Opinion: Time to review the role of the CBC, says Peladeau

At a time when technology is becoming an integral part of the way people communicate and get information and entertainment, the CRTC’s job as a regulator is harder than ever. That’s because regulatory systems are being undermined by the relentless spread of new kinds of communication and a borderless universe. The CRTC’s chairman has shown determination and a keen understanding of the issues facing Canada’s broadcasting industry. Under his lead, the CRTC has proposed that conventional broadcasters negotiate fees for the value of their signals with cable companies and satellite providers, and left the CBC out of this new scheme. Criticism of the CRTC’s decision to allow only private over-the-air broadcasters to negotiate and collect fees, a privilege specialty channels have enjoyed for 20 years, is unwarranted. But the most surprising reaction was the indignant outcry from CBC upper management. The public broadcaster complained bitterly that its services were being compared disadvantageously with those of private broadcasters. But how could the CRTC have acted otherwise? The CBC/Radio-Canada already has four revenue streams: A $1.1 billion annual appropriation from Parliament; plus money from the Canada Media Fund; plus carriage fees for the CBC News Network and RDI (which some people suspect are being used to finance CBC news services); plus money from the Local Programming Improvement Fund. Together, it comes to almost $1.3 billion. As well, CBC collects close to $350 million a year in advertising revenues, bringing the total to almost $1.7 billion. If the CRTC, the courts or the government were to grant CBC still more financing by forcing cable companies and satellite providers to pay for its signal, that money would have to come from consumers and/or private enterprise. It would be unreasonable to impose this additional burden on taxpayers, who are already funding CBC through their tax dollars. The future of public broadcasting is being reviewed in most industrialized countries. Some governments have developed detailed terms of reference for their public broadcasters to make sure they do what citizens expect, and deliver programming different from private broadcasters. Not in Canada. The CBC’s practice of buying high-priced US programs such as Beautés désespérées (Desperate Housewives dubbed in French) and Jeopardy!, yielding no local economic or cultural benefits, is a permanent encroachment into the private broadcasters’ territory. Furthermore, the CBC has launched the Tou.tv website without any consultation with industry, a move that jeopardizes Canada’s broadcasting system by providing free, heavily subsidized television content on the Internet without showing any concern whatsoever for the revenue losses which may result not only for the CBC, but also for other stakeholders, including writers and directors. The unaccountable CBC has even used every imaginable manoeuvre to wiggle out of full compliance with the Access to Information Act, a law it readily invokes in carrying out its own legitimate mission to inform citizens. The future of the CBC and its pre-eminent role in our broadcasting system should be up for review. The funding the corporation receives is tied to its mandate, as stipulated in the Broadcasting Act. Just as the CRTC acted courageously in its recent decision, Parliament should now rethink CBC’s direction and funding, and make it accountable the way other Crown Corporations are. Pierre Karl Peladeau is president and CEO of Quebecor Inc. and Quebecor Media Inc. This article originally appeared in Sun Media publications and has been republished with permission.

Opinion: Time to review the role of the CBC, says Peladeau

Broadcast | April 1, 2010

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