MONTREAL – Heading into a meeting today with Heritage Minister Bev Oda, Quebecor Media told Cartt.ca that it would double its contributions towards making Canadian content – but not under the current Canadian Television Fund structure.
As reported over the past two weeks, both Quebecor’s Videotron and Shaw Communications have suspended their monthly payments to the fund, each citing similar concerns over how it is run.
For example, the companies strenuously object to the amount of money headed towards productions to air on the CBC (37% of the annual CTF payouts is mandated to go towards productions headed to the Corp.). "If the CBC needs more money, they should go back to the source," said Quebecor executive vice-president Luc Lavoie (meaning the federal government – or Joe and Jane Taxpayer – of course).
When it’s pointed out that the CBC has been clear it gets no direct contribution from the CTF: "Sophistry. Nothing more. It’s a joke," he said, pointing out producers can’t get any CTF funding for a production on CBC without a signed contract with CBC.
Lavoie also said the definition of a broadcaster and what platforms producers may procure funding for has to change, too. Videotron has over 700,000 illico digital TV subscribers who placed 20 million video on demand orders in 2006, so why can’t producers make Canadian content that is exclusive to VOD?
"Who are those guys to say this is not a legitimate broadcaster?" asked Lavoie. "They say, ‘In our days, things were done the following way…’ We think it’s a dinosaur approach that’s got nothing to do with reality."
Producing content for broadband, wireless and even for movie theatres should all be eligible for CTF backing, he said.
Lavoie also believes that for the amount Videotron (and other BDUs) pay, they should have far more say than a single seat on a 20-seat board.
"Not to say we’re suspicious of fraud – not at all – it’s just that the way the board is constituted, we don’t have any say in the way things are governed. We’re paying and what do we have? One voice in 20 or something?
"This has got to be a joke as well."
The giant Quebec media company is also examining the recent Federal Court decision on Part II fees which said the Commission was not allowed to levy taxes on companies in the industry, to see if it applies in this instance. Lavoie said the company hasn’t decided to pursue this route yet over the CTF, adding "we’re not sure that legally, the CRTC can impose this kind of levy."
CTF contributions are part of the BDU regulations where 5% of a cable or satellite company’s gross annual revenues must go towards Canadian content.
When all is said and done, however, Quebecor does not want to cut back on Canadian production. Owning popular original content is a sure way to success in the multiplatform world. "We need it for our own survival. We want to increase it," said Lavoie. "We want to double our contribution to quality Canadian content, but we want it to be a much broader approach and for the creative approach to include multi-platforms and new media and mobile and video on demand.
"We think the candy store approach is over and totally counterproductive at the moment."
Surf back to Cartt.ca later this week as we try to gauge reaction from those companies who are meeting with Minister Oda this afternoon.
