MONTREAL – Quebecor Media has decided to pull in its horns over the funding of Canadian television productions and will resume monthly payments to the CTF, at least for now.
Quebecor president and CEO Pierre Karl Péladeau said late Tuesday he was encouraged by the commitment made earlier in the day by the new CRTC Chair, Konrad Von Finckenstein, to become involved in finding solutions to the issues raised by Quebecor and Shaw Communications.
Von Finckenstein said the two companies had highlighted “serious issues that need to be resolved”, and that Quebecor, with its funding proposal outlined Monday, had “made a commitment to Canadian programming which deserves further study”.
Péladeau also noted Heritage Minister Bev Oda’s remarks that the “status quo is not an option for the Canadian Television Fund”, and that she wanted to look at how new broadcasting platforms, such as video on demand, are affecting the industry’s economics.
Oda also said yesterday she has sent letters to Quebecor and Shaw Communications saying they must adhere to their regulatory requirements.
“Given this spirit of great openness,” Péladeau said in a statement, “Quebecor Media is, while retaining its rights, prepared to resume payment of its monthly contributions.”
He insisted, however, that its cable subsidiary Vidéotron, was within its rights to suspend monthly payments because the CTF rules do not explicitly require them.
Von Finckenstein had warned the two companies they must “play by the rules and operate within the context of the regulatory system”. If not, he said, the CRTC would change the rules to specifically require monthly payments.
Meanwhile, Péladeau said the company is ready to undertake discussions with the federal authorities as quickly as possible, adding “we are committed to acting in a way that will sustain the production of Canadian content”.
He said Von Finckenstein’s recent appointment “has reassured us very much as to the future of the broadcasting system in Canada. His extensive background as a senior public servant and judge will be very helpful and will bring the new, fresh vision required to undertake the reforms needed to maintain a strong and dynamic broadcasting system in Canada in the context of the digital revolution.”
Quebecor wants sweeping changes to how the CTF operates because it says current regulations do not take into account the programming needs of new broadcast platforms. It also objects to the amount of funding that goes to independent producers, which it calls an indirect subsidy of CBC-Radio Canada.
The company proposed Monday to re-direct its funding to its own Fonds Quebecor, for the exclusive use of Quebecor broadcast properties.
Since it was created in 1996, the CTF has awarded $2.3 billion for the production of about 4,500 productions in English, French, and native languages.
Calls to Shaw Communications to gauge their interest in resuming contributions to the CTF have not yet been returned.
Glenn Wanamaker is Cartt.ca’s Quebec Editor.
