Showing posts with label CTF. Show all posts
Showing posts with label CTF. Show all posts

Tuesday, March 24, 2009

Regulating Rules In A Rigged Game

The race for the private Canadian networks' license renewal Cup is underway and heading for a finish in the form of mid-April hearings in front of our regulatory body, the CRTC.

Some thoughts on regulation, prompted by this Canadian Press article. (yeah I know the feds have backpedaled from those statements but let's not pretend the sentiment has gone away)

The Harper government is considering help for Canada's troubled private TV broadcasters, including the possibility of looser regulations and tax changes.

Heritage Minister James Moore said Wednesday that the federal cabinet is aware of the threat to local news content should more local stations close.

And he confirmed that the government is looking specifically at how to assist CanWest Global Communications, which is teetering on the edge of bankruptcy.

"We're mindful of that and we're thinking about whether or not there's anything the government can do, but I can't be any more specific than that right now," Moore said. He hinted the help could come in the form of looser regulations and changes to the tax system, which would also help other private networks.

"The role of the government is to make sure the regulatory regime, the tax regime is more flexible, more forgiving and more open in the future," Moore said.

"We're a low-taxation government that does not believe in over-regulating industries that are struggling."

I'll repeat that last part again, "We are a low-taxation government that does not believe in over-regulating industries that are struggling."

It's weird how regulation up here in Canadian TV has become such a dirty word lately, especially for the major networks and the cable companies. This after we've witnessed how a lack of regulation in other areas and industries has contributed to such a global financial crisis/mess.

But let's get real...

The private Canadian broadcasters have played on a protected field for a long time now, a field created by CRTC regulation. That regulation has permitted the simulcast situation which not only increased their ad revenue tenfold but prevented American networks from competing with them directly. Further to that, our broadcasters have also had the benefit of government subsidies -- tax credits, Telefilm, CTF envelopes, etc. -- also created by regulation, so they can generate their 'required' indigenous product while not having to pay market prices in terms of license fees.

And now that that very generous business model appears to be broken (or ain't working as well as it has), the private networks are howling foul and no fair and crying poor (although this piece by Kelly Toughill about CTV's healthy operating profits last year seems to say otherwise). And they've been lobbying the CRTC for a bailout, not necessarily in the form of a cash handout per say, but in the form of looser regulations...less local/regional programming, less Canadian content, less taxation, and perhaps even a carriage fee per cable company subscriber.

It's so bizarre because not only have these organizations already gotten relief in the past but they now want more relief from the very criteria they were assigned when their licences were granted to operate in the first place....to provide Canadian programming – prime-time dramas, documentaries, variety programs, local and national news, and so on.

Further to that, the CBC is being told to live within its means...no relief, no bailout, no loosening. This while the private broadcasters, who have already made big gains recently with the revamp of the Canadian Media Fund, appear to be on the verge of getting cut even more slack - while still being able to ad substitute and simulcast U.S. network programming.

And the irony of all this is how the U.S. networks are now financing many of their own programs under the banner of 'co-productions' using Canadian tax credits and cable subscribers money via the various television funds, etc. ...not to mention the internet is completely changing the way the game has been played...c'mon people, it's FUCKED!

McGrath is back with a vengeance and says it all but better HERE, plus offers up some things we can do as regular people if we want to object. He also posts a wicked assessment of the Fox news debacle and why we shouldn't be surprised HERE. Henshaw's been saying the same thing at his digs for a while now, like HERE. And this week the Globe & Mail's John Doyle makes a nice case for saving local stations and their services HERE. Against the odds a few of us are still trying to present the perspective of the other side or at least paint the 'big' picture.

But you've probably already zoned out. We've ALL been saying the same thing over and over for the past couple years and I'm sure it just becomes white noise after a while. But if you can take away something, take away this: we aren't writing about this issue just to whine sour grapes or to crazytalk call down the big nasty networks and the corporations that own them...we write about it because we still have hope for a small but entertaining, vibrant yet homegrown Canadian television industry...subsidized or not.

Ten years ago, regulatory changes loosened 'the rules' and gave the networks 'relief'...relief that not only drastically reduced drama production in Canada but led to recent bidding wars between said networks for more and more U.S. programming. And the proposed 'relief' that's being put forward today will just prop up this broken model for a little longer while continuing to decimate the homegrown indigenous industry.

Canadian TV doesn't suck....it's just never had a fighting chance.


So, what's my point. I dunno..I guess I'd like the CRTC to 'regulate' broadcasting to the production community's advantage for a change, or get out of the regulation business. But that will never happen, not on our private broadcasters watch. Because for all their clamouring for deregulation, its the 'regulating' that's actually been a sweet deal for them so far.

And I just hate sitting around and saying nothing. So if just one reader stopping by has their perspective challenged and maybe even writes their MP a letter of objection regarding the CBC getting slammed and the private networks getting more breaks, then I'll take that as a little victory...a small win is better than nothing.

