1% increase for PNI not enough, creative groups say

Creative groups are standing their ground on spending for programs of national interest (PNI), suggesting that a marginal increase in funding for those programs proposed by the large English-language broadcasters last month is not enough to support Canadian content. “About the only virtue of the proposed 6% level is that it is not 5%,” the Directors Guild of Canada said in its reply to the proposal, which were due last week. “DGC does not believe that the sent back these decisions assuming the result would be such a marginal improvement in PNI.” That one per cent increase was proposed by BCE Inc. and Corus Entertainment Inc. in their revised licence renewal applications, which were made public last month. They follow an August order-in-council directing the CRTC to review its May 15 license renewal decision that included setting the minimum standard for PNI spending at five per cent, which upset some of the same creative groups, who cited a loss of CanCon funding. While Rogers Communications Inc. said it would like to see PNI stay at five per cent, both Bell and Corus said in their applications that the slight increase would actually translate into “tens of millions” of dollars for PNI. But the creative groups said this isn’t enough. The DGC said the CRTC should reject a standardized approach and re-establish PNI requirements that reflect historical levels, meaning Corus would spend a minimum of nine per cent, Bell eight per cent and Rogers five per cent. The Bell and Corus proposal would result — if compared to historical PNI spending levels — in a $256-million loss to those programs during the five-year licence term, DGC continued. “PNI are very expensive forms of content to produce,” the DGC said in its submission. “They are also important forms of Canadian content that help build Canada’s production sector, ensure the creation of high-end content for Canadian audiences to enjoy, and allow Canadians to share their experiences and insights with one another.” The Canadian Media Producers Association (CMPA) agreed in its own submission with DGC’s proposed levels, based on historical spending. Meanwhile, the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) said in its own submission that PNI, which includes drama that ACTRA says reflect Canadians’ “lives, fears, dreams and aspirations,” should be no less than 10 per cent for Bell and Corus and no less than six for Rogers. “ACTRA submits this CRTC process may be our last opportunity to ensure the regulated broadcasting sector makes significant contribution to this genre,” it said. For the Writers Guild of Canada, the one per cent increase in PNI should be tacked on to the historical spending of the broadcasters, which translates to a PNI spend of nine per cent for Bell, 10 per cent for Corus and six per cent for Rogers. According to a report prepared by analyst Mario Mota, around the time of the initial consultation on the licence renewals, groups within Bell and Corus spent an average of eight per cent on PNI. Some creative groups also touched on how that PNI should be allocated, at least 75 per cent of which currently must go to independent productions and 25 to affiliated productions. ACTRA said it would only support any reduction in independent production if its suggested PNI requirement levels are met. The DGC argued for the status quo, saying the issue was “never even on the table at the public hearing.” All broadcasters argued in their revised applications for a reduction in spending on independent productions, with Bell and Corus asking for a dip to at least 50 per cent and Rogers more drastically reaching for an all-out reversal of the numbers — 25 going to the independents. The broadcasters’ argument is that they need to be more nimble to compete against unregulated streaming services. Groups including ACTRA and the CMPA also rejected another one of Corus’ and Bell’s proposals, which was to reduce by two per cent the Canadian programming expenditure (CPE) requirement, standardized in the May decision to 30 per cent. The 30 per cent, ACTRA said, is an “appropriate level and it automatically adjusts to revenues earned by the group, including reducing the burden on broadcasters in a time of declining revenues.” — With reporting by Ahmad Hathout at ahathout@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

1% increase for PNI not enough, creative groups say

Broadcast | January 30, 2018

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1% increase for PNI not enough, creative groups say

Broadcast | January 30, 2018

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