GATINEAU – The Independent Broadcast Group has called on the CRTC to establish a new, flexible framework for smaller and independent Canadian broadcasters.
Appearing before the CRTC last Thursday during the group-based license renewal proceeding, the independents insisted that it’s only fair to provide competitive parity for the unaffiliated broadcasters.
“The CRTC needs to be prepared to provide similar or greater flexibility to independent broadcasters within months of this happening to at least maintain some competitive parity in the short term,” said Naomi Zener, director of business and legal affairs at Channel Zero (owners of CHCH, CJNT, Movieola and Silver Screen Classics) during the IBG’s opening remarks, referencing the September 1 date when the new licenses will come into force.
Bill Roberts, president and CEO of ZoomerMedia, television division (VisionTV, Joy, One: Body, Mind and Spirit), noted there is a considerable amount of uncertainty facing the independent broadcasters. He pointed to the fact that VisionTV will have its licence renewal hearing next spring, but will have to file its application in October at a time when the impacts of the licence renewals on the big four will only just be felt – and potentially just as the decision from the vertical integration hearing (happening this June) is released.
“It’s a very uncertain environment for the little guys but it seems to be an increasingly predictable environment for the big guys,” he said in response to a question from CRTC chair Konrad von Finckenstein.
Monique Lafontaine, Zoomer’s VP of regulatory affairs, added that IBG is essentially looking for the Commission to implement a new policy framework for the independent broadcasters by the fall.
“What we would want is at least the amount of flexibility that they have, if not greater, given our competitive disadvantage,” she said. “If there are more advantageous policies, licensing requirements, that are given to the larger players and we are left with our existing licences for a year or two at least, then they will have yet another competitive advantage over us.”
Pressed to boil it down to the “brass tacks” by von Finckenstein, Lafontaine said the independents should get a reduced Canadian programming expenditure (CPE) requirement, a licence top up to apply to Canadian programming expenditures, and local programming improvement fund (LPIF) status for over-the-air stations (OTA), among others.
WHILE IBG WAS LOOKING for the same regulatory flexibility that the large broadcasters gained through the group licensing policy, Telus Corp. appeared before the Commission to call for the complete elimination of the value for signal (VFS) regime.
As commissioner Peter Menzies put it, “when you mentioned value for signal, I had this kind of Groundhog Day moment.”
Despite assertions from von Finckenstein that dealing with VFS in this process wouldn’t be appropriate because it’s still before the Supreme Court of Canada, Telus insisted that the Commission has the authority to do away with VFS now. (The Federal Court said the CRTC had jurisdiction to okay VFS. Rogers is leading an appeal, however.)
“Given the structure of the companies (the big broadcasters) are now parts of, I think it’s not inappropriate that we think about the whole question of value for signal once again because the incentives that are available, given the structure of the industry now, to abuse a value for signal regime are completely different from what those incentives were when the Commission first established it,” explained Richard Stursberg, Telus’ senior advisor on media and entertainment strategy.
“Doing it right now would just be a violation of due process because it’s not part of the notice for these hearings,” said von Finckenstein. “You have chosen to put it on the table. You can understand I’m not entertaining VFS at this hearing.”
THE WRITERS, DIRECTORS, ACTORS and producers also made appearances during the group licensing hearing last week, too. All of them asked the Commission to ensure that broadcasters contribute enough money to Canadian programming.
The Canadian Media Production Association (CMPA) wants the CRTC to exclude PayTV from the group licensing regime and have the Commission undertake a separate proceeding on this class of service. It says that by not agreeing with its request, Canadian feature films could be severely hurt financially.
“The 100% spending flexibility under the policy if applied to PayTV would allow PayTV to shift significant amounts of its spending out of PayTV and away from feature film. That’s the danger,” explained Norm Bolen, president and CEO of the CMPA. “We raise this as a genuine caution and we are afraid that two or three years from now, we will look back at this proceeding and wonder about the consequences we created.”
Spending on programs of national interest (PNI) was a point raised by the writers, directors and actors collectives. They insisted that the 5% PNI spend must represent a floor not a ceiling.
The Writers Guild of Canada (WGC) applauded the Commission for reinstating Canadian programming expenditure requirements, but urged the CRTC not to give in to broadcasters’ requests for added flexibility in CPE and PNI spending. It insisted the commission stick with a CPE floor of 30% and, with the exception of Rogers, ensure PNI is at 10%.
The Directors Guild of Canada agreed with the WGC that PNI should be raised to the 10% level given that spending on documentaries and award shows will now be included in the PNI calculation. The directors are worried that at 5% documentary film making in Canada could disappear.
“A 5% figure for programs of national interest would result in the production of less of this vitally important programming than is currently being produced – or possibly the outright elimination of documentary filmmaking – a form pioneered by Canadians and the only genre at which we are uncontested world leaders,” said Peter Murphy, head of research and policy at the DGC. “Surely this is not the intended goal of this proceeding.”
The Alliance of Canadian Cinema, Television and Radio Artists (ACTRA), armed with award winning actor Wendy Crewson at the table, said that if the new group licensing policy results in less spending on Canadian programming, “it will rival the 1999 TV Policy as an utter failure.”
“Our fear is that there is so much flexibility in the new group-based policy that there won’t be any drama on prime time on the conventional services. The fact is if conventional broadcasters are not actually required to put drama on their schedules, schedule broadcasters will be tempted to relegate it to their specialty services, leaving prime time wide open for U.S. simulcasts,” said Stephen Waddell, ACTRA’s national executive director.
“We therefore respectfully suggest the commission to require that conventional OTA broadcasters air two hours of Canadian PNI in real prime time, Sunday to Friday 8:00 p.m. to 11:00 p.m.”
The hearing continues this week and wraps Thursday-Friday with a final word from the broadcasters.