Especially when the game is more or less rigged.

Monday, March 09, 2009

More Black Monday? Or Just Waiting For Wednesday...

Two more articles to point out today...the first from Bloomberg.com HERE with the headline: CBS, NBC Buy Canadian TV Programs To Save On Costs

U.S. networks have made shows in Canada for years to gain tax benefits. Now they are buying dramas written and produced for Canadian TV and set north of the border. CTV, the nation’s largest private broadcaster, is sharing costs and will air shows at the same time. The results are licensing fees for new dramas that are about half the typical $1.6 million per episode.

“We may, in five years, look back upon all this and it’s a blip, but I don’t think so,” said Peter Sussman, partner at Toronto-based Aver Media LP, which financed “Flashpoint.” “The economics of Canadian and U.S. co-production create a model that can’t be ignored.”

The other article is from the Hollywood Reporter HERE, which I keep thinking may be a misprint as I've read nothing of this in any of the Canuck rags yet the headline reads: Canada Rejects Cutback On U.S. Series Buys

The Canadian government has rejected a proposal by the country's TV regulator to curb domestic broadcasters' spending on U.S. series. Federal Heritage Minister James Moore said Monday that Ottawa should not impose conditions or quotas on how Canadian broadcasters buy U.S. programming.

"(Canadian) broadcasters have their own business model," Moore said. "They keep their business models going forward as best they can. Far be it for me to second-guess how to run a broadcast network and programming."

His comments follow a CRTC proposal to use upcoming license renewal hearings to consider whether expenditures on homegrown TV shows should match those for American fare.

Domestic broadcasters contend that they require the profits generated by airing U.S. series to subsidize the production of expensive homegrown dramas. Canadian indie producers, unions and guilds favor the CRTC's proposal for a so-called 1:1 ratio on Canadian and non-Canadian program expenditures as a welcome measure to promote homegrown series production.

Moore said his job is to encourage the production of homegrown programming, a role that on Monday saw him move to merge the Canadian Television Fund and the Canadian New Media Fund into a rebranded CAN$310 million ($241 million) Canada Media Fund.

The CTF, the main source of government subsidies for Canadian indie producers of primetime TV shows, will be reformed to create more homegrown content available to Canadians over more digital platforms and to be sold internationally. Ottawa also will allow Canadian broadcasters to make their own TV series in-house as well as commission series from indie producers.

The federal minister made his announcement on the Toronto set of the CBS and CTV police drama "Flashpoint," a Canadian-U.S. network partnership Moore wants to see more of.

That Moore wants to see more of....hmmm.

If this Hollywood Reporter piece is for real and Moore has in fact quashed the proposed 1:1 foreign/domestic spend, then these two articles are essentially saying the same thing: look for more US/Canadian co-productions and partnerships, and these productions will be able to access and use up the resources and monies supposedly set aside for independent Canadian TV producers and production.

A brand new day for Canadian TV (as long as it has the U.S. seal of approval)? Or...yikes!

Who knows...depends on how it all shakes out in the wash.

Black Monday? Or Just Business As Usual In The World Of Canadian TV....

So the big news flittering and twittering around the internets this morning was the announcement by Heritage Minister James Moore to merge the Canadian Television Fund and the Canada New Media Fund into the Canadian Media Fund.

From Greg Quill at the Toronto Star:

The (CTF) fund, which is the source of taxpayer subsidies to the Canadian television production industry, will be combined with the Canada New Media Fund, which subsidizes digital media development starting April 1, 2010.

The government will invest $134.7 million annually in the new program, called the Canada Media Fund, Heritage Minister James Moore said at a press conference today on the Toronto set of the CTV police drama series, Flashpoint. "We are levelling the playing field at a time when the industry is undergoing structural change," Moore said. "The eligibility for funding for broadcaster-affiliated production will be expanded, and broadcaster in-house production will be allowed ... including provincial educational broadcasters and CBC/Radio-Canada."

The emphasis of the new broadcast policy will be on drama, comedy, and children's programming, and will favour productions developed for distribution platforms other than prime-time television – the Internet and mobile telecommunications devices, said Moore, who admitted he watches "more television programs on my iPod than on regular TV."

The new fund will also support documentaries and variety and performing arts programming that can demonstrate that the market alone would not support their creation.

"The realigned fund will favour projects produced in high definition and those that have achieved and demonstrated the most potential to achieve success, in terms of audience and return on investment," Moore said.

What should be clarified is that the guaranteed envelopes for provincial educational broadcasters and CBC/Radio Canada have been removed to 'level the playing field' (although CBC, along with all other broadcasters, will be allowed to compete for in-house production cash that it was previously excluded from.)

From TradingMarkets.com:

SUMMARY OF REFORMS (POLICY PRINCIPLES)

In order to make this initiative work, reforms will be needed, based on four key principles:

- get governance and accountability right;

- reward success and require innovation;

- focus the investment on what Canadians want; and

- level the playing field.

