OF CANADIAN hits was also explored during the Thursday session with Rogers arguing that Terms of Trade is (ToT) is a major impediment to the creation and funding of high-impact Canadian programming. As it argued in its intervention, the company said that broadcasters take a large part of the risk in Canadian productions, yet are unable to fully monetize their investment by participating in international sales because the regs say it must use independent producers to make most of their content – so the broadcasters don’t own it. This, added Rogers, means it needs to be able to negotiate a better deal with independent producers and it can’t do that with the current ToT.
“What the independent producers want and what the broadcasters want is to produce as much compelling Canadian content as we can. And right now we’re not incentivized to do so.” – Keith Pelley, Rogers
“At the end of the day what the independent producers want and what the broadcasters want is to produce as much compelling Canadian content as we can. And right now we’re not incentivized to do so,” said Keith Pelley, president of Rogers Media (pictured above in a screen cap from CPAC.ca). “I think probably the best thing we could do for the system is to open up dialogue with the independent producers and have a goal to come to some type of agreement that works for both sides.”
During the Q&A with commissioners, Pelley pointed to an earlier presentation from John Brunton, president and CEO of Insight Productions, the company behind The Amazing Race Canada and Big Brother Canada, in which he argued for a new approach to funding Canadian hits.
In his presentation, Brunton suggested the Commission allow for creative partnerships between broadcasters and producers for the funding of Canadian programming. If these types of arrangements were available at the time his show Falcon Beach was on the air, it may have had a longer run.
“If we could have shared some of the revenue with our partner, the show could still be on the air and it would have been a Global creative and financial success,” Brunton said. “I think we need to look at changing the rules to encourage broadcasters to take more risk and jump into the global marketplace more aggressively.”
The Let’s Talk TV policy hearing continues Friday with Telus, Eastlink and the CBC appearing, among others.
Follow the hearing live on cpac.ca, crtc.gc.ca or on Twitter via @gregobr and @CarttCa
