TORONTO – Reaction to the new Canadian Media Fund (CMF) was predictably mixed, but the consensus seems to be that the distributors got what they wanted.
For starters, the CMF’s new “streamlined” and “independent” board will be made up of seven members – two appointed by the government, and the other five nominated by the fund’s five largest contributors, namely Bell, Rogers, Shaw, Videotron and Cogeco. The old board had 21 members, and was dominated by producers and cultural groups.
Minister Moore confirmed that the five members cannot be current employees of these companies, but, as to whether they could former employees now in a consulting role, for example, or someone who shares their interests, appears to be unknown at this point. Even how the government will approve (or not) the distributors’ nominees, seems to still be up in the air.
And how will the government be able to assure the board’s independence? When asked by Cartt.ca about the potential of a conflict of interest with board members, the Minister expressed his faith that the fund’s guidelines would contemplate and address this issue.
A set up like this, however, could shift the balance of “power and leverage” to the distributors over independent producers and even broadcasters, suggested an industry source. (Many of the stakeholders in attendance declined to go on record prior to the fund’s technical briefing, held immediately following today’s press conference.)
The CTF has spent a lot of the past 24 months defending itself and making some changes in the way that it works. This new fund was spurred by the December 2006 decision by both Shaw Communications and Quebecor Media to temporarily stop paying into the CTF. While both companies were made to resume payments, their actions led to a serious re-examination of everything CTF.
Each large broadcast distribution undertaking in Canada must contribute to it, but both Shaw and Quebecor objected to the type of content that the CTF backed, the organization’s overall composition and administartion, and the fact that the CBC can still draw it down, among other concerns. There have been various hearings and reports over the past two years, as we’ve reported, culminating in today’s announcement.
The Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) also expressed concern about the structure of the new board.
“It’s like putting the fox in charge of the henhouse, especially if the board maintains the power to make funding decisions,” said Stephen Waddell, ACTRA’s national executive director, in a statement. “At the very least, we would hope that one of the remaining seats will be reserved for a representative from the creative community.”
Videotron and TVA parent Quebecor was almost effusive in its praise of the new CMF, going so far as calling today’s announcement “the dawn of a promising new era for Canadian content” in a company statement.
"We have criticized, on more than one occasion, the CTF’s governance structure, the main effect of which has been to protect the interests of beneficiaries rather than to promote the financing of quality content that can attract large audiences and be distributed on all available platforms," said president and CEO Pierre Karl Peladeau, in the statement. "We now have reason to think that the necessary conditions will be created to promote the development of a strong and creative production industry that is capable of claiming a place in what has become a fiercely competitive international environment."
With the fund giving preference to projects done in high definition and mandating they must be made for at least two media platforms, one of which must be television, some wondered where the independent production industry would be able to source the additional dollars, especially in today’s economy.
“This could shrink the independent sector even more,” predicted an industry observer. “It could cost us money and jobs. It almost seems like a kick in the head in these times.”
But Mark Bishop, executive producer and co-partner of the content creation company marblemedia, called the CMF “an important step” and “a good indication of what the government thinks of our industry.”
“As an independent (producer), the only disappointment with today’s announcement was the removal of the cap on broadcaster-related companies to access funding for their productions. It levels the field in some ways, but it tilts the field in other ways,” he told Cartt.ca.
Minister Moore was also asked how the new Canadian content will find and keep an audience, especially when so many of the traditional television broadcasters’ prime time schedules are dominated by American programming.
“I won’t tell (broadcasters) how to run their businesses,” he said briefly, before taking another question from the media contingent.
There was no mention made of a bailout for ailing Canwest, as some had speculated, nor was there any mention of bridge financing or other assistance for the CBC. (The rumour mill about what this announcement might be ran wild over the weekend, but Cartt.ca had it correct last week). When asked specifically about the public broadcaster, the Minister reiterated the government’s commitment to “a record investment” of $1.1 billion this year, but news that CBC’s guaranteed envelope would be eliminated seemed to catch many off guard.
The 37% envelope allowed the CBC to allocate over $100 million annually to the production of original drama and comedy, “approximately 50% more than the commitment of the entire private conventional broadcasting industry combined”, a CBC announcement said.
"What is essential now is to make certain that the principles laid out today are respected as the broadcasting industry moves into implementation," said Hubert Lacroix, president and CEO of CBC/Radio-Canada, in the announcement. "The challenge is to ensure that the Fund focuses on new programs shown when most Canadians are watching. If it’s done right, the model will be a success. If it isn’t, CBC/Radio-Canada is concerned that the elimination of our 37 per cent envelope will lead to a reduction in viewing to Canadian programming in prime time."
Lise Lareau, national president of the Canadian Media Guild who represents about 4500 CBC employees, said that enabling CBC to access funding for in-house production was “good news”, but the lack of CBC-specific financial aid was “depressing”, and said that she believes that the public broadcaster will now “be forced to make cuts.”
ACTRA said dropping CBC’s guaranteed envelope is “an unfortunate blow” to the public broadcaster.
“This change will make it even more challenging for the CBC to do what it needs to do to attract audiences and differentiate itself by offering original, Canadian programming viewers can’t find elsewhere,” Waddell said.
“This is not the right time in this economy… it’s almost anti-stimulus,” Lareau continued. “Yes, there seems to be significant changes in the rules, but it’s hard to predict who will benefit in the long run.”
And that sentiment was echoed by a few industry members today.
“We are still months away from truly knowing if it’s a good or a bad thing,” said one. “There’s a lot of work to do to set the guidelines before December 2009, but the opportunity is there to craft something that works for all parties.”
Waddell agreed, saying “the devil will be in the details”.
“We look forward to participating in the industry consultations that will hammer out some of the outstanding issues to ensure that the new fund is balanced and meets the interests of all Canadians, not just big cable and private broadcasters.”