Get governance and accountability right

A smaller fully independent board made up of nominees of the funders will be created. Broadcasters, producers, and creators will be consulted through a mechanism to be established by the board. A contribution agreement between the Government of Canada and the Canada Media Fund will set the terms and conditions for the Fund.

Reward success and require innovation

The realigned fund will favour projects produced in high definition and those that have achieved and demonstrated the most potential to achieve success, in terms of audience and return on investment. Applicants will be required to make their projects available across a minimum of two distribution platforms, including television. This initiative will also foster the development of cutting-edge applications and content to drive innovation back into the mainstream forms of content. Since building audience demand means investing in development, versioning, marketing, and promotion, the Fund will ensure that these activities occur.

Focus the investment on what Canadians want

The Canada Media Fund will put particular emphasis on drama, comedy, and children's programming. It will also support documentaries and variety and performing arts programming if a project can pass a test demonstrating that the market alone would not support its creation. Because Canadians also want programming on other distribution platforms, it will ensure that this programming is available not only on TV on prime time, but also on the Internet and mobile devices. By focusing on programming Canadians want, the Fund will ensure the best use of the creative sector by ensuring a strong Canadian presence through the predominant use of Canadian creative talent, including writers, directors, and performers. As Canadians want to interact and learn from each other, the Fund will also support Aboriginal and minority French-language productions, and respect the specificity of the French-language market. It will also support programs in third languages where demand and funding are present.

Level the playing field

The eligibility for funding for broadcaster-affiliated production will be expanded, and broadcaster in-house production will be allowed. This will be phased in gradually and over time to find the right mix. All broadcasters will be put on a level playing field, including provincial educational broadcasters and CBC/Radio-Canada, whose guaranteed envelope will be removed. Support will continue to be provided to productions from all regions of Canada.

You can read Moore's complete speech HERE at the Canada Heritage website.

Some other takes, like from cbc.ca

Moore referenced several reasons for the funding model change. They included a 2005 report from Auditor General Sheila Fraser that raised concerns about conflicts of interest within the CTF leadership, including the fact that some board members became funding recipients.

He also mentioned the CTF crisis, with cable companies calling for it to be dismantled. Shaw and Vidéotron, which withdrew their financial support of the CTF in December 2006, charged that too much of the financing was being allocated to public or educational broadcasters, and funded unpopular programming.

The creative community argued, however, that while the CTF's management structure needed review, the entity itself was necessary in order to protect the Canadian TV industry in the face of the overwhelming amount of programming from the U.S.

Shaw and Vidéotron resumed payment after former heritage minister Bev Oda ordered a CRTC taskforce to review the CTF. In June 2008, the federal broadcast regulator recommended splitting the CTF into two streams — one for private-sector broadcasters, the other for public-sector broadcasters.

In a related note, the CRTC is currently in the midst of hearings in Gatineau, Que., over new media regulation and funding.

So far, the creative community has largely called for the CRTC to step in to regulate the new media industry and enact a levy on internet service providers, with the funds to go towards supporting Canadian productions created for new media platforms such as the internet and mobile phones.

The ISPs, which began their appearances before the regulator on Monday, object to both regulation and a levy.

Established in 1996 to invest in creating English, French and aboriginal-language Canadian programming, the CTF finances a significant portion of the country's domestically produced TV shows. In 1998, the Canadian New Media Fund, a corresponding entity to support new media, was created.

Cable firms are required to submit about five per cent of their gross revenues to specifically fund the creation of Canadian programming, an agreement they made in return for permission to increase their cable rates in 1993. The fund subsequently set up in 1996 to distribute that money became the CTF.

It's important to note, as this article does, that funding for the CTF is the result of an agreement made by the cable firms in return for permission to raise their cable rates, and NOT simply (as reported in the Star article at the top of post) "...the source of taxpayer subsidies to the Canadian television production industry..."


Ch-ch-ch-ch-changes...with more to come apparently. At the conference, Moore also stated:

"The government needs to "get out of the old structures" in order to upgrade and modernize funding policies."

"Keep your eyes open for more."

If you're looking for analysis, keep on looking...I'm still digesting, though you know CBC's guaranteed envelope removal, access allowed to broadcasters for their own in-house production, and a board made up primarily of reps from the big cable companies will have a lot of people stomping their feet --- not to mention whether the merging of New Media and Television funds even makes sense? Does it streamline and smooth it all out? Or just muddy the waters all over again. For what its worth, I'm a big fan of the 'pick one' philosophy...and always will take one entity to deal with over two funds or two streams.

But I will say everyone I spoke to in the production community and provincial film agency circles this morning were all saying: "This is bad...bad....bad..."

Is it?

Monday, October 29, 2007

Fight...Fight...Fight...Fight!

Henshaw takes on DMc and offers up a different perspective of the latest goings on with the CTF, Jim Shaw, and the WGC .

Cool. My money's on the bull.