Rogers’s proposal to expand PNI categories requires larger public consultation: CMPA

Rogers Communications Inc.’s proposal to change its condition of licence (COL) by expanding the definition of programs of national interest (PNI) must be “dismissed outright” because approving the request would have broader policy implications for the CRTC, according to Canadian Media Producers Association (CMPA). The advocacy group for independent producers was responding to a Part 1 application filed by Rogers in which it requested to expand the PNI categories to include analysis and interpretation, music and dance other than music video programs or clips, reality television, variety, game shows, and general entertainment and human interest. Under its current COL, Rogers must spend five per cent of its annual gross revenues on PNIs – 75 per cent of which must be made to an independent production company. Rogers proposed to direct 100 per cent of its PNI expenditure requirements to independent production companies provided it is “also given the flexibility to devote those expenditures to other television program categories.” “The PNI requirement applicable to the Rogers group reflects a specific policy established by the commission. Consideration of changes to that policy, as well as the definition of PNI, cannot merely be made by way of an application by an affected group,” CMPA wrote in its Wednesday intervention. In 2010 the CRTC introduced licence renewal applications by ownership group rather than on a sectoral basis. The commission steered away from exhibition requirements and instead focused on expenditure requirements for programs that were considered in the national interest, such as award shows ( that celebrate Canadian talent), long-form documentaries, drama, and comedy. “The group-based approach to licensing, including PNI requirements, now apply to all of the English- and French-language broadcasting groups. Any change to the definition of PNI for the Rogers Group would impact the existing policy and how that policy is applied to any or all of the other groups. A change in policy is out of scope for this application and ought to be dismissed outright,” CMPA argued. Rogers argued to the CRTC that devoting five per cent of revenues to PNI has become “unduly restrictive” and forces the company to fund shows that are not in line with its programming strategy. CMPA said that is exactly why the current PNI definition needs to remain intact. “Rogers’ justification runs contrary to the policy rationale for PNI requirements,” the group wrote. “COL for PNI exist in part because the market would not likely support these categories of programming on its own.” CMPA raised concern that altering the PNI categories would pave the way for Rogers to reduce or eliminate programs that currently count as PNI. Quebecor Inc., Corus Entertainment Inc, and BCE Inc. all supported Rogers’ request after putting forward similar requests of their own. "We can no longer work within the prescriptive requirements of the past," Corus wrote. "On the applications of licensees like Rogers and Corus, it should quickly entertain requests to eliminate or amend prescriptive licence conditions and commence laying the groundwork for an outcomes-based approach. Canadian broadcasters cannot afford to wait." Bell also noted relief was needed due to declines in advertising revenues and the significant competition from yet-to-be-regulated foreign streaming services. "The amendments they are seeking would constitute interim relief until the Commission can conduct its next full Group Licence Renewal proceeding, the timing of which is uncertain," Bell argued. In response to the passage of the Online Streaming Act, the CRTC launched a three-step process to implement the framework. Stakeholders who opposed the several applications to reduce CPE and PNI requirements said the commission should wait until it fully implements the act. The Canadian Association of Broadcasters on the other hand said the consultations, coupled with recent two-year administrative renewals, means broadcasters will be waiting three years before they “can be relieved of conditions of licence that were established under very different financial conditions.” There is also a request before the CRTC, put forward earlier this month, by the Forum for Research and Policy in Communications and the Public Interest Advocacy Centre to consolidate the seven requests made by the four private broadcasters into one proceeding. CMPA also took issue with Rogers’ current COL, which allows it to include Sportsnet 360 as part of its group. CMPA said Rogers receives “extraordinary financial advantage” from the group-based approach, arguing that ”precious little is committed to Canadian programming within the Rogers Group other than sports.” In 2021-2022, Rogers’ total Canadian Programming Expenditure spend was around $900,000, or 2.1 per cent of revenues, for its discretionary services with a fictional content mandate while Sportsnet spent $33.7 million in CPE on total revenues of $39.4 million – a CPE level of 85.6 per cent. – Reporting by Jenna Cocullo at jcocullo@thewirereport.ca and editing by Paul Park at ppark@thewirereport.ca

Rogers’s proposal to expand PNI categories requires larger public consultation: CMPA

Broadcast | July 20, 2023

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Rogers’s proposal to expand PNI categories requires larger public consultation: CMPA

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