CRTC funding changes threaten Canadian content creators, critics say

By lowering the requirements for obtaining Canadian content funding, the CRTC is pushing Canadian content creators to the curb, according to opponents of the regulator’s move last week to rejig its framework governing certified independent production funds (CIPFs). On Thursday, the CRTC updated the CIPF framework, a move it said in a release was intended to provide the “flexibility necessary to operate in an increasingly multi-platform environment.” The new rules have elicited a mixed reaction, with the Canadian Media Producers Association (CMPA) praising the changes, while critics, including the Writers’ Guild of Canada, say they will hurt content creators. Sandwiched in the changes is the lowering of a requirement governing how many Canadians must work on a production for it to get funding. Some content creators, according to consultant Kelly Lynne Ashton,“are feeling that this is a massive attack on talent … which would mean hiring more primarily American actors, writers, directors.” She said in a phone interview that the change “that people are most upset about is the lowering of the point count.” In the previous system, productions would only get financed if they hit at least eight certification points, but the new rules only require six. The system gives points corresponding to positions in the production that are occupied by Canadians, including, in live action productions, two points for a Canadian director, two points for a screenwriter, and one each for lead performer, second lead performer, director of photography, art director, music composer and picture editor. The CRTC said in its decision last week this is an effort to help Canadian production companies “benefit from expertise from abroad.” Last year, in its Let’s Talk TV broadcasting policy, the CRTC alluded to the change when it said “producing programs often involves a mix of talent and financing from different sources, including other countries.” In that decision, it put forward two pilot projects that would be an exception to the certification process in order to determine what is considered Canadian. The first was for Canadian live-action drama and comedy productions based on the adaptation of best-selling, Canadian-authored novels; and the second was for Canadian live-action drama and comedy productions with a budget of at least $2 million per hour. In both programs, the production only has to have a Canadian screenwriter, a lead Canadian performer and the production company itself must be Canadian, where at least 75 per cent of the service and post-production costs are paid to Canadians. It said in last week’s decision that it deemed these productions as eligible for CIPF funding. The change to the framework, however, is based on a misunderstanding on what viewers want to see, according to Ashton. “The CRTC seems to think that if there are more American components, there more American writers, actors, directors, then the shows will sell better,” she said. But Ashton said shows with 10 points do better “because they are creatively better.” “When you lower the point count, you are watering down the creative voice, and if you water down the creative voice, they just don’t sell as well,” she said. However, the Canadian Media Producers Association (CMPA) applauded the regulator’s “modernization of the framework” in a release last week, saying the changes “will allow producers more flexibility to innovate and develop diverse content.” The CMPA said Monday it would not elaborate on this statement. In a phone interview, Maureen Parker, executive director of the Writers’ Guild of Canada, said that the organization is “very disappointed with our Canadian producer partners.” Parker said the decision is a “short-sighted and damaging move” for the Canadian cultural industry, pointing out that the producers are the financial component — not the creative — and are not the ones who lose out by this change. “Absolutely we respect the role that producers play in our industry, but they are not the creative showrunners of the project; nor are our actors … they are not getting the lead roles in a six out of 10 ,” Parker said. “What we’re really doing is using our tax dollars – and these are regulated, independent funds – to make foreign production.” “This is really a direct shot at Canadian creators and saying we’re not good enough.” She added that “the producers are lobbying to reduce the point count at the CMF ,” which is a decision that she said can only be made by Heritage Canada. Parker added that CRTC chairman Jean-Pierre Blais’ vision is that Canada needs more international success, which she said Canada has plenty already. According to stats produced by the WGC, the export value of Canadian TV “reached an all-time high of $539 million in 2014/15, with demand growing steadily over the past decade.” In a report, the WGC pointed to top “10-point Canadian TV series” including Call Me Fitz, Degrassi, Heartland, Orphan Black and Murdoch Mysteries, which it said is a number one original series on U.K. channel Alibi. “What the CRTC is really talking about is international financing and that’s what the producers are talking about. They believe that they can’t finance a production from the Canadian market, so they’re looking afield for financing in Europe and the U.S., and the trade-off is our cultural creators,” Parker said. “So the trade-off for foreign funding is we’ll get rid of the cultural content.” The office of the Minister of Canadian Heritage did not respond to a request for comment Monday. In a press release Tuesday, the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) said it was “alarmed with the CRTC’s disregard for Canadian creators and our industry,” adding the decision to drop the point requirements was made without public hearings and would “provide more ‘flexibility’ for producers” but not creators. “The CRTC’s decision will result in fewer work opportunities for Canadian creative talent, and that means a weaker Canadian industry in the long-run,” the press release said. It said the decision puts at risk an industry “that contributes $8 billion and generates 150,000 jobs to our economy.” It’s asking the CRTC to revisit the issue and get creators involved in public hearings. Other changes the CRTC made to the framework include eliminating the need for a broadcast license or development agreement for CIPF funding, which Ashton said allows for more flexibility and the possibility for new players, new reporting requirements and a change in the definition of new media projects. As for the long-term effects of the decision, Ashton said it’s “wait and see.” “There is no transition provision in this decision, which is odd, so it’s effective September 1, but each fund has to go through a process of revising their guidelines and getting that approved by their board,” she said. “They may have to change board members because of the new rules, so it’s going to take a while before we actually see new guidelines for producers to even apply to. And the commission doesn’t seem to have thought that through.” — With reporting by Ahmad Hathout at ahathout@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

CRTC funding changes threaten Canadian content creators, critics say

Broadcast | August 29, 2016

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CRTC funding changes threaten Canadian content creators, critics say

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