CRTC closes debate on Canadian content regulatory relief, for now

The CRTC denied applications Thursday from CTVglobemedia Inc. and Rogers Broadcasting Ltd. for early regulatory relief from their Canadian content requirements, but industry observers say the matter will re-emerge when the broadcasters’ group licence renewals begin next year. “I think the broadcasters will end up … making a more persuasive argument. Whether that argument is persuasive enough to influence the CRTC’s decision, I don’t know,” Peter Murdoch, Communications and the Energy and Paperworkers Union of Canada (CEP) vice-president of media, said in an interview. On April 26, 2010, CTV asked the commission to reduce its overall minimum level of Canadian programming from 60 to 55 per cent for its A stations. The company also sought to eliminate its exhibition requirements for priority programming, and to amend requirements relating to the provision of described video. CTV said the stations had lost roughly $98 million since their acquisition from CHUM Ltd. and that granting the regulatory relief would help correct the situation. CTV also argued its requests were in line with the commission’s new group-licensing broadcasting policy for private television services. The new policy drops the overall minimum level of Canadian programming to 55 per cent but also imposes a new Canadian programming expenditure requirement on conventional television services based on their previous year’s revenues. Under the policy, broadcasters will no longer renew each channels’ broadcasting licences individually; instead they will be treated as a whole, starting in the fall of 2011. On May 26, CTV followed up with a second request asking to also reduce the minimum Canadian content requirement for its conventional television stations. Rogers had also approached the commission with a similar application. On May 27, the company asked the CRTC to also reduce its Canadian content requirement for its Citytv and OMNI stations. The company argued the change would only affect its broadcast of repeated programming and that it would not impact the Canadian independent production sector. But on Thursday the CRTC denied the companies’ applications. “The Commission … does not consider that it would be appropriate to implement the Policy on a piecemeal basis, for example by approving a reduction in Canadian programming without imposing expenditure requirements as set out in the Policy,” the commission wrote in its decision. “It is also of the view that it would be unfair to implement aspects of the Policy for some licensees without similar action for competitors.” Responding to the requests for regulatory relief for CTV’s conventional stations and Rogers’ Citytv and OMNI channels, the CRTC said the companies failed to demonstrate the financial necessity of the move. In an email statement to The Wire Report, CTV executive vice-president of corporate affairs Paul Sparkes said the A stations remain in need of regulatory relief. “Today’s decision is disappointing. The licence amendments proposed for CTV and A are essential to the stations’ operations. They are consistent with the new policy framework already put forward by the CRTC, but the policy doesn’t take effect until Fiscal 2012,” he said. “The A stations continue to lose significant amounts of money and CTVglobemedia is not in a position to continue to underwrite these losses. They require urgent regulatory relief now – not later.” But the Canadian Media Production Association (CMPA), the Writers Guild of Canada (WGC), the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) and the CEP—which had all opposed CTV’s and Rogers’ requests for regulatory relief—said they support the commission’s ruling. “It has been a long time in terms of implementing a new television policy. was brought in in 1999 virtually destroyed expenditures on Canadian drama and documentaries. It’s now 2011, and we think that has been too long,” Maureen Parker, WGC executive director, said in an interview. “However we understand the decision is made … we would like the broadcasters to also accept.” Ian Morrison, spokesman for watchdog group the Friends of Canadian Broadcasting, said he feels the discussion on Canadian content should be considered closed. “Keeping one’s eye on Canadian content—that is the big picture. It’s been the issue over decades or even generations. I think the commission has dealt with that in the policy,” he said. “I think we should all just get on with our lives now, we have a new television policy … and it will be interesting to see how it works out. But I think everybody will just have to get in line behind the policy.” Norm Bolen, CMPA president and CEO, said the association also supports the CRTC’s new group licensing policy—as well as the commission’s decision to uphold it Thursday. “It basically says to the broadcasters: play by the rules, follow due process and everybody will be treated the same. No queue jumping, no special treatment,” he said. Stephen Waddell, ACTRA’s national executive director, said by email that they also support the CRTC’s decision. “These broadcasters were cherry-picking the bits from the new TV policy that worked to their advantage while ignoring their obligation to give back to the system. Aside from the fact that their requests were completely out of line, such major changes should happen in the context of licence renewals after a full public hearing,” he said. kfournier@thewirereport.ca

CRTC closes debate on Canadian content regulatory relief, for now

Broadcast | October 7, 2010

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