Feds told CRTC to take another look
GATINEAU – In decisions issued today, the CRTC determined that increases in Canadian production spending are required to preserve a Canadian presence in a changing viewing environment, but did not mandate an increase in local content, as the CRTC limited its examinations to issues listed in the Government order. That is, for PNI: short films and short-form documentaries in English – and levels of original programming in French – and music programming for both languages.
For the French-language market, the CRTC now requires each broadcsting group to make adequate investments in the creation of French-language programs, representing 75% of its Canadian programming expenditures for original French-language programs starting in 2019-2020. This level is pretty much what was already spent by the broadcasters. The four television groups (Bell, Corus, Rogers and Quebecor) should therefore spend a minimum of $653.6 million in original production over four years.
The CRTC is also increasing expenditure requirements for programs of national interest (PNI – or Canadian dramas, documentaries and awards shows) in the English-language market. The percentage will now be based on historical expenditures, to ensure enough investment in the production of these programs and financial contributions according to each group’s financial resources.:
- Bell from 5% to 7.5% of previous years’ revenues
- Corus from 5% to 8.5%
- Rogers remains at 5%.
The broadcasters would have been required to spend approximately $138 million on PNI in the 2018-19 broadcast year. With their new requirements, the estimated aggregate minimum expenditures will be $211 million; a difference of $73 million for the year.
Finally, the CRTC determined that the groups in both language markets will be also required to allocate an average of $5.5 million per year to support the production of musical programs, FACTOR and MUSICACTION.
Back on May 15, 2017, the CRTC issued a series of decisions to renew licences for the television services of large English- and French-language private ownership groups (Bell Media, Corus Entertainment, Rogers Media, Groupe V and Quebecor Media).
On August 14, 2017, the Governor in Council, after facing a loud backlash from a number of creative groups, referred back to the CRTC certain aspects of the renewal decisions for reconsideration. Mostly, creatives and others were angry about lowered levels of spending on programs of national interest and the decisions were primarily returned to the Commission because of that issue. The creative groups and unions had estimated that the changes would cause a decrease in spending on PNI of over $900 million over the broadcasters’ five-year license terms.
Nineteen groups demanded then-Heritage Minister Mélanie Joly overturn the decision and she had the Governor-in-Council return it to the Commission for a review. The regulator has been considering this decision since the last submission deadline in February.
“We thank the CRTC for its work and will carefully analyze its decision and its impact on our creators and broadcasting companies," said Heritage Minister Pablo Rodriguez's spokesman Simon Ross, in a statement to Cartt.ca. "It is vital to have strong investment in our culture and successful broadcasting companies. That’s why we asked the CRTC to review its initial decision.”
So far, the Alliance of Canadian Cinema, Television and Radio Artists, the Directors Guild of Canada and the Canadian Media Producers Association are happy with the new policy. "Today’s CRTC decision means more jobs, more economic output, and most importantly, more of the shows that Canadians love,” said Scott Garvie, chair of the CMPA board and senior vice-president at Shaftesbury, in the CMPA release. “By increasing the required investment in programs of national interest, the CRTC has underscored the important role that Canada’s independent producers and other creators play in a broadcasting system that reflects the diversity of voices, perspectives and stories that make up our national culture.”
“Last year’s decision would have had a devastating effect on the thousands of Canadians employed in the television production sector,” said ACTRA national executive director Stephen Waddell, in his release. “It was inspiring to see thousands of Canadians come forward and fight for Canadian stories on our screens. Their efforts have been rewarded today.”
“This decision signals a new commitment to Canadian culture and a thriving film and television industry. The CRTC, including several new commissioners, stepped in to stop Canadian broadcasters from axing nearly $200 million a year of the highest quality original programming made in Canada,” added DGC president Tim Southam, in his release. “I want to thank the government for sending these rulings back for reconsideration a year ago and congratulate the Commission on having the wisdom and backbone to do the right thing.”
While we have not yet heard from the broadcasters directly (we've asked), the increase in spending (something which they offered voluntarily anyway, if not at a rate quite as high as the Commission has now commanded), is something we expect them to accept with little or no public complaint.
