OTTAWA-GATINEAU – There will be a new way of doing things when it comes to funding home-grown television, if the recommendations from the Task Force Report on The Canadian Television Fund are followed.
Upon first read, the recommendations released today by task force chair Michel Arpin, vice-chair, broadcasting at the CRTC, largely address the complaints made by the primary funding organizations – Canadian cable and satellite companies – which were led by Shaw Communications and Quebecor Media.
While most of the BDUs have serious reservations about how the CTF has worked and is working, Shaw and Quebecor took action this past winter, suspending their monthly payments to the fund. The CRTC responded by establishing the task force on February 20th and the two companies resumed payments.
Most importantly, the task force report recommends that the approximately $150 million coming in through the BDUs (from the pockets of Joe and Jane Canuck) go towards funding more populist fare (with ratings becoming a big key to future funding) while the $100 million a year paid to the fund by the government (er, also from the pockets of me and you) go towards more of the "good for you" style of CanCon.
“The Task Force’s report recognizes the importance of the CTF for the production of Canadian programs,” said Michel Arpin, the CRTC’s Vice-Chair of Broadcasting and Chairman of the Task Force on the CTF. “The CTF’s mandate must be reviewed to include two components: one that will continue to conform to the Contribution Agreement with the Department of Canadian Heritage and a second with a more commercial outlook in order to reflect the important role of the contributions of the distribution undertakings in the financing of Canadian television productions.”
The CRTC has now opened up a public proceeding to decide on how to implement the report.
The recommendations made by the task force, led by broadcasting vice-chair Michel Arpin are:
• Qualifying Canadian programming would be broadcast in prime time, would meet a minimum of 8/10 Canadian content points on the Canadian Audio-Visual Certification Office of the Department of Canadian Heritage (CAVCO) scale, and would continue to fall within the CTF’s traditional genres of drama, children’s and youth, documentary and variety/performing arts programming
• Audience success would be the primary criteria for continued funding
• Actual and potential return on investment would be a factor in allocating funding and taking into account the different realities of English and French markets.
In order to ensure early implementation, the Task Force proposes that the CRTC amend the Broadcasting Distribution Regulations so that BDU contributions are directed to a new private sector funding stream. The amendment would also ensure that BDUs make their contributions on a monthly basis.
The CTF Guidelines governing the private sector funding stream would be simplified by focusing on the following essential criteria:
• Underlying rights are owned and significantly and meaningfully developed by Canadians
• Projects must reflect Canadian experiences
• Projects must be certified by CAVCO and attain a minimum of 8/10 points.
The Task Force has also made a number of recommendations to increase the efficiency and effectiveness of the CTF itself. These include:
• The creation of an envelope to support Canadian programs for new media platforms
• More flexibility for CRTC-certified independent funds to invest in Canadian programs for new media platforms
• Equal sharing between producers and broadcasters of net revenues from new media platforms – unless the parties agree to an alternative arrangement
• The allocation by the CRTC of a portion of television benefits to the CTF
• CTF equity investments in programs supported through the new funding stream
• Increased broadcaster licence fees
• A reduction in the amount of federal tax credits to be included in the financing structure of productions
The task force also addressed the governance of the CTF, saying that is must be renovated as well. Specifically, the Task Force wants to "encourage greater participation by BDU representatives and to clarify the roles of the board and the CTF staff. The Task Force also reviewed allegations of conflicts of interest at the CTF and is satisfied that the steps taken by the Board in recent years have been appropriate and effective. Nevertheless, the Task Force recommends that, to avoid the perception of conflict, direct recipients of CTF funds not sit on the CTF Board."
The governance recommendations are:
• The addition of a second Board member to represent the DTH sector
• The removal of direct recipients from the CTF Board while ensuring that the perspectives of the independent production sector continue to form a part of CTF deliberations
• The creation of a nominating committee consisting of contributing members
• A clear policy identifying the respective roles of Board and staff
• The designation of the President as President and CEO of the Corporation
• The reconsideration of the need for a paid Chair and the recommendation that the Chair be nominated from the independent members or members representing contributors on the Board.
“I congratulate the Task Force for its work,” said Konrad von Finckenstein, chairman of the CRTC, in the press release. “The report it has prepared will provide us with a detailed analysis and concrete recommendations that we will use in the context of the public process that we are commencing today. The measures instituted as a result of that process will hopefully address the concerns raised with respect to the CTF.”
Parties wishing to participate in the call for comments on the report must send them in by July 27th.
